WaMu holding company sues FDIC

[cal04]

Source: Associated Press

Lawsuit claims bank was worth more than $1.9 billion JPMorgan paid


Washington Mutual's holding company is suing federal regulators for billions of dollars, saying the fire sale of the bank's assets to JPMorgan Chase violated its rights.

The lawsuit was filed Friday in U.S. District court in Washington, D.C., 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., argued that Washington Mutual 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.

Read more: http://www.msnbc.msn.com/id/29816772/

[NV Whino]

1. Oh for fuck's sake.

[dixiegrrrrl]

2. circular suing squad....

Banks are suing mortgage companies who are suing home owners who are suing lenders who are suing banks and JP Morgan is suing Countrywide and.....
the lawyers are raking it in.

[gratuitous]

3. Fell off the treadmill, got picked clean

And now they want . . . what, exactly? Did they pay their FDIC premiums for the last decade? Because I know for a fact WaMu wasn't paying its depositors shit for interest.

[Deja Q]

4. Damn those regulators

:sarcasm:


F U, W M

[Renew Deal]

5. Actually, they were worth less than 0.

Sell those assets to pay their debts. There's not enough assets.

[Idealism]

6. How can you price assets no one is willing to buy, dipshits?!

How can you put a numerical value on an index that has come to a virtual standstill?

God, I hate stupid!

[iamthebandfanman]

7. i say give them the bankrupt company back

and say fuck em.


cant believe they are complaining when if nobody had done anything THEY WOULDNT HAVE JACK SHIT AT ALL

[malletgirl02]

16. This is a great Idea

Why should the FDIC fight to hold on that bank anyway?

[tomm2thumbs]

8. the FEDERAL RESERVE is above the law - our FOURTH branch of government - believe it

nothing will happen to the FDIC or the Federal Reserve

[Joanne98]

9. Isn't that something. The nerve!

[JDPriestly]

10. They may have a point. They may be able to show that their value

was artificially lowered by short selling. If they can show that JP Morgan had any role in short selling their stock or was involved in any way in a conspiracy to push their stock value down, they might get somewhere. The FDIC may have been complicit in some way.

[Rage for Order]

19. Don't go introducing relevant questions into a flamefest!

Although I wouldn't use the word "complicit" when referring to the FDIC. I think they most likely didn't want to take a chance and see how large of a shitstorm a WaMu failure would cause. WaMu failed right about the time everything was peaking, prior to any of the government bailouts (except AIG).

[Turbineguy]

11. Maybe they should

ask the ass hats who ran the bank into the ground for their bonuses back.

[Oerdin]

12. Well...

Then the Fed should have just left them to go bankrupt and then they would have gotten nothing. What a bunch of ingrates especially given how badly they screwed the pooch.

[tomtomi]

13. Neither Bloomberg nor MarketWatch nor FOXBusiness bothered to mention this

looks like they still are enjoying their good old Bush times.

[pinniped]

14. These JPM Chase assholes will easily recoup this sum with the millions....

of former WAMU CC holders whose rates they jacked up.

[Egnever]

15. Good! This deal looked shady to me from the get go.

it will be interesting to see the details.

[pinniped]

17. I agree. It looked like the JPM assholes convinced Ahole the Decider to give them....

a big bank with lots of customers and CC accounts.

[Egnever]

18. Yup thats exactly what it looked like to me

[960]

20. What nerve. The company was really worth like -100 Billion.

getting 1.9Billion was the best deal they could have hoped for, lest they change their name to AIG.

[yurbud]

21. I say shut down both banks just to be safe.

[melm00se]

22. damn that

1st amendment.

Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.

whether you like it or not, WaMu's holding company has the legal and guaranteed right to file suit, don't be in such a rush to bitch about it...it may be you down the road who needs to file suit.