Federal regulators are pushing Seattle-based Washington Mutual to sell out to a bigger bank or investment group, according to the Wall Street Journal.

WaMu has had to write off billions in bad debt from subprime and home-equity loans and adjustable rate mortgages.

As foreclosures made WaMu's risk apparent, the company's stock tumbled.

The newspaper said in one scenario, the Federal Deposit Insurance Corp. would seize control of WaMu's banking unit and sell its deposits to another bank.