Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

Saturday, March 19, 2011

FDIC Sues Washington Mutual Execs for Recklessness

Earlier this week the FDIC sued Kerry K. Killinger, former CEO of failed savings bank Washington Mutual, and two of the bank's executives, Stephen J. Rotella and David C. Schneider.  In the suit, which is seeking $900 million in damages, the FDIC charges that the executives recklessly pursued short-term gains to increase their own compensation, in disregard of the bank's safety and soundness.  This is the FDIC's first suit against executives at a major bank.

Killinger called the claims "baseless and unworthy of the government."

NYTimes, F.D.I.C. Sues Ex-Chief of Big Bank That Failed  (Mar. 17, 2011)

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