If investors in WaMU holding company did not know the way it was they were stupid.

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Submitted by Lyle (United States), Apr 21, 2010 09:44

The FDIC has only one responsiblity to insured depositors, and then to do the resolution in the least cost manner to pay off the insured depositors. The creditors of the holding company were big boys and got what they deserved. That is unless WaMu engaged in things like Lincoln Savings (of Charles Keating fame) sold their bonds to depositors. The WaMu thing should discourage folks from investing in holding company bonds, making the banks have to go back to doing business the old fashioned way.

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