Case Study 1: Washington Mutual

2004 :Embarked upon a lending strategy to pursue higher profits by emphasizing high risk loans

2006 :High risk loans began incurring high rates of delinquency and default,

2007 :Mortgage backed securities began incurring ratings downgrades and began incurring losses due to a portfolio that contained poor quality and questionable customers. (Source: Wall Street and the Financial Crisis: Anatomy of a financial collapse began incurring losses due to a portfolio that contained poor quality and fraudulent loans and securities.Its stock price dropped as shareholders lost confidence and depositors began withdrawing funds, eventually causing a liquidity crisis at the bank)

2008: Seized by its regulator, the Office of Thrift Supervision (OTS) Placed in receivership with the Federal Deposit Insurance Corporation (FDIC) Sold to JPMorgan Chase for $1.9 billion.

Question: What led to the failure of the said institution looking at business, financial and internal risks?