Bust Your Bank, Get Sued

High-profile legal actions are always fun to watch. This one’s long overdue:

Federal bank regulators have sued three former top executives of Washington Mutual, the biggest U.S. bank ever to fail, accusing them of negligence in allowing risky mortgage lending.

Why does it take two and a half years for the FDIC to bring a lawsuit for negligence?  Uncle Sam sure takes his darn sweet time getting around to enforcing laws when wealthy people are accused of wrongdoing.  The only thing funnier than that is how the defendants claim the government treated them unfairly.

It’s hard to get sympathy when a permissive regulatory environment allowed mortgage fraud to go unchecked for years while both bankers and homeowners had access to ultra-low interest rates.  Everyone got a free ride.  There aren’t any more free rides now.

About Anthony Alfidi 128 Articles

Affiliation: Alfidi Capital LLC

Anthony Alfidi is the Founder and CEO of Alfidi Capital. His firm publishes free investment research with honesty and humor.

Mr. Alfidi holds a Bachelor's degree in human resource management from the University of Notre Dame (cum laude) and an MBA in finance from the University of San Francisco. He is a life member of Beta Gamma Sigma, the academic honor society for business majors. He has been a private investor since the 1990s.

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