Problem is WaMu’s rapid expansion from regional to semi national bank was based on liar home mortgages. Their mortgage departments were encouraged to to whatever necessary to make a loan, do not verify the applicants info and sell the note within six months. Profit from loan is from fees and points. Problem is housing prices busted and WaMu has a huge inventory of underwater mortgages and foreclosed properties. They are saved by the fed changes in market to market accounting rules that hide these homes from the books. JPMC is now stuck with it and the only way out is the Feds will keep rates low and inflate the US economy out of the mountains of debt.
Their was a 18 billion run of withdrawals in one week that put WAMU under.
I saw it happening and for a week they offered a 5% one year CD trying to recover.
I saw it happening and took out a $200k one year.