Wednesday, April 14, 2010
Ex WaMu CEO whines that they got a raw deal
Nothing like trying to shoot the messenger when you get caught in a fraud scandal. Killinger the WaMu exec looked like a deer in the headlights when testifying before a congressional comittee yesterday. His contention was that WaMu was well on it's way to becoming solvent when the Feds pulled the plug. I got news for him a snowball would have had a better chance in hell than WaMu coming back. Why? It was so obvious that when the banks' financial position came to the attention of its' customers, money was flying out the doors faster than pizzas on a free pizza Monday. It didn't take a genious to figure out that the bank was drowning in debt once the truth came out. You can't make loans at 125% of value and interest only loans and expect to stay in business very long. It must have been quit an uneasy feeling for a branch manager to sit and watch customers close accounts on a daily basis. Then to see a branch go from four or five tellers down to two or three. But what did the higher ups care when they were making millions in bonuses even after the train wreck.
So now it is up to congress to try and pick apart the wreckage and preform the autopsy. Maybe they can come up with some sane rules to prevent this from happening for at least another thirty or forty years but I wouldn't hold my breath. The money behind the scenes is still being shoveled at congress so that the game can continue. Rules? Rules? We don't need no stinking rules. And there in lies the problem. We had rules that worked for 60 years. They were put in place for a purpose to prevent from what happened from happening. We never seem to learn from history even though it repeats itself.
As for Mr. Killinger it's not over for him and he knows it. He could be charged with fraud and yes even serve time in jail. I can only wish but we know how these guys tend to get off on such charges. Try stealing something from a local store and see what happens. But you can defraud an entire nation and not only get away with it but get a bonus for doing it. So let this be a lesson to you boys and girls. Stay in school and you too can do the crime and get off scott free and not even get your hands dirty.