WaMu Layoffs With A Side of Lawsuit

The Seattle Times is reporting Washington Mutual's decision to lay off 3,150 people. (In the Washington Mutual press release, they call it part of moves to "fortify capital base.") In addition to the severance packages they'll likely be paying out to employees who got the ax less than 14 shopping days before Christmas, they're facing new financial challenges from their employee base.

Local kings of tort Hagens Berman Sobol Shapiro launched a class action suit against WaMu saying they misled employees with money in the 401(k) about the health of company stock. As a result, they claim, employees in the program lost about $150 million.


Okay it's not really an update, but by way of context, while the bank cuts jobs to dig itself out of the risky lending quicksand, WaMu CEO Kerry Killinger received about $14.2 million in total compensation during 2006, according to a proxy statement filed with the Securities and Exchange Commission in conjunction with the annual report.

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