60 Minutes recently took a look at World Savings Bank, the acquisition that ultimately wounded Wachovia so badly that it had to be acquired by Wells Fargo. What was wrong with an institution for which Wachovia was willing to pay $25 billion? Well, one whistleblower claims that World Savings was engaged in fraud and predatory lending — tricking its customers into signing up for dangerous “option-arm” or (as they cheerfully called them) “pick-a-payment” loans.
The Wall Street Journal is reporting that WaMu is courting several private equity firms about a potential takeover after their debt was downgraded even further into junk status by Standard & Poor’s. Once merely “junk,” WaMu is apparently, “so junky we are not even kidding around about it anymore.”
We had an email go out to employees here at WaMu. They’re going to stop providing us plastic cutlery, hot chocolate, creamer, and anything but regular tea.
New York Attorney General, Andrew Cuomo, announced today that he’s suing one of the nation’s largest real estate appraisal firms for conspiring with Washington Mutual to artificially inflate appraisals.
WaMu, the nations largest Savings & Loan, is going to stop issuing certain risky types of subprime loans.
Poof. The records of over a million customers at Texas A&M’s largest student loan provider have been lost. The records contained personal information about the borrowers.