FDIC’s WaMu role under investigation by Senate subcommittee

Seattle Biz Journal website:

A congressional subcommittee is investigating the Federal Deposit Insurance Corp.’s role in the seizure and sale of Seattle-based Washington Mutual Bank in September 2008, a court document shows.

A document recently filed in U.S. Bankruptcy Court in Delaware as part of the Washington Mutual bankruptcy case shows that the Senate Permanent Subcommittee on Investigations (PSI) has subpoenaed the FDIC for documents related to the resolution of WaMu.

The document describes the subpoena as “broad” and indicates that the PSI’s jurisdiction includes investigations into companies and regulatory bodies. The filing says the FDIC is responding to “a massive document request from Congress regarding the resolution of Washington Mutual Bank.”

PSI, a subcommittee of the Senate Committee on Homeland Security and Governmental Affairs, declined to comment on whether an investigation exists.

In addition, there was another Congressional hearing yesterday on bank’s seizure.

Austin Weekly News:

Thursday morning, a House subcommittee will host a hearing titled, The Condition of Financial Institutions: Examining the Failure and Seizure of an American Bank.

'We're ensuring that the FDIC is held accountable,' said David Pope, president of the Village of Oak Park and a member of the coalition. Pope is referring to the seizure Oct. 30 of the nine banks in four states that were the largest assets of FBOP Corp., the Oak Park-based holding company whose sole owner is River Forest resident Mike Kelly."