Washington Mutual Collapse
Páginas: 2 (256 palabras)
Publicado: 10 de octubre de 2012
Nathan Ross
BUS 301-02
9/27/2012
Event Description: On September 25, 2008 Washing Mutual Bank was seized by the United States government.Washington Mutual Inc. was a savings bank holding company and once it was seized it filed for chapter 11 bankruptcy. This event is now known as the largest bankfailure in the history of the United States. A deal eventually was struck up with J.P. Morgan who ended up buying out the entirety of WashingtonMutual’s banking operations.
Event Aftermath: Shortly after its collapse, an investigation was coordinated by the Senate to look further into WashingtonMutual and how they had failed. A joint government report done by the FDIC and the Treasury was completed and released later on. The subcommittee wentthrough investigations for about a year and a half before holding hearings for Washington Mutual executives with Kerry Killinger at the front who hadturned over his job 3 weeks prior to the collapse. Killinger was eventually sued by the Federal Deposit Insurance Corporation in early 2011 in a civillawsuit trying to get some money back which the former CEO lost. Their president, David Schneider along with former Chief Operating Officer were also suedand their wives were included in the lawsuit and labeled as defendants. Two years earlier, Washington Mutual actually attempted to ask for $13 billionin damages claiming that the FDIC and OTC didn’t have justification to seize the bank and resell it to J.P Morgan for the price of $1.9 billion.
BUS 301-02
9/27/2012
Event Description: On September 25, 2008 Washing Mutual Bank was seized by the United States government.Washington Mutual Inc. was a savings bank holding company and once it was seized it filed for chapter 11 bankruptcy. This event is now known as the largest bankfailure in the history of the United States. A deal eventually was struck up with J.P. Morgan who ended up buying out the entirety of WashingtonMutual’s banking operations.
Event Aftermath: Shortly after its collapse, an investigation was coordinated by the Senate to look further into WashingtonMutual and how they had failed. A joint government report done by the FDIC and the Treasury was completed and released later on. The subcommittee wentthrough investigations for about a year and a half before holding hearings for Washington Mutual executives with Kerry Killinger at the front who hadturned over his job 3 weeks prior to the collapse. Killinger was eventually sued by the Federal Deposit Insurance Corporation in early 2011 in a civillawsuit trying to get some money back which the former CEO lost. Their president, David Schneider along with former Chief Operating Officer were also suedand their wives were included in the lawsuit and labeled as defendants. Two years earlier, Washington Mutual actually attempted to ask for $13 billionin damages claiming that the FDIC and OTC didn’t have justification to seize the bank and resell it to J.P Morgan for the price of $1.9 billion.
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