By Dan Freed 12/16/09 - 05:40 PM EST Loading Comments... Add Comment
Stock quotes in this article: JPM , WAMUQ.PK
NEW YORK (TheStreet) -- Washington Mutual looks increasingly likely to extract a settlement from JPMorgan Chase(JPM Quote) as the companies battle in court over a disputed $4 billion in cash deposits and several billions in other assets, according to a close observer of the complex case.
More on JPM Buy Citigroup!: Against the GrainSEC to Require More Disclosure on Exec PayWells Fargo Finishes TARP Market Activity JPMorgan Chase & Company| JPM UPWashington Mutual and JPMorgan attorneys have both laid claim to the disputed assets following JPMorgan's acquisition of the failed thrift's assets last year. Senior bonds of Washington Mutual's holding company have rallied from a low of 20 cents on the dollar to the high 90s on the belief that Washington Mutual will recover at least some of that amount. In their latest motion, however, Washington Mutual's attorneys have upped the ante, pointing to documents they say highlight a need to "expand to third parties" an investigation they say the bankruptcy court has authorized into JPMorgan's "alleged malfeasance prior to the seizure and sale of [Washington Mutual]."
And quite a list of third parties it is. Washington Mutual's lawyers want to interview regulators at the FDIC, the Office of Thrift Supervision, the Office of the Comptroller of the Currency, the Federal Reserve, the Treasury Department, the Securities and Exchange Commission, former Treasury Secretary Henry Paulson, ratings agencies Moody's Investors Service (MCO Quote), McGraw Hill Companies' (MHP Quote) unit Standard and Poor's, and companies they say considered buying Washington Mutual, including Banco Santander (STD Quote), Toronto-Dominion Bank (TD Quote), and Wells Fargo (WFC Quote). Among other parties, they also want to interview executives at Goldman Sachs (GS Quote), which advised Washington Mutual on its sale.
The motion says the interviews are necessary in light of claims made in a separate case, American National Insurance Co. vs. FDIC, in which attorneys for American National argue that JPMorgan "engaged in sham negotiations," among other tactics "to gain an unfair advantage in obtaining [Washington Mutual] assets at a 'fire sale' price." JPMorgan spokesmen did not respond to an email message seeking comment on the litigation.
Is a WaMu-JPMorgan Settlement Possible?
By Dan Freed 12/16/09 - 05:40 PM EST Loading Comments... Add Comment
Stock quotes in this article: JPM , WAMUQ.PK
Kevin Starke, a bond analyst at CRT Capital who has been following the JPMorgan-WaMu case closely, thinks the judge will grant Washington Mutual's attorneys' request, as the rule the attorneys use to justify it "permits discovery quite broadly, including on 'any...matter relevant to the case,'" Starke wrote in a research note published Wednesday, citing federal bankruptcy rules.
More on JPM Buy Citigroup!: Against the GrainSEC to Require More Disclosure on Exec PayWells Fargo Finishes TARP Market Activity JPMorgan Chase & Company| JPM UPHowever, Starke also believes JPMorgan will be strongly incentivized to settle the case, rather than allow Washington Mutual's attorneys to go on such a broad and lengthy "fishing expedition," he told TheStreet.com. "You go on that broad a hunt, there's a good chance you're going to find something," Starke says.
Whatever the outcome of the case, Starke does not believe owners of Washington Mutual's common stock have any hope of recovery, nor does he believe it will have much if any effect on JPMorgan's stock, as the amounts in dispute are relatively minor for the banking giant. Washington Mutual shares have swung wildly on heavy volumes at different periods in recent months, on hopes a favorable court ruling will help them recover some value.
-- Written by Dan Freed in New York.
Read more:
Speculators continue trading in WaMu shares
Recent JPM News
- JPMorganChase and UnidosUS Strengthen Partnership to Support Expanded Affordable Homeownership Opportunities in Latino Communities Across the Country • Business Wire • 07/17/2024 02:00:00 PM
- US Index Futures Steady, Oil Prices Dip Amid China Slowdown, Key Earnings Reports Ahead • IH Market News • 07/16/2024 10:12:04 AM
- JPMorganChase Declares Preferred Stock Dividends • Business Wire • 07/15/2024 08:49:00 PM
- Stocks Close On Firm Note; Dow, S&P Hit Fresh Closing Highs • IH Market News • 07/15/2024 08:44:00 PM
- Futures Pointing To Initial Strength On Wall Street • IH Market News • 07/15/2024 01:06:36 PM
- U.S. Stocks Move Back To The Upside Following Yesterday’s Downturn • IH Market News • 07/12/2024 08:44:00 PM
- Futures Pointing To Roughly Flat Open On Wall Street • IH Market News • 07/12/2024 01:08:02 PM
- JPMorgan Chase Reports Second-Quarter 2024 Financial Results • Business Wire • 07/12/2024 10:55:00 AM
- U.S. Index Futures Steady Ahead of Key Economic Data and Earnings Reports; Oil Prices Climb • IH Market News • 07/12/2024 10:30:29 AM
- Ericsson Reports 14% Profit Increase, UBS Downgrades Tesla Shares, Ozempic Linked to Reduced Dementia Risk • IH Market News • 07/12/2024 10:28:11 AM
- J.P. Morgan Life Sciences Private Capital Hires Joseph Siletto to Target Investments in Healthcare Transformation • PR Newswire (US) • 07/11/2024 02:00:00 PM
- Chase and Marriott Bonvoy® Introduce the Newly Enhanced Marriott Bonvoy Bold® Credit Card • Business Wire • 07/11/2024 01:00:00 PM
- BP Slashes Profit Forecast by $700 Million; Morgan Stanley Predicts S&P 500 10% Drop, and More News • IH Market News • 07/09/2024 10:54:32 AM
- JPMorgan Chase Announces 2024 Dodd-Frank Act Stress Test Results • Business Wire • 06/28/2024 08:39:00 PM
- JPMorgan Chase Regulatory Capital Update • Business Wire • 06/28/2024 08:38:00 PM
- Nike Stock Drops 14% in Pre-Market; Nokia Acquires Infinera for $2.3 Billion, and More News • IH Market News • 06/28/2024 10:50:25 AM
- JPMorgan Chase Comments on the Federal Reserve’s 2024 Stress Test Results • Business Wire • 06/27/2024 03:25:00 AM
- SolarEdge Stock Falls 13%, Wegovy Approved in China, Grail Nasdaq Debut, Apple Rejects Meta Chatbot • IH Market News • 06/25/2024 10:36:11 AM
- JPMorganChase Unveils Expansion Plans in South Florida • Business Wire • 06/21/2024 03:31:00 PM
- Honeywell Acquires CAES Systems for $1.9 Billion, Sarepta Therapeutics Surges 34%, Gilead Continues Gains • IH Market News • 06/21/2024 12:00:38 PM
- Form 424B2 - Prospectus [Rule 424(b)(2)] • Edgar (US Regulatory) • 06/20/2024 05:59:36 PM
- Form 424B2 - Prospectus [Rule 424(b)(2)] • Edgar (US Regulatory) • 06/20/2024 05:57:15 PM
- Form FWP - Filing under Securities Act Rules 163/433 of free writing prospectuses • Edgar (US Regulatory) • 06/20/2024 05:53:36 PM
- Form FWP - Filing under Securities Act Rules 163/433 of free writing prospectuses • Edgar (US Regulatory) • 06/20/2024 05:49:45 PM
- Form 424B2 - Prospectus [Rule 424(b)(2)] • Edgar (US Regulatory) • 06/20/2024 05:47:44 PM
FEATURED North Bay Resources Acquires Mt. Vernon Gold Mine, Sierra County, California, with Assays up to 4.8 oz. Au per Ton • Jul 18, 2024 9:00 AM
VAYK Expects Revenue from First Airbnb Property Starting from August • VAYK • Jul 18, 2024 9:00 AM
Nightfood Holdings Signs Letter of Intent for All-Stock Acquisition of CarryOutSupplies.com • NGTF • Jul 17, 2024 1:00 PM
Kona Gold Beverages Reaches Out to Largest Debt Holder for Debt Purchase Negotiation • KGKG • Jul 17, 2024 9:00 AM
Avant Technologies Welcomes Back Former CEO with Eye Toward Future Growth and Expansion • AVAI • Jul 17, 2024 8:00 AM
HealthLynked Expands Telemedicine Nationwide • HLYK • Jul 17, 2024 8:00 AM