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Wednesday, May 20, 2009 1:51:05 PM
"Judge hears arguments in WaMu bankruptcy"
By RANDALL CHASE
AP BUSINESS WRITER
WILMINGTON, Del. -- A bankruptcy judge in Delaware is considering Washington Mutual's request to examine JPMorgan Chase records.
Washington Mutual attorneys argued for the authorization Wednesday aiming to investigate potential claims based on alleged misconduct by JPMorgan that led to a federal lawsuit in Texas.
Washington Mutual holders allege in the Texas lawsuit that New York-based JPMorgan planned to damage Washington Mutual's banking subsidiaries so it could buy them on the cheap.
Washington Mutual already has sued the Federal Deposit Insurance Corp., which seized the Seattle-based savings and loan in September, then sold it to JPMorgan for $1.9 billion.
JPMorgan's attorneys argue that the request is barred by bankruptcy rules because of the pending, related litigation.
For more info, see:
http://www.seattlepi.com/local/6420ap_washington_mutual_bankruptcy.html?source=mypi
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