U.K. hedge fund Toscafund Asset Management has approached Washington Mutual, offering to participate in any consortium looking to recapitalize the bank, The Wall Street Journal reported on Wednesday.
Citing a person familiar with the matter, the Journal said on its Website that the London-based firm approached WaMu's board this week with an offer to invest its own money.
Washington Mutual shares rose more than 12 percent on Tuesday amid speculation of a possible capital infusion by Goldman Sachs or Warren Buffett.
The shares closed down about 2 percent at $11.64 on the New York Stock Exchange on Wednesday.
Last week, shares of WaMu, the largest U.S. savings and loan which has been battered by mortgage losses, fell after a report in The Wall Street Journal said it has approached private equity firms and sovereign wealth funds about possible cash infusions.
Neither WaMu nor Toscafund were immediately available.