In the year 2004 Washington Mutual (WaMu) was touted by the business press as one of the most customer-focused, progressive, community-friendly, worker-loyal, and shareholder-enriching retail banks in America. Its stock reach $46.18 in May 2006, a nearly 60% increase since 2001. CEO Kerry Killinger was lionized. By late 2008, nevertheless, WaMu's stock had plummeted to 16 cents as it became infamous as the largest bank failure in U.S. history.
Relying on freely available printed sources, the case documents eroding emphasis on customers, excessive dangers in subprime mortgages, alleged unethical pressure on mortgage officials to support bad loans, attempts by the CEO to keep his occupation, and the ultimate conclusion of the CEO, sale of the business to Chase, and destruction of all shareholder value. Whereas the (A) case files WaMu's formula for success, the (B) case challenges readers to discover the seeds of destruction in the business's leadership, culture, incentives, and human resource policies and practices. WaMu's departure includes some hard lessons of the risk of success and pride.
Washington Mutual (B) From Forty-Six to Sixteen Case Study Solution
PUBLICATION DATE: October 22, 2009 PRODUCT #: KEL433-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
Related Case Solutions & Analyses:
Should London Police Arrest Prostitutes or Help Them?
Accelerated Innovation: The New Challenge From China
Orient Overseas Container Line (OOCL): Sailing Through Choppy Waters
Barrick Gold Corporation: Perfect Storm at Pascua Lama
Books for Change: Reorienting Business and Marketing Strategies
Managing Risk to Ensure Business Continuity at Maryland & Virginia Milk Producers Cooperative (A)
Samsung Electronics: Using Affinity Diagrams and Pareto Charts
RL Wolfe: Implementing Self-Directed Teams
Lending Loop: FinTech Disruption in Canadian Banking
Rajghat Power House: The Economy or the Environment
