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 By next month, zombie bank holding company Washington Mutual Inc. could know the outcome of its lawsuit against J.P. Morgan Chase & Co. (NYSE:JPM).
The holding company of the failed thrift sued J.P. Morgan to try to recover $4 billion in cash deposits. U.S. Bankruptcy Judge Mary Walrath said she may decide on Washington Mutual's request before a June 24 scheduled court hearing, according to The Guardian. WaMu claims the $4 billion was in its subsidiary, Washington Mutual Bank, at the time J.P. Morgan acquired the thrift for $1.9 billion in a Federal Deposit Insurance Corp.-brokered deal. J.P. Morgan has declined to return the money, claiming those funds are part of its acquisition. The debtor could use that cash to come up with its Chapter 11 reorganization plan. WaMu has been trying to recover the money since its thrift was seized by the FDIC, which the bankrupt holding company has also sued. WaMu is seeking over $13 billion for the loss of its banking operations with a total of $40 billion in damages for allegedly denying claims against the firm's former banking unit, according to The WaMu Story, a site produced by a group of 500 former shareholders of Washington Mutual called the The Washington Mutual Equity Group. The suit also claims federal regulators should have conducted a "straight liquidation" instead of seizing the bank and selling it to J.P. Morgan. Meanwhile, J.P. Morgan sued the bankrupt holding company and is urging a U.S. bankruptcy court not to interfere with its FDIC-brokered purchase of the thrift's banking operations, according to Reuters. - Maria Woehr Also see: Motion of Plaintiffs Washington Mutual, Inc. and WMI Investment Corp. for Summary Judgment pdf Brief in Support of the Motion of Plaintiffs for Summary Judgment pdf WaMu Documents
CategoriesComments
From: Settlement Loans,
Why should Chase pay the zombie bank more than they actually paid for the FAILED WaMu? That is total bullsh** if you ask me!
Posted on:
May 22, 2009 1:01 PM
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This is a great articles . Thanks for sharing.