|
|
Washington Mutual Inc. |
Rotella appears to be the front runner on a shortlist of people that
may fit the 'mole' scenario put forth in the Texas Action Suit.
http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_W/thread...
See link below:
http://seattletimes.nwsource.com/html/bu...
“According to yet another longtime executive, Rotella became involved
more than most top bank executives when the mortgage sales staff
complained about applications that were declined. More than once,
Rotella pressured credit officers to reverse their decisions, this
executive said. "Steve Rotella created a culture of fear" WaMu had
five chief credit officers during the less than 4 years Rotella was at
the bank.
Which brings me to my next point....
"WMB had 5 chief credit officers during the less than 4 years Rotella
was at the bank"
I've searched and searched for these 5 Chief Credit Officers (CCO) and
the only one I could locate was: John McMurray
This find was of particular interest to me because it is a direct link
to one of the 'Chief Credit Officers" that Rotella had pressured to
reverse decisions on faulty loans...or so the story goes.
So John was a "Cheif Credit Officer" and then John was promoted to
Chief Risk Officer. John replaced Ron Cathcart who resigned after
having worked with WMB from 2004 until 4/2008. Ron's resignation
motive was never stated and remains unclear. John who was a chief
credit officer interacted with Rotella and played a large role in the
'toxic mortgages' that were at the 'root of WMB's unwinding', yet he
was promoted.
1. WMB hires Rotella from JPM
2. Rotella hires Schneider
3. 5 Chief Credit Officers depart their position during Rotella's less
than four year run (for unknown reasons)
4. One of the chief credit officers who stood, John, is promoted to
that of Chief Risk Officer despite his 'poor' success as a credit
officer and the dwindling status of WMB
5. John remains Chief Risk Officer for 3 and a half months then WMB is
seized by OTS. As Chief Risk Officer and Chief Credit Officer some of
his responsibilities included: "leading the company's overall strategy
and working with the business to achieve appropriate balance between
risk and expected return."
http://www.seattlepi.com/business/361135...
So another player who interacted with Rotella (and his interesting
strategies/priorities) gets promoted, has the major responsibility of
ensuring WMB manages their risks properly, WMB is said to have failed
because of giving out 'risky loans'; inclusive of option arms.
http://www.marketwatch.com/story/wamu-fa...
So the person that was suppose to manage risk; does not (if in fact
WMB failed because of high risk lending) the bank fails. Then JPM
keeps him; someone that had always played a part in containing/
eliminating risk for WMB.
http://www.reuters.com/article/businessN...
"JP Morgan will be hiring several senior Washington Mutual
executives ...John McMurray, chief enterprise risk officer; David
Schneider, president, home loans"
Take the person who was hired by Rotella and keep him as head of
retail banking with your team. Then take one of the people that
directly interacted with Rotella about lending, the person that is
responsible for assessing risk and keep him (though he clearly failed)
and keep him in charge of assessing risk.
This indicates one of two things to me:
1. JPM doesn't believe that WMB failed because of risky loans and
toxic mortgages and wanted to keep the skilled people (thinking it
wouldn't come back to bite them)
2. JPM thinks/knows that they owe these people a bit of gratitude for
the damage they did internally at WMB, allowing for the OTS/FDIC to
provide JPM with WMB for a discounted rate.