Dredging this one up after a recent newspaper article.
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Originally Posted by island911
tabs, why do you think WAMU is in that much trouble? --From my experience they have been one of the more responsible lenders.
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Seattle Times: "Reckless strategies doomed WaMu"
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"The big saying was 'A skinny file is a good file,' " said Nancy Erken, a WaMu loan consultant in Seattle. She recalled helping credit-challenged borrowers collect canceled checks, explanatory letters and other documentation that they could afford their loans.
"I'd take the files over to the processing center in Bellevue and they'd tell me 'Nancy, why do you have all this stuff in here? We're just going to take this stuff and throw it out,' " she said.
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If you need any more evidence that WAMU was rotten, read the linked Seattle Times article. If you need any more evidence of the dangers still lurking in the financial system, consider that most/all of the big banks and Wall St were engaged in this supersized game of 'risk' aversion. When I say banks were averting risk, I really mean banks are ignoring risk.