Shareholders of Washington Mutual Inc. (WAMUQ) have asked a U.S.
bankruptcy judge to let them investigate JPMorgan Chase & Co.
(JPM) and its role in the failure of thrift subsidiary Washington
Mutual Bank, Reuters reports, citing court documents filed
The shareholders' court-recognized committee wants information
that could lead to potential claims against JPMorgan if the
committee can show that the New York investment bank had a role in
WaMu's collapse, the biggest ever for a U.S. bank.
Tuesday's filing with the federal bankruptcy court in Delaware
comes four days after the bank's former parent submitted its latest
reorganization plan. It includes terms of a revised proposal for
settling disputes over WaMu's collapse, but leaves nothing for
shareholders and calls for distribution of about $7 billion to
creditors. The proposal also provides a range of liability
WaMu was seized in September 2008 during a bank run at the
height of the financial crisis. The Federal Deposit Insurance Corp
sold WaMu immediately after it was seized to JPMorgan for $1.9
The shareholders want to pick up where Washington Mutual Inc.
left off. The company was locked in a battle for documents and
depositions from JPMorgan when it reached a settlement now at the
heart of the company's proposed reorganization.
JPMorgan declined to comment, as did Washington Mutual, Reuters
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