The Largest Bank Failure in United States History: Washington Mutual
The largest bank failure in United States History
Washington Mutual, Inc. 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.
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). …show more content…
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 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. By 1917, it was operating under the name Washington Mutual Savings Bank. The company purchased its first company, the financially distressed Continental Mutual Savings Bank, on July 25, 1930. 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".
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.
In 1990, Kerry Killinger became CEO of the WaMu, and a little bit later he also became a chairman. He started campaign of aggressive acquisitions. During next few years he acquired at least 14 companies and brought the WaMu’s assets to over $300