Diary

Obama and Schumer's Sugar Daddy Pockets $20 Million Off WaMu Collapse

One of Barack Obama’s and Charles Schumer’s political moneybag donors dating from very early in both of their U.S. Senate careers stands to make close to $20 million for 17 days on the job for presiding over the largest bank failure in U.S. history.

That’s nearly $20 MILLION DOLLARS for 17 days on the job.

He basically signed the papers delivering the company into government receivership and the depository base of the institution into the custody of JP Morgan Chase. Article here: WaMu Gives New CEO Mega Payout As Bank Fails

This guy is the Ken Lay of the financial crisis. You can bet if he had been a campaign contributor of President Bush, the Democrats would be swarming all over each other to get in front of a microphone and claim that Bush’s cronies are personally enriching themselves from the bailout. Both Obama and Schumer should publicly repudiate Alan Fishman, his compensation package, and call on him to immediately and unconditionally return ALL of the $20 million.

Indeed, this is the same Chuck Schumer who himself caused a run on the bank of the now defunct IndyMac only a few weeks ago by publicly releasing a statement questioning its solvency.

Interesting that so many of the people getting these huge sums of money are Democrats, who maybe not so coincidentally donate heavily to Democrat candidates for Federal office. It’s a self-reinforcing cycle.

As I noted in a previous diary, the first line of regulation and oversight is at the Corporate Governance level. In the case of WaMu, the Board of Directors (who ostensibly approved Fishman’s hiring and compensation) were conspicuously absent in raising any alarm about the growing mortgage crisis and any potential to put WaMu into insolvency.

A quick check of WaMu’s Board of Directors referenced with OpenSecrets.org brings us some interesting facts. WaMu’s Board was full of big-time Democrat donors and well known liberal activists such as:

  • ex-Starbucks CEO Orin Smith, a big Democrat campaign contributor who helped bankroll the Democrat money machine ActBlue.

  • Regina Montoya, the CEO of New American Alliance, “a 501(C)(6) organization of American Latino business leaders committed to leading the process of Latino empowerment and wealth-building by expanding the forms of capital most crucial for economic advancement, including economic capital, political capital, human capital, and philanthropy.” It was co-founded by a recipient of a Bill Clinton out-the-door pardon, none other than former HUD Secretary Henry Cisneros, also a Board member of mortgage mess culprit Countrywide Financial.

  • David Bonderman, a Texas hedge fund manager who has donated campaign contributions to literally ever big-name Democrat in the U.S. Congress for the last two decades. His donations are wide reaching across the Democrat caucus, and he would have to be considered one of their biggest single benefactors.

So along with WaMu’s CEO getting paid $20 million for 17 days of showing up to work and signing the company’s death certificate, the WaMu Board of Directors was filled with bigtime Democrats moneymen and liberal activists.

Time to start telling the American people who really caused this mess. Obama and Schumer should immediately be forced to repudiate their benefactor Alan Fishman and call on him to return the $20 million.