Regulators fued over WaMu as it was blowing up shows why “thinking” has to be taken out of regulations, & why they also need simplified.
Regulators failed for years to properly supervise the giant savings and loan Washington Mutual, even as the company wobbled under the weight of risky subprime mortgages, a federal investigation has concluded…
With more than $300 billion in assets, WaMu was the largest institution regulated by the Office of Thrift Supervision and accounted for as much as 15 percent of its total revenue from assessments, the report found…
Moreover, the office relied on WaMu’s own tracking system to follow up on regulators’ findings.
More explanation from Calculated Risk:
The regulatory system failed.