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Washington Mutual Inc. |
Appears John McMurray has left JPM.
Also the person he had replaced as Chief Risk Officer at WAMU (who
resigned) is listed as a defendant now in a class action suit against
WAMU.
Federal Home Loan Bank of Seattle Announces Management Changes
04/30/2009
Federal Home Loan Bank of Seattle announced that John P. McMurray will
join as senior vice president, chief risk officer effective May 1,
2009. Mr. McMurray has been performing contract services for the
Seattle Bank since December 2008. Mr. McMurray formerly served as
chief enterprise risk officer for Washington Mutual Bank, F.S.B., a
division of JPMorgan Chase NA. The Seattle Bank's current senior vice
president"
http://investing.businessweek.com/resear...
--"McMurray has been performing contract work since December 2008"--
So it appears McMurray wasn't too keen on staying with JPM despite
being given an opportunity to do so. McMurray was only one of a few
listed WMB employees who would be kept on board.
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Also....
"on July 22, WaMu held a conference call to discuss the Company’s
second quarter 2008 financial results. Defendants Killinger and Casey
participated in the call along with WaMu’s new Chief Enterprise Risk
Officer John McMurray. During the call, Killinger, Casey and Murray
reviewed the results set forth in the Company’s press release. They
also explained that, in 2008, the Company’s Option ARM loans
experienced the fastest rise in delinquency rates and that they
expected “other prime loans, which are mostly 5 and 7 year hybrids, to
follow Option ARMs closely.” According to McMurray, home equity loans
and subprime mortgages had experienced high delinquency rates during
the late 2006 to late 2007 time period."
So Rotella comes in in 2004, hires Schneider in 2005, then the year
after things start to crumble. And who is the person that explains
this during conference calls; McMurray the former Chief Credit Officer
recently promoted to Chief Risk Officer.
*Keep in mind, Rotella's offer letter from WMB was for 500k (link just
so happens to be disabled at this time, ODD). And his total
compensation for 2005 was in fact 2.3 Million. Not a bad first year?
So he makes 4x+ his salary during his first year, was hired by Rotella
to run the Home Loans Division, and from that moment things start to
go downhill for WMB's mortgage lending.....
Then JPM decides he is someone worth keeping on board?
On Jul 3, 8:19 am, koi <takamiyada...@gmail.com> wrote:
> 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.