PBD Podcast Former CEO of Washington Mutual - Kerry Killinger | PBD Podcast | Ep. 185
Sep 15, 2022
Kerry Killinger, the former CEO of Washington Mutual, shares his insights into the banking industry and the factors that led to the collapse of his institution during the 2008 financial crisis. He compares Wall Street and Main Street, revealing lessons from WaMu's aggressive growth and risky lending practices. The conversation digs into the ripple effects of the financial crisis, the challenges of regulatory compliance, and today’s economic vulnerabilities. Killinger's candid reflections serve as a cautionary tale for the future of banking and investing.
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WAMU's Welcoming Atmosphere
- Patrick Bet-David recounts his positive experiences with WAMU's customer service, contrasting it with other banks.
- He mentions recruiting a WAMU employee who confirmed customers preferred WAMU's welcoming atmosphere.
Kerry Killinger's Early Career
- Kerry Killinger's career began in the Midwest, fueled by an interest in finance and entrepreneurship.
- He flipped houses in college, invested in stocks, and discovered Warren Buffett's philosophy in the 70s.
Wall Street vs. Main Street
- Kerry Killinger suggests WAMU's downfall was partly due to being an outsider in the Wall Street "club".
- He claims established financial institutions felt threatened by WAMU's rapid growth and success.