Seattle Times reported
on the Friday hearing in which federal regulators testified about seizing WaMu. Also on Friday, the FDIC Office of Inspector General released its Evaluation of Federal Regulatory Oversight of Washington Mutual Bank
. The report shows how serious the failure could have been if the FDIC had not been able to arrange for the acquisition by Chase:
WaMu was one of the eight largest institutions insured by FDIC. FDIC determined that its estimated cost to liquidate WaMu in 2008 would have been approximately $41.5 billion – a sum that would have depleted the entire balance of the DIF at the time. Ultimately, FDIC was able to resolve WaMu with no loss to the DIF.