FDIC: 'Close' to settling suit vs WaMu execs

AP News
Posted: Jun 17, 2011 5:02 PM
FDIC: 'Close' to settling suit vs WaMu execs

Federal bank regulators say they are close to settling their civil lawsuit against three former top executives of Washington Mutual accused of negligence in allowing risky mortgage lending at the biggest U.S. bank ever to fail.

The Federal Deposit Insurance Corp. says it has exchanged proposed settlement terms with former WaMu CEO Kerry Killinger, ex-Chief Operating Officer Stephen Rotella and David Schneider, who headed the bank's home loans division. The parties "are diligently working to resolve their remaining disputes," the FDIC said in a court filing Thursday.

The FDIC had been seeking about $900 million in damages in negotiations with the three executives after filing the suit in March. The FDIC said it has agreed to give the executives until July 1 to respond in writing to the suit.