How many times have we heard, “Business is a dog eat dog world”. As unpleasant as the thought may be, it’s correct. Washington Mutual Mortgage was part of Washington Mutual Inc., founded in 1889 and based in Seattle, Washington. The corporation had a long history of supplying financial services and products to communities large and small across the west and northwest. Often seen as the primary source of funds for expansions, as well as start up ventures, WAMU stood prominent in the investment community – until September 25, 2008.
Nearly all Americans desire participation in the American dream, to one degree or another. Millions work, save and invest toward that achievement. In the 1980’s and 90’s government programs and bureaucratic pressures encouraged banks and investment institutions to actively pursue more mortgage business in the subprime mortgage arena. Washington Mutual was one of those banks.
Throughout this period homes were selling at record pace. Mortgages were being written by both professionals and amateurs. Many of these mortgages were written on people unqualified to purchase homes, and in turn the paper was bought and sold by banking firms like Washington Mutual. (WAMU) Washington Mutual made billions of dollars in sales and grew rapidly however on September 25, 2008 their future collided with the past. As a result Washington Mutual Inc. Came to an end.
On September 26, 2008, JP Morgan Chase acquired Washington Mutual. In a secret and private bidding process, Washington Mutual’s strong history of satisfying its customer and usually making sound business decisions came to an un-ceremonial end.
Washington Mutual could hardly be considered a helpless victim. The firm proved itself more than willing and able to be the dog, in “dog, eat dog”, corporate warfare. Many corporations and businesses fell victim to the WAMU acquisitions machinery, and was consumed. In the darkness of a Thursday night in 2008, Washington Mutual, Inc. Became food to a bigger dog.
The next day, Friday September 27, 2008; WAMU branch offices opened for business as usual. By all outward appearances, little had changed. Customers were greeted and serviced with all the appropriate courtesies, and business continued as usual, with one major exception. The nation knew JP Morgan Chase now owned Washington Mutual. No longer were customers greeted with, “Welcome to Washington Mutual”. Smiles over jittered nerves, masked very worried employees. Employees knew before work or soon after arriving, what happened.
Change was not long in coming. Within weeks, customers paying mortgages began receiving calls from the collections department of JP Morgan Chase. Often these calls came daily and repeatedly. Even more frequently, the customers were not late on their payments. When questioning JP Morgan Chase, they were told the calls were just reminders to send payments. If WAMU customers became upset and demanded explanations; they were given a telephone number to call for voicing their complaints. The number was to an answering machine.
The failure of Washington Mutual Inc. May have been an event waiting to happen. Yielding to political and financial pressures demanding special consideration be granted to people not qualified to buy a house, certainly contributed to its destruction in a major way.
Were they coming to the rescue of the depositors and investors, or were they executing a plan crafted to take down a competitor on behalf of a political alley? Either way, Washington Mutual Mortgage got eaten by a bigger dog.
washingtonmutual com It has now risen back up to $30 and your broker has assured you it will continue to rise; Maybe. British, Arab, and Jewish reactions to the recommendations were not favorable. The people in this group are those with increasing purchasing power capacity.