[June 17, 2011] Settlement may be near in federal lawsuit against WaMu executives Tweet SEATTLE, Jun 17, 2011 (The Seattle Times - McClatchy-Tribune News Service via COMTEX) -- A settlement is being negotiated in the lawsuit by federal regulators against three top Washington Mutual officials, according to court papers filed Thursday. "The parties have now exchanged settlement term sheets reflective of a potential settlement. The parties are diligently working to resolve their remaining disputes," a lawyer for the Federal Deposit Insurance Corp. wrote in a request to postpone deadlines for further filings in the case. The FDIC document adds that additional sessions with a mediator are planned for June 29 and 30 "in the event they are unable to resolve the matters at issue in the interim." In March, the Federal Deposit Insurance Corp. alleged Seattle-based WaMu lost billions of dollars due to negligent actions by Kerry Killinger, WaMu's former CEO; Stephen Rotella, former chief operating officer; and David Schneider, former president of WaMu's Home Loans division. The suit also names Killinger's wife, Linda, and Rotella's wife, Esther, claiming they participated in transferring assets into trusts where they would be out of creditors' reach. The FDIC sought more than $900 million from the executives in private negotiations preceding the lawsuit, a source familiar with the matter said. The suit, filed in federal court in Seattle, doesn't specify how much in damages the FDIC seeks to collect. News of the potential settlement was reported Friday morning in the Wall Street Journal online. ___ (c) 2011, The Seattle Times. Visit The Seattle Times Extra on the World Wide Web at http://www.seattletimes.com/. Distributed by McClatchy-Tribune Information Services. For reprints, email [email protected], call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA. [ Back To TMCnet.com's Homepage ]