Banking

Washington Mutual's collapse is often blamed on lax lending practices and a slowdown in home prices. Yet records suggest that management practices at WaMu and its subprime lender Long Beach Mortgage may have been largely responsible for the crisis because they enabled fraud to run rampant.  

A Puerto Rico-based bank has filed a lawsuit against two Washington Mutual subsidiaries, alleging that they didn’t properly disclose information about mortgage-backed securities they issued in 2006 and 2007, shortly before the start of the financial crisis. (JPM)  

WILMINGTON, Delaware (Reuters) - Bankrupt holding company Washington Mutual Inc asked a federal court to compel the U.S. Federal Reserve, U.S. Treasury and more than a dozen others to turn over documents relating to its collapse in 2008.  

Felix Salmon submits: Amidst the orgy of one-year-on reminiscing in September, I missed Kirsten Grind’s 4,000-word story on the failure of WaMu, which is well worth reading. She gives a great impression, for instance, of what a bank runs look like, circa 2008:Complete Story »  

You might think JPMorgan Chase got everything in the Washington Mutual deal, which briefly accomplished the impossible by doubling the number of Chase branches in New York City. But the wily Jamie Dimon isn't finished: He wants WaMu to pay him for the pleasure of owning their crappy bank. JPMorgan and the "carcass" of WaMu's parent are fighting over the scraps. The former thinks $1.9 billion was way too much for WaMu, preferring that the...  

Fitch Ratings has upgraded the ratings on the subordinate classes of WaMu Card Series notes issued from the Washington Mutual Master Note Trust (WMMNT). Fitch had placed these ratings on Rating Watch Positive after all accounts originated by Washington Mutual Bank were removed in a non-random manner on May 19, 2009, leaving the trust with only Chase Bank USA, N.A. (Chase Bank USA)-originated receivables. That removal also removed delinquent...  

Attorneys have filed an action in the US District Court for the Northern District of California accusing yet another bank of nurturing a Ponzi scheme. The complaint was filed as a class action suit on behalf of victims of a $150 million Ponzi scheme involving thousands of defrauded investors and the promise of safe, high yield CDs.  

A federal judge in Seattle has refused to dismiss a multibillion-dollar securities lawsuit stemming from the collapse of Washington Mutual Bank. U.S. District Judge Marsha J. Pechman (PECK'-man) threw out a few claims against former WaMu bank officers, directors, accountants and underwrit...  

Hats off to The Seattle Times for an excellent two-part series investigating the demise of Washington Mutual, onetime hometown hero turned zero (literally). The paper calls a spade a spade here, writing (emphasis mine) "In short, WaMu became one of the nation's biggest predatory lenders." Hey, better late than never. As The Audit, particularly Audit Chief Risk...  

Washington Mutual's implosion gave Seattle a front-row seat to the perils of exploitative mortgage-lending practices that became common among the nation's banks. The lesson, writes guest columnist Helen P. Howell, is tighter federal rules but also giving states more regulatory authority.  

From Drew DeSilver at the Seattle Times: Reckless strategies doomed WaMu Here is a section on loose lending at WaMu: “The big saying was ‘A skinny file is a good file,’ ” said Nancy Erken, a WaMu loan consultant in Seattle. She recalled helping credit-challenged borrowers collect canceled checks, explanatory letters and other documentation that they could [...]  

JP Morgan Chase is being accused of attempting to drive down Washington Mutual's share price ahead of the Seattle-based bank's collapse at the height of the financial crisis in September 2008.  

WASHINGTON MUTUAL INC Bankruptcy News, Issue No. 31India Business Blog (blog)Bankruptcy Creditors' Service, Inc., published Issue No. 26 of TRIBUNE BANKRUPTCY NEWS today. The 9-page newsletter contains stories with...READER'S DIGEST Bankruptcy News, Issue No. 9India Business Blog (blog)all 13 news articles »  

hello,. I have to transfer 2000 USD to China and they will do bank transfer. How do I go about doing it? Can I do it online? Can I do it by phone, or do I have to go to my bank in person? If I owe my supplier 2000 usd for instance, ...  

A bankruptcy judge is expected to rule soon on who owns $4 billion in Washington Mutual deposits claimed by both J.P. Morgan and the thrift's holding company.