Wamu's Mr Killinger - FDIC's Seizure unfair - NOT a "clubby enough member of Wall St's TBTF Club" or a member of the wrong Federal Reserve District?

Before the Senate Governmental Affairs subcommittee chaired by Senator Levin (D-MI) hearing just now - Mr Killinger stated:

1. WAMU was UNFAIRLY seized by its regulator,
2. NOT protected from short sellers in July 2008, as hundreds of other banks were;
3. raised $10B in new capital in 2008, NOT asked by OTS, its primary regulator to raise more,
4. scaled back sub prime originations market share by over two thirds since 2005, from 11% to 4%,
5. was EXCLUDED from the hundreds of phone calls and meetings in summer of 2008 between US Treasury and Federal Reserve officials and Wall St banks,
6. was seized before:
7. a) the FDIC's bank deposit insurance increase to $250k (in the trillions),
8. b) TARP funds (hundreds of billions) and
9. c) indirect bank capital markets support programs (Trillions) and
10. d) the FDIC's TLGP (low cost, FDIC insured bank debt issuance, hundreds of billions) program.
11. and that WAMU was well positioned to work its way through the financial crisis
12. and that WAMU was not treated the same as other financial institutions
13. WAMU "oxygen" of liquidity was choked off

Instead ALL of the TBTF club members were allowed the benefits with fewer competitors - absent Wamu and I suspect, but subject to proof, perhaps Wachovia, another "potential victim" OUTSIDE the clubby confines of Mr Geithner's NY Federal Reserve district.

March 2, 2010 NY Times reported the economic downturn was NOT as severe as expected; in fact the bailout has softened the blow in NY - read it here http://www.nytimes.com/2010/03/03/nyregion/03recession.html?scp=1&sq=in%20new%20york,%20bailout%20softens%20blow&st=cse

YES Mr Kaufman -Wall St banks were treated differently (read better) than WAMU - WHY?

CAN YOU SAY - NEW YORK FEDERAL RESERVE DISTRICT MEMBER BANKS - where clearly membership has its privileges.

POSTED APRIL 13, 2010 12:18 PM LOS ANGELES TIME.