Washington Mutual

Type: Public Company
Address: 1301 Second Avenue, Seattle, Washington, 98101-3033, U.S.A.
Telephone: (206) 461-2000
Toll Free: (800) 788-7000
Fax: (206) 377-2495
Web: http://www.wamu.com
Employees: 49,403
Total Assets: $330.1 billion (2007)
Stock Exchanges: New York
Ticker Symbol: WM
Incorporated: 1994
NAIC: 551111 Offices of Bank Holding Companies; 522120 Savings Institutions
SIC: 6712 Bank Holding Companies; 6035 Federal Savings Institutions; 6036 Savings Institutions Except Federal

Seattle-based Washington Mutual, Inc. (WaMu), one of the nation's leading financial services companies, is the outgrowth of a demand to rebuild its home city after a devastating late 19th-century fire. Since then the company has transitioned from a building loan to a mutual bank. Until the 1960s, the company operated solely in the Seattle area. Then, an acquisition drive during the 1990s propelled Washington Mutual to the top ranks of U.S. home mortgage makers. Faced with a steady downward pressure in the sector at the midpoint of the first decade of the 2000s, Washington Mutual has redirected its attention to its retail banking business.

19th-Century Origins

The birth of the financial institution responsible for forming Washington Mutual, Inc., occurred shortly after the near-death of the city. In 1880, Seattle was a small town in Washington Territory just about to begin its rise toward becoming the Pacific Northwest's most influential commercial hub. With a population of 4,000 at the beginning of the decade, Seattle was little more than a settlement situated in the upper reaches of a sprawling territory that was yet to be incorporated into the United States. Before the decade was through, however, statehood arrived and Seattle, after nine years of growth, transformed itself into a burgeoning metropolis. The population of Seattle leaped from 4,000 in 1880 to 40,000 by 1889, the year Washington was admitted to the Union as the 42nd state and the year the city of Seattle was reduced to a pile of ashes.

On June 6, 1889, a glue pot in the basement of a downtown building boiled over and touched off the "Great Seattle Fire," engulfing the downtown district in flames. Before the raging blaze was extinguished, 25 city blocks were razed, 120 acres in total, destroying the heart of the city and erasing a decade of robust growth. Overnight, Seattle had been turned into a pile of smoking rubble. Just as the city was shedding the vestiges of its pioneer roots, it was time to rebuild, time to begin anew. It was also the time for the formation of the city's newest financial institution, an enterprise created specifically to help in rebuilding the city of Seattle.

In September 1889, 15 weeks after flames had turned to ashes, a group of Seattle's business leaders convened to discuss the prospects of forming a building loan company. In attendance were shipbuilders, lawyers, doctors, bankers, and politicians, some of whom had recently arrived in Seattle whereas others had been denizens of the city for years. The group of prominent citizens were intent on forming a financial institution that would answer the demand for the resources to build or rebuild houses, something commercial banks were reluctant to finance at the time. A general building loan business was officially established that evening, and was to be incorporated as Washington National Building Loan and Investment Association. Washington National began its business while the city of Seattle still remained visibly scarred by the early summer fire.

Initially led by Edward Oziel Graves, who was the former assistant treasurer for the U.S. Treasury's Bureau of Engraving and Printing, Washington National was supported by one employee during its inaugural year, Ira Hill Case, who occupied one desk in a second-floor office shared by a dozen other businessmen representing an equal number of divergent business interests. The beginnings were modest, to be sure, but not long after its creation, Washington National made banking history. The association's first loans were approved in February 1890, one of which was an amortized home loan, perhaps the first of its kind in the United States. Washington National went on to approve more than 2,000 amortized home loans during the ensuing 20 years, becoming a much-used source for home mortgage loans.

Washington National represented one of 3,500 building and loan associations in the United States at the time of its establishment, but when the company began to flounder after the turn of the century it chose to distance itself from the building society movement. In 1908, the enterprise changed its name to Washington Savings and Loan Association and embarked on a course that gradually steered the newly named financial institution toward the mutual banking field. Along with the name change came additional sweeping changes, as new leadership restructured Washington Savings and Loan to invigorate business. Membership fees were eliminated, the terms of interest and loan repayment schedules were precisely established, an aggressive advertising program was launched, and customers were granted the freedom to withdraw deposits at any time, with any interest accrued up to the day of withdrawal.

The changes implemented spurred the institution's growth, igniting a five-year period of unprecedented expansion. Between 1908 and 1913, the number of loans granted by Washington Savings and Loan soared from 300 to 2,700. Assets increased elevenfold, jumping from $346,576 to more than $4 million, and the number of accounts operated by the association leaped from 400 to 2,700. Helped in large part by this growth spurt, Washington Savings and Loan ranked not only as the oldest savings institution in Washington, but also as the state's largest savings institution, providing the association with firm footing as it entered a new phase in its development.

World War I Conversion into a Mutual Bank

In 1917, while the country's newspapers covered the progress of war overseas, Washington Savings and Loan converted into a mutual savings bank and once again changed its name. Rechristened Washington Mutual Savings Bank, the recast institution boasted more than 16,000 depositors at the time of the United States' entrance into World War I and benefitted substantially from the century's first epic military struggle. During World War I, Washington Mutual's assets rose 68 percent, recording a gain of more than $4 million, and real estate loans registered an even greater increase of 250 percent.

After the conclusion of the war, recessionary economic conditions hobbled Seattle's economic growth, but despite the anemic financial situation Washington Mutual's deposits increased strongly, rising from $15 million in 1921 to more than $26 million two years later. Such encouraging growth came to a stop by the end of the decade, however, as the Wall Street stock market crash of 1929 gave way to a decade-long economic depression that wrought devastation for the U.S. banking industry. Although the years were difficult, Washington Mutual persevered, avoiding the financial ruin that swept away many of the country's financial institutions. It was during the first months of this unrivaled economic plunge that Washington Mutual completed the first acquisition in its history, acquiring Continental Mutual Savings Bank in July 1930.

By the end of the 1930s, Washington Mutual was just shy of 100,000 depositors and about to benefit once again from the economic growth engendered by the century's second great military struggle. During World War II, Washington Mutual, by then more than a half-century old, sold nearly $30 million in war bonds. In 1941, the bank merged with Coolidge Mutual Savings Bank, increasing its resources to more than $77 million and its deposits to more than $72 million, and gaining Washington Mutual its first branch office, the quarters formerly occupied by Coolidge Mutual, which became known as the Times Square Branch. After the war, when banking legislation permitted mutual banks to establish branches in their home county, Washington Mutual opened two banking offices, one in 1947 and another in 1948.

During the 1950s, the promulgation of additional banking legislation paved the way for mutual banks to establish statewide networks of service, but despite the opportunity to do so Washington Mutual did not move outside the greater Seattle area until 1964. Branches were established in the Seattle area during the intervening years, however, with five Washington Mutual offices opening their doors between 1955 and 1961. When Washington Mutual finally did move outside the Seattle area, the stage was set for an era of geographic expansion that extended the bank's presence throughout Washington. From 1964 forward, the physical growth of Washington Mutual was driven by internal expansion and by external means, as the bank took on the role of an aggressive acquisitor. This chapter in the bank's history began with the acquisition of Citizens Mutual Savings Bank in 1964.

Statewide Expansion Beginning in 1964

Citizens Mutual Savings Bank's existence as a mutual bank was only hours old when Washington Mutual sealed the deal to purchase the eastern Washington-based financial institution. Founded in 1902 as Citizens Savings and Loan Society, the thrift operated as a savings and loan up until its acquisition by Washington Mutual, acquiring the Pullman Savings and Loan Association the year prior to the 1964 Washington Mutual acquisition. With its base in Spokane and the newly acquired Pullman Savings and Loan adding a presence in Pullman, Citizens Savings and Loan represented an opportunity for Washington Mutual to expand into eastern Washington, but banking legislation at the time did not permit a mutual bank to merge with a savings and loan. To clear this obstacle, Citizens Savings and Loan converted into a mutual bank in 1964, as Washington Mutual had done 47 years earlier, changing its name to Citizens Mutual Savings Bank just prior to its merger with Washington Mutual. Once completed, the transaction extended Washington Mutual's presence beyond the greater Seattle area for the first time, giving the bank branches in Pullman and Spokane and establishing a pattern the Seattle-based concern would follow in the years ahead.

The year after the Citizens Mutual Savings Bank acquisition, Washington Mutual completed a similar deal when Liberty Savings and Loan Association converted into a mutual bank to facilitate its acquisition by Washington Mutual. Established in 1919, Liberty Savings and Loan Association became Liberty Mutual Savings Bank in 1965, giving Washington Mutual branch offices in Yakima, Kennewick, and Grandview, Washington. The same scenario was played out in 1973 when the Grays Harbor Savings and Loan Association converted into Grays Harbor Mutual Savings Bank just before its acquisition by Washington Mutual, adding a branch office in Grays Harbor to the Seattle-based bank's growing empire.

Against the backdrop of these acquisitions, Washington Mutual expanded geographically through internal means by establishing branch offices on its own. Between 1965 and 1973, the bank opened 15 branch offices in the Seattle area and in regions across the state, building itself into a dominant force in Washington State. Swelled by acquisitions and internal expansion, Washington Mutual entered the 1980s as a venerable yet rising financial institution, its near-century of business in the Seattle area and two decades of statewide expansion generating considerable momentum for the decade ahead. During the 1980s, this momentum would not be checked, as the bank diversified quickly. Although industry observers would charge that the bank spread itself in too many directions during the decade, the far-flung expansion effected during the 1980s proved to be the catalyst for Washington Mutual's animated growth during the 1990s.

1982 Arrival of Killinger

During the 1980s, the subsidiary companies that would compose The Washington Mutual Financial Group came together. The proliferation of diversified financial subsidiaries grouped under the Washington Mutual corporate umbrella began in 1982 when the bank acquired Murphey Favre, Inc., and Composite Research & Management Co., and formed Washington Mutual Insurance Services. Murphey Favre was the Northwest's oldest securities brokerage firm, Composite Research & Management Co. operated as an investment adviser and portfolio management firm, and Washington Mutual Insurance Services was a full-service retail insurance agency. Beginning with these three subsidiaries, Washington Mutual formed or acquired a host of other operating companies that carried the bank into a variety of new business areas, including travel services, real estate partnerships, junk bonds, and commercial construction loans.

None of the subsidiary companies was more important to the future of Washington Mutual than the 1982 acquisition of Murphey Favre, a distinction entirely due to the arrival of a young Murphey Favre executive named Kerry K. Killinger. At the time of the 1982 acquisition, Killinger was 32 years old and had served as a securities analyst and investment broker for the company before being named executive vice-president. Once brought into the Washington Mutual fold, Killinger rose quickly through the bank's executive ranks, becoming president in 1988 and chief executive officer two years later. During Killinger's rise, Washington Mutual was moving in a different direction, as the bank began to decline and suffer from waning profitability. With earnings slipping late in the decade, a new program aimed at restoring profitability and invigorating growth was launched that would dramatically amplify the magnitude of Washington Mutual's geographic scope.

Unprecedented Growth

During Washington Mutual's 100th anniversary year, the new strategy was adopted, a program of growth spearheaded by Killinger, who informed the Puget Sound Business Journal that in the coming years it was Washington Mutual's goal "to be the premier consumer bank in the Northwest." Toward this objective, Killinger turned to a "back-to-basics" approach by focusing on consumer loans and checking accounts. Once Killinger was named chairman of Washington Mutual in 1990, the bank's bid to become the dominant financial institution in the region began in earnest, as the newly named chairman, president, and chief executive officer orchestrated an acquisition campaign that swallowed up competitors at a rate of about two per year. For the first time in the bank's history, it extended its presence beyond Washington's borders, compensating for its belated entry into the regional banking arena by expanding aggressively at a time when the savings and loan industry in general was faring poorly.

In 1991, Washington Mutual ranked as Washington's largest independently owned financial institution, with $8 billion in assets and 84 financial centers and 17 home loan centers in its home state, Oregon, and Idaho. These impressive figures would be dwarfed by the magnitude of the bank four years later, as Washington Mutual's acquisition spree ignited its growth, carried the bank into Montana and Utah, and necessitated the formation of Washington Mutual, Inc., as a holding company in August 1994. Between 1991 and 1995, Washington Mutual's profits more than doubled, leaping from $80.6 million to $190.6 million, its deposits increased from $5.4 billion to $10.6 billion, and its assets swelled from $8 billion to $21.6 billion. Meanwhile, the number of branch offices operated by the bank had increased dramatically, reaching a total of 248 financial centers and 23 loan centers by the end of 1995. The first half of the 1990s represented a period of growth unrivaled in Washington Mutual's history. As the bank entered the late 1990s it did not slow its pace of growth.

In early 1996, Washington Mutual acquired Coos Bay, Oregon-based Western Bank, giving it 42 branch offices in 35 communities. Next, the bank acquired Ogden-based Utah Federal Savings Bank. The bank appeared to be continuing its aggressive campaign to dominate the Pacific Northwest, an objective Killinger touched on when he said, "Our strategy calls for continued growth through selective acquisitions of consumer banks, commercial banks, and other financial service businesses that offer long-term value to our shareholders." Killinger put his words into action in July 1996 when Washington Mutual completed the largest acquisition in its 107-year history. After searching for an entry into the lucrative California market for two years, Killinger found his target in Irvine, where the 158-branch American Savings Bank was headquartered. In a $1.4 billion deal completed at the end of July, Washington Mutual acquired American Savings Bank and nearly doubled its size, making it the third largest savings and loan in the United States. Buoyed enormously by the acquisition of American Savings Bank, Washington Mutual entered the late 1990s intent on continuing its ambitious expansion program. Further acquisitions in the California market were expected.

End of Century Drive for the Top

Killinger, speaking at a mergers and acquisitions conference in February 1997, confirmed those California dreams, according to an American Banker article. "We like this market because it's very fragmented and is the last market in the country that is still going through significant consolidation," Killinger said. "It's been delayed here simply because of the lingering recessionary factors--but that's about to change." Killinger planned to concentrate on northern California for its commercial banking growth but was "willing, able, and ready to execute expansion through acquisitions of consumer banks throughout the West," quoted American Banker. As Washington Mutual, Detroit-based Comerica Inc., and North Carolina's NationsBank Corp. looked longingly to California, takeover speculation spiked share prices among California area thrifts. If prices climbed too high, Washington Mutual planned to turn to internal methods of growth, and escalate its stock repurchase program, Christopher Rhoads reported.

Killinger did not wait long to make his move. Washington Mutual acquired Great Western Financial Corp. in 1997 and H.F. Ahmanson & Co. (Home Savings of America thrift) in 1998. The company then made headway into the subprime market with the 1999 purchase of Long Beach Financial Corp.

By 2000, Washington Mutual had climbed to the top of the ranks among the nation's thrifts, with 60 percent of its $188 billion in assets from California, according to the San Francisco Business Times. Washington Mutual's rapid advancement in the California market, however, took "a back seat to high-profile and often turbulent megamergers like Wells Fargo's marriage to Norwest and NationsBank's takeover of Bank of America," Ron Leuty observed. Despite a series of post-merger personnel cuts and computer system conversions, Washington Mutual had avoided major glitches and bad press.

After a brief period of digesting its new operations, Washington Mutual embarked on another series of purchases. In this round were PNC Financial Services Group Inc.'s residential mortgage operations, Bank United Corp., and FleetBoston Financial Corp. "WaMu's management has a history of which Alexander the Great would have been proud," Sanford Bernstein & Co. analyst Jonathan Gray said in a July 2001 U.S. Banker article. Its appetite for growth was yet to be satiated.

Washington Mutual had accomplished something not seen in more than a decade when it attained home loan origination leadership. Home Savings of America, part of Washington Mutual since 1998, had been the last thrift to top the leaderboard. Unfortunately, the period was also marked by a savings and loan meltdown. Scores of thrifts closed, during the late 1980s, in the wake of rising interest rates, industry deregulation, and mismanagement.

Into the 21st Century

Washington Mutual assets had grown tenfold in just a half decade. In addition to being the nation's largest thrift, WaMu was the seventh largest banking company and first in both mortgage servicing and origination. Acquiring compatible companies that could quickly contribute to earnings helped drive WaMu's success thus far, according to an August 2001 ABA Banking Journal article.

In addition to advancing in terms of sheer size, WaMu was shaking up its product mix. Prime single family mortgages constituted nearly three-quarters of its portfolio at the end of the first quarter of 2001, down from 82 percent at the end of 1998. WaMu planned further reduction, down to 60 percent, Steve Cocheo reported. In their place WaMu was endeavoring to increase the number of higher revenue nonresidential loans. A new consumer bank concept, conducive to cross-selling products, was introduced to help facilitate the process.

Washington Mutual's appetite got the best of it in 2002 when Dime Bancorp Inc. appeared to be too much for WaMu to swallow. Integration of the retail banking system got off to a rocky start in some East Coast branch locations, causing inconveniences and concerns for customers. Moreover, legal disputes had cropped up for the subprime mortgage lender acquired earlier, American Banker reported in June.

On the heels of internal operation challenges, Washington Mutual was confronted with external stress. The mortgage market dramatically dropped off in the last quarter of 2003. WaMu cut jobs and earnings predictions. A plan to pare back expenses by $1billion over the next 18 months was formulated.

"The news jolted investors, coming as it did from a company whose strong earnings gains during the mortgage boom allowed it to snap up smaller competitors and successfully export its Seattle-style coffeehouse branch model to such far-flung places as Chicago and New York," Robert Julavits wrote for American Banker in December 2003.

As Washington Mutual regrouped, a major competitor planned a surge into its home territory, the Puget Sound Business Journal reported. Countrywide Financial Corp., which had surpassed Wells Fargo & Co. as the top mortgage originator, was after even more market share. Washington Mutual, meanwhile, continued to close lending and loan origination offices, eliminating jobs by the thousands. It also sold its consumer finance division to Citigroup Inc. for $1.5 billion to maintain retail banking growth, according to American Banker. Washington Mutual purchased Providian Financial in October 2005 for more than $6 billion, diversifying into the credit-card business. WaMu quickly began marketing its new service to its retail banking and mortgage customers.

In addition to providing a new business niche, Providian moved WaMu into job offshoring. From that start, WaMu began examining the entire company for areas in which offshoring would be viable, American Banker reported. A growing number of mortgage lenders had begun to engage in the cost-saving measure.

Washington Mutual divested a large portion of its mortgage servicing rights during 2006. Although the home loan business segment threatened profits, the retail-banking, credit-card services, and commercial-banking business buoyed up the company. The contribution of those groups, along with the sale of the asset management unit WM Advisors and continued cost-cutting, including the elimination of about 10,000 jobs, yielded a 4 percent rise in profits, totaling $3.56 billion, for the year. Chairman and CEO Kerry Killinger's total compensation was $14.2 million, the Seattle Times reported in March 2007.

The housing market slump deepened in 2007, eroding confidence in the U.S. economy abroad and creating fear at home. "For Sale" signs lingered on lawns in upscale neighborhoods. In addition, lower-income families faced foreclosure, dragged under by subprime loans. Financial service companies, predictably, came under fire.

The Financial Times reported in November 2007: "Washington Mutual slumped 17.3 percent to $20.04 [per share] after it warned that mortgage lending would decline to an eight-year low next year. The group's shares extended losses after Andrew Cuomo, New York's attorney-general, subpoenaed Fannie Mae and Freddie Mac, seeking information on loans they bought from banks, including Washington Mutual, and details of their due diligence." Killinger, meanwhile, emphasized the health of WaMu's retail banking business. The company concentrated on adding branches, bringing in more customers, and increasing the number of products each customer purchased, Barbara Rehm reported for American Banker.

In December 2007, the $330-billion-asset company announced a plan to counter the mortgage drain. Among its actions, WaMu would raise new capital through a preferred stock offering, exit the subprime loan business, and reduce the dividend.

For 2007, Washington Mutual recorded its first annual loss in at least a dozen years. Write-offs in its home loans group largely contributed to the $67 million shortfall. The news, coming in January 2008, further fueled speculation of a sale. Drew DeSilver wrote: "While declining to comment specifically on reports that WaMu has had preliminary talks with JPMorgan Chase, Killinger said he was 'working very hard to return the company to much higher levels of profitability, which I believe it is capable of doing.'" Earlier in the month Bank of America announced its intention to acquire the troubled Countrywide Financial.

Principal Operating Units

Commercial Group; Home Loans Group; Retail Banking Group; Card Services Group.

Principal Competitors

Bank of America Corporation; Wells Fargo & Company; Wachovia Corporation.

Further Reading

Augstums, Ieva M., "Lender Gets a Life Ring," Duluth News Tribune, January 12, 2008, pp. 7B+.

Bryant, Chris, "GM Loss and Desperate Dollar Spark Heavy Falls," Financial Times, November 8, 2007, p. 42.

Chan, Gilbert, "Seattle Thrift Buys American Savings Bank of California," Knight-Ridder/Tribune Business News, July 23, 1996, p. 7.

Cocheo, Steve, "Kerry Killinger Builds His Dream Bank," ABA Banking Journal, August 2001, p. 22.

Cole, Jim, "Home-Loan Margins Tight, WaMu Touts Transformation," American Banker, October 24, 2005, p. 1.

------, "WaMu on Latest Alterations," American Banker, August 8, 2006, p. 1.

DeSilver, Drew, "Washington Mutual Posts First Quarterly Loss in a Decade," Seattle Times, January 17, 2008.

Dobbs, Kevin, "WaMu Cutting Jobs, Slashing Dividend," American Banker, December 11, 2007.

Engleman, Eric, "WaMu Foes Are Circling," Puget Sound Business Journal, August 6, 2004, p. 1.

Epes, James, "How WaMu Accounts for Enterprise Bank Buy," Puget Sound Business Journal, June 9, 1995, p. 13.

Fogarty, Mark, "WAMU THE CONQUERER: Washington Mutual Becomes the Superhero of the Industry," US Banker, July 2001, p. 50.

Julavits, Robert, "N.Y. Snafu Raises Fears WaMu's Getting Too Big," American Banker, June 12, 2002, p. 1.

------, "WaMu Will Cut $1B; Full-Timers on Hit List," American Banker, December 10, 2003, p. 1.

Kapiloff, Howard, "Wash. Mutual Faces Big-League Challenges in California," American Banker, July 25, 1996, p. 12.

Killinger, Kerry, "One-Stop Shopping at Washington Mutual," Bottomline, November 1987, p. 27.

Leuty, Ron, "WaMu Banks on California After Digesting Acquisitions," San Francisco Business Times, June 2, 2000, p. 8.

Martinez, Amy, "Struggling WaMu Gives CEO Bonus of $4.1 Million," Seattle Times, March 20, 2007, p. 1C.

Morgan, Murray, The Friend of the Family, Seattle: Washington Mutual Financial Group, 1989.

Neurath, Peter, "Good 'Bad News' for Bank," Puget Sound Business Journal, January 22, 1990, p. 18.

Prakash, Snigdha, "Wamu's Bench Strength Touted As Key to Its Merger Prowess," American Banker, March 19, 1998, p. 1.

Pulliam, Liz, "Expansion of Washington Mutual Took Off with New Chairman," Knight-Ridder/Tribune Business News, July 23, 1996, p. 72.

Rehm, Barbara A., "WaMu CEO: Branch Expansion Remains a High Priority," American Banker, November 15, 2007.

Rhoads, Christopher, "Washington Mutual's CEO Puts California on Edge," American Banker, February 4, 1997, p. 1.

"Seattle-Based Washington Mutual Inc. to Acquire Oregon's Western Bank," Knight-Ridder/Tribune Business News, October 12, 1995, p. 10.

Shenn, Jody, "... While Adding More Jobs Abroad," American Banker, February 17, 2006, p. 24.

Steverman, Ben, "Mortgage Gets Messier," Business Week Online, December 12, 2007.

Virgin, Bill, "SEC Inquiry of WaMu," Seattle Post-Intelligencer, December 21, 2007, p. D1.

Wolcott, John, "What Puts the Wham in WAMU?" Puget Sound Business Journal, September 2, 1991, p. 20.

— Jeffrey L. Covell; Updated by Kathleen Peippo

Washington Mutual, Inc.

Fate	Insolvency Washington Mutual, Inc.'s banking subsidiaries were closed by the OTS, placed into the receivership of the FDIC, and their assets were sold to JPMorgan Chase which now operates the former banking assets as a division of JP Morgan Chase. The holding company Washington Mutual, Inc. (the former bank owner) subsequently filed for Chapter 11 bankruptcy.
Founded	1889[1]
Defunct	2008
Headquarters	Seattle, Washington, United States
Key people	Alan H. Fishman, Chief Executive Officer
Industry	Finance and Insurance
Products	Consumer Banking Financial Services
Revenue	US$15.962 billion
Employees	49,403
Parent	Washington Mutual Inc.
Subsidiaries	WaMu Investments, Inc; Washington Mutual Insurance Services; Washington Mutual Card Services

Washington Mutual, Inc. (Pink Sheets: WAMUQ), abbreviated to WaMu, was a savings bank holding company and the former owner of Washington Mutual Bank, which was the United States' largest savings and loan association until it became the largest bank failure in U.S. history.^{[2][3][4][5][6]}

On September 25, 2008, the United States Office of Thrift Supervision (OTS) seized Washington Mutual Bank from Washington Mutual, Inc. and placed it into the receivership of the Federal Deposit Insurance Corporation (FDIC). The OTS took the action due to the withdrawal of $16.4 billion in deposits, during a 10-day bank run (amounting to 9% of the deposits it had held on June 30, 2008).^[7] The FDIC sold the banking subsidiaries (minus unsecured debt or equity claims) to JPMorgan Chase for $1.9 billion, which reopened the bank's offices the next day as JPMorgan Chase branches. The holding company, Washington Mutual, Inc. was left with $33 billion assets, and $8 billion debt, after being stripped of its banking subsidiary by the FDIC.^[3][4][8][9] The next day, September 26, Washington Mutual, Inc. filed for Chapter 11 voluntary bankruptcy in Delaware, where it is incorporated.^[4][8]

Washington Mutual Bank's closure and receivership is the largest bank failure in American financial history.^[3][4] Before the receivership action, it was the sixth-largest bank in the United States.^[10] According to Washington Mutual Inc.'s 2007 SEC filing, the holding company held assets valued at $327.9 billion.^[11]

On 20 March 2009, Washington Mutual Inc. filed suit against the FDIC in the United States District Court for the District of Columbia, seeking damages of approximately $13 billion for what they claim to be an unjustified seizure and an extremely low sale price to JPMorgan Chase. JPMorgan Chase promptly filed a counterclaim in the Federal Bankruptcy Court in Delaware, where the Washington Mutual bankruptcy proceedings had been continuing since the Office of Thrift Supervision's seizure of the holding company's bank subsidiaries.^[12][13]

Contents 1 Business operations prior to bank receivership 2 History 2.1 Mutual savings bank 2.2 Post demutualization growth 2.2.1 Acquisitions 2.3 Rise and fall 2.3.1 "Wal-Mart of Banking" 2.3.2 Subprime losses 2.3.3 Seizure by FDIC 2.3.4 Bankruptcy 2.4 Post receivership bank operations 3 Advertising campaigns 3.1 "The Power of Yes" 3.2 "Whoo hoo" 4 Occasio branch design 5 See also 6 References 7 External links

Business operations prior to bank receivership

Despite its name, Washington Mutual ceased being a mutual company in 1983 when it demutualized and became a public company.

As of June 30, 2008, Washington Mutual Bank had total assets of US$ 307 billion, with 2,239 retail branch offices operating in 15 states, with 4,932 ATMs, and 43,198 employees. It held liabilities in the form of deposits of $188.3 billion, and owed $82.9 billion to the Federal Home Loan Bank, and had subordinated debt of $7.8 billion. It held as assets of $118.9 billion in single-family loans, of which $52.9 billion were "option adjustable rate mortgages" (Option ARMs), with $16 billion in subprime mortgage loans, and $53.4 billion of Home Equity lines of Credit (HELOCs) and credit cards receivables of $10.6 billion. It was servicing for itself and other banks loans totaling $689.7 billion, of which $442.7 were for other banks. It had non-performing assets of $11.6 billion, including $3.23 billion in payment option ARMs and $3.0 billion in subprime mortgage loans.^[14]

On September 15, 2008, the holding company received a credit rating agency downgrade; from that date through September 24, 2008, customers withdrew $16.7 billion in deposits, which ultimately led the Office of Thrift Supervision to close the bank.^[9][14]

The FDIC then sold most of the bank's assets and liabilities, including secured debt to JPMorgan Chase for $1.9 billion. Claims of the subsidiary bank's equity holders, senior and subordinated debt (all primarily owned by the holding company) were not acquired by JP Morgan Chase.^[4][15][16]

History

The Washington Mutual Tower in Seattle, Washington

Mutual savings bank

Washington Mutual was incorporated as the Washington National Building Loan and Investment Association on September 25, 1889, after the great Seattle fire destroyed 120 acres (0.49 km²) of the central business district of Seattle. The newly formed company made its first home mortgage loan on the West Coast on February 10, 1890. It changed its name to Washington Savings and Loan Association on June 25, 1908.^[17] By 1917, it was operating under the name Washington Mutual Savings Bank.^[18] The company purchased its first company, the financially distressed Continental Mutual Savings Bank, on July 25, 1930.^[17] Its marketing slogan for much of its history was "The Friend of the Family". At the time of its demise, the slogan was "Simpler Banking, More Smiles".^{[citation needed]}

Post demutualization growth

In 1983, Washington Mutual bought the brokerage firm Murphey Favre and demutualized, converting into a capital stock savings bank. By 1989, its assets had doubled.^[17] In October 2005, Washington Mutual purchased the formerly "subprime" credit card issuer Providian for approximately $6.5 billion, although Providian's new management team's strategy of targeting Prime credit card consumers had been underway since 2001, therefore the credit card unit's nonperforming loan portfolio had improved significantly prior to the company's sale to WaMu. In March 2006, Washington Mutual began the move into its new headquarters, WaMu Center, located in downtown Seattle. The company's previous headquarters, Washington Mutual Tower, stands about a block away from the new building on Second Avenue. In August 2006, Washington Mutual began using the official abbreviation of WaMu in all but legal situations.

Acquisitions

A WaMu office in Naperville, Illinois

Former Dime Savings Bank branch in Brooklyn, New York

A WaMu Financial Center in San Jose, California

Since the acquisition of Murphey Favre, WaMu made numerous acquisitions with the aim of expanding the corporation. By acquiring companies including PNC Mortgage, Fleet Mortgage and Homeside Lending, WaMu became the third-largest mortgage lender in the U.S. With the acquisition of Providian Financial Corporation in October 2005, WaMu also became the nation's 9th-largest credit-card company.

A list of Washington Mutual acquisitions since demutualization:^[19]

• Commercial Capital Bancorp, California, 2006
• Providian Financial Corporation, California, 2005
• HomeSide Lending, Inc., Florida, a unit of National Australia Bank, 2002
• Dime Bancorp, Inc., New York, 2002
• Fleet Mortgage Corp., South Carolina, 2001
• Bank United Corp., Texas, 2001
• PNC Mortgage, Illinois, 2001
• Alta Residential Mortgage Trust, California, 2000
• Long Beach Financial Corp., California, 1999
• Industrial Bank, California, 1998
• H. F. Ahmanson & Co. (Home Savings of America), California, 1998
• Great Western Bank, 1997
• United Western Financial Group, Inc., Utah, 1997
• Keystone Holdings, Inc. (American Savings Bank), California, 1996
• Utah Federal Savings Bank, 1996
• Western Bank, Oregon, 1996
• Enterprise Bank, Washington, 1995
• Olympus Bank FSB, Utah, 1995
• Summit Savings Bank, Washington, 1994
• Far West Federal Savings Bank, Oregon, 1994
• Pacific First Bank, Ontario, 1993
• Pioneer Savings Bank, Washington, 1993
• Great Northwest Bank, Washington, 1992
• Sound Savings & Loan Association, Washington, 1991
• CrossLand Savings FSB, Utah, 1991
• Vancouver Federal Savings Bank, Washington, 1991
• Williamsburg Federal Savings Association, Utah, 1990
• Frontier Federal Savings Association, Washington, 1990
• Old Stone Bank of Washington, FSB, Rhode Island, 1990

Many of Washington Mutual's acquisitions became reviled as the rapid post-merger integrations resulted in numerous errors. The Dime merger resulted in account ownership to be split with account beneficiaries. The Fleet Mortgage merger resulted in entire loans simply disappearing—being services but unable to be found by customer service representatives.

Rise and fall

Washington Mutual's last headquarters, WaMu Center (center left) and its headquarters prior, Washington Mutual Tower (center right) in Seattle.

"Wal-Mart of Banking"

Chairman and CEO Kerry Killinger had pledged in 2003:^[20]

We hope to do to this industry what Wal-Mart did to theirs, Starbucks did to theirs, Costco did to theirs and Lowe's-Home Depot did to their industry. And I think if we’ve done our job, five years from now you’re not going to call us a bank.

Killinger's goal was to build WaMu into the “Wal-Mart of Banking,” which would cater to lower- and middle-class consumers that other banks deemed too risky. Complex mortgages and credit cards had terms that made it easy for the least creditworthy borrowers to get financing, a strategy the bank extended in big cities, including Chicago, New York and Los Angeles. WaMu pressed sales agents to approve loans while placing less emphasis on borrowers’ incomes and assets. WaMu set up a system that enabled real estate agents to collect fees of more than $10,000 for bringing in borrowers. Variable-rate loans — Option Adjustable Rate Mortgages (Option ARMs) in particular — were especially attractive because they carried higher fees than other loans, and allowed WaMu to book profits on interest payments that borrowers deferred. As WaMu was selling many of its loans to investors, it worried less about defaults.^[6][20]

Subprime losses

In December 2007, the subsidiary Washington Mutual Bank reorganized its home-loan division, closing 160 of its 336 home-loan offices and removing 2,600 positions in its home-loan staff (a 22% reduction).^[21]

In March 2008, on the same weekend that JPMorgan Chase Chairman and CEO Jamie Dimon negotiated the takeover of Bear Stearns, he secretly dispatched members of his team to Seattle to meet with WaMu executives, urging them to consider a quick deal. However, WaMu Chairman and CEO Kerry Killinger rejected JPMorgan Chase's offer that valued WaMu at $8 a share, mostly in stock.^[6][20]

In April 2008, the holding company, responding to losses and difficulties sustained as a result of the 2007-2008 subprime mortgage crisis, announced that 3,000 people companywide would lose their jobs, and the company stated its intent to close its approximately 186 remaining stand-alone, home-loan offices, including 23 in Washington State and a loan-processing center in Bellevue, Washington. It stopped buying loans from outside mortgage brokers — known in the trade as "wholesale lending." WaMu also announced a $7 billion infusion of new capital by new outside investors led by TPG Capital. TPG agreed to pump $2 billion into the Washington Mutual holding company; other investors, including some of WaMu's current institutional holders, agreed to buy an additional $5 billion in newly issued stock. This angered many investors, as TPG's investment would dilute the holdings of existing shareholders, and as WaMu executives excluded mortgage losses from computing bonuses.^[22]

In June 2008, Kerry Killinger stepped down as the Chairman, though remaining the Chief Executive Officer.^[23] On September 8, 2008, under pressure from investors, the Washington Mutual holding company's board of directors dismissed Kerry Killinger as the CEO. Alan H. Fishman, chairman of mortgage broker Meridian Capital Group, and a former chief operating officer of Sovereign Bank, was named the new CEO.^[24]

Seizure by FDIC

By mid-September 2008, WaMu's share price had closed as low as $2.00. It had been worth over $30.00 in September 2007, and had traded as high as $45 at one point in the previous year.^[25] While WaMu publicly insisted it could stay independent, earlier in the month it had quietly hired Goldman Sachs to identify potential bidders. However, several deadlines passed without anyone submitting a bid.^[10] At the same time, WaMu suffered a massive run (mostly via electronic banking over the internet and wire transfer); customers pulled out $16.7 billion in deposits in a ten-day span.^[26]

This led the Federal Reserve and the Treasury Department to step up pressure for WaMu to find a buyer, as a takeover by the Federal Deposit Insurance Corporation (FDIC) could have been a severe drain on the FDIC insurance fund, which had already been hard hit by the failure of IndyMac that year. The FDIC ultimately held a secret auction of Washington Mutual Bank. Finally, on the morning of Thursday, September 25 (coincidentally the 119th anniversary of WaMu's establishment), regulators informed JPMorgan Chase that it was the winner.^[10]

On Thursday night (shortly after the close of business on the West Coast), the Office of Thrift Supervision seized Washington Mutual Bank and placed it into the receivership of the FDIC. In a statement, the OTS said that the massive run meant that WaMu was no longer sound.^[26] The FDIC, as receiver, sold most of Washington Mutual Bank's assets, including the branch network, all of its deposit liabilities and secured debts to JPMorgan Chase for $1.9 billion. The transaction did not require any FDIC insurance funds.^[27] Normally, bank seizures take place after the close of business on Fridays. However, due to the bank's deteriorating condition and leaks that a seizure was imminent, regulators felt compelled to act a day early.^[10]

JPMorgan Chase didn't acquire any of Washington Mutual Bank's equity obligations (though JPMorgan Chase planned to issue $8 billion in common stock to recapitalize the bank). As a result of the seizure, WaMu's stockholders were nearly wiped out. Its stock price dropped to $0.16 a share, far from $45 a share in 2007.^[25] In their Chapter 11 filing, WaMu listed assets of $33 Billion and Debt of $8 Billion. (ref. Appendix A). The filing also indicates that enough funds are available for distribution to unsecured creditors.

Currently, shareholders are fighting what they consider the illegal seizure of Washington Mutual through such websites as WaMuCoup.com and WaMuEquity.org, claiming that the OTS acted in an arbitrary and capricious manner and seized the bank for political reasons or for the benefit of JPMorgan Chase, which acquired a large network of branches at what they claim to be an unfairly low price. Shareholders claim that as of the date of the takeover, the bank had enough liquidity to meet all its obligations and was in compliance with the business plan negotiated with the OTS 2 weeks earlier^[28] and that the holding company's board and management was kept completely in the dark about the government's negotiations with Chase, hampering the bank's ability to sell itself on its own. Chief executive Alan H. Fishman was flying from New York to Seattle on the day the bank was closed, and eventually received a $7.5 million sign-on bonus and cash severance of $11.6 million (which he declined)after being CEO for 17 days.^[29] Senator Maria Cantwell has demanded an explanation from the government and threatened to open an investigation^[30] and Washington Mutual's former shareholders have threatened a lawsuit demanding compensation for the lost value of their shares^[28].

The seizure of WaMu Bank resulted in the largest bank failure in American financial history, far exceeding the failure of Continental Illinois in 1984.^[10][31][32]

Bankruptcy

On September 26, 2008, Washington Mutual, Inc. and its remaining subsidiary, WMI Investment Corp., filed for Chapter 11 bankruptcy.^[33] Washington Mutual, Inc. was promptly delisted from trading on the New York Stock Exchange, and commenced trading via Pink Sheets.

All assets and most liabilities (including deposits, covered bonds, and other secured debt) of Washington Mutual Bank's liabilities were assumed by JPMorgan Chase.^[34] Unsecured senior debt obligations of the bank of were not assumed by the FDIC, leaving holders of those obligations with little meaningful source of recovery.^[34] On Friday, Sep. 26, 2008, Washington Mutual Bank customers in the branches were given a letter that said the combined JPMorgan Chase and Washington Mutual Banks have 5,400 branches and 14,200 ATM's in 23 states.^[35] Washington Mutual account holders were able to continue banking as normal. Deposits held by Washington Mutual became now liabilities of JPMorgan Chase.^[36]

Washington Mutual, Inc. owed $12.5 billion in back taxes to the IRS. The company filed court papers on January 22, 2009 alleging losses were $20 billion, and the company requested that it pay only part of the tax debt, stating that the IRS could owe Washington Mutual Inc. a tax refund.^[37]

Washington Mutual, Inc. sued the Federal Deposit Insurance Corporation (FDIC) for US$ 13 billion in connection with the sale of its banking operations to JPMorgan Chase.^[38] WMI attorneys claim the bank did not get fair value for the bank, and multiple subsidiaries belonging to the parent company were taken.

Shareholders have organized via websites WamuStory.com, WamuEquity.org, GhostOfWamu.com, and WamuCoup.com. They argue that the sale was done in a haphazard and potentially illegal manner and have gathered information through these websites. JPMorgan has been sued by some shareholders in Texas, for illegal activities leading to the bank's receivership. Washington Mutual, Inc's attorneys have requested an investigation through the bankruptcy court in Delaware.^{[citation needed]}

Post receivership bank operations

In the future, all of the Washington Mutual Bank branches will be renamed to Chase or will be shuttered. All financial documents issued by WaMu will carry the JP Morgan Chase logo. WaMu credit and debit cards will also carry the Chase logo. Since November 2008, Chase ATMs have been accessible for WaMu customers at no extra charge, and WaMu customers will eventually be able to bank at Chase branches. The acquisition of Washington Mutual Bank gives Chase its first significant presence on the West Coast. An exact date for conversion or consolidation of branches had not been announced at the time of the acquisition.^[10] The company has since announced plans to rebrand the 708 California branches Chase Bank by March 30, 2009 (although the company's website indicates "WaMu branches in California have been rebranded to Chase. However, WaMu accounts in CA won't transfer to Chase's banking system until October. So please continue to bank at your current branch and we'll let you know when other Chase branches become available."), and will proceed with branch conversions as follows:^[39][40]

• Washington, Oregon, Idaho, and Utah: 341 branches — 2nd quarter 2009 (JPMorgan Chase announced it had completed the systems conversion of 2.9 million accounts in WA, OR, ID and UT on May 28, 2009^[41])
• Florida, Georgia, Connecticut, New Jersey, New York, Illinois, and Texas: 701 branches — 3rd quarter, 2009 (July 24, 2009)
• California, Nevada, Arizona, and Colorado: 802 branches — 4th quarter, 2009 (October 24, 2009)

The company has also disclosed that after branch conversions, additional branch consolidation and closure could occur, such as in the Chicago area^[42].

On October 23, 2009, Chase completed its merger of WaMu's accounts into its own computers, and changed the WaMu Web site to a single page asking former WaMu account holders to log into Chase.com from now on.

Advertising campaigns

"The Power of Yes"

WaMu introduced an advertising campaign during the 2003 Academy Awards known as the “The Power of Yes”. This was to promote the offering of loans to all consumers, particularly borrowers that the banks deemed too risky. Another commercial in the ad series showed WaMu representatives in casual clothes, contrasting with traditionally-dressed bankers in suits.

"Whoo hoo"

A promotional Washington Mutual "Whoo hoo!" bumper sticker.

"Whoo hoo!" was an advertising campaign introduced by Washington Mutual in February 2008. As fears of an economic crisis were rising, and WaMu was looking to become an "iconic brand that people love", they began courting consumers with a new slogan, designed to position WaMu as a consumer-friendly institution.^[43]

During its run, the Whoo hoo! ads, created by TBWA\Chiat\Day of Playa del Rey, California,^[43] become widespread in web navigation.^[44] After WaMu launched the new advertisement, there was double digit growth at its website^[44] and the term “wamu” appeared in searches over 1,000% more between January and March than in all of 2007.^[44]

Washington Mutual (before the bank's September 2008 conservatorship and sale to JPMorgan Chase) applied to register a trademark in the phrase.^[45][46] Initially, the bank wanted to use "woo hoo" (without the "h" in the first word) as the slogan, but they were concerned because of the existing use of the phrase by Homer Simpson, a character in The Simpsons.^[45]

Occasio branch design

Washington Mutual is notable in that it introduced a unique branch design known as Occasio which eliminated traditional teller windows and queuing stanchions in favor of an open, circular floor plan with a greeter or "concierge" position and tellers working from behind podiums^[47][48]. The Occasio design was introduced in 2000, patented in 2004^[49] and was phased out following the JP Morgan Chase acquisition of Washington Mutual's retail banking operations ^[50].

See also

• Bank failure
• List of largest U.S. bank failures (Washington Mutual tops this list)
• Federal Deposit Insurance Corporation
• Financial crisis of 2007–2009
• 2008-2009 bank failures in the United States
• List of acquired or bankrupt United States banks in the late 2000s financial crisis

References

1. ^ Bansal, Paritosh (2008-09-26). "FDIC crashes WaMu’s birthday bash". DealZone. Thomson Reuters. http://blogs.reuters.com/reuters-dealzone/2008/09/26/fdic-crashes-wamus-birthday-bash/. Retrieved 2008-09-26. 
2. ^ A savings bank holding company is defined in United States Code: Title 12: Banks and Banking; Section 1842: Definitions; Subsection (l): Savings Bank Holding Company See: 12 U.S.C. § 1841
3. ^ ^{a b c} "OTS 08-046 - Washington Mutual Acquired by JPMorgan Chase". Press Releases (Office of Thrift Supervision). 2008-09-25. http://ots.gov/?p=PressReleases&ContentRecord_id=9c306c81-1e0b-8562-eb0c-fed5429a3a56&ContentType_id=4c12f337-b5b6-4c87-b45c-838958422bf3. Retrieved 2008-09-25. 
4. ^ ^{a b c d e} Levy, Ari; Hester, Elizabeth. "JPMorgan Buys WaMu Deposits; Regulators Seize Thrift". Bloomberg L.P.. September 26, 2008. Retrieved September 26, 2008.
5. ^ Shen, Linda (2008-09-26). "WaMu's Bank Split From Holding Company, Sparing FDIC". Bloomberg. http://www.bloomberg.com/apps/news?pid=20601087&sid=a2VofC5midrw&refer=home. Retrieved 2008-09-27. 
6. ^ ^{a b c} Dash, Eric (2008-04-07). "$5 Billion Said to Be Near for WaMu". The New York Times. http://www.nytimes.com/2008/04/07/business/07cnd-wamu.html?_r=1&oref=slogin. Retrieved 2008-09-27. 
7. ^ Zarroli, Jim (2008-09-26). "Washington Mutual Collapses". All Things Considered, September 26, 2008 (National Public Radio). http://www.npr.org/templates/story/story.php?storyId=95105112. Retrieved 2008-10-27. 
8. ^ ^{a b} Chasan, Emily; Sandra Maler (2008-09-27). "WaMu files bankruptcy petition in Delaware". Reuters. http://www.reuters.com/article/marketsNews/idUSN2733210920080927. Retrieved 2008-09-27. 
9. ^ ^{a b} Reich, John M. (2008-09-25). "OTS receivership order for Washington Mutual" (PDF). Office of Thrift Supervision. http://files.ots.treas.gov/680024.pdf. Retrieved 2008-09-27. 
10. ^ ^{a b c d e f} Dash, Eric; Andrew Ross Sorkin (September 26, 2008). "Government Seizes WaMu and Sells Some Assets". Business (The New York Times): p. A1. http://www.nytimes.com/2008/09/26/business/26wamu.html. Retrieved 2008-09-26. 
11. ^ "ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2007". Securities and Exchange Commission. 2008-05-22. http://www.sec.gov/Archives/edgar/data/933136/000104746908006870/a2185889z10-ka.htm. Retrieved 2008-09-28. 
12. ^ WMI v. FDIC Washington Mutual court complaint. (PDF)
13. ^ "Washington Mutual sues FDIC for over $13 billion". Reuters (Thompson Reuters). March 21, 2009. http://www.reuters.com/article/newsOne/idUSTRE52K1K620090321. Retrieved May 7 2009. 
14. ^ ^{a b} "OTS Fact Sheet on Washington Mutual Bank" (PDF). Office of Thrift Supervision. 2008-09-25. http://files.ots.treas.gov/730021.pdf. Retrieved 2008-09-28. 
15. ^ "JPMorgan Chase Acquires Banking Operations of Washington Mutual: FDIC Facilitates Transaction that Protects All Depositors and Comes at No Cost to the Deposit Insurance Fund". Press Releases (United States Federal Deposit Insurance Corporation). 2008-09-25. http://www.fdic.gov/news/news/press/2008/pr08085.html. Retrieved 2008-09-25. 
16. ^ Sidel, Robin; David Enrich and Dan Fitzpatrick (2008-09-26). "WaMu Is Seized, Sold Off to J.P. Morgan, In Largest Failure in U.S. Banking History". The Wall Street Journal. http://online.wsj.com/article/SB122238415586576687.html. Retrieved 2008-09-27. 
17. ^ ^{a b c} "History". Washington Mutual Bank. https://www.wamu.com/about/corporateprofile/history/default.asp. Retrieved 2008-09-28.  (No Date. Corporate History from the company's own web page.)
18. ^ "Timeline". The Seattle Times. 2008-09-26. http://seattletimes.nwsource.com/html/businesstechnology/2008204779_wamutimeline26.html. Retrieved 2008-09-29. 
19. ^ "Acqusition History". About WaMu: Investor Relations - Stock Information (Washington Mutual Inc.). 2008. http://investors.wamu.com/irweblinkx/mna.aspx?iid=102028. Retrieved 2008-09-30. 
20. ^ ^{a b c} Goodman, Peter S.; Gretchen Morgenson (2008-12-27). "By Saying Yes, WaMu Built Empire on Shaky Loans". New York Times: pp. A1. http://www.nytimes.com/2008/12/28/business/28wamu.html. Retrieved 2008-12-28. 
21. ^ Hester, Elizabeth (2007-12-10). "Washington Mutual to Take Writedown, Slash Dividend". Bloomberg. http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aNUz6NmbYZCQ. Retrieved 2008-09-26. 
22. ^ DeSilver, Drew (2008-04-09). "$7 billion gives shaky WaMu firmer footing for now". The Seattle Times. http://seattletimes.nwsource.com/html/businesstechnology/2004336243_wamu09.html. Retrieved 2008-09-26. 
23. ^ "WaMu Strips CEO Killinger of Chair Title". TheStreet.com. 2008-06-02. http://www.thestreet.com/newsanalysis/banking/10419306.html. Retrieved 2008-09-26. 
24. ^ Barr, Alistair (2008-09-08). "WaMu replaces CEO, signs agreement with regulator". Market Watch. http://www.marketwatch.com/news/story/wamu-replaces-ceo-signs-agreement/story.aspx?guid={3DB03BE0-A47D-4C74-92F3-FD8453952CC5}&dist=msr_8. Retrieved 2008-09-27. 
25. ^ ^{a b} "Washington Mutual stock trend". Google Finance. http://finance.google.com/finance?q=NYSE%3AWM. Retrieved 2008-09-27. 
26. ^ ^{a b} OTS press release announcing WaMu's seizure
27. ^ "JPMorgan Chase Acquires Banking Operations of Washington Mutual". FDIC. 2008-09-25. http://www.fdic.gov/news/news/press/2008/pr08085.html. 
28. ^ ^{a b} "Register and be counted!". http://www.wamurape.org/. Retrieved 2009-01-03. 
29. ^ "WaMu Gives New CEO Mega Payout as Bank Fails". FOX. 2008-09-26. http://www.foxnews.com/story/0,2933,428641,00.html. Retrieved 2008-09-27. 
30. ^ Virgin, Bill (2008-08-08). "Cantwell seeks explanation of WaMu seizure by feds". SeattlePI. http://seattlepi.nwsource.com/business/382407_cantwellwamu09.html. Retrieved 2009-01-03. 
31. ^ "Washington Mutual sold to JPMorgan Chase after FDIC seizure". KING 5 TV. 2008-09-26. http://www.king5.com/topstories/stories/NW_092508BUB_wamu_sale_jpmorgan_chase_TP.b085ac2e.html. Retrieved 2008-09-26. 
32. ^ DeSilver, Drew (2008-09-26). "Feds seize WaMu in nation's largest bank failure". Seattle Times. http://seattletimes.nwsource.com/html/businesstechnology/2008204758_wamu26.html. Retrieved 2008-09-26. 
33. ^ Washington Mutual, Inc. (2008-09-26). "Washington Mutual, Inc. Files Chapter 11 Case". Press release. http://www.businesswire.com/news/home/20080926005828/en. Retrieved 2008-09-27. 
34. ^ ^{a b} FDIC Bank Acquisition Information for Washington Mutual Bank, Henderson, NV and Washington Mutual Bank, FSB, Park City, UT
35. ^ "Washington Mutual Bank Failure". KidsLike.info. http://www.kidslike.info/washington_mutual_bank_failure. 
36. ^ Citing news from Washington Mutual Online Banking
37. ^ Washington Mutual Owes $12.5 Billion in Back Taxes, U.S. Claims
38. ^ "WaMu Sues FDIC for $13 Billion Over Bank Failure". 2009-03-21. http://www.cnbc.com/id/29812823. Retrieved 2009-03-21.  The case is Washington Mutual Inc. v. Federal Deposit Insurance Corp, U.S. District Court for the District of Columbia, No. 09-00533.
39. ^ Scharf, Charlie, Retail Financial Services CEO JPMorgan Chase, "2009 Investor Day Presentation: Retail Financial Services", February 26, 2009, page 28
40. ^ WaMu customers: We'll soon make banking easier and get your money working harder, "Branches and ATMs"
41. ^ Chase Completes Conversion of 2.9 Million WaMu Accounts in Pacific Northwest
42. ^ Yerak, Becky, "Chase to close 57 WaMu branches here", Chicago Tribune, January 19, 2009
43. ^ ^{a b} Newman, Eric (2008-02-13). "WaMu Wants Customers Yelling 'Whoo Hoo!'". Adweek. http://www.adweek.com/aw/content_display/creative/news/e3i76778d3ae0efdedcc88a5760b27ea659. Retrieved 2008-09-03. 
44. ^ ^{a b c} "Are Consumers Going ‘Whoo Hoo’ Over WaMu’s New Campaign?". Seeking Alpha. 2008-05-19. http://seekingalpha.com/article/77898-are-consumers-going-whoo-hoo-over-wamus-new-campaign. Retrieved 2008-09-03. 
45. ^ ^{a b} Guzman, Monica (2008-03-11). "WaMu's 'Whoo-hoo' campaign: Blame 'The Simpsons'". Seattle Post-Intelligencer. http://blog.seattlepi.nwsource.com/thebigblog/archives/134038.asp. Retrieved 2008-09-21. 
46. ^ U.S. Patent and Trademark Office, application no. 77/357,506, "WHOO HOO," filed 2007-12-20
47. ^ Washington Mutual (w), Occasio Overview, http://newsroom.wamu.com/phoenix.zhtml?c=189529&p=irol-occasioOverview, retrieved 2009-06-25 
48. ^ Torres, Blanca (2004-07-02). "WaMu seeks patent for its "banking stores"". The Seattle Times. http://seattletimes.nwsource.com/html/businesstechnology/2001970403_wamu02.html. Retrieved 2009-06-25. 
49. ^ Curtin, Karen; Mark J. Conway, Jeffrey C. Link, David W. Nelson, Ronald A. Turner, Deanna W. Oppenheimer, Scott A. Smith (2004-01-27), United States Patent: 6681985 - System for providing enhanced systems management, such as in branch banking, http://patft.uspto.gov/netacgi/nph-Parser?Sect2=PTO1&Sect2=HITOFF&p=1&u=%2Fnetahtml%2FPTO%2Fsearch-bool.html&r=1&f=G&l=50&d=PALL&RefSrch=yes&Query=PN%2F6681985, retrieved 2009-06-25 
50. ^ Virgin, Bill (2008-12-04). "JPMorgan Chase to change look of WaMu branches". Seattle Post-Intelligencer. http://www.seattlepi.com/business/390728_occasio05.html. Retrieved 2009-06-25. 

External links

• Official Washington Mutual Website
• WaMu Equity Organization

v • d • e Financial crisis of 2007–2009 Late 2000s recession · 2008 G-20 Washington summit · APEC Peru 2008 · 2009 G-20 London summit · 2009 G-20 Pittsburgh summit Specific issues United States housing market correction · World food price crisis · Energy crisis (Central Asia) · Subprime mortgage crisis (timeline, List of writedowns) · Automotive industry crisis · Future of newspapers · List of entities involved (Bankrupt or acquired banks, Bankrupt retailers) · Effects upon museums · Banking revelations in Ireland · Resurgence of Keynesianism By country (or region) Belgium · Iceland · Ireland · Latvia · Russia · Spain · Ukraine · (Europe · Africa · Americas · Asia · Australasia) Legislation and policy responses Banking and finance stability and reform Banking (Special Provisions) Act 2008 · Commercial Paper Funding Facility · Emergency Economic Stabilization Act of 2008 · Troubled Assets Relief Program · Term Asset-Backed Securities Loan Facility · Temporary Liquidity Guarantee Program · 2008 United Kingdom bank rescue package · 2008 East Asian meetings · Anglo Irish Bank Corporation Bill 2009 · 2009 G-20 London summit · Irish emergency budget, 2009 · National Asset Management Agency Stimulus and recovery National fiscal policy response to the late 2000s recession · Housing and Economic Recovery Act of 2008 · Economic Stimulus Act of 2008 · 2008 Chinese economic stimulus plan · 2008 European Union stimulus plan · American Recovery and Reinvestment Act of 2009 · Green New Deal Companies and banking institutions Companies in bankruptcy, administration, or other insolvency proceedings; or in failure New Century Financial Corporation · Woolworths · American Freedom Mortgage · American Home Mortgage · Bernard L. Madoff Investment Securities LLC · Charter Communications · Lehman Brothers (bankruptcy) · Linens 'n Things · Mervyns · NetBank · Terra Securities (scandal) · Sentinel Management Group · Washington Mutual · Icesave · Kaupthing Singer & Friedlander · Yamato Life · Circuit City · Allco Finance Group · Waterford Wedgwood · Saab Automobile · BearingPoint · Tweeter · Babcock & Brown · Silicon Graphics · Conquest Vacations · General Growth Properties  · Chrysler (bankruptcy) · Thornburg Mortgage · Great Southern Group · General Motors (bankruptcy) · Eddie Bauer · Nortel · BI-LO (United States) · Arena Football League · DSB Bank · CIT Group Government bailouts and takeovers Northern Rock (nationalisation) · Bear Stearns · IndyMac Federal Bank · Fannie Mae (takeover) · Freddie Mac (takeover) · AIG · Bradford & Bingley · Fortis · Glitnir · Hypo Real Estate · Dexia · CL Financial · Landsbanki · Kaupthing · Straumur · ING Group · Citigroup · General Motors · Chrysler · Bank of America · Anglo Irish Bank (nationalisation) · Parex Bank · Bank of Antigua · ACC Capital Holdings (reorganization) · U.S. Central Credit Union · Bank of Ireland · Allied Irish Bank Company acquisitions Ameriquest Mortgage · Countrywide Financial · Bear Stearns · Alliance & Leicester · Merrill Lynch · Washington Mutual · Derbyshire Building Society · Cheshire Building Society · HBOS · Wachovia · Sovereign Bank · Barnsley Building Society · Scarborough Building Society · National City Corp. (details) · Dunfermline Building Society Other topics Alleged frauds and fraudsters Stanford Financial Group (Allen Stanford) · Fairfield Greenwich Group · UBS AG · Sean FitzPatrick (Anglo Irish Bank) · Kazutsugi Nami (Enten controversy) · Nicholas Cosmo · Arthur Nadel · Paul Greenwood · Stephen Walsh · Laura Pendergest-Holt · Angelo Mozilo · Barry Tannenbaum · Raj Rajaratnam (Galleon Group) Proven or admitted frauds and fraudsters Bernard Madoff (Ponzi scheme)(Frank DiPascali) · Satyam Computer Services (accounting scandal) (Ramalinga Raju) · Marc Stuart Dreier · Norman Hsu · Joseph S. Forte · Du Jun Related entities Federal Deposit Insurance Corporation · Federal Reserve System · Federal Housing Administration · Federal Housing Finance Agency · Federal Housing Finance Board · Government National Mortgage Association · Office of Federal Housing Enterprise Oversight · Office of Financial Stability · UK Financial Investments Limited · Federal Home Loan Banks Securities involved and financial markets Auction rate securities · Collateralized debt obligations · Collateralized mortgage obligations · Credit default swaps · Mortgage-backed securities · Secondary mortgage market Related topics Bailout · Bank run · Credit crunch · Economic bubble · Error account · Financial contagion · Financial crisis · Interbank lending market · Liquidity crisis · Ponzi scheme · Prison consultant · Tea Party protests

v • d • e JPMorgan Chase Divisions J.P. Morgan & Co. • Chase • Chase Card Services Canada • One Equity Partners Notable current executives: Jamie Dimon (CEO) • James B. (Jimmy) Lee, Jr. • Steven Black • Jing Ulrich Notable former executives: J. Pierpont Morgan • Jack Morgan (J.P. Morgan, Jr.) • Junius Spencer Morgan • George Peabody • Henry S. Morgan • David Rockefeller • William B. Harrison, Jr. • John B. McCoy • Douglas A. Warner III • Temple Bowdoin Corporate Directors: Crandall C. Bowles • Stephen B. Burke • David M. Cote • James S. Crown • Jamie Dimon • Ellen V. Futter • William H. Gray, III • Laban P. Jackson, Jr. • Robert I. Lipp • David C. Novak • Lee R. Raymond • William C. Weldon Historical components: Bank One • Bear Stearns • Chase Manhattan Bank • Chemical Banking • Corn Exchange Bank • First Chicago Bank • First USA Bank • J.P. Morgan & Co. • Hambrecht & Quist • Manufacturers Hanover Corporation • National Bank of Detroit • Robert Fleming & Co. • Sears Canada Bank • Texas Commerce Bank • Washington Mutual Buildings: 270 Park Avenue • 277 Park Avenue • 383 Madison Avenue • 245 Park Avenue • 125 London Wall • Chater House • One Chase Manhattan Plaza • JPMorgan Chase Tower (Dallas) • JPMorgan Chase Tower (Houston) • Chase Tower (Chicago) • Chase Tower (Detroit) • Chase Tower (Oklahoma City) • Chase Tower (Indianapolis) • McCoy Building • World Trade Center Tower 5 (proposed) Annual revenue: USD Employees: 174,360 (2007) Stock Symbol: NYSE: JPM Website: www.jpmorganchase.com

This entry is from Wikipedia, the leading user-contributed encyclopedia. It may not have been reviewed by professional editors (see full disclaimer)