To some of Seattle's more memorable failures - the R.H. Tompson Freeway , the Seattle Monorail , and the Boeing SST - we now add


WaMu's Final Finger


To some of Seattle's more memorable failures - the R.H. Tompson Freeway, the Seattle Monorail, and the Boeing SST - we now add the Biggest Bank Failure in History. But when historians record the collapse and sale of Washington Mutual, lets hope they highlight this told-you-so footnote, that WaMu, up to its last breath, still managed to pay its latest CEO more than $6 million a week to preside over the bank's death:

As the NY Times reports today...

...the company’s new chief executive, Alan H. Fishman, was in midair, flying from New York to Seattle at the time the deal was finally brokered, according to people briefed on the situation. Mr. Fishman, who has been on the job for less than three weeks, is eligible for $11.6 million in cash severance and will get to keep his $7.5 million signing bonus, according to an analysis by James F. Reda and Associates. WaMu was not immediately available for comment.

And as we mentioned last week, in discussing ousted CEO Kerry Killinger's $55 million compensation over five years:

Fishman is covered too. He has a $20 million salary and incentive package, bigger than Killinger's, good for at least one year. It includes a $7.5 million signing bonus which he presumably has already pocketed. If he screws up, he'll still get a golden parachute worth more than $2.5 million. Theoretically, he could quickly sell the bank and walk away flush.

My pedestrian WaMu savings was still there as of a few minutes ago. Apparently they haven't written Fishman's check yet.

Update: Just released OTS Fact Sheet: $16 billion run on bank

Deposit Outflows – Since July 2008, the pressure on WMB increased as market

conditions continued to worsen. Significant deposit outflows began on September

15, 2008. During the next eight business days, WMB deposit outflows totaled $16.7

billion, shortening the time available to augment capital, improve liquidity, or find an

equity partner. Given the Bank’s limited sources of funds and significant deposit

outflows, it was highly likely to be unable to pay its obligations and meet its

operating liquidity needs.

comments powered by Disqus

Friends to Follow