The Federal Deposit Insurance Corporation sued the former chief executive of Washington Mutual and two of his top lieutenants, accusing them of reckless lending before the 2008 collapse of what was the nation’s largest savings bank....
>>>The Federal Deposit Insurance Corporation sued the former chief executive of Washington Mutual and two of his top lieutenants, accusing them of reckless lending before the 2008 collapse of what was the nation’s largest savings bank.
The civil lawsuit, seeking to recover $900 million, is the first against a major bank chief executive by the regulator and follows escalating public pressure to hold bankers accountable for actions leading up to the financial crisis.
Kerry K. Killinger, Washington Mutual’s longtime chief executive, led the bank on a “lending spree” knowing that the housing market was in a bubble and failed to put in place the proper risk management systems and internal controls, according to a complaint filed on Thursday in federal court in Seattle.
** The excerpt above is taken from the NYT article,"FDIC Sues Ex-Chief of Big Bank That Failed," written by Eric Dash and linked below. Do click through to read about what may the beginning of a trend of suing major bank executives for questionable practices that may have led to or aggravated the financial crisis.**
http://www.nytimes.com/2011/03/18/business/18bank.html
