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Un-Jailed Americans

Un-Jailed Americans

Kerry Killinger, CEO Washington Mutual

"What they don't know, Won't hurt us" could have been the motto of this aggressive mortgage lender.  He marginalized or fired internal risk managers responsible for indentifying problems at his bank - mostly because they kept indentifying problems at his bank.  Even when Federal regulators noted 500-plus "serious deficiencies" at WaMu between 2004 and 2008, no one knew:  His government buddies hushed up efforts to downgrade the bank's ratings. 

In 2008, WaMu suffered the biggest bank failure in history and Killinger earned a meager $25 million.

The FDIC finally sued him in March 2011, closing the proverbial door once the proverbial horse was out of the proverbial barn and had set the proverbial farm on proverbial fire.  Killinger is accused of "piling on risky loans to grow faster and increase compensation," but, as of press time - as well as any and all future press times - he is not in jail.  Oh, he might face a monetary fine, which will be paid by shareholders or taxpayers or your grandkids, but don’t worry, he won't go to jail.