Friday, March 18, 2011

FDIC Gone Wild

For those of you who don't think bank executives are getting off easy, here's a story for you to consider

The FDIC has sued not only the Washington Mutual's executives who were the alleged "architects" of WAMU's aggressive mortgage lending strategy, but their wives, too.  In its lawsuit, the FDIC is seeking not only unspecified damages against the executives, but to freeze the personal assets of their entire families.

In my opinion, this is a disgusting abuse of power by the FDIC.  The business decisions of these executives certainly were risky (perhaps stupid), but just as certainly they were not criminal.  Even if the FDIC were successful in recouping every dime of compensation paid to these executives, it would be a tiny fraction of WAMU's losses.  I'm not saying the executives shouldn't be sued for their negligence, but dragging their families into this is excessive and unfairly punitive.

In the end, the only one who gets anything out of these suits are the private attorneys the FDIC hired to represent it, including one firm which touts its expertise in."all areas of litigation, including personal injury."

1 comment:

  1. How do the people who lost their money due to the reckless behavior of these dumbasses get their money back?

    Sue them for dumbass behavior?

    Good Luck on that.

    No sympathy here.

    They hurt a lot of people - not only account holder but their families also.

    And these guys and their families have money and wealth they did not get by honest means.

    The problem is you can essentially shield irresponsible and borderline criminal behavior as an individual but putting LLC after your name.

    That gives you a license to screw other people and then have them try to get it back by suing a bankrupt company that no longer has you on their books.