Deposit Insurance Corporation in federal court on Tuesday, saying the agency owes it more than $1 billion in compensation for not assuming legal claims arising from its acquisition of Washington Mutual 's assets after its 2008 implosion.
By Troy Racki: On December 9, shares in the reincarnated Washington Mutual ( OTCQB:WMIH ) surged some 50% after the company's board of directors announced a commitment for strategic investment with
resolving longstanding disputes over misrepresentations made by the company and particularly its predecessors ( Washington Mutual and Bear Stearns) about the quality of mortgage loans that were packaged into residential mortgage-backed securities
Administration. As part of the agreement, JPMorgan has dropped its opposition to shouldering the legal liability related to Washington Mutual , which the bank bought during the financial crisis. PBOC to exit normal yuan intervention. The People's Bank
Countrywide, Washington Mutual , and Wachovia were clients of LPS, demonstrating that the company is exposed to the event risk of losing large clients.LPS
The investors had been seeking $5.75B to settle claims on securities issued by the aforementioned banks and Washington Mutual . WaMu-related claims aren't part of the deal, and JPMorgan is arguing it isn't responsible for any wrongdoings
JPMorgan's ( JPM ) reported settlement is said to be separate from its tentative $13B deal with the DOJ, and doesn't cover claims on securities issued by Washington Mutual . The bank recently agreed to a $5.1B settlement with the FHFA. Post your comment!
stronger franchises. This improvement has come from consolidation. For example, JPMorgan acquired Bear Stearns and Washington Mutual , and Wells Fargo acquired Wachovia, all at distressed prices. Consolidation allowed dominant banking franchises
The company's current problems stems largely from financial decisions made in the past. J.P. Morgan purchased Washington Mutual and two key players in the mortgage crisis that involved providing mortgages to unqualified applicants and securitizing
In our February piece, "U.S. Banks: Senior Holdco Versus Operating Subordinated Debt," we argued that the Washington Mutual bankruptcy was an anomaly-- subordinated bank-level creditors received zero value while senior holding company