Washington Federal Savings
University of Phoenix
Business Law
BUS 415
Deborah Gronet
October 20, 2007

Washington Federal Savings Washington Federal Savings is a financial institution that has served communities statewide since 1917. As a savings and loan institution, Washington Federal offers checking and savings accounts and mortgage loans. Defining itself amongst competitors, Washington Federal provides customers with the “human touch” in its simplest form - quality customer service. Operating in eight states, Washington Federal maintains a relatively small staff of 885 employees. As a financial institution, Washington Federal is highly regulated by certain federal agency regulations. This paper will explore the regulations currently in effect for financial institutions, as well as the origin, evolution, and efficacy of these regulations within Washington Federal Savings.
Federal Deposit Insurance Corporation The Federal Deposit Insurance Corporation [FDIC] is an independent agency of the United States government. The FDIC protects depositors against the loss of deposits if an FDIC-insured bank or savings association fails. FDIC insurance is backed by the credit of the United States government. An insured bank is any bank or savings association with FDIC insurance (Federal Deposit Insurance Corporation [FDIC], 2007).
The FDIC was created in 1933 by the Glass-Steagall Act. This was a merging of two separate acts which were created by the U.S. government in reaction to the stock market crash of 1929 following which 4004 banks, with an average of $900,000 in deposits, closed. The banks eventually merged into stronger institutions and depositors ultimately recovered about 85% of their original deposit value, but the damage to faith in the banking industry had already been done. In May of 1933, The U.S House, Banking and Currency Committee