If Regulators Target You, Better Get Divorced First

It's not easy out there for executives (past and present) who are at the helm of troubled institutions or firms that have already failed. Mortgage analyst Joe Garrett is predicting a spike in divorces among bank CEOs "whose banks get CAMELS-5 ratings and Prompt Corrective Action Letters in 2011." About two weeks back the Federal Deposit Insurance Corp. filed a massive civil lawsuit against former Washington Mutual CEO Kerry Killinger and his top lieutenants. Among other things, the claim also targets their wives for damages. Garrett, in a report to clients, writes, "Savvy wives, especially those who don't really like their husbands anyway, will hear their spouse complain about getting his PCA at dinner and will go find a divorce lawyer the next morning."