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WMI sued, claiming the payments “do not run afoul of the text or spirit” of golden parachute regulations and that honoring the settlements would prevent litigation costs.



WMI Liquidating Trust, receiver for Washington Mutual, sued the FDIC last year in the District of Columbia for refusing to approve “golden parachute payments” to former officers and employees of the failed bank.

Thus, the making of the settlement payments under the facts and circumstances in this case is consistent with the policy goals of the Golden Parachute Regulations and of the FDIC’s and FRB’s [Federal Reserve Bank] broader safety and soundness concerns.



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