As you may have heard, the FDIC has sued three former Washington Mutual execs, including CEO Kerry Killinger, COO Stephen Rotella, and home loans president David Schneider, whose “extreme and historically unprecedented risks with WaMu’s held-for-investment home loans portfolio” resulted in the bank’s collapse (according to filing, the bank’s chief risk officer told Killinger WaMu’s “DNA” was missing “the risk chromosome,” a few weeks before it went into receivership, to which Killinger likely scoffed and called the guy a pussy). The regulator wants $900 million from the trio and they’re not the only ones Sheila Bair says better start cutting checks- Killinger and Rotella’s special lady friends (Linda and Esther) have been named in the suit as well.
During the period from January 2005 to September 2008, Defendants collectively received more than $95 million in compensation. As the losses mounted in the Spring and Summer of 2008, Killinger and Rotella recognized the potential problems and took steps to move at least part of their wealth beyond the reach of their creditors.
These steps apparently included shifting a few million and transferring property in Shoreline, Washington and Palm Desert to Linda Killinger’s name and in the case of the Rotellas, transferring “in excess of one million dollars to Esther, in addition to putting a resident in Orient, New York in her name.
What do the defendants have to say about all this business? According to Killinger, the FDIC should be ashamed of itself. The suit is “baseless and unworthy of the government,” he huffed in a statement this morning.
FDIC Sues WaMu Executives [WSJ]
Highlights From The WaMu Lawsuit [WSJ]
quick, someone call the wamubulance
quick, someone call the wamubulance
Wait, what did the exes do?
[Insert comment including terms "banksters", "fraud", "looting", "AmeriKKKa", "sheeple", and "best politicians money can buy" here]
- Commentator Who Does Not Realize This Is Not the Huffington Post
wait… multiply by 10 and then sue?
“This is what happens when you give the money to your wife instead of spending it wisely on hookers and blow” – Charlie Sheen
Wamu never seemed like a bank to me. It seemed cheesy and low rent.
Wamu never seemed like a bank to me. It seemed cheesy and low rent.
your mother IS cheesy and low rent
Good thing the Tan Man is still walking loosely!
Good thing the Tan Man is still walking loosely!