Tagged: banking crisis

When it comes to assigning blame for the 2008 financial meltdown, some fingers are pointing at the 1999 repeal of the Glass-Steagall Act. But others aren’t so sure.

Financial commentator Greg Heberlein and KPLU’s Dave Meyer look at banking regulations on this week's Money Matters.

Despite the massive fraud that has emerged as the U.S. tries to dig itself out of the foreclosure mess at the heart of the great recession, there are still huge numbers of honest folks working in the real estate business. 

That's according to professional appraisers in Washington state, dozens of whom have signed an on-line petition. 

Emergency measures in a new law go into effect immediately, creating the infrastructure needed to get more housing counselors working with banks and preventing people from losing their homes.

Federal bank regulators have sued three former top executives of Washington Mutual (WaMu), the biggest U.S. bank ever to fail, accusing them of negligence in allowing risky mortgage lending and seeking $900 million in damages.

It's happening all over the country, including in the Pacific Northwest. People are walking away from their mortgages. In most cases, the homes that are being abandoned are valued for less than their mortgage. 

Several former Washington Mutual executives have been notified by the federal government that they'll be sued over their role in the collapse of the Seattle-based bank.

The Puget Sound Business Journal reports that sources familiar with the suit say the Federal Deposit Insurance Corporation intends to seek more than a billion dollars in damages.

To be named in the suit are:

• Kerry Killinger, former WaMu CEO 
• Steve Rotella, former president and chief operating officer 
• David Schneider, former head of the bank’s home load division

All three executives have denied wrongdoing.