Washington Mutual, Inc. , shortened to WaMu , is a savings bank holding company and former owner of Washington Mutual Bank, which is the largest savings and loan association in the United States until its collapse in 2008.
On Thursday, September 25, 2008, the Office of Oversight of the United States (OTS) seized Washington Mutual Bank from Washington Mutual, Inc. and place it into a curator with Federal Deposit Insurance Corporation (FDIC). OTS took action due to the withdrawal of $ 16.7 billion in deposits for 9 days of bank runs (amounting to 9% of deposits that have been held on 30 June 2008). FDIC sold its banking subsidiaries (minus unsecured debt and equity claims) to JPMorgan Chase for $ 1.9 billion, which JPMorgan Chase plans to acquire as part of a secret plan dubbed the West Project internally. All WaMu branches were renamed Chase branches at the end of 2009. The parent company, Washington Mutual, Inc., remained with $ 33 billion in assets, and $ 8 billion in debt, after withdrawing banking subsidiaries by FDIC. The next day, September 26, Washington Mutual, Inc. filed for Chapter 11 voluntary bankruptcy in Delaware, where he was incorporated.
In relation to the total assets managed, closure and peace of Washington Mutual Bank is the biggest bank failure in American financial history. Before the curator's action, it was the sixth largest bank in the United States. According to the 2007 SEC filing of HK Mutual Inc., the holding company holds $ 327.9 billion in assets.
On March 20, 2009, Washington Mutual Inc. filed a lawsuit against the FDIC in the United States District Court for the District of Columbia, seeking redress of approximately $ 13 billion for what is claimed to be an unjustified seizure and a very low sale price for JPMorgan Chase. JPMorgan Chase immediately filed a counter-claim at the Federal Bankruptcy Court in Delaware, where Washington's bankruptcy process has continued since the Supervisory Oversight Office of a subsidiary of the parent company's bank.
Video Washington Mutual
Business operations before bank curator
Despite its name, Washington Mutual ceased to be a joint company in 1983 when it was demutualized and became a public company on 11 March.
As of June 30, 2008, Washington Mutual Bank has total assets of US $ 307 billion, with 2,239 retail branches operating in 15 states, with 4,932 ATMs and 43,198 employees. It holds liabilities in the form of deposits of $ 188.3 billion, and owes $ 82.9 billion to the Federal Home Loan Bank, and has a subordinated debt of $ 7.8 billion. It was held as a $ 118.9 billion asset in a single family loan, of which $ 52.9 billion is an "option adjustable rate mortgage" (Option ARMs), with $ 16 billion in subprime mortgage loans, and $ 53.4 billion of Home Equity lines of Credit (HELOCs ) and credit card receivables of $ 10.6 billion. It serves for itself and other bank loans of $ 689.7 billion, of which $ 442.7 is for other banks. It has non-performing assets of $ 11.6 billion, including $ 3.23 billion in ARM payment options and $ 3.0 billion in subprime mortgage loans.
On September 15, 2008, the parent company received a credit rating downgrade. From that date until September 24, 2008, WaMu experienced a bank run where customers withdrew $ 16.7 billion in deposits for 9 days, and more than $ 22 billion in cash outflows since July 2008, the two conditions that ultimately led the Office of Property Control to close the bank.
The FDIC then sells most of the bank's assets to JPMorgan Chase for $ 1.9 billion in cash plus assumed all guaranteed debt and some unsecured debt. Claims from the shareholders of a subsidiary bank, senior debt and subordination (all held by the parent company) are not assumed by JPMorgan Chase.
Maps Washington Mutual
History
Saving bank together
Washington Mutual was founded as a Washington National Building Loan and Investment Association on September 25, 1889, after the Great Seattle Fire destroyed 120 acres (49Ã, ha) from 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 was renamed the The Savings and Loans Association of Washington on June 25, 1908. On 12 September 1917, it operated under the name Washington Mutual Savings Bank . The company bought its first company, Financial Mutual Savings Savings Bank, on July 25, 1930. The marketing slogan for most of its history was "The Friend of the Family".
Post demutualization growth
In April 1982, Washington Mutual bought the Murphey Favre brokerage firm for an undisclosed amount of cash and demutualized the following year, turning into a capital saving bank. Shares in the first capital savings bank were offered for sale on March 11, 1983. In 1989, its assets had doubled.
In November 1994, Washington Mutual formed a new holding called Washington Mutual, Inc. and separates the non-banking unit from its main banking unit, Washington Mutual Savings Bank , which is simultaneously renamed Washington Mutual Bank . Stock company continues to trade on Nasdaq under WAMU.
In October 2005, Washington Mutual purchased the previous "subprime" credit card issuer, approximately $ 6.5 billion, although a new management team strategy from Providian targeted Prime Credit Card customers has been in place since 2001, therefore the credit card portfolio problematic has increased significantly. before the company's sale to WaMu. In March 2006, Washington Mutual began moving to its new headquarters, WaMu Center, located in downtown Seattle. The company's previous headquarters, Washington Mutual Tower, stood about a block away from the new building on Second Avenue. In August 2006, Washington Mutual began using WaMu's official abbreviations in all situations except the law.
Acquisitions
After the acquisition of Murphey Favre, WaMu made many 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 US. With the acquisition of Providian Financial Corporation in October 2005, WaMu became the 9th largest credit card company in the country.
Sebagian daftar Washington Mutual akuisisi sejak demutualisasi:
- Modal Komersial Bancorp, California, 2006
- Providian Financial Corporation, California, 2005
- HomeSide Lending, Inc., Florida, sebuah unit National Australia Bank, 2002
- Fleet Mortgage Corp., Carolina Selatan, 2001
- PNC Mortgage, Illinois, 2001
- Alta Residential Mortgage Trust, California, 2000
- Long Beach Financial Corp, California, 1999
Many of Washington Mutual's acquisitions have become disgraceful because post-merger integration quickly resulted in many mistakes. The original PNC Mortgage purchase comes at a time when subprime loans are in a "boom" period, with PNC Financial Services believing that the market is too volatile. (PNC then re-entered the mortgage market in 2009 through the acquisition of National City Corp., without plans to reinstate subprime loans.) The Dime Merger resulted in account ownership shared by the account beneficiaries. The merger of the Mortgage Fleet resulted in the entire loan being lost - served, but not found by a customer service representative.
Expansion in Washington
In April 1983, Washington Mutual announced the pending acquisition of three branch offices of the Tacoma-based Savings Bank Bersama for $ 3.25 million.
In April 1984, Washington Mutual announced the pending acquisition of the Lincoln Mutual Savings Bank based in Spokane with 14 of its 16 offices for $ 4.5 million. At the time of the announcement, Washington Mutual had 39 branches, mostly in western Washington.
In May 1987, Washington Mutual announced the pending acquisition of the Wenatchee-based Federal Savings Bank of Columbia for $ 40 million and the Seattle-based Shoreline Savings Bank for $ 7.5 million. At the time of the announcement in May 1987, Washington Mutual had 50 branches, all in Washington state. Both acquisitions were completed in April 1988.
In January 1990, Washington Mutual announced the pending acquisition of all seven Seattle-based Old Stone Bank of Washington offices of Rhode Island's Old Stone Corporation for an undisclosed amount. Old Stone originally entered the state of Washington through the acquisition of the Federal Citizens Federal Loan and Loan Association based in Seattle in 1985 with the help of the Federal Savings and Loan Insurance Corporation. The acquisition by Washington Mutual was completed in June 1990 for $ 10 million.
In June 1990, Washington Mutual announced the complete acquisition of the six offices of the Wall Street Federal Savings and the unsuccessful Walle Walla Association Loan in Eastern Washington from Resolution Trust Corporation for $ 1.8 million.
In September 1990, Washington Mutual announced the complete acquisition of all three branches of Washington from the Williamsburg Federal Savings and Utah-based Loan Association of the Resolution Trust Corporation for $ 1.3 million.
In November 1990, Washington Mutual announced the pending acquisition of the Vancouver-based VanFed Bancorp with its subsidiary in Vancouver Federal Savings Bank for $ 23.3 million. At the time of the announcement in November 1990, Washington Mutual had 75 branches, all within Washington state. This acquisition was completed in August 1991.
The acquisition of the Pacific Northwest branch of the New York-based CrossLand Savings Bank announced in April 1991 and completed in November 1991 gave Washington Mutual four offices in Washington state in addition to other offices located in the state of Oregon.
In August 1991, Washington Mutual announced the pending acquisition of the Seattle-based Sound Savings and Loan Association for an undisclosed amount. At the time of the announcement in August 1991, Washington Mutual had 84 branches, all within the state of Washington. The acquisition was completed in January 1992.
In September 1991, Washington Mutual announced the pending acquisition of Bremerton-based GNW Financial Corporation with its subsidiary Great Northwest Bank with $ 64 million in cash and stock. This acquisition was completed in April 1992.
In December 1991, Washington Mutual announced the pending acquisition of both the Washington state branch offices of the World Savings and Loan Association of America, a subsidiary of Golden West Financial, for an undisclosed amount. This acquisition was completed in March 1992.
In August 1992, Washington Mutual announced the pending acquisition of Lynnwood-based Pioneer Savings Bank with shares worth $ 181 million. This acquisition was completed in March 1993.
In October 1992, Washington Mutual announced a pending acquisition of Seattle-based Pacific First Financial Corporation with a subsidiary of Pacific First Bank of $ 663 million from its Canadian-based Royal Trustco. This acquisition relies on Pacific First's ownership of its branch office in California and has Royal Canco's Canadian parents bear all of Pacific First's bad loans. The acquisition was completed in April 1993. At the time of the initial announcement in October 1992, Washington Mutual had 118 branches in Washington and Oregon while Pacific First had 127 branches in Washington, Oregon and California. Pacific First has previously announced that they are trading offices in California for Washington offices in Great Western. As a result of the acquisition of Pacific First, Washington Mutual became one of the largest banking institutions based on consumer deposits in Washington state, second only to Seafirst.
In June 1994, Washington Mutual announced the pending acquisition of the Bellevue-based Bancorp Summit with its subsidiary Summit Savings Bank for $ 25 million in shares. At the time of the announcement, Washington Mutual had 231 branches in Washington and Oregon. This acquisition was completed in November 1994.
In June 1995, Washington Mutual announced the pending acquisition of Bellevue-based Enterprise Bank for $ 26.8 million, this is Washington Mutual's entry into the commercial banking sector. Enterprise Bank is a very profitable business buggy business unit with highly successful management. Wahington Mutual was named Tom Cleveland President of a commercial banking unit which later included Western Bank in Coos Bay Oregon. At the time of the announcement, Washington Mutual had 260 branches. Unlike previous acquisition targets, Enterprise holds a charter of commercial banks and not a saving charter.
Expansion in Oregon
In April 1991, Washington Mutual announced the pending acquisition of 25 offices in Portland, Oregon/Vancouver, the Washington region of the New York-based Savings Bank CrossLand, a subsidiary of Brooklyn Bancorp, for an undisclosed amount. The acquisition was completed in November 1991. Seven out of 25 offices are located in Washington with the remainder in Oregon. As part of the transaction, CrossLand Savings closes seven offices in Oregon and three offices in Washington, leaving eleven offices in Oregon and four offices in Washington. CrossLand has previously entered Oregon (and three other countries) through the relatively recent acquisition of the Utah-based Western Loans and Loans. The CrossLand acquisition gives Washington Mutual toe entries to Oregon via Portland.
As a result of the acquisition of Pacific First in April 1993, Washington Mutual became the fourth largest banking institution based on consumer deposits in the state of Oregon. Initially, Pacific First grew rapidly in Oregon during the late 1980s through the acquisition of unsold deposits and loans. In February 1991, Pacific First had 78 branches in Oregon, more than any other savings. Pacific First had 71 branches in Oregon in July 1992.
In April 1994, Washington Mutual announced the complete acquisition of three Portland regional offices of the Portland-based Far West Federal Savings savings bank of the $ 2.2 million Resolution Trust Corporation.
In October 1995, Washington Mutual announced the pending acquisition of Western Bank Coos-based for $ 156 million in stock. This acquisition was completed in February 1996. Because Western Bank has a charter of commercial banks and not more strict savings & amp; charter loan, Washington Mutual decided to allow Western Bank to retain the charter and name and to remain semi-autonomous for a while. At the time of the acquisition, Western Bank had 41 offices throughout Oregon. Five years later, Washington Mutual decided to abandon the Western Bank brand and integrate most of the former Western Bank offices into Washington Mutual's existing network in Oregon in 2001. Due to overlapping branches between two brands, 12 Western Bank branches and one Washington branch office jointly sold to Klamath First Bancorp based in Klamath Falls for $ 33 million.
Expansion in Idaho
In March 1994, Washington Mutual announced that it planned to expand to the state of Idaho by building a new branch office in Fred Meyer's convenience store with the first three stores opened in the Boise-area in July and August.
The following year, Washington Mutual opened the fourth location of Idaho in Moscow supermarkets in February 1995.
A branch office in Idaho Falls was acquired from the Utah-based United Savings Bank when Washington Mutual bought a savings bank in January 1997.
In March 2000, there were 9 locations in Idaho and then 22 locations in 2008 when Chase acquired Washington Mutual.
Expansion in Utah
In July 1994, Washington Mutual announced the pending acquisition of Olympus Capital Corporation based in Salt Lake City with Olympus Bank, FSB, a subsidiary of $ 52.1 million. At the time of the announcement, Washington Mutual had 250 offices in Washington and Oregon while Olympus had eight branches in Utah and two in Montana. This acquisition was completed in May 1995.
In March 1996, Washington Mutual announced the pending acquisition of the Ogden-based Federal Savings Bank for an undisclosed amount. At the time of the announcement, Utah Federal had five branch offices while Washington Mutual had 16 in Utah. The acquisition was completed in December 1996 for $ 15.2 million.
In September 1996, Washington Mutual announced the pending acquisition of United Western Financial Group Inc. based in Salt Lake City with a United Savings Bank subsidiary with $ 80.3 million in cash. At the time of the announcement, United Savings Bank has eight branch offices in Utah and one in Idaho. This acquisition was completed in January 1997.
Expansion in Montana
In May 1995, Washington Mutual acquired two branch offices at Butte as a result of the acquisition of Olympus Capital Corporation based in Utah with a subsidiary of Olympus Bank FSB. Four years later, Washington Mutual then sold two offices to Glacier Bancorp in 1999 for an undisclosed amount and quietly left Montana state.
Expansion in California
In July 1996, Washington Mutual announced the pending acquisition of Fort Worth, Texas-based Keystone Holdings Inc. with Irvine-based subsidiary American Savings Bank for $ 1.6 billion in stock. At the time of the announcement, Washington Mutual had 317 branches in Washington, Oregon, Idaho, Utah and Montana while American Savings Bank had 220 branches in California. The acquisition was completed in December 1996. The Americans retained its name after the acquisition. The yield of the acquisition nearly doubled the total deposits of all Washington Mutual subsidiaries from $ 22 billion to $ 42 billion.
In February 1997, Chatsworth-based Great Western Financial, the parent company for the second largest savings in the country of Great Western Bank, found itself the target of a hostile takeover bid from arch-rivals H. F. Ahmanson & Co., the parent company for the biggest savings in the State Savings Bank, which will involve shares worth $ 5.8 billion. Since both companies have overlapping territory, many Great Western offices will be closed by the winner if the takeover attempt is successful. The only way to combat a hostile takeover is to find another company, called a white knight who will allow a merger with much better requirements. One such company is Washington Mutual. In March, Great Western Financial announced that it had received a $ 6.6 billion Washington Mutual merger proposal at Washington Mutual Stock. Ahmanson quickly increased their offer but the offer was also rejected. Great Western approved a merger with Washington Mutual in June and the merger was completed in July. As part of the merger agreement, it was initially announced that Great Western offices would be allowed to retain the Great Western name and then there was a discussion about turning the American Savings office into a Great Western brand. In the end, it was felt that it was best for the company to have only one brand across the nation, not a double regional brand so it was announced in December 1997 that Western and American names would be retired for Washington Mutual. name. The previous month, it was announced in November that 85 redundant offices were identified in California and will close the following year. Before the merger was over, Washington Mutual had a total of 413 branches operating under various names across the country, while Great Western had 416 branches operating in California and Florida.
In March 1998, Washington Mutual announced the pending acquisition of H. F. Ahmanson & amp; Irwindale is based. The company with a subsidiary of Home Savings of America for about $ 10 billion in stock. The acquisition was completed in October 1998 with just $ 6.9 billion in stock. Before the merger was over, Washington Mutual had a total of 892 branches operating under various names (Washington Mutual, American Savings, Great Western, etc.) across the country while Home Savings had 409 branches operating in California and Texas. A few days after the completion of the merger, Washington Mutual announced plans to close 161 branches in California.
Expansion in Texas
Through the acquisition of Home Savings 1998, Washington Mutual has acquired 48 branches in Texas.
In August 2000, Washington Mutual announced the pending acquisition of Houston-based Bank United Corporation with its 155 branches, all located in Texas, for $ 1.49 billion. This acquisition was completed in February 2001.
As a result of overlapping branches between Bank United and Washington Mutual, 17 branch offices were closed in Texas, 10 of which were in Houston.
Expansion in New York
In June 2001, Washington Mutual announced the pending acquisition of New York City-based Dime Bancorp with its Dime Savings Bank subsidiary with $ 5.2 billion in cash and stock. The acquisition was completed in January 2002. Dime has 123 branch offices in the New York City area, both in New York and New Jersey.
Commercial banking
With the charter of austerity, there are some things that Washington Mutual can not do until it can obtain a charter of commercial banks, such as making commercial loans above a certain size. To solve this problem, Washington Mutual began buying commercial banks and defending them as separate business entities. In August 1995, Washington Mutual acquired an office of Bellevue Enterprise Bank in Washington. A few months later, Washington Mutual acquired 41 Coos Bay-based Western Bank offices in Oregon. In 1997, the Company name and the name of Western Bank were operated and operated under the Western Bank moniker.
After Washington Mutual flourished into California through the acquisition of American Savings, Great Western, and Home Savings, Washington Mutual secretly acquired a one-office Industrial Bank in the secretive Van Nuys Los Angeles neighborhood in 1999 and renamed it WM Business Bank.
In 2001, Washington Mutual had 38 dedicated business banking centers operating under the name of Western Bank in Northwest and the name of WM Business Bank in California when they decided to get out of their ill-fated business into the commercial banking market which was then dominated by such people Wells Fargo and Bank of America.
Mortgage banking
During the late 1990s and early 2000s, Washington Mutual decided to expand aggressively in the area of ​​subprime mortgage lending through acquisitions of existing mortgage companies as other financial institutions went.
In May 1999, Washington Mutual announced the pending acquisition of Orange, California-based Long Beach Financial Corporation with a subsidiary of Long Beach Mortgage Company for $ 350.4 million in cash and stock. The acquisition was completed in October 1999. Long Beach has specialized in providing subprime mortgages. Some of the business practices in question Long Beach may have caused Washington Mutual failure in 2008.
In January 2000, Washington Mutual announced the pending acquisition of the Los Angeles-based Alta Residential Mortgage Trust for $ 23 million.
In October 2000, Washington Mutual announced the pending acquisition of Vernon Hills, Illinois PNC Mortgage Corporation and PNC Mortgage Securities Corporation of PNC Financial Services Group for $ 605 million in cash. The acquisition was completed in February 2001. The results of the PNC Mortgage acquisition make Washington Mutual the third largest creditor in the country.
In April 2001, Washington Mutual announced the pending acquisition of Columbia, South Carolina FleetBoston Financial Fleet based Mortgage Corporation for $ 660 million in cash. The acquisition was completed in June 2001. The acquisition of Fleet Mortgage makes Washington Mutual the second largest mortgage services business in the country.
In December 2001, Washington Mutual announced the pending acquisition of HomeSide Lending, Inc. which is headquartered in Jacksonville, Florida from National Australia Bank for $ 1.9 billion. The agreement does not include the rights of mortgage payments and related financial hedges for the business. The acquisition was completed in March 2002. In August 2002, Washington Mutual announced the pending acquisition of the remaining HomeSide which included service mortgage rights on a mortgage portfolio worth approximately $ 131 billion for $ 1.3 billion in cash and a $ 735,000 debt assumption. 000. This acquisition was completed in October 2002.
In July 2002, San Mateo, California-based Bay View Capital Corporation announced the pending sale of its mortgage lending portfolio for its Bay View Bank subsidiary to Washington Mutual for "premium book value". Sales completed the following month.
In April 2006, Washington Mutual announced the pending acquisition of Irvine, Commercial Capital Bancorp, Inc. based in California with Commercial Bank FSB subsidiary for $ 983 million in cash. The acquisition was completed in October 2006. Commercial Capital specializes in loans for small and multinational commercial real estate lending markets and is the third largest multifamily lender in California.
Up and down
"Wal-Mart Banking"
Chairman and CEO Kerry Killinger had promised in 2003: "We hope to do what Wal-Mart does to them, Starbucks does it for them, Costco does it for them and Lowe, Home Depot does it for their industry. Already doing our job, five years from now you will not call us a bank. "
Killinger's goal is to build WaMu into "Wal-Mart Banking", which will serve lower and middle-class consumers who are considered too risky by other banks. Complex mortgages and credit cards have requirements that make it easier for most credit-worthy borrowers to get financing, strategies developed by banks in major cities, including Chicago, New York and Los Angeles. WaMu presses the sales agent to approve the loan and does not put too much emphasis on the income and assets of the borrower. WaMu set up a system that allows real estate agents to collect more than $ 10,000 to bring in borrowers. Loans with variable interest rates - Mortgages Rate Adjustable Option (Option ARMs) in particular - are very attractive, as they carry higher costs than other loans and allow WaMu to book a return on interest payments on hold by the borrower. Since WaMu sells a lot of its loans to investors, it worries about default.
Subprime loss
In December 2007, a subsidiary of Washington Mutual Bank reorganized its home loan division, closing 160 of 336 home loan offices and removing 2,600 positions on home loan staff (22% reduction).
In March 2008, on the same weekend Chairman JPMorgan Chase and CEO Jamie Dimon negotiated the takeover of Bear Stearns, he secretly sent his team members 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 bid to reward WaMu for $ 8 a share, mostly in stock.
In April 2008, the parent company, responding to the losses and difficulties suffered due to the subprime mortgage crisis 2007-2008, announced that 3,000 people across the company would lose their jobs, and the company expressed its intention to close about 176 remaining companies. home loan offices, including 23 in Washington and a loan processing center in Bellevue, Washington. It stopped buying loans from outside mortgage brokers - known in the trade as "wholesale loans." WaMu also announced a new $ 7 billion capital infusion by new outsiders led by TPG Capital. TPG agreed to pump $ 2 billion into Washington Mutual's holding company; Other investors, including some current WaMu institutional holders, agreed to buy an additional $ 5 billion in newly issued shares. This has upset many investors, because TPG investments will dilute existing shareholder holdings, and because WaMu executives rule out mortgage losses from computational bonuses.
In June 2008, Kerry Killinger resigned as chairman, despite remaining Chief Executive Officer. On September 8, 2008, under pressure from investors, Washington Mutual's board of directors fired Killinger as CEO. Alan H. Fishman, head of mortgage broker Meridian Capital Group, and former chief operating officer of Sovereign Bank, was appointed new CEO for 17 days.
Seizure by OTS and FDIC
In mid-September 2008, WaMu's stock price had closed as low as $ 2.00. It was worth more than $ 30.00 in September 2007, and had traded as high as $ 45 in the previous year. While WaMu is openly adamant it can remain independent, at the beginning of the month it quietly hires Goldman Sachs to identify potential bidders. However, some deadlines passed without anyone making a bid. At the same time, WaMu suffered a massive run (mostly through electronic banking via internet and wire transfers); customers withdrew $ 16.7 billion in deposits in a ten-day span.
This has led the Federal Reserve and Treasury to increase pressure on WaMu to find buyers, as a takeover by Federal Deposit Insurance Corporation (FDIC) could be a serious undermine of the FDIC insurance fund, which has been hit hard. by IndyMac's failure that year. FDIC finally held a secret auction of Washington Mutual Bank. Finally, on the morning of Thursday, September 25 (which is the 119th anniversary of the formation of WaMu), regulators tell JPMorgan Chase that they are the winners.
On Thursday night (shortly after the closure of the West Coast business), the Office of Cheap Goods Supervision seized the Washington Mutual Bank and placed it in the FDIC curator. In a statement, OTS says that running big means that WaMu is no longer heard. FDIC, as the recipient, sold most of Washington Mutual Bank's assets, including the branch network, to JPMorgan Chase for $ 1.9 billion. JPMorgan agrees to assume the debt and liabilities of the bank secured to the depositor. The transaction does not require FDIC insurance funds. Typically, bank seizures occur after business closure on Friday. However, due to deteriorating bank conditions and leaks that seizures are imminent, regulators feel they must act a day early.
Since JPMorgan Chase buys Washington Mutual assets for a low price, WaMu shareholders are almost gone. Its share price fell to $ 0.16 per share, far from $ 45 per share in 2007. In the Chapter 11 filing, WaMu recorded assets of $ 33 billion and $ 8 billion in debt. (Ref Annex A). The filing also shows that sufficient funds are available for distribution to unsecured creditors.
Within days of foreclosure, hedge fund adviser and investment strategist Mike Stathis of AVA Investment Analytics issued a formal complaint to the Securities and Exchange Commission, demonstrating the evidence of insider trading. Complaints also allege that Washington Mutual is not bankrupt, and some Wall Street companies and hedge funds conspire to reduce stock. He also stated that he was speaking to a reporter from the Associated Press who told him that he was contacted by Washington Mutual executives hours before the foreclosure, told reporters that it would happen because of "political reasons." In later criticism, Stathis discusses that neither FDIC nor OTS have ever disclosed evidence of Washington Mutual's bankruptcy. Stathis stated that within weeks of filing his complaint, he was visited by a federal agent who held him in the interrogation room for questioning. As a result, Stathis stated that he felt oppressed and did not release SEC complaints into the public domain until a year later.
Shareholders fight for what they perceive to be Washington Mutual's illegal seizure via websites such as WaMuCoup.com (dead link) and others, claiming that OTS acts in an arbitrary and volatile manner and seizes banks for political reasons or for the benefit of JPMorgan Chase, which acquired a large branch network on what they claim to be an unfair low price. Shareholders stated that at the date of acquisition the bank has sufficient liquidity to meet all its obligations and in accordance with the business plan negotiated with OTS 2 weeks earlier and that the board of the holding company and management remains fully in the dark about the government's negotiations with Chase, impeding the bank's ability to selling himself. Chief executive Alan H. Fishman flew from New York to Seattle on the day the bank closed, finally receiving a $ 7.5 million sign-on bonus and $ 11.6 million (rejected) severance pay after being CEO for 17 days. Senator Maria Cantwell demanded an explanation from the government and threatened to open an investigation and former Washington Mutual shareholders had threatened the lawsuit demanding compensation for the loss of the value of their shares.
The seizure of WaMu Bank resulted in the largest bank failures in American financial history, far exceeding the failures of Continental Illinois in 1984.
Bankruptcy
On September 26, 2008, Washington Mutual, Inc., and the remaining subsidiary, WMI Investment Corp. filed for Chapter 11 bankruptcy. Washington Mutual, Inc., was immediately removed from trading on the New York Stock Exchange, and started trading through the Pink Sheets. Bankruptcy was the second major filing within weeks, after Lehman Brothers had filled eleven days earlier; both bankruptcies far outstrip WorldCom 2002 filings, which holds the record with assets under $ 104 billion (Washington Mutual itself, which is roughly half of Lehman Brothers, three times more than WorldCom).
All assets but only a few liabilities (including deposits, closed bonds, and other secured debt) from Washington Mutual Bank are assumed by JPMorgan Chase. Under the agreement, JPMorgan Chase acquired all of WaMu's banking operations, including $ 307 billion in assets and $ 188 billion in deposits, at a price of $ 1.9 billion plus debt assumptions. The unsecured senior debt obligations of the bank are not assumed by the FDIC, leaving the holder with a less than meaningful recovery source. On Friday, September 26, 2008, customers of Washington Mutual Bank were informed that the Deposit held by Washington Mutual was the responsibility of JPMorgan Chase.
The IRS claims $ 12.5 billion in taxes from Washington Mutual, Inc. The company filed a court document on January 22, 2009 claiming a loss of $ 20 billion, and the company requested not to pay the tax debt, stating that the IRS may owe Washington Mutual Inc., a tax return. In the settlement between Wash. Mutual Inc. (in curator), FDIC, and JPMorgan Chase the Wash. Mutual Inc. recently published, a tax refund of about US $ 5.7 billion will be shared between Wash. Mutual Inc., JPMorgan Chase and FDIC.
Washington Mutual, Inc., sued Federal Deposit Insurance Corporation (FDIC) for $ 13 billion after the sale of its banking operations to JPMorgan Chase. WMI lawyers claim the bank does not get fair value for the bank, and some subsidiaries of the holding company are taken.
On January 11, 2010, the United States Department of Justice, the Office of the United States Guardian, Delaware District, pursuant to Section 1102 (a) (1) of the Bankruptcy Code, appoints the Equity Security Holders Committee to represent all shareholders of both preferred and public shares. All Motions to Disband the Equity Security Holders Committee was rejected on January 28, 2010 by US Bankruptcy Judge Mary F. Walrath, Delaware District.
On July 20, 2010, bankruptcy judge Mary Walrath approved the EC motion for inspectors to investigate the potential legal claims and assets of WMI, handing the victory to shareholders. The judge directs the examiner to investigate not only the legal settlement with the FDIC and JPMorgan Chase at the heart of the reorganization of WaMu, but also all potential claims and assets that are part of the settlement or which will be retained by the company.
On July 26, 2010, US Trustee Roberta A. DeAngelis appointed the veteran bankruptcy assessor and McKenna Long & amp; Aldridge LLP partnered with Joshua R. Hochberg to conduct an investigation of the proposed settlement between WMI, JPMorgan Chase and FDIC. Hochberg is a partner at McKenna Long & amp; Washington Aldridge's office practices focused on white-collar defense, internal investigation and internal compliance.
On August 10, 2010, bankruptcy judges rejected Washington Mutual Inc.'s attempts. to obtain personal financial information from shareholders requires the company to schedule an annual meeting. Lawyers for the European Commission say that WMI is just trying to delay scheduling shareholder meetings by seeking personal information. The judge agrees that WMI is not entitled to such information.
On November 1st, 2010, Joshua R. Hochberg testers from McKenna Long & amp; Aldridge LLP presented its long awaited report, but did not meet the expectations of the courts, as the report was based on indirect interviews and the work of secret client lawyers. On December 12, the court decided to exclude the examiner's report during the confirmation meetings of the plan, saying that it could not be considered expert testimony or submitted as evidence unless it could be questioned to determine the basis of its conclusions.
On January 7, 2011, the bankruptcy court rejected the proposed 6th proposed reorganization proposed by the debtor and their lawyer from Weil, Gotshal & amp; Manges LLP. Judge Mary Walrath focused much of her criticism on the release of corporate responsibility granted to directors, officers and other parties including several hedge funds, which she said did not contribute anything to the settlement. He noted for example that shareholders, who are likely to get nothing, need not release the board of the company from the threats demanded by them. However, many WaMu shareholders believe there will be a significant recovery when Washington Mutual emerges from bankruptcy.
On September 14, 2011, the court also rejected the proposed sixth proposed reorganization plan. Judge Mary F. Walrath writes that four hedge funds who have played a part in Washington Mutual's restructuring may have received confidential information that could be used to trade improperly in bank debt. Four hedge funds are Appaloosa Management, Aurelius Capital Management, Centerbridge Partners and Owl Creek Asset Management.
The seventh reorganization plan was announced in February 2012 and the company finally emerged from Chapter 11 bankruptcy the following month as WMI Holdings Corporation . By 2015, WMI Holdings has raised $ 598 million and is seeking new acquisitions.
Post-curator bank operations
During 2009, all Washington Mutual Bank branches that had been purchased from FDIC after the bank was placed in the receiver, changed to Chase or closed. All financial documents issued by WaMu are changed to carry the JPMorgan Chase logo. Credit and debit cards issued by WaMu or Providian are changed to carry the Chase logo.
Since 2009, Chase ATMs have been accessible to WaMu customers at no additional cost, and branches and accounts officially merged in 2009 as WaMu's brand has retired. Branches in the Pacific Northwest, Idaho and Utah were rebranded in May 2009; branches in Florida, Georgia, Texas, Illinois, and Greater New York were rebranding in July 2009, and the remaining branches in Nevada, California, Arizona, and Colorado were re-branded in October 2009. Recent brand alterations officially stop your WaMu name.
In markets where Chase already has a dominant presence, such as Greater New York and Chicago due to the presence of Chase and the predecessor of Bank One (in New York, the merger produces a different branch in the same block), Chase further discards the branch. to another bank.
Ad campaigns
"Free Account Checkup"
This advertising campaign was introduced between 2005 and 2007. Many WaMu ads show overweight banks 60-70 years in traditional dress laughing out loud at the WaMu representative (who is much younger and fitter), who say the words "Free Account Checking ".
"Strength Yes"
WaMu introduced an advertising campaign during the 2003 Academy Awards known as "The Power of Yes". This is to promote the lending offer to all consumers, especially borrowers who are considered too risky by banks. Other ads in the ad series show WaMu representatives in casual attire, in contrast to the traditional dressing bankers.
"Whoo hoo"
"Whoo hoo!" is an advertising campaign introduced by Washington Mutual in February 2008. As fears of an economic crisis escalate, and WaMu wants to become "the iconic brand that people love", they are starting to approach consumers with a new slogan, designed to position WaMu as a consumer friendly institution.
During the run, Whoo hoo! ad, created by TBWA \ Chiat \ Day of Playa del Rey, California, became widespread in web navigation. After WaMu launches a new ad, there's double-digit growth on its site and the term "wamu" appears in more than 1,000% more searches between January and March than in all of 2007.
Washington Mutual (before the bank's September 2008 conservator and sales to JPMorgan Chase) signed up to register the trademark in that phrase. Initially, the bank wanted to use "woo hoo" (without "h" in the first word) as a slogan, but they were worried because of the use of phrases that existed by Homer Simpson, the characters in The Simpsons
Design branch of Occasio
Source of the article : Wikipedia
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