It has been over a year since the FDIC seized Washington Mutual and sold it to JP Morgan. Now the WaMu execs hearing, at the US Senate, will be held tomorrow. Read more about the latest news, and see more photos and a video.
This incident is considered unmistakably the largest bank failure ever in American history. Back in September of 2008 the two agencies that were in charge of supervising the bank finally announced that it was “unsafe and unsound,” and then a week later the government took over.
Now former Chief Executive Kerry Killinger and former Chief Executive Officer Stephen Rotella will be the main ones questioned by the Senate on their financial practices. The WaMu execs hearing is being described as a possible way to reform the financial industry.
“I think they want to do with Washington Mutual kind of what they did to Enron,” said Lara Brown who is a Villanova University political scientist.
Similarly Senator Carl Levin, of Michigan, said Friday,
“The recent financial crisis was not a natural disaster; it was a man-made economic assault. People did it. Extreme greed was the driving force. And it will happen again unless we change the rules.”
Kiilinger and Rotella, along with five other previous senior managerial individuals have their hands full with shareholder lawsuits and criminal investigations. This hearing has already been postponed once, but is still scheduled to take place for sure on Tuesday.
I am sure after the trial tomorrow we will probably know more about the situation and what the plans are going forward. What do you think about the WaMu execs hearing? What do you think will come of it? Also see a few pictures and a video interview about the legal issues surrounding the former bank.