Washington Mutual Rise and Fall

In: Business and Management

Submitted By waqas381
Words 3801
Pages 16
University of central Punjab

Final Project

Financial Markets of Pakistan

SUBMITTED TO: Miss. Kainat Riaz


Muhammad Zubair Humayun L1S09BBAM0057
Omer Yousaf L1F09BBaAM2037
Waqas Rafique L1F07BBAM2075


Washington Mutual


In the name of Almighty Allah who is most Merciful, and who give us strength to accomplish honors. We take this opportunity to acknowledge our teacher’s efforts Miss Kainat Riaz without which our success would not have been possible. Also would like to pay my gratitude to the very cooperative group members Omer, Waqas and Zubair and also want to applaud our parents for their selfless efforts and cooperation.

Executive Summary
This report explains that what were the rise and fall of the Washington Mutual the 119 year old bank. How JP Morgan acquired this bank? How it got bankrupt?


Acknowledgement 2
Executive Summary……………………………………………………………………………….2 History of WASHINGTON MUTUAL 4
Principle Line of Business...............................................................................................................5
Reasons of Rise of Washington Mutual…………………………………………………………...6
Reasons of fall of Washington Mutual……………………………………………………………8

Washington Mutual
Introduction of Washington Mutual
Washington Mutual, Inc. is a savings bank holding company and the former owner of Washington Mutual Bank, which was the United States' largest savings and loan association.
Washington Mutual was incorporated as the Washington National Building Loan and Investment Association on September 25, 1889, after the great Seattle fire…...

Similar Documents

The Rise and Fall of Europe

...In the early 20th century Europe had acquired global dominance. Primarily its progress was due to the Industrial Revolution. However, there were many other factors that contributed to the rise of Europe. The first was the formation of alliance systems, which allowed for long term relationships between countries. Next was a sense of nationalism, which gave countries unity and allowed them to work together for the good of their country. Another factor was militarism and the arms race. Each country wanted to show their power through the military, even though they didn’t want to fight. Two more factors that contributed to the rise in European power include imperialism, or the belief of superiority, and Social Darwinism, which is a theory that competition between all individuals, groups, nations or ideas drives social evolution in human societies (Wikipedia). Many client-state relationships evolved in this time period, with Europe being the superior state and other nations being the subordinate clients. Because of these factors, Europe had better food distribution, advances in medicine and sanitation. Their standard of living also increased. Progress in Europe seemed inevitable; however, it was these factors that ultimately led to its downfall in the mid 20th century. The first major hit that Europe received was the “Great War” or World War I which occurred from 1914 to 1918. The causes of this war were not clear cut but they were believed to be the formation of......

Words: 834 - Pages: 4

Rise and Fall of Nortel

...This essay will outline events that lead to the fall of Nortel network, a very successful Canadian maker of telecoms equipment in the late 1990’s. Nortel was huge and ranked as one of the largest firms of the world. This success did not last long as acquisitions of fraud, misalignment of funds among other unethical behavior were occurring. Small investors and stakeholders incurred the biggest loss. Nortel Network, a Canadian technology company was considered a fast-moving giant. The company was quick to integrate acquisitions and developed and built innovative telecom products. It seems as if nothing could stop the growth and uprising price of shares. The downfall of Nortel began when the top executives were accused of falsifying reported earnings. Top-notch executives were buying and selling stock within their retirement plans and massive accounting discrepancies were discovered. These suspicious outcomes let the United States Securities and Exchange Commission (SEC) to launch an investigation in April 2004. The company continued to plunge and deteriorate. In January 2009, Nortel filed Chapter 11 bankruptcy protection in the United States, and Companies' Creditors Arrangement Act (CCAA) in Canada. The rise of Nortel was due to innovation and timing. In July 2000, at the height of its success, with a market capitalization in excess of $350 billion Canadian dollars, Nortel accounted for 37 percent of the Toronto Stock Exchange Composite Index Value (Collins, 2012). This......

Words: 1748 - Pages: 7

Rise and Fall of Circuit City

...2009) Based on the success of its superstore model, Wards began to streamline its operations and transformed many of its small stores into full new concept, Wards opened six new stores in the Washington, D.C. area. to 7,000 square feet, featured brand name video and audio equipment, and consist in-store service capabilities. This new business strategy allowed the company to end 1979 with $120 million in sales (BCRC, 2009) In 1984, Wards changed its corporate name to Circuit City Stores, Inc. and became publicly traded on the New York Stock Exchange operated 113 stores and had become the leading specialty retailer of brand name consumer electronics (BCRC, 2009). The company the launch of innovative electronics products a large number of superstores in new markets, which were heavily advertised at once. In February 1987, Circuit City mainly by the demand for VCRs, which also pushed up demand for complementary items, such as new televisions and other audio equipment core product decreased and competition from other electronics superst heated up, the company faced a difficult future. $69.5 million in profits by 1989 (BCRC, 2009) Circuit City concept to its strong management, customer service focus, and a good Journal of Business Cases and Applications Rise and fall case covers the time period in Circuit City’s history between the decision of CEO to halt the sale of appliances in 2000 and the decision of CEO Schoonover to lay off 3,400......

Words: 675 - Pages: 3

The Rise and Fall of Rome

...The Rise and Fall of Rome The Economics Behind an Empire 4/18/2013 ECO 120 Seb Jaramillo The Rise and Fall of Rome To many people, the ancient world has always been a topic of great interest and study. The ancient world is essentially the explanation for how the world ended up where it is today. Our ancestors laid down the foundation that would help form and mold today’s civilization and the way people live out their lives in modern times. Perhaps no civilization of the past did more for the future than the efforts and contributions of the Roman Empire. For almost a millennia, the Romans controlled the vast majority of the world. Their Empire made it possible to spread wealth and knowledge to the far corners of the world and lay down a base common knowledge that helped pave the path for people to follow. This paper shall look into the background of Rome and see what economic forces helped lead to the formation of such a formidable empire. What allowed these people to become so wealthy and construct a vast territory? Why was it easy for the Romans to do so much while many other nations are still set back in our day and age? The paper shall also look at the forces at work near the end of the Western Empire that brought an end to the glory and majesty of Rome and how this knowledge can perhaps produce a means of prevention of the same fate for the United States. The city of Rome became a Republic around the year 509 BC. By the end of the first century BC Rome......

Words: 3070 - Pages: 13

Falls and Rises of Jay Gatsby

...Falls and Rises of Jay Gatsby Having read a genuine masterpiece by Francis Scott Key Fitzgerald titled “The Great Gatsby”, I am obliged to state that this great book reminds me of another, not in the least minor, work of Jack London titled “Martin Eden”. They are both about great falls and great rises of a men pursuing happiness; lonely, struggling against Destiny and following their Dream. But what are the falls and rises in these two books that I call great? First of all, I would like to present you the London’s book. The story runs about a 21-year-old sailor who by a sheer coincidence finds himself in an apartment of a wealthy man whose son he had protected from ruffians. In the home, he is enthralled by the college-age daughter, Ruth Morse, having never encountered such a vision of feminine purity before. Spurred by his growing affection, Martin determines to live by his brain rather than his back: he will be an author. He gets to reading loads of books in public libraries, educates himself, gives up sailing and starts writing stories and sends them to different magazines to be published. But he is ignored by the publishers and is forced to live from hand to mouth. But he is inspired , enchanted by the purity, brightness of Ruth, thinks her ideal. In  order to enable himself to match on her, he must upward crawl diligently. The more books he reads, the less attractive his own circle seems to him – the circle of working people, people of routine,......

Words: 939 - Pages: 4

Cyclical Rise and Fall of Gm

...| The Cyclical Rise and Fall of GM | | | | | This paper will touch on the history of GM dating back to 1899 with a history of boom and bust all the way up to the collapse, the rebirth of GM in 2009 and subsequent successful years since. | Recently in the news there has been an alarming fact about General Motors automobile products that have caused a loss of property and more importantly loss of lives, while most admit a simple design flaw could’ve been repaired with a $0.57 switch (foxnews.com, 2014, 1 Apr). This paper will touch on the history of GM dating back to 1899 with a history of a boom and bust cycle all the way up to the collapse, the rebirth of GM in 2009 and subsequent successful years since. The History of General Motors Corporation, the one-time “largest automaker in the world” had its start in 1899. At that time over one thousand companies attempted to improve the “horse drawn carriage” to that of an automobile and failed. William Crapo Durant was in the horse carriage business in Flint Michigan since 1886, selling over 75,000 in 1895. In 1904 Durant bought into the Buick Motor company where many other auto makers had operations in Flint, MI; Chrysler, Buick, Nash to name a few. The economic downturn of 1907 bankrupted many of the smaller auto manufacturers and to protect the company, Durant sought out Henry Ford and Ransom Olds to discuss a possible merger. Both declined due to Durant’s lack of capital (Durant, 2004, p 71-73). Durant,......

Words: 1149 - Pages: 5

Rise and Fall

...John Brooks World Civ1 The rise and falls of the Persian Empire Chapter 3 Mr. Smith ] John Brooks World Civ1 Mr. Smith Term Paper June 7 2014 Introduction The Persian and the Medes migrated into Iran before 1000 B.COnly a few people in this world today can boast a longer and prouder history than the Iranians, descendants of the ancient Persians. They build the greatest empire of the ancient Near East, but they also absorbed the ancient civilizations they ruled, in particular that of Mesopotamia. The Persians were first encountered around 2000 B.C.E, emerging from the grassy steppes of Central Asia, in the north.  At that point, they were closely associated with two other peoples: the Medes and Aryans. Although Cyrus had found the Persian Empire Darius 1 gave it an internal organization and structure that allowed it to last for 200 years. His accomplishment, are more impressive when we consider the empire's enormous size, the scale of which no one had ever dealt with before. The Persians, like most ancient peoples, started out with a polytheistic religion to account for the forces of nature. This was a dualistic religion, which meant it saw life as a constant struggle between the forces of good and evil. Rise of the Persian Empire Most of the credit of the rise of the Persian Empire was due to the first Achaemenid Emperor, Cyrus the Great. He founded Persia after he united the Medes and the Persians to build a great Empire. He came to power in......

Words: 1270 - Pages: 6

Rise and Fall of Nokia

...A CASE ON RISE & FALL OF NOKIA (INSIGHT TO THEIR STRETEGIES) Submitted by: RAJIV KUMR ROHILA – S065 JAGDEEP SINGH - S029 TOSHIT KUMAR - N065 Case Overview NOKIA was the most successful European company of the 1990s. The Finnish mobile-phone manufacturer captured the emerging market for mobile phones and built the industry's most powerful brand. Its handsets virtually defined the industry from the time it launched its first GSM phone, the 1011, in 1992. From 1996 to 2001 its revenues increased almost fivefold, and by 1998 it was the world's biggest mobile manufacturer. In 2005, it sold its billionth handset, an 1100 to a customer in Nigeria. Despite being the market leader in the mobile phone market since 1998, the company saw a decline in its brand value since the early 2000. It was once a firm with turnover exceeding the tax revenue of the country it was based in. However, the company not only first lost its number one ranking, a position it had held for 14 years but reach to sell-off in less than 10 years. So the most valid question from all is what happened to Finland's most beloved company? This case is all about analysis of NOKIA’s strategies responsible for its market domination to sell-off . Snapshot of NOKIA’s History To understand the Rise and Fall of NOKIA, it is important to track the history of NOKIA on a single canvas. The same is attempted through......

Words: 6204 - Pages: 25

Rise and Fall of Roman Empire

...The Rise and Fall of the Roman Empire Although the Roman Empire experienced many great accomplishments the decline led to many challenges. There were invasions by Barbarian tribes as well as economic troubles. Due to a final crisis, the empire began to crumble. Rome was being attacked by outside forces causing the constant spending. The empire became very dependent of their slaves to farm the land and work as craftsmen. The Roman empire is believed to have taken about a century until it finally failed in 476 A.D. So many negative contributions led to Rome’s Empire falling. Another cause of the fall of the roman empire involved the over-expansion and military overspending. The empire stretched from the Atlantic Ocean to the Euphrates River. There was still not enough military to keep outside attackers away. So much money was put into the military that eventually the empire fell into a huge negative financial disparity. With the majority of the money available going into the upkeep of the military many citizens began to lose hope in the empire. The military then transformed and there was no real loyalty to the city of Rome. Christianity is believed to be another reason why the Roman Empire failed. There had been a vast majority of people converting to the Christian faith. Constantine produced The Edict of Milan. This legalized Christianity and allowed religious freedom within the empire. With the rise of Christianity, a large amount of money was put......

Words: 558 - Pages: 3

Rise and Fall of Napoleon Bonaparte

...Napoleon Bonaparte’s rise to power consisted of many mistakes, wrong turns, and pitfalls, yet he managed to become head of the most powerful country in Europe at the age of thirty. During his formative years, his character was ambiguous and his intensions were often ill defined. He was, however, highly ambitious, and it was this that advanced his career and social status (Asprey). His most important and consistent aim was to create a French Empire and establish French dominance over Europe, which he was able to accomplish (Grab). However, as Napoleon became more powerful, his opposition grew stronger. It was evident that he was destined to be deposed by political responsibility and personal betrayal. Unfortunately, his threatening obsessions and potential for violence later led to his fall (Leggiere). Napoleon Buonaparte was born in Ajaccio, Corsica, on August 15th 1769 (Asprey, 7). The Buonaparte’s were a wealthy family from the Corsican nobility, but were considered poor when compared to the great aristocracies of France. Not quite nobility, one would assume that Buonaparte’s chance to rise was somewhat slim. But Napoleon was ambitious to become a well-known leader, and therefore strived to do so. He spent his early years in a military school in France but was considered an outsider because many of the other students came from very wealthy French families (13). Napoleon was driven by his father’s death in 1785. He graduated as second lieutenant in the artillery after......

Words: 1881 - Pages: 8

The Rise and Fall of Structured Finance

...The rise and fall of structured finance Abstract The financial crisis of the year 2007 and 2008 saw the world affected negatively with the economy affected adversely (Smith & Mendoza, 2011). Several scores have been directed to increased demand in the housing sector while other have resulted in concluding it was the failure of the financial regulation authorities. The severe effect caused the United States economy job market loss approximately 8 million workers as the inflation rate declined to near zero. The main purpose of the paper is to give clear insights of what caused the increase in the structured finance market and eventually its fall. In this study, the researcher set out to show that only securities that exhibited confidence when underlying them and how they attracted investors by making them appear as high paying. The study will also go an extra mile in explaining the correlation that is existing in the financial market components. Applying the structured prototype in security of finance, the researcher uses CDO (collateralized debt obligation) in illustrating that issuance of capital structure increases the likelihood occurrence of under evaluating of underlying securities and evaluation of risks. The researcher obtains data from secondary sources and Wall Street Journals. The results obtained indicated that credit rating agencies over rated their credits against collateral securities leading to miscalculation and wrong presumptions that saw the economy......

Words: 3784 - Pages: 16

Rise and Fall of the Roman Empire

...RISE AND FALL OF THE ROMAN EMPIRE The invading army touched the boarders of Rome, which had been left totally undefended. In 410 C.E. (common area), the Visigoths, led by Alaric, breached the walls of Rome and ravaged the capital of the Roman Empire. The Visigoths looted, burned, vandalized, and pillaged their way through the city, leaving a trail of destruction wherever they went. The plundering continued for three days. For the first time in nearly a millennium, the city of Rome was in the hands of someone other than the Romans. This was the first time that the city of Rome was sacked, but by no means the last. Constantine and the Beginning of Christianity One of the many factors that contributed to the fall of the Roman Empire was the rise of a new religion, Christianity. The Christian religion, which was monotheistic (to believe in one god), ran counter to the traditional Roman religion, which was polytheistic (many gods). At different times, the Romans persecuted the Christians because of their beliefs, which were popular with the poor. This 16th-century medal depicts Attila the Hun, one of the most vicious and aggressive invaders of all time. In 313 C.E., Roman emperor Constantine the Great ended all persecution and declared toleration for Christianity. Later that century, Christianity became the official religion of the Empire. This extreme change in policy spread this rather new religion to every corner of the Empire. By approving Christianity, the Roman state...

Words: 892 - Pages: 4

The Meteoric Rise and Fall of Enron

...Brady Heidrick Dr. Dan Deines ACCTG 641 15 October 2014 The Meteoric Rise and Fall of Enron Enron was created in 1985 after a merger between Houston Natural Gas and Internorth. By 2002 it was gone forever. Its stock price rose to $90/share in August of 2000 before bottoming out at $0.40/share when they filed for bankruptcy on Dec. 2nd 2001. It only took 16 years for one of the largest Fortune 500 companies to completely dissolve, taking employee jobs, pensions, Arthur Andersen, and the American public’s faith with it. Enron and its young McKinsey consultant created the energy derivative and used it to form the new natural gas division that dominated the market. However, the use of mark-to-market accounting and the creation of Special Purpose Entities (SPEs) led to overstated profits and inaccurate balance sheets. By the fall of 2001 nobody could find out how Enron was making its money. A disclosure on the October financial statements for a $1.2 billon dollar reversal caught the Security and Exchange Commission’s (SEC) attention. They launched an investigation and in less than two months Enron filed for bankruptcy protection. A large part of the scandal also focused around Arthur Andersen, at the time of the of the Big Five accounting firms, because of its qualified auditing opinions of Enron. It ultimately ceased to exist because of its involvement with the Enron fraud. The Enron scandal showed the public that changes in accounting and auditing......

Words: 2607 - Pages: 11

The Rise and Fall of Donehogawa

...University of Oklahoma 3/8/10 The Rise and Fall of Donehogawa Anthropology 1613.001 Chapter 8 Ely Samuel Parker was the first actual Indian that became Commissioner of Indian Affairs. He was part of the Seneca Iroquois tribe from the Tonawanda reservation in New York. His real name was Donehogawa, but he realized that he would not get any respect in the white man’s world with an Indian name. In this paper I will discuss how he became Commissioner, some of the problems he faced while he was Commissioner, and also his demise. Parker battled racial prejudice nearly his entire life. From the time he was ten years old he went to work as a stable boy on an Army post, and the officers would make fun of him because of how poorly he spoke the English language (Brown 179). When he was still very young he decided he wanted to go to missionary school to learn and master the English language. He wanted to be educated so that he could help his people as much as possible, and he thought that being a lawyer would be the best way to help his people. After he graduated he worked at a firm for over three years to help him learn how law offices work. He then applied to take the bar examination to become a lawyer, but was told that only white male citizens could be lawyers in New York. This did not cause Parker to give up, he was a very determined individual and sought to find which professions he would be admitted to. He then sought to be a civil engineer, and entered the......

Words: 1513 - Pages: 7

Washington Mutual

...Non-Accounting Majors ACC310-1203A-03 Colorado Technical University Online Sharon Williams August 13, 2012 Washington Mutual Bank Add on from Phase 4 What went wrong that caused the system of internal control to fail at Washington Mutual Bank? High risk mortgage lending, shoddy lending practices, maneuvering borrowers into high risk loans, corrupt the financial system, selling delinquency prone and fraudulent loans, and giving compensations that help bring down financial disaster on them. Starting in 2004 they started using a strategy in lending to make more money by taking high risk loans. In 2006 they started experienced high rates of failure and defaulting loans. By 2007 the bank was losing money that had to do with poor quality and fraudulent loans and securities. The bank internal control systems fail because no one took the evidence that was provided by employees in email, audit reports, and reviews seriously. The bank CEO and president was told of the extensive fraud by Long Beach Mortgage Company. After looking over the review the bank tried to stop the fraud, but it was ineffective. The senior management also helped in sells the delinquency loans to investors. Regulatory failure of the Office of Thrift Supervision (OTS) did not try to stop what they knew was unsafe and unsound practices at WaMu that help with their down fall. This bank had over 500 grave defects. The records of OTS has shown that during the last five years the bank......

Words: 1431 - Pages: 6

Brian Richard Garton | Time, The Valuator - "Starseeker" | 303 مسلسلات هندية الاخيرة مسلسل Sacred Games الموسم الاول الحلقة 8 الثامنة مشاهدة مسلسل Sacred Games الموسم الاول الحلقة 8 الثامنة تحميل مسلسل Sacred Games الموسم الاول الحلقة 8 الثامنة