In its lawsuit against former senior executives of Washington Mutual Inc., the Federal Deposit Insurance Corp. accuses WaMu’s chief of warning about an overheated real estate market while taking on more risk to boost his own compensation. The FDIC has on its side a well-funded legal team and access to all records of the failed banking subsidiary. But the bank’s former regulator gave it a satisfactory rating, and cases against the former management of failed institutions are difficult to prove and usually settle before going to trial.
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