WaMu holding company sues FDIC over bank seizure

Discussion in 'Wall St. News' started by codetroll, Mar 21, 2009.

  1. http://finance.yahoo.com/news/WaMu-holding-company-sues-apf-14709032.html

    "SEATTLE (AP) -- Washington Mutual's holding company is suing federal regulators for billions of dollars, saying the firesale of the bank's assets to JPMorgan Chase violated its rights.

    The lawsuit was filed Friday in federal court against the Federal Deposit Insurance Corp., which seized the Seattle-based savings and loan in September. It was the largest bank failure in U.S. history.

    Lawyers for the holding company, Washington Mutual Inc., argue that the bank was worth more than the $1.9 billion JPMorgan paid for it in a deal arranged by the FDIC. The lawsuit argues that if WaMu's assets had been liquidated prudently, they would have been worth more than that.

    An FDIC spokesman did not immediately return a call seeking comment Saturday."

    Interesting. ...I wonder what else will come of this, if anything at all.
  2. What a goddamned disgrace. WaMu was probably worth less than zero when it was sold.
  3. Follow up:

    "Parent Washington Mutual Inc. saw its banking operations acquired by J.P. Morgan in a late-September sale arranged by the FDIC. Parent WaMu, which wasn't acquired by J.P. Morgan, is demanding more than $13 billion in damages, the media reports say. The suit was filed in U.S. District Court in Washington, the reports say."

  4. As they say the only folks making money in today's economic environment are lawyers.