SEC looks into WAMU loans scandal

[Waterbuffalo]

Thought this might be of interest to our regulars here at Clarkblog.


WaMu assisting in SEC inquiry
By Drew DeSilver, Seattle Times business reporter

"Washington Mutual said late Thursday it is cooperating with a federal inquiry stemming from allegations that it made mortgage loans based on improperly inflated home appraisals."

For more of the article, please read here: http://seattletimes.nwsource.com/html/businesstechnology/2004085476_wamu21.html

[Chief]

yah...WAMU is in this up to their eyebrows. This is not the first time there have been major allegations of wrongdoing against them for their mortgage lending practices either. As far as cooperating with the Feds, they really don't have any choice, since WAMU is the target of the inquiry...

Things could get quite ugly for WAMU next Spring...

[Waterbuffalo]

I was hoping for some real juicy, fire kiln roasting in front of Congress.. Darn, I guess I'll have to be satisfied with a SEC inquiry...

[Chief]

Too early for hearings. Once the SEC reports, then you may see Congress Critters start making noises about hearings. WAMU is in this up to their eyeballs, and as one of the biggest lenders embroiled in the Sub-Prime scandals, stand a really good chance of not only a grilling in front of Congress, but the possibility of charges against some of WAMU's officials.

Think about WAMU as the ENRON of mortgage lenders...

[Waterbuffalo]

ouch! Some where in the past week you or i posted a news article on the Clarkblog list about the Top lawyer for wamu quitting or being replaced. Like you said, this is going to be a bananza politically for Congress critters.

I think I'll just go back to my fox hole. Better things to do than worry about this until it really hits the fan...