Video: List of potential WaMu suitors grows

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SEATTLE - NEW YORK - Shares of Washington Mutual Inc. soared Friday after the U.S. government said it is developing a banking industry rescue, though the company continued to search for a buyer.

The stock gained $1.26 to close at $4.25. Shares of WaMu have traded between $1.50 and $39.25 in the past 52 weeks.

Federal officials are crafting a plan to assume banks' bad debt. The news came late in trading Thursday and sent all three major indices soaring.

Also Thursday, the Fed and other major central banks around the globe joined forces to inject as much as $180 billion into global money markets in an attempt to keep the credit crisis from worsening

Seattle-based WaMu has hired Goldman Sachs to auction off some of its parts, and the Financial Times reported that five potential buyers have been pouring over WaMu's books.

A new player is Spanish banking giant Santander, with the most branches in the western world. It joins Wells Fargo, JP Morgan Chase, Citigroup and HSBC in looking at WaMu's financial statements.

Sources familiar with the situation say it is unclear if any will pony up an offer to take over the nation's largest savings and loan.

In the meantime, as depositors grow skittish, WaMu is fighting back. At some California branches Thursday, customers were handed a flyer pointing out the bank has $50 billion in liquid assets and has financial strength.

In Sacramento, we found some customers who hadn't heard of WaMu's worries.

"Actually we are worried. This is our first time hearing about this," said one woman.

Shareholders and depositors and WaMu employees like Jeremy Baker are hopeful, but anxious.

"I think people are pretty demoralized but working hard," said Baker.

Washington State Sen. Maria Cantwell is hoping for a good outcome.

"I think Washington Mutual is going to continue to try to stabilize their individual situation. I'm sure they're in discussion with lots of people about how best to do that," she said.

WaMu has 2,300 branches and $143 billion in retail deposits. Reports indicate some of the potential suitors are only interested in parts of WaMu, definitely not mortgage-related investments.

Wall Street is under the gun as Congress and the treasury now race to agree on a rescue plan, which could buy up some of the bad sub prime loans which have Washington Mutual and other banks over the corporate barrel.

"We are coming together to work for an expeditious solution," said Treasury Secretary Henry Paulson.

The two-part plan discussed on Capitol Hill tonight looks to have taxpayers buying up some loans backed by Wall Street, and speed up the buy back of Fannie and Freddie's.

Some economists are critical.

"So we are going to become the residual owners of everything bad in the economy," said Joseph Stiglitz, Economics Professor at Columbia University.

As for WaMu, the problems are with its subprime mortgage business. The core business, the banks that are on the street corners where you make your deposits are strong and safe.