Senate Investigation Finds Fraud At WaMu

Law360, New York (April 13, 2010, 5:17 PM EDT) -- A U.S. Senate subcommittee said Tuesday that Washington Mutual Inc. failed to adequately control and disclose the high risk of default on securitized prime and subprime mortgage loans it sold to investors leading up to its 2008 collapse, the largest bank failure in U.S. history.

The Senate permanent subcommittee on investigations on Tuesday held the first of a scheduled series of hearings following its year-long inquiry into the roots of the financial crisis, focusing on the fall of WaMu, which was, at the time of its...
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