Regulators inadequately supervised WaMu, investigation finds

04/12/2010 | New York Times (tiered subscription model), The

A federal investigation into the collapse of Washington Mutual found that the Office of Thrift Supervision and the Federal Deposit Insurance Corp. failed in their oversight of the bank. The inquiry found that WaMu failed "because of management's pursuit of a high-risk lending strategy that included liberal underwriting standards and inadequate risk controls."

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