Washington Mutual Preferred fka WAMPQ

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WaMu Settles Government Judgment for $50 Million

Anchor Bank litigation.

http://news.businessweek.com/article.asp?documentKey=1376-LWOGIT0UQVI901-1EQDEA3ERNJFCJ4MLUTE3DO810

Washington Mutual mention is waaaay down at the bottom of this article.

WaMu Settles Government Judgment for $50 Million

Washington Mutual Inc. scheduled a hearing in bankruptcy court on Dec. 29 to approve a settlement accepting $50 million from the U.S. government in satisfaction of a $83 million judgment.

The judgment arose from litigation against the government for breach for contract regarding the capitalization of American Savings Bank FA, which WaMu acquired after it had been taken over by regulators in the 1988 savings and loan crisis.

WaMu said in its court papers that success by the government on appeal could result in no recovery at all.

WaMu filed a seventh amended plan this month incorporating a global settlement designed to remove nearly all opposition to the reorganization. For details on the settlement, click here for the Dec. 13 Bloomberg bankruptcy report. The WaMu holding company filed under Chapter 11 in September 2008, one day after the bank subsidiary was taken over. The bank, once the sixth- largest depository and credit-card issuer in the U.S., was the largest to fail in the country's history.

The holding company filed formal lists of assets and debt showing property with a total value of $4.49 billion against liabilities of $7.83 billion.

The holding company Chapter 11 case is In re Washington Mutual Inc., 08-12229, U.S. Bankruptcy Court, District of Delaware (Wilmington).