Ex-WaMu Officers Said to Pay $400,000 of $64 Million Settlement
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Three former executives of Washington Mutual Inc. will together pay $400,000 out of pocket as part of a $64 million settlement with the Federal Deposit Insurance Corp. over the largest U.S. bank failure, according to a person briefed on the matter.
The FDIC earlier sought $900 million from chief executive officer Kerry Killinger, chief operating officer Stephen Rotella and top lending officer David Schneider. The executives led the bank on a lending spree against the advice of internal risk managers while “knowing that the real estate market was in a ‘bubble’ that could not support such a risky strategy over the long term,” according to the lawsuit the agency filed in March in U.S. District Court in Seattle.