4:39 PM Fri, Jul 31, 2009 | Permalink |
SEATTLE - Nearly 100 former Washington Mutual executives have filed lawsuits demanding the government pay them nearly $30 million after they were fired.
Nearly 20 lawsuits were filed by former WaMu vice-presidents and other mid-to-senior level executives. On Monday, a judge will consider whether to consolidate them into a class-action case, representing $30 million in payments to former executives.
It was nearly a year ago that federal regulators seized WaMu's operations, fearing the bank was on the brink of financial collapse.
"I think common people think, 'well, it's a bunch of bankers trying to make a bunch of money' and that's just really not the case," said Bill Keller, an attorney for 20 former WaMu executives.
Those executives were fired when the government transferred the bank to JPMorgan Chase. Keller says that triggered the "change of control" agreement in their WaMu contracts, entitling them to lump sum payments of up to twice their annual salary.
"If they continued to work with the new group but were laid off or fired within the next two years, they would have their compensation triggered with this change of control, which would either pay them a certain amount. It could be a year of salary plus bonus or 18 months or two years," said Keller.
The bankers are taking the Federal Deposit Insurance Corporation to court. The FDIC still holds some of WaMu's assets. If they can't get the money from that fund, Keller says they may seek damages directly from the taxpayer funded FDIC. If the case is certified as a class action, taxpayers could be on the hook for nearly $30 million.
It makes taxpayers we talked to bristle.
"I think it's a ridiculous situation because my 401k and the world's have been affected by management that just continued to put money in their pocket," said Gary Adler.
"You might deserve that if your bank didn't go under," said Tamara Jackson. "It doesn't feel great that they would be paid so much when their bank failed. But if that's what's in their contract, they should be paid what they're owed," said Eric Odel.
The former executives know how touchy this subject is. Several declined requests to be interviewed by KING 5 News. A lawyer for the FDIC didn't comment either.
The FDIC has argued that the "change of control" provision does not cover a bank seizure.
That is one messed up title there Chris. Sue for Golden Parachutes?
The FDIC illegal Siezed them.
I'm guessing you simply don't want to put the FDIC and JPM in a bad light.
How about you do a story on the possible RICO charges against Jamie DImon from the 5 plants they planted in WAMU from JPM to collect insider information to bring down WaMu.
You said
"It was nearly a year ago that federal regulators seized WaMu's operations, fearing the bank was on the brink of financial collapse. "
Then why no letter to raise capital? Infact, WAMU signed an agreement with the OTS and FDIC that they don't need to raise capital, just weeks before the siezure.
JPM touted false stories about WAMU to assist in their bring down the value of WAMU shares. Now: WAMUQ.pk, WAMPQ.pk, WAMKQ.pk and WAHUQ.pk
Why don't you talk about why WaMu was the only bank left off the already illegal Naked Short Selling Ban by Paulson and others? Paulson formerly GS, who managed the auction with a minimum price of $0 from the FDIC which violates the 5th ammendment that the FDIC has to provide just compensation for assets. over $300 in assets is worth $0? I don;t think so.
TOmorrow, Aug 1st, JPM has to begin turning over pricate docs in accrodance with the 2004 discovery into JPM illegal activities in bring down WaMu.
CORRECTION:
over $300 in assets is worth $0?
Should be
over $300 Billion in assets is worth $0?
Just publish their names & addresses. They drop the case or get buried. Case closed.
Hey - by whatever reasons, they lost their job when their company no longer existed. They lose. And by the way, they should be getting sued for mismanaging client assets to the point where the bank failed.