The FDIC Files A Scathing Lawsuit Against Three Former WaMu Chiefs And Two Of Their Wives
Business Insider, March 18, 2011
March 17, 2011 at 08:00 PM
2 minute read
The original version of this story was published on Law.com
The FDIC just sued former WaMu top brass for gross negligence and breach of fiduciary duty which the agency says cost the bank billions. And the lawsuit didn't end with the executives; the FDIC sued their wives too.
In their complaint, via the WSJ, the agency accused ex-CEO Kerry Killinger, ex-COO and President Stephen Rotella and ex-chief of home loans, David Schneider of being unduly “focused on short term gains to increase their own compensation, with reckless disregard for WaMu's longer term safety and soundness.”
The agency believes that alleged negligence was a major contributor to the “biggest bank failure in U.S. history.”
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