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WaMu parent sues FDIC over bank-unit sale, seeks $13 bln damagesFont size: A | A | A7:03 AM ET 3/22/09 | Marketwatch
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TEL AVIV (MarketWatch) -- The holding company for Washington Mutual Bank filed a lawsuit, charging that the Federal Deposit Insurance Corp. improperly sold its banking operations to J.P. Morgan Chase and could have gotten more money for those assets, media reports say.
Parent Washington Mutual Inc. saw its banking operations acquired by J.P. Morgan in a late-September sale arranged by the FDIC. Parent WaMu, which wasn't acquired by J.P. Morgan, is demanding more than $13 billion in damages, the media reports say. The suit was filed in U.S. District Court in Washington, the reports say.
J.P. Morgan (JPM) paid $1.9 billion for the banking assets. Parent Washington Mutual filed under Chapter 11 of federal bankruptcy law after the sale.
Among other claims, Washington Mutual wants back $4 billion of trust preferred securities that it said were wrongfully transferred to the banking unit, Reuters reported. The suit also claims Washington Mutual may be entitled to as much as $3 billion of tax refunds, Reuters reported.
