Washington Mutual (WaMu) was a Seattle-based savings bank that grew through aggressive acquisitions into the largest savings and loan association in the United States, before collapsing during the 2008 financial crisis and being sold to JPMorgan Chase.
Founded in Seattle, Washington, as a building and loan association to provide home loans to local residents. It would later evolve into Washington Mutual. #finance #history
The institution changed its name to reflect a broader focus on savings and home loans, a common shift among building and loans at the time. #banking
The association paid its first dividend to shareholders, signaling financial stability and growth. #finance
Unlike many banks, Washington Savings and Loan remained solvent throughout the Great Depression, partly due to conservative lending practices. #history
Reorganized as a mutual savings bank, adopting the name Washington Mutual Savings Bank, reflecting its status as a state-chartered bank. #banking
Opened its first branch outside Seattle, beginning a period of regional expansion across Washington state. #growth
Launched its own credit card program, diversifying beyond traditional savings and loans. #innovation
Converted from a mutual to a stock-owned institution and went public, trading on the New York Stock Exchange under the symbol WAMU. #IPO #finance
Acquired a mortgage banking firm, strengthening its home lending capabilities. #acquisition
Converted to a federal savings and loan charter, allowing greater flexibility in branching and lending. #regulation
Purchased First Federal Savings & Loan of Spokane, expanding its presence in eastern Washington. #acquisition
Kerry Killinger, a former securities analyst, joined Washington Mutual as executive vice president; he would later become CEO and drive aggressive growth. #leadership
Killinger became president and CEO, initiating a strategy of rapid acquisition-based expansion across the United States. #leadership
Purchased Pioneer Savings Bank of Tacoma, Washington, for $150 million, the company's first major acquisition under Killinger. #acquisition
Acquired California-based thrifts, including Santa Barbara Savings & Loan, marking entry into the lucrative California market. #expansion
Introduced the nation's first free checking account (no monthly fee, no minimum balance), revolutionizing retail banking and attracting millions of customers. #innovation #banking
Acquired American Savings Bank of Irvine, California, for $1.1 billion, significantly expanding its California footprint. #acquisition
Acquired Keystone Holdings, a mortgage banking firm, boosting its mortgage origination capabilities. #acquisition
Acquired Home Savings of America, the nation's largest thrift at the time, making Washington Mutual the largest savings bank in the United States. #acquisition #milestone
Purchased Long Beach Mortgage Company, a leading subprime lender, which later contributed to the company's downfall. #acquisition #subprime
Acquired Bank United Corp of Houston for $1.5 billion, gaining a strong presence in Texas and the Southwest. #acquisition
Acquired Dime Bancorp of New York for $5.2 billion, marking entry into the Northeast market and making WaMu one of the largest US banks. #acquisition
Acquired Providian Financial, a major credit card issuer, for $1.2 billion, expanding into credit card lending. #acquisition #creditcards
Washington Mutual's assets exceeded $250 billion, making it the seventh-largest bank in the US by assets. #growth
Acquired Washington Savings Bank of Spokane, increasing its branch density in the Pacific Northwest. #acquisition
After acquiring smaller institutions, Washington Mutual officially became the largest savings and loan association in the United States by deposits. #milestone
Washington Mutual reported a record net income of $3.9 billion, driven by rapid mortgage origination and credit card operations. #financialperformance
As the subprime mortgage crisis unfolded, Washington Mutual reported a 77% drop in first-quarter profits and $1.5 billion in loan loss provisions. #crisis #subprime
Announced the closure of Long Beach Mortgage Company and discontinued subprime lending as losses mounted. #subprime #restructuring
Private equity firm TPG led a $7 billion capital injection to shore up WaMu's balance sheet, but it was not enough to stave off collapse. #bailout
Reported a net loss of $1.1 billion for Q1 2008 as mortgage defaults escalated, wiping out recent capital raises. #losses
WaMu's stock fell below $1 per share, losing over 90% of its value from its 2007 peak amid fears of insolvency. #stockmarket
Following Lehman Brothers' bankruptcy, credit rating agencies downgraded WaMu's debt to junk status, triggering deposit runs. #creditrating
The Office of Thrift Supervision closed Washington Mutual and appointed the FDIC as receiver; the bank's assets were sold to JPMorgan Chase for $1.9 billion. #bankfailure #crisis
JPMorgan Chase reopened all WaMu branches as JPMorgan Chase branches, effectively ending the Washington Mutual brand. #acquisition #end
Washington Mutual's common stock was delisted from the New York Stock Exchange after the seizure, trading over-the-counter before eventual cancelation. #stockmarket
The SEC began investigating Washington Mutual's accounting practices related to mortgage loan losses, eventually resulting in no charges. #regulation
The FDIC filed a lawsuit against former CEO Kerry Killinger and other top executives for gross negligence leading to the bank's failure. Ultimately, the suit was dismissed in 2015. #litigation
JPMorgan Chase agreed to pay $1.65 billion to settle a lawsuit by Washington Mutual bondholders over the seizure and sale. #litigation