WaMu Execs Rob Profits, Seek Bailout
A WaMu branch in Seattle was robbed on Monday, but the WaMu stockholders are the ones who have really been robbed....
WaMu shares are down 69% in the past year, reported its first loss since 1997 in Q4 after writing down the value
of its home-mortgage unit by $1.6 billion and setting aside $1.5 billion to cover bad loans.
Yesterday, Washington Mutual, the largest U.S. savings and loan,
had its credit ratings lowered to two steps above junk by Standard & Poor's who commented:
"our actions reflect our expectations for a more severe residential mortgage credit cycle than we had anticipated at the start of 2008."
Aunt B: Andy, aren't you being a bit harsh on the boy! Andy: Shut up, and let me give em the pistol whippin he deserves.
Today, The Wall Street Journal reported that WaMu has approached private equity firms,
sovereign wealth funds and other investors for an infusion of capital, at the prodding of regulators, the stock took another 10% hit.
But it gets better...
CEO Kerry Killinger and other top WaMu executives have shielded their bonuses from the effects on profit of loan loss provisions.
WaMu is losing $25 million a day on non performing mortgage loans, so the executives at their discretion,
decided to calculate their bonuses on the bank business, exclusive of the mortgage losses.
In addition to executives, the bonus plan applies to more than 2,900 employees.
Killinger's salary for 2006 was $1 million and his total compensation was $14.2 million. His 2007 pay has not been disclosed.
The Nattering One muses... Yesterday WaMu moved up to #5 in our Dead Pool...
Perhaps bonuses and compensation should be left to the discretion of the shareholders.
In which case, Mr Killinger and his swindling executives would get nothing, and be skinned alive.
Hattip to Bloomberg.
WaMu shares are down 69% in the past year, reported its first loss since 1997 in Q4 after writing down the value
of its home-mortgage unit by $1.6 billion and setting aside $1.5 billion to cover bad loans.
Yesterday, Washington Mutual, the largest U.S. savings and loan,
had its credit ratings lowered to two steps above junk by Standard & Poor's who commented:
"our actions reflect our expectations for a more severe residential mortgage credit cycle than we had anticipated at the start of 2008."
Aunt B: Andy, aren't you being a bit harsh on the boy! Andy: Shut up, and let me give em the pistol whippin he deserves.
Today, The Wall Street Journal reported that WaMu has approached private equity firms,
sovereign wealth funds and other investors for an infusion of capital, at the prodding of regulators, the stock took another 10% hit.
But it gets better...
CEO Kerry Killinger and other top WaMu executives have shielded their bonuses from the effects on profit of loan loss provisions.
WaMu is losing $25 million a day on non performing mortgage loans, so the executives at their discretion,
decided to calculate their bonuses on the bank business, exclusive of the mortgage losses.
In addition to executives, the bonus plan applies to more than 2,900 employees.
Killinger's salary for 2006 was $1 million and his total compensation was $14.2 million. His 2007 pay has not been disclosed.
The Nattering One muses... Yesterday WaMu moved up to #5 in our Dead Pool...
Perhaps bonuses and compensation should be left to the discretion of the shareholders.
In which case, Mr Killinger and his swindling executives would get nothing, and be skinned alive.
Hattip to Bloomberg.
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