Why didn World Savings listen to the warnings of Paul Bishop?
A mortgage sales representative at World Savings said he warned executives of the impending doom the company was bringing upon itself. Misleading and predatory loans were abound, he charged, and while executives dismissed his claims the company began its decent. Amid Paul Bishop’s warnings, the owner of World Savings was confidently telling reporters at the Wall Street Journal that the company was standing on solid ground. Bishop was perplexed, wondering if the owner and chairman of the company even knew of the predatory and unqualified loans that were being approved. Herb and Marion Sandler, the owners of World Savings had an impeccable reputation for conservative lending when they began Golden West Financial in 1963. Perhaps they grew too big to oversee all the important transactions that were the backbone of the company, which transcended into World Savings with 285 branches. The Sandlers, known as charitable people, began the advocacy group Center for Responsible Lending for low-in
(CBS) How did the mortgage industry destroy itself and set off an economic collapse that ruined the finances of millions of Americans? Executives tend to hold themselves blameless, saying that no one could have seen the disaster coming. Well, judge for yourself after you hear the story of Paul Bishop, who worked at the nation’s second largest savings and loan. World Savings Bank was among the industry’s most admired mortgage lenders. But Bishop says the kind of lending practices he saw were leading to a world of trouble that would ultimately result in billions in losses and a federal investigation. What does Paul Bishop say he told executives at World Savings, three years before the crash? “We’re breaking the law, okay? We’re breaking the law. You know we’re breaking the law. I know we’re breaking the law. What the hell do you think is going on here? You know, you’re granting too many people loans who simply can’t qualify,” Bishop told 60 Minutes correspondent Scott Pelley. Bishop’s st
World Of Trouble Scott Pelley Reports (CBS) How did the mortgage industry destroy itself and set off an economic collapse that ruined the finances of millions of Americans? Executives tend to hold themselves blameless, saying that no one could have seen the disaster coming. Well, judge for yourself after you hear the story of Paul Bishop, who worked at the nation’s second largest savings and loan. World Savings Bank was among the industry’s most admired mortgage lenders. But Bishop says the kind of lending practices he saw were leading to a world of trouble that would ultimately result in billions in losses and a federal investigation. What does Paul Bishop say he told executives at World Savings, three years before the crash? “We’re breaking the law, okay? We’re breaking the law. You know we’re breaking the law. I know we’re breaking the law. What the hell do you think is going on here? You know, you’re granting too many people loans who simply can’t qualify,” Bishop told 60 Minutes c
