FDIC Sues Ex-Washington Mutual Chief Killinger Over Losses
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Former Washington Mutual Inc. Chief Executive Officer Kerry Killinger and ex-Chief Operating Officer Stephen Rotella took extreme risks with the bank’s home-loans portfolio, causing billions of dollars in losses, the Federal Deposit Insurance Corp. said in a lawsuit.
Rotella, Killinger and David Schneider, Washington Mutual’s home-loans president, showed reckless disregard for the bank’s long-term safety and instead focused on short-term gains to increase their compensation, the FDIC said in the complaint filed yesterday in federal court in Washington. The agency seeks unspecified damages and an order freezing the assets of Killinger, Rotella and their wives.