SECTION 7 – REGULATION FD

Item 7.01.  Regulation FD Disclosure.

            Washington Mutual, Inc. (the “Company”) is filing this Current Report on Form 8-K to provide an update to the status of the Company’s litigation against the U.S. government arising from contracts entered into by Anchor Savings Bank FSB and the government.  The Company is a party to the litigation as a result of its acquisition of Dime Bancorp, and the acquisition by the Company’s subsidiary, Washington Mutual Bank, of Dime Savings Bank of New York FSB, a subsidiary of Dime Bancorp, which in turn had previously acquired Anchor Savings Bank FSB. 

            Prior to the Company’s acquisition of Dime Bancorp in January 2002, Dime Bancorp had created Litigation Tracking Warrants™ (“LTWs”) and had distributed one LTW for each share of its common stock outstanding on December 22, 2000 to each of its shareholders on that date.  The LTWs originally permitted the holders to receive common stock of Dime Bancorp at a price based on the adjusted amount actually recovered in the Anchor Savings case.  Upon the Company’s acquisition of Dime Bancorp, the LTWs became exercisable for the Company’s common stock.  The LTWs trade on the Nasdaq Global Market under the symbol "DIMEZ".

            On March 14, 2008, the U.S. Court of Federal Claims issued an order and findings in the case of Anchor Savings Bank, FSB v. The United States of America, No. 95-39 C.  The Court’s order and findings concluded that Anchor Savings had incurred recoverable damages in the amount of approximately $382 million, plus an undetermined amount for a gross-up of the Company’s tax liabilities.  The Court ordered the parties to provide certain information with respect to the gross-up by May 1, 2008, so that it could make a final determination in regard to the gross-up.  The Court found that Anchor was entitled to damages for the lost profits resulting from its forced sale of its Residential Funding Corporation subsidiary and of large portions of its branch network.  The Court awarded additional damages based on expectation damages from reduced stock proceeds, “wounded bank” damages and overpayment of FDIC premiums.  The Company anticipates that the government will appeal the Court’s ruling.  In such event, the Company cannot estimate when a final resolution of all appeals will be concluded.  In complex litigation such as this case, the appeals process could last several years.  In the event of an appeal the amount of the Court’s damages findings could be reduced or negated.

            The LTWs may not be exercised for shares of the Company’s stock until the litigation, including all appeals, is ultimately concluded and the Company has collected proceeds of any judgment from the government.  There is a possibility that some or all of the damage awards will be reversed on appeal.  Therefore, although the Company has received a trial court judgment in the case, there is no assurance that the Company will ultimately collect any significant proceeds from the final judgment in the case.  The trial court judgment has no immediate financial impact on the Company. 

            On a Form 8-K dated March 12, 2003, the Company provided background on the litigation and the detailed formula for the calculation of the number of shares of Company common stock that could be issued to the holder of an LTW upon final judgment and collection of proceeds and how that formula was affected by the Company’s acquisition of Dime Bancorp.  The basic formula is: