Tuesday, April 13, 2010

WaMu Execs Knew Of Rampant Mortgage Fraud And Failed To Act

Huffington Post:


One of the central unanswered questions of the financial crisis is whether bank executives knew fraud was rampant within their
mortgage loans.

A Senate committee tomorrow [Tuesday] will present evidence that in the case of Washington Mutual Bank, the largest bank failure in history, executives knew about the fraud - and in some cases failed to take much corrective action. By doing nothing, the bank could report higher profits and employees could earn higher bonuses.

So far no criminal charges have been brought against any senior executives as a direct result of the subprime meltdown.

And this:

Former WAMU CEO received parachute package the year that he was fired:

Kerry Killinger took home $25.1 million in 2008 — the year he was fired as Washington Mutual's chief executive and the company itself effectively ceased to exist.

And this:


Regulators are faulted over WAMU probe. Click here.


Finally: WaMu's final days: A 2008 timeline

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