WaMu's Failure Was Fueled By Fraud and Greed: Panel
This came after the firm had reported losses in the billions in mortgage related losses for two consecutive quarters.
Killinger eventually reliquished the role of Chairman and was fired by the board right before the FDIC took over the bank in September of 2008. For that year, he was paid $25 million in compensation.
The FDIC took action on WaMu following the failure of subprime lender Indymac in July of 2008. This caused a run on WaMu. Fearful its exposure to risky mortgages would be its undoing, depostors withdrew $9 billion from the bank.
In September of 2008, The FDIC stepped in, took over the bank and sold its banking assets to JP Morgan for $1.9 billion dollars in what many consider to be the biggest steal of the financial crisis.
For the FDIC, this move saved it having to cover the $180 billion in deposits held by the bank, something that would have bankrupted its insurance fund.
WaMu's demise also came at a significant cost for the private equity firm TPG. It had invested $7 billion in the troubled thrift, losing all of it when WaMU failed.