History of Wamu Collapse
A history of WaMu and its Collapse due to reckless, fraudulent and deceptive lending practices.

WaMu was founded in 1889 and was initially called the Washington National Building Loan and Investment Association.

Over time WaMu started to grow. Showing business savvy and ultimate marketing prowess, over the next 50 years WaMu pioneered cash machine networks and telephone banking. In fact, this early start in machines to easily access money served them well when they decided to go nuts and create a virtual ATM which clients were able to attach to their own home and suck every dime and nickel from their home equity. One of the their initial slogans was "The Friend of the Family" which ironically has little to do with toxic pay option arm loans.

In 1983 WaMu bought Murphey Favre a brokerage firm and by 1989 its assets had doubled. Purchasing subprime credit issuer Providian in October 2005 for $6.5 billion may have not been such a smart deal especially when they paid prime dollar at the peak of the market insanity.

Serious problems started hitting WaMu as the United States housing market started to collapse. Not only was this bad news for WaMu, but it also didn't help that Washington Mutual made a large amount of Pay option ARM loans in California and Florida.

The company went from having a market cap of $62.3 billion to $753 million in one year. That is definitely not a way to run a company. As time went on WaMu could not fend off the issues it had with its loan portfolios. The losses kept on mounting over and over. WaMu is the poster child of greed and lack of institutional control that has wrecked the financial sector of our economy. The good news is that it is not too late for you to fight back.

If you are are in a loan that was originated and funded with WaMu, or if it has been transferred to their "WHITE KNIGHT", JP Morgan Chase and Company who came in and paid WaMu executives multi-million dollar bonuses while while they were walking out the door please call us immediately at (800) 718-4110. It is estimated that up to 95% of WaMu loans were underwritten and funded with significant amounts of fraud, deception, and irregularities.
- Wire Reports

by Wire Reports - Feb 17th, 2009

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