The "Whoo Hoo!" Crash: The Rise and Fall of Washington Mutual
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Show Notes
In this episode of pplpod, we explore the spectacular collapse of Washington Mutual (WaMu), which remains the largest bank failure in American financial history. We trace WaMu’s journey from its founding following the Great Seattle Fire of 1889 to its aggressive expansion under CEO Kerry Killinger, who sought to transform the institution into the "Wal-Mart of Banking" by catering to risky borrowers.
Tune in as we discuss:
• WaMu's rapid growth through major acquisitions, including Great Western Financial, Dime Bancorp, and Providian.
• The bank's unique branding strategies, such as the "Occasio" branch design and the infamous "Whoo hoo" advertising campaign.
• The subprime mortgage exposure and "Option ARM" loans that left the bank vulnerable to the housing market crash.
• The catastrophic nine-day bank run in September 2008 where depositors withdrew $16.7 billion, leading to the bank's seizure by the OTS and immediate sale to JPMorgan Chase for just $1.9 billion.