FDIC, ex-WaMu CEO nearing settlement of lawsuit

SEATTLE (Reuters)—Former Washington Mutual Inc. Chief Executive Kerry Killinger and two of his top lieutenants are nearing a settlement with the Federal Deposit Insurance Corp. over the collapse of what was the largest U.S. savings and loan.

The defendants and the FDIC have "exchanged settlement term sheets reflective of a potential settlement" and are "diligently working" to resolve remaining disputes, according to a filing Thursday in the federal court in Seattle.

The FDIC sued Mr. Killinger, former Chief Operating Officer Stephen Rotella and former home lending chief David Schneider on March 16, accusing them of pushing reckless home loans that led to the company's demise.