WaMu CEO Whines: We Didn't Get A Bailout Because We Weren't Part Of The Cool Club

Photo: www.urbanmonarch.com


The bank’s CEO, Kerry Killinger, says that WaMu was left out of the East coast “cool club” of banks.The Wall Street Journal found this short nugget in Killinger’s 28-page long statement for the Senate on why WaMu failed.

“The Company was similarly excluded from hundreds of meetings and telephone calls between Wall Street executives and policy leaders that ultimately determined the winners and losers in this financial crisis. For those that were part of the inner circle and were “too clubby to fail,” the benefits were obvious. For those outside of the club, the penalty was severe.

There are numerous conspiracy theories that try to back up what Killinger appears to suggest, that Jamie Dimon bullied the Fed into giving WaMu to JPMorgan for an absurdly low price.

JPMorgan did get the bank for cheap, but it doesn’t seem that WaMu experienced any wrongdoing by JPMorgan. It’s more likely that WaMu just had a “run on the bank.

About a month ago it seemed like WaMu had forfeited their claims of abuse. Killinger is now saying JPMorgan’s place in the “cool club” of banks WaMu’s being ostracized from it “severely” punished WaMu. So he’s still bitter WaMu didn’t get a bailout.

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