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Are the Feds that stupid to believe WAMU

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The typical gov't. response to this sort of debacle is to find the whipping boy. WaMu might be, along w/a few others. If the powers that be find WaMu to be an expedient choice, the hammer will come down. If they don't, it won't.

If not whipping boy, they might end up being used as the poster child.

Man, I'll tell you though, it was standard practice around here in the boom to go to WaMu. Everyone knew that's where you go to get your buyer "qualified". It was a puppy mill.

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