WaMu Officials Settle FDIC Suit

Washington Mutual’s implosion in 2008 was the biggest bank collapse in U.S. history—are the executives who ran it getting off easy? The FDIC charged three WaMu executives with gross negligence in a civil lawsuit; however, according to The Wall Street Journal, the FDIC is now willing to settle with them for less than 10 percent of the $900 million it originally sought—less than $75 million. Most of that money will be paid not by the executives themselves but by WaMu’s insurers and estates. The Journal says it’s a “setback” for the FDIC. Still, it is one of the largest settlements since the financial crisis began.