WaMu Bank Parent Company Sues FDIC For 13 Billion

Washington Mutual has filed a 13 Billion Dollar lawsuit against the FDIC charging that the sale of WaMu Bank to JP Morgan Chase didn't bring in enough bucks. The FDIC arranged for the sale of WaMu's banking operations to J.P. Morgan Chase in September of 2008 for 1.9 Billion Dollars. WaMu the Parent filed for Chapter 11 Bankruptcy protection just after the sale.

WaMu had more than $300 billion of assets and about $900 billion of customer deposits, and was also known as one of the largest sub-prime mortgage lenders and holder of "toxic assets" when the "sub-prime" crisis hit. The federal Office of Thrift Supervision had closed WaMu and appointed the FDIC as receiver

According to Reuters, the lawsuit filed in U.S. District Court in Washington claims that 4 Billion Dollars in trust preferred securities were wrongfully transferred to the banking unit and that Washington Mutual may be entitled to as much as $3 billion of tax refunds.

Not sure what the other 6 Billion is for...perhaps pain, suffering and longevity bonuses contractually owed to execs who steered the company into oblivion.

But, that's just a guess.


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