Washington Mutual - WAMU - a leading bank folded recently. Writing was on the wall that WAMU would fold soon. When the financials reached dangerous levels, the government took over and passed on the assets to JP Morgan Chase bank. Thus went WAMU down the drains of history.
It's truly sad that WAMU which was once considered as an example of prudent lending got into indiscriminate lending and lent money to everyone and anyone. Those people who got free money, bought houses and when things got tough defaulted on the loans. Then what happened is WAMU became a 'mamu' holding the bag.
Sometimes funny things happen during the course of such incidents. It is reported that WAMU's senior officials had gone to Washington, DC or New York to discuss with Feds about the fate of the bank. They were packed off and they were on the way back. When they were still in mid flight, government acted on it, took over the bank and passed on the assets to JPM. So, the CEO who was still a CEO when he boarded the flight had become ex-CEO when he landed. This where CEO of WAMU became 'mamu'.
'WAMU ka mamu ho gaya' was the joke of the day.
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