Mr Cooper Group Inc (COOP)

[rramirez82]

We know that she denied JPM's motion, so therefore we know it's not theirs. We also know that she was going to "decide" on the $4B by or before today - to me that means she was going to either grant JPM's motion to dismiss or WAMU's request for summary judgment (within WMI's opposition papers). We know the former is out of the question, but there is no mention of the latter. My guess is the $4B is ours.

Here's the text:

Delaware judge retains control over WaMu dispute[/B]

"Delaware bankruptcy judge denies motion transfer WaMu-JPMorgan dispute"

By Randall Chase, AP Business Writer
On Wednesday June 24, 2009, 3:49 pm EDT

WILMINGTON, Del. (AP) -- A Delaware bankruptcy judge on Wednesday refused to cede control over a dispute between Washington Mutual Inc. and JPMorgan Chase & Co. involving billions of dollars in bank assets.

Judge Mary Walrath denied requests by the Federal Deposit Insurance Corp. and JPMorgan to stay two adversary proceedings in Washington Mutual's Chapter 11 case, or to transfer the dispute to a federal district court in Washington, D.C., where Washington Mutual has sued the FDIC.

"I do have exclusive jurisdiction to decide what is property of the estate," the judge said.

Walrath also denied JPMorgan's motion to dismiss a complaint in which Washington Mutual seeks to force JPMorgan to turn over more than $4 billion in deposits.

Lawyers for the FDIC immediately asked Walrath to certify her ruling on their motion for appeal. She declined to do so but said she would accept briefs from the FDIC and WaMu on the request for an appeal.

The FDIC seized the banking assets of Seattle-based Washington Mutual last year, then immediately sold them to JPMorgan for $1.9 billion, a price that WaMu claims was much too low.

Washington Mutual filed a lawsuit against the FDIC in March in U.S. District Court in Washington, D.C., arguing that if WaMu's assets had been liquidated properly by the FDIC in receivership, they would have been worth more than $1.9 billion. The lawsuit also argues that the FDIC improperly denied Washington Mutual's proof of claims.

In a separate lawsuit that is part of the Delaware bankruptcy case, Washington Mutual claims that JPMorgan has refused to turn over billions of dollars in deposits that are part of its bankruptcy estate. JPMorgan has filed a countersuit claiming the money was included in the assets sold to it by the FDIC.

Thomas Califano, an attorney for the FDIC, argued Wednesday that federal law limits jurisdiction regarding assets in which the FDIC, as receiver of a failed financial institution, claims ownership interest to the district court in Washington or the district in which the failed institution is located.

Califano said that under the purchase agreement with JPMorgan, the FDIC has the power to direct JPMorgan to withhold payments of deposits until the respective rights are determined. He also said the FDIC may have potential setoff rights regarding some of the assets in question.

"They're not being denied their day in court," Califano said in response to WaMu's objections. "What we're asking is that they litigate these issues in the district court as opposed to litigate the issues here."

"There are some very significant policy concerns here," he added.

But Michael Carlinsky, an attorney for Washington Mutual, argued that the FDIC no longer has a claim because, as receiver, it already has sold Washington Mutual's banking assets to JPMorgan, which is not in receivership.

Carlinsky said the core issue is ownership of the deposit accounts, an issue that is for the bankruptcy court to decide.

"We belong here; this court has exclusive jurisdiction over the assets," he argued.

Attorneys representing Washington Mutual's creditors committee, as well as noteholders holding more than $3 billion in debt, also urged the court not to give up its authority to determine what assets are part of a bankruptcy estate.

"The court should not give it up lightly, or at all, just because the FDIC says you should," said David Stratton, an attorney for the creditors committee.

Link:

http://finance.yahoo.com/news/Delaware-judge-retains-apf-1270516254.html?x=0&.v=3