The New York Times has gotten hold of a draft report blaming the FDIC and the Office of Thrift Supervision for not moving on Washington Mutual by lowering their rating. The official report will be released to the public next Friday. It appears the Office of Thrift Supervision received 15% of their assessment fees from Washington Mutual.

The two agencies that oversaw Washington Mutual, the investigation found, feuded so much that they could not even agree to deem the company “unsafe and unsound” until Sept. 18, 2008.

By then, it was too late. A week later, amid a wave of deposit withdrawals, the government seized the bank and sold it to JPMorgan Chase for $1.9 billion. It was by far the largest bank failure in American history.