Interesting stories coming out about what was going on in WAMU. I knew they had some loose guidelines for Option ARMs and sub-prime loans. A lot of their growth the last few years was driven by aquisitions and expansion into risky products (same as Wachovia and many others I guess).
But the new revelations on underwriting, policies and referral fees is shocking.
American Dream, The WaMu Way
Not sure how much of it is true, but considering a few other articles about referral fees and underwriting policies it makes you wonder. Its probably going to be a few years before we know how crazy banks got. To think, we are bailing them out for such reckless behavior with very few questions asked....