Washington Mutual Wasn’t in Wall St Inner Circle According to Ex-CEO

April 13, 2010 by · Leave a Comment
Filed under: Industry News 

Well that was very apparent when they were left to fail and have JPMorgan come in and purchase the nation former largest deposit taking institution.  I actually go into the conference for JPMorgan when they announced this to their shareholders.  I have never and I mean never heard a more excited group of males, puts Super Bowl celebrations to shame.

They knew they got the deal of a century.   They were going over the numbers and they basically said no matter what the losses were from all their lending assets, it was a once in a lifetime opportunity.

You would think that the deposit institutions would be the banks we would bailout but it was not the case.  In is my feeling as well that because they didn’t have a direct line to the Fed or U.S. Treasury is why they were left to have WaMu’s financial position deteriorate to the point where they only got cents on the dollar for the largest base of deposits in the country.  Yes, they made bad choices like doing refinances and home equity lines of credit on inflated homes, but all banks did this but we decided to pick winners and losers and the winners seem to be the same old “boy club”.

Bloomberg – Kerry Killinger, the former chief executive officer of Washington Mutual Inc., said his company became the largest bank failure in U.S. history in part because it was excluded from a group of financial institutions favored by U.S. policy makers.

Washington Mutual wasn’t protected from short sellers and the U.S. Treasury Department excluded the company from information sessions it held with competitors, Killinger said today in testimony for the Senate Permanent Subcommittee on Investigations. Other former Washington Mutual executives at the hearing and subcommittee chairman Senator Carl Levin, a Michigan Democrat, blamed Killinger for ineffective management controls and lax lending standards.

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