Friday, September 26, 2008

WaMu Failed


We're no longer Washington Mutual customers.  Neither are you.  WaMu failed this evening, marking the largest bank failure in the history of the US.  As far as our finances go, nothing has changed.  The FDIC brokered a deal and sold off everything WaMu to JPMorgan Chase.  So now we're Chase customers.  But the transition will take a few months.  And I'll still go deposit my paycheck in the local WaMu branch tomorrow.

This is kind of sad.  Washington Mutual has been good to us.  We've liked them.

Bonus for Alan Fishman, though.  He was hired as Washington Mutual's CEO on September 8, 2008.  Seventeen days ago.  He was awared a $7.5 million signing bonus and now presumably gets a severance package of $3.65 million.  Yes, you read that right, the man gets over $11 million for seventeen days of work.  Had he stayed on board, his annual salary was $1 million a year (plus options).  It would have taken him years to earn with a successful business what he earned in two weeks with his own bank failing.  No conflict of interest there, right?

Anyone want to recommend a good bank for us?

2 comments:

Nick & Kara said...

Correction: the 2 1/2 week CEO gets a severance package of $11.6 million, in addition to his $7.5 million signing bonus. $19.1 million for a guy who was signed on with an annual salary of $1 million and worked less than three weeks.

Ashlee said...

Yeah, gotta love it. We're not WaMu customers- but recently had our mortgage company go belly up. Lovely! They were one of the biggest companies (American Home Mortgage) and are now gone. Now we're with B of A so let's hope they stay in business. Scary times- and frustrating. There's another CEO out there in a similar situation (AIG?) with a whopping 2 months I believe, and about the same numbers. Maybe if they gave back their massive salaries that would help to pay back the massive debt they've incurred? Just an idea- ya know, having to live like the rest of us??? Hmm...

Better vote Obama- he'll fix it. :)