Emails between the Office of Thrift Supervision and the FDIC over the issue of who can do what with regards to Washington Mutual in 2008 are particularly fierce. Carl Levin, chairman of the subcommittee investigating the collapse of WaMu, called it a “turf battle.”

At the Senate hearing today, John Reich, former director of OTS, explained it this way: “Rome was burning” and “Blood pressure was running high.” Levin said: “I don’t see your blood pressure getting up over a bank that was engaged in dangerous practices.” Continue reading »