Golden West, A Financial Corporation

Founded in 1929 and famously run by Herbert and Marion Sandler from the 1960s, Golden West Financial Corporation grew to become the second-largest savings and loan association in the United States. The company, through its subsidiary World Savings Bank, pioneered and heavily marketed a type of adjustable-rate mortgage known as the "Pick-A-Payment" loan or Option ARM. While initially praised for its conservative underwriting, its massive portfolio of these exotic mortgages was later viewed as a significant risk. In 2006, Golden West was acquired by Wachovia for $25.5 billion. This portfolio of loans is widely cited by financial analysts and government reports as a primary factor in the subsequent collapse of Wachovia during the 2008 financial crisis, which led to its emergency acquisition by Wells Fargo.