Tuesday, December 13, 2011

WaMu Execs Settle $900 Million FDIC Civil Suit for $75 Million

WaMu execs have settled a $900 million federal civil lawsuit for $75 million- with the bulk of the fine being paid by the bank's estate and insurers, rather than the dirty execs.  With assets of $328 billion at the time of failure, WaMu remains the biggest bank failure in US history.  And those directly responsible for its failure are fined $75 million with the fine being paid by insurers!?!
The only thing that surprises us about this is that the execs didn't receive personal yachts for their efforts, since JP Morgan was quietly handed WaMu's banking subsidiaries for the massive sum of $1.9 billion. lol

Three former executives of Washington Mutual Inc. have agreed to settle a civil lawsuit stemming from the biggest-ever U.S. bank failure for less than 10% of the $900 million that was sought by federal regulators, according to people familiar with the situation.
The deal would mark the latest setback for the government in a high-profile, financial-crisis-related case. The lion's share of the payout, which is expected to total less than $75 million, would come from insurers and the bank's estate—not from the pockets of the former executives.
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