Washington Mutual Execs Win Deal With FDIC: Report

NEW YORK (TheStreet) -- Three top Washington Mutual executives have settled a $900 million lawsuit with the Federal Deposit Insurance Corporation, for pennies on the dollar, according to a Wall Street Journal report. Washington Mutual Bank had $307 billion in total assets when it was shuttered by the Office of Thrift Supervision in September 2008, after which the FDIC sold the failed institution to JPMorgan Chase for $1.9 billion, in a deal personally arranged by former FDIC Chairman Sheila Bair, with JPMorgan CEO James Dimon. The FDIC sued former Washington Mutual CEO Kerry Killinger, chief operating officer Stephen Rotella and home-loans president David Schneider for $900 million in March, accusing the former officers with "gross negligence" and "breach of fiduciary duty," in taking "extreme and historically unprecedented risks with WaMu's held-for-investment home loans portfolio," and saying the executives "focused on short term gains to increase their own compensation, with reckless disregard for WaMu's longer term safety and soundness." ... Click to view a price quote on JPM. Click to research the Banking industry.

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