Former Washington Mutual executives have agreed to pay $208.5 million to settle a lawsuit launched by a group of investors after the bank's failure in 2008, the largest ever of its kind.
The bank leaders, among them former WaMu chairman Kerry Killinger, ex-chief operating officer Stephen Rotella and the company's former home loans president David Schneider, will pay a total of approximately $105 million, said the document presented Thursday at a federal court in Seattle. According to the preliminary agreement, investment banks and brokerages with ties to WaMu - including Goldman Sachs, Morgan Stanley, Credit Suisse, UBS and Deutsche Bank - will contribute $85 million. The auditing firm Deloitte & Touche will pay $18.5 million.
In exchange, the plaintiffs, led by Canada's Ontario Teachers Pension Plan board, agreed to withdraw their complaint made in an attempt to recover some of the hundreds of millions of dollars of losses they blamed on the bank's misleading and false claims.