July 7, 2011 in Business

Settlement talks wrap up over WaMu allegations

 
Tags:David SchneiderFDICKerry KillingerStephen Rotellawashington mutual

Talks have ended between three former Washington Mutual executives and the federal government over possible settlement of a lawsuit alleging that their “gross mismanagement” led to the giant thrift’s demise.

The Federal Deposit Insurance Corp. in March sued former WaMu CEO Kerry Killinger; former WaMu Chief Operating Officer Stephen Rotella; and David Schneider, former head of WaMu’s home-loans division.

A motion to dismiss the suit is pending.

The agency accused them of recklessly pushing WaMu into making billions in high-risk home loans, despite knowing the nation was in an unprecedented housing bubble.

WaMu collapsed in September 2008, largely because of losses in the mortgage business.

McClatchy

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One comment on this story so far. Add yours!

  • DickAdams on July 07 at 7:47 a.m.

    I sent the Spokesman Review documentation about missing money and Doug Floyd refused to print the story (he had a checking account w/WM at the time) and he personally told me the employees were in a party mood. The party the employees wanted was because of taxpayer stimulus money used for Chase to purchase the bankrupt WM bank.

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