Serious problems at the bank were uncovered by federal examiners at least five years before its collapse, but supervisors showed little concern, a lengthy Senate investigation found.
Federal banking examiners found serious problems at Washington Mutual Bank at least five years before its 2008 collapse, but their supervisors showed little concern, according to results of a lengthy Senate investigation released Thursday.The lack of action, exacerbated by a turf battle between agencies, allowed the bank's shoddy lending practices and risky bets on subprime mortgages to continue until just months before its failure. During those five years, examiners constantly warned of "less than satisfactory" loan underwriting, the "horrible performance" of its subprime-backed mortgage securities and the failure of WaMu executives and federal regulatory supervisors to do much about it.
Read on.
No comments:
Post a Comment