Washington Mutual Case Study
Washington Mutual Bank Big Dreams…. Poor Implementation
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Financial Risk Management
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Prepared By:
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Rafia Hanif Butt
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Syeda Saba Zaidi
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Submitted to:
Acknowledgement:
All the thanks to Allah for giving us the courage to complete this report. We would like to express our special thanks to gratitude to our teacher, Sir Mohsin Adhi, who gave us the golden opportunity to work on this project of Financial Risk Management. This project has helped us in exploring and knowing several practical facts of Financial Risk Management.
We are thankful to our parents and friends who helped us with their knowledge in completing our project within the limited time period.
The purpose of this project is not only to secure marks but also to increase our knowledge regarding the course.
Contents Acknowledgement: 2 Executive Summary 3 Washington Mutual Inc. 5 Overview of the Case study 5 What Made Washington Mutual Bank Collapse? 6 Key Players Contributing to WaMu’s Bankruptcy: 7 The Risks faced and mishandled by WaMu: 9 Suggested Risk Management Techniques; 10 Credit Risk Management 10 Figure out the credit exposure 10 Provision as well as the analysis of credit risk scores 10 Operational Risk Management: 10 Active role playing by Regulators: 10 Market Risk Management: 11 Liquidity Risk Management: 11 Clear and communicable liquidity risk management policies: 11 Some regulatory wisdom 11 Bibliography 12
Executive Summary
“We hope to do to this industry what Wal- Mart did to theirs,
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Financial Risk Management
-------------------------------------------------
-------------------------------------------------
Prepared By:
-------------------------------------------------
Rafia Hanif Butt
-------------------------------------------------
Syeda Saba Zaidi
-------------------------------------------------
-------------------------------------------------
Submitted to:
Acknowledgement:
All the thanks to Allah for giving us the courage to complete this report. We would like to express our special thanks to gratitude to our teacher, Sir Mohsin Adhi, who gave us the golden opportunity to work on this project of Financial Risk Management. This project has helped us in exploring and knowing several practical facts of Financial Risk Management.
We are thankful to our parents and friends who helped us with their knowledge in completing our project within the limited time period.
The purpose of this project is not only to secure marks but also to increase our knowledge regarding the course.
Contents Acknowledgement: 2 Executive Summary 3 Washington Mutual Inc. 5 Overview of the Case study 5 What Made Washington Mutual Bank Collapse? 6 Key Players Contributing to WaMu’s Bankruptcy: 7 The Risks faced and mishandled by WaMu: 9 Suggested Risk Management Techniques; 10 Credit Risk Management 10 Figure out the credit exposure 10 Provision as well as the analysis of credit risk scores 10 Operational Risk Management: 10 Active role playing by Regulators: 10 Market Risk Management: 11 Liquidity Risk Management: 11 Clear and communicable liquidity risk management policies: 11 Some regulatory wisdom 11 Bibliography 12
Executive Summary
“We hope to do to this industry what Wal- Mart did to theirs,
Bibliography: big dreams poor implementation. (2012, august 9). Retrieved from http://financetrain.com/washington-mutual-big-dreams-poor-implementation/ Data investment consult. (n.d.). Retrieved from http://www.dataandinvestmentconsult.com/corporate-finance/credit-risk-management-tackle-it-effectively.html Managing-banks-operational-risk. (2012, february 27th). Retrieved may 22, 2013, from http://dawn.com/2012/02/27/managing-banks-operational-risk/ market risk management. (2012, january). Retrieved from http://www.ey.com/Publication/vwLUAssets/Market_risk_management_en/$FILE/Market-Risk-Management_en.pdf regulatory-risk.com. (2012, March 5). Retrieved from http://regulatory-risk.com/2012/03/what-is-liquidity-risk-management/