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Projected losses on credit cards, commercial loans and mortgages at Washington Mutual Inc. may force the Seattle-based bank to set aside up to $30 billion for credit losses through 2011, says Lehman Brothers Inc. analyst Bruce Harting, who did not separate total losses expected in WaMu's credit card business. WaMu began issuing credit cards in 2005 after the $6.45 billion takeover of Providian Financial Corp. Company officials had hoped WaMu's credit card business would help it recover from losses on mortgage loans to subprime customers with poor credit. Last week company officials reported the company may need to charge off $12 billion to $19 billion of its $187 billion one-family residential home-loan portfolio within four years. WaMu lost about $3 billion in the six months ended March 31. The bank last week announced the elimination of 1,200 jobs that support the home-lending unit. The cuts affected an estimated 3% of the company's employee base. Mounting losses caused WaMu this year to slash its dividend and raise $7 billion of capital that diluted existing shares. The bank this month also stripped Chief Executive Kerry Killinger of his role as chairman after a majority of shareholders voted to name an independent director to the role.

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