In an organization as large as Washington Mutual, with the incentive system constructed as it was, that rewarded growth rather than quality, it was inevitable that certain people would coach borrowers to meet the minimums.
Coburn explains how the incentive structure led to fraudulent practices.
Share
More from Tom Coburn
I thought that was a pretty good idea, and the homeless groups said, in part, in response, 'Well, if you do that, what the appropriators will do is they will'--let us say we had, like $5 as an example, $5 from all the proceeds of all these…
You beat the crap out of them when something goes wrong, so their underlying statement is never do what is best when you can do what is safe.
I am proud of the really collegial effort that we are privileged to take part in.
Other voices in this conversation
