Top executives at Washington Mutual knew about rampant fraud in the banks’ home lending arena, and did little if anything in response, according to reports.
An internal investigation at the bank revealed that two of the top-producing offices making subprime loans in southern California were riddled with fraud.
At one office, in Downey, 58 percent of mortgages were found to be fraudulent; at another office in Montebello, 83 percent were fraudulent.
These revelations were sent to David Schneider, president of Home Loans. Bank CEO Kerry Killinger was also said to have been informed of the internal reviews.