Friday, March 18, 2011

Document: FDIC Sues WaMu Execs

by Bill McBride on 3/18/2011 08:25:00 PM

It has been so busy I skipped over this ...

Kirsten Grind at the Puget Sound Business Journal has been following this story: FDIC sues WaMu execs and their wives

The Federal Deposit Insurance Corp. filed suit against former executives of Washington Mutual, including former CEO Kerry Killinger, former President Steve Rotella, and their wives, in a case that seeks to recover unspecified damages at trial.
John Stark at The Bellingham Herald has the lawsuit: FDIC sues WaMu execs, seeks to freeze their assets
For those of you who share my horrid fascination with the mortgage meltdown, this document will make interesting reading.
The lawsuit has lots of quotes from WaMu’s risk managers, sending Killinger and Rotella increasingly frantic warnings about the bank’s unsustainable lending strategies as the housing bubble inflated. The risk managers understood the dangers clearly, and history proved their warnings were correct ...
The FDIC might not be closing any banks today, but this lawsuit is interesting reading!