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Seattle Bubble Forum Archive • View topic - WAMU Sues FDIC

WAMU Sues FDIC

How will housing affect the US and world economy? How will the economy affect housing?

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WAMU Sues FDIC

Postby TJ_98370 » Sun Mar 22, 2009 7:32 am

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And now, breaking news of some local interest.........
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Washington Mutual Inc, the failed U.S. savings and loan, has sued the Federal Deposit Insurance Corp for well over $13 billion in connection with the loss of its banking operations, which was acquired by JPMorgan Chase & Co.
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In a complaint filed with the U.S. District Court for the District of Columbia, the thrift's former parent accused the FDIC of having on January 23 made a "cryptic disallowance" of its claims, prompting the lawsuit.
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It also accused the FDIC of agreeing to an unreasonably low price in arranging the a $1.9 billion sale of the banking business to JPMorgan on September 25, when regulators seized Washington Mutual and appointed the FDIC as receiver.
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JPMorgan did not buy the parent holding company, which filed for Chapter 11 bankruptcy protection the following day.......

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TJ_98370
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