The seminar focuses on how in September 2008 Washington Mutual - due to a strategy of low lending standards and bad quality acquisitions - was seized by the US regulators after a history dating back to 1889.

 

At the end of Intrinsic Value's training seminar on Washington Mutual the participant should be able to:

􀂅  Describe how  the  bank’s  acquisition of Long Beach Financial in 1999, and

     Providian in  2005  –  both forays into sub-prime lending - brought about the

     eventual shrinkage of the credit quality of the bank’s loan book.

􀂅  Describe the effect and dependency of FHLB funding when only 60% of the

     bank’s assets were funded by depositors,

􀂅  Characterize    the    deteriorating   effect   on   earnings   that   substantially

     increased provisions and net charge-offs would have.

􀂅  Identify the events of 2007/8 which contributed significantly to the seizure of

     the bank by federal authorities.