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FDIC Sues Killinger, Two Other Ex-WaMu Officials for $900M

Published March 17, 2011 4:02 PM EDT Updated March 17, 2011 4:14 PM EDT 4 Min Read

The Federal Deposit Insurance Corp. (FDIC) sued three top executives of Washington Mutual Bank, alleging their “extreme and historically unprecedented risks” in the bank’s mortgage lending operations helped cause the biggest failure in U.S. history.

The lawsuit — filed late Wednesday in U.S. District Court in Seattle — targets former chief executive officer Kerry Killinger, chief operating officer Stephen Rotella and David Schneider, who ran the bank’s home loans division. The suit also names Killinger’s and Rotella’s wives for alleged property transfers before and after WaMu’s September 2008 failure.

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