WAMU Shareholders About To Go "Oh Shit" In Unison For Second Time In One Month
New York Attorney General Andrew Cuomo claims a subsidiary of First American Corp., eAppraiseIT, has been generating inflated appraisals for First American and Seattle mortgage-lender WAMU. This would represent collusion and would be what's technically known as "illegal." Unfortunately for everyone involved who wanted to keep their job, Cuomo has emails that say things like:
eAppraiseIT's president told First American: "We view this as a violation of the OCC, OTS, FDIC and USPAP influencing regulation."And:
eAppraiseIT's president told senior executives at First American: "We have agreed to roll over and just do it ..."Partly because a WAMU executive, First American says, told them this could be the beginning of a beautiful friendship.
This news comes just after WAMU warned of a 75% earnings drop. Man, their commercials making fun of other bank's "larcenous" practices are beginning to look terribly ironic.
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