In 2004, Washington Mutual (WaMu) was praised by the business press as one of the most customer-oriented, innovative, community-friendly, loyal employee, and shareholder enrichment retail banks in the United States. The stock reached $ 46.18 in May 2006, a nearly 60% increase since 2001. CEO Kerry Killinger was worshiped. By the end of 2008, however, WaMu’s share had fallen to 16 cents, as it was notorious as the largest bank failure in U.S. history. Relying on publicly available published sources, the … Read more »

In 2004, Washington Mutual (WaMu) was praised by the business press as one of the most customer-oriented, innovative, community-friendly, loyal employee, and shareholder enrichment retail banks in the United States. The stock reached $ 46.18 in May 2006, a nearly 60% increase since 2001. CEO Kerry Killinger was worshiped. By the end of 2008, however, WaMu’s share had fallen to 16 cents, as it was notorious as the largest bank failure in U.S. history. Relying on publicly available sources published in the EDM documents focus on customers, excessive risks in subprime mortgages, alleged unethical pressure on mortgage officers to approve bad loans to keep his job attempts by the CEO, and possible termination the CEO, sale of the company, to hunt, and the destruction of all shareholder value. During (A) at WaMu documents formula for success turns (B) with readers to discover the seeds of destruction in the company’s leadership, culture, incentives and human resource policies and practices. WaMu death contains some hard lessons the risk of success and pride.
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from
Robert D. Dewar
Source: Kellogg School of Management
11 pages.
Release Date: 22 October 2009. Prod #: KEL433-PDF-ENG
Washington Mutual (B): From Forty-Six to Sixteen HBR case solution

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