In the February 28, 2008 issue of my free weekly eletter, What's Working on Wall Street Now, I listed ten major financial stocks that investors need to sell immediately. Already, three of those stocks have gone under; Bear Stearns, Freddie Mac and Countrywide Financial. Yesterday, Washington Mutual (WM) became the fourth.

Washington Mutual, the giant lender that came to symbolize the excesses of the mortgage boom, was seized by federal regulators on Thursday night, in what is by far the largest bank failure in American history.

Regulators simultaneously brokered an emergency sale of virtually all of Washington Mutual, the nation's largest savings and loan, to JPMorgan Chase for $1.9 billion, averting another potentially huge taxpayer bill for the rescue of a failing institution.

At the time of my warning, shares of WM were going for about $15. Today, they're going for about 15 cents.