Help me with this. Tax payers are bailing out these institutional boat anchors for what reason?
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Alan H. Fishman, the CEO of Washington Mutual, will likely be unemployed after only a few weeks on the job. But don't cry for Fishman. He's set to walk away with about $18 million in bonuses after his three week stint at the failed savings and loan giant. His "golden parachute" is raising eyebrows, particularly because of his short tenure at WaMu.
Washington Mutual was the nation's largest savings and loan. It was taken over Thursday night by federal bank regulators and then sold to JP Morgan Chase for $1.9 billion. This, as lawmakers continued to work on a $700 billion bailout for bad debt in the financial industry. Source
Fishman replaced WaMu CEO Killinger who retired with no extra severance benefits, the paper reported. He currently had $5.2 million in common stock, $14.9 million in deferred compensation and $3.5 million in pension benefits.
Wamu's shares had lost 90% of their value in the last year, and Killinger has said that the company could sustain losses of between $12 billion and $19 billion, according to the Journal. The thrift does a lot of business in states that have seen housing prices fall sharply, and holds over $50 billion in risky option adjustable-rate mortgages.
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