Wamu and more - how is this allowed??

[Cin42382]

I dont consider myself an expert on finance or economics. Eventhough I got my BA in POli Sci , economics never really clicked for me. But I am just curious how this is allowed. I found this on the Bloomberg website:

WaMu collapsed as its credit rating was slashed to junk and its stock price tumbled. Facing $19 billion of losses on soured mortgage loans, the lender put itself up for sale last week. WaMu fired CEO Kerry Killinger on Sept. 8 and replaced him with Alan Fishman, who was awarded a $7.5 million signing bonus and $1 million salary.
WaMu's Decline
In most bank seizures, little or nothing is left for shareholders. WaMu, down 95 percent in the past year, dropped to 45 cents in extended trading following the announcement, which came after the close of regular trading.

So basically, WaMu is on the verge of collapse and they give a new CEO 7.5 MILLION Dollars!! And leave all the stockholders with dog poop:shrug7:

I'm not saying this to start a debate, I really just want someone in the know to explain it lol if there is an explanation to be had

[derketchup]

They probably couldn't get anyone qualified without waiving a bunch of money in front of their nose... I mean, who would want that job?

[Cin42382]

lol true! You would think though if they were going to hand out that much money they should have made him sign a clause that he had to work so many weeks first. I mean what kind of job pays 7.5 million for 3 weeks of work grrrrrr I want that job lol

[SweetLexie520]

Yeah, but if they are that broke - where is that $7.5 million coming from, lol?:shrug7: I guess it's like the $700 billion bailout the gov't is trying... There is no surplus, so where is the bailout $$ coming from?

Ditto OP - I would love to hear from someone who knows more about this!

[JANE4girls]

I want that job, lol

[dwshrty77roc]

Hey, I want that job. I know how to bail out in a hurricane (IKE taught me that). Where in the world am I gonna get $700 billion. I can't even come up with $700.

They need to come up with a logical plan that will help the economy, not put the American people in my debt. They made this mess so they need to fix it.

Yeah I wanna know the answer to the PP question too, please explain it to us.

[meems]

Have you seen the numbers the fannie mae execs got? On manipulated figures! The fannie mae execs should have to give back the $ difference from the inflated figures vs the actual figures. I need to stop reading about the bail out, I spent 4 hours reading about it online last night & just got angrier & angrier the more I read about it.

[purplefdu]

I agree with you meems, the more I hear the more upset I am. Especially since we are just looking at buying our first home and my parents nor DH's mom have ever owned a home but will still be paying higher taxes on their fixed incomes to help out idiots who bought more house than they could afford because the banks got greedy. We picked the worse time to try and buy, lol.

I would imagine the $7.5mil is coming from the diffence in liquid cash and assets. Even with the bank losing money they still have some worth. Not sure of the details and I'm not sure I really do as its most likely robbing peter to pay Paul.

[Checker]

Voter outrage has stalled the bailout---they dont want to get voted out

Call, email or fax your elected officials and let them know what you think.

Put their names in Google or Yahoo News search and see where they stand.

Go to their websites everyday, just so they know you are paying attention

Hold their feet to the fire

[MariaT]

Wamu was the first company we had with our mortgage. It's no wonder really. They were giving away shady mortgages like candy on Halloween. :hectic1: