Washington Mutual sues FDIC for over $13 billion

Reuters ^ | 2009-03-21

[rabscuttle385]

NEW YORK (Reuters) - Washington Mutual Inc, the failed U.S. savings and loan, has sued the Federal Deposit Insurance Corp for well over $13 billion in connection with the loss of its banking operations, which was acquired by JPMorgan Chase & Co.

In a complaint filed with the U.S. District Court for the District of Columbia, the thrift's former parent accused the FDIC of having on January 23 made a "cryptic disallowance" of its claims, prompting the lawsuit.

It also accused the FDIC of agreeing to an unreasonably low price in arranging the a $1.9 billion sale of the banking business to JPMorgan on September 25, when regulators seized Washington Mutual and appointed the FDIC as receiver.

JPMorgan did not buy the parent holding company, which filed for Chapter 11 bankruptcy protection the following day.

[rabscuttle385]

*Ping!*

[Ernest_at_the_Beach]

Getting interesting!...

Did you see this?

Goldman rejected settling of AIG trades at discount (Goldman killed AIG)

[coloradan]

I thought cockfighting was illegal.

[Ernest_at_the_Beach]

fyi

[Shady]

As this whole charade and felony plays out, the average hard working American with some savings like me looks at all this and wonders where the cops and justice is?

[maggief]

Not to Barney Frank.

[Oldpuppymax]

You mean someone actually believes that Washington elites might have a less than honorable relationship with Wall Street elites?? OH NO!! Who could even consider such a possibility??!!

[NormsRevenge]

Do WE get a FRee mortgage out of the deal if WaMu prevails? :-]

[tubebender]

Why didn’t the gas man run out and get that tar...

[tubebender]

OOPPPPPSSSSS wrong thread!!

[NormsRevenge]

Why did the chicken cross pit road?

[mojitojoe]

‘I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.
-Thomas Jefferson

[org.whodat]

LOL, where will the Wall street welfare end, Aig filed sue for millions in taxes it claimed it over paid. Over paid with tax payers money. Damn the balls of the tin cup shakers and their supporters.

[OldNavyVet]

Its my guess that WaMu has a case to the extent WaMu was forced to loan to unqualified buyers by — starting during the Jimmy Carter administration (Via the CRA bill) and, subsequently — Democrats in Congress such as Barney Frank.

[PAR35]

Well, it didn't take them long to make an error, did it?

Washington Mutual Inc, the failed U.S. savings and loan

In case the ignorant writer is lurking, I'll help them out:

'Washington Mutual Inc, the bankrupt holding company which owned the failed U.S. savings and loan Washington Mutual Bank F.S.B...'

[Camel Joe]

We’ve been voting for bread and circuses for so long now that justice is only a word and the law is being used against us.

[Fred]

Really good news

[pointsal]

‘I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. -Thomas Jefferson

Watching a bank based mid-way between Ventura and Buellton give living proof to these thoughts.

[April Lexington]

As this whole charade and felony plays out, the average hard working American with some savings like me looks at all this and wonders where the cops and justice is?

From Elliot Ness to Elliot Spitzer in one generation!

Oy Veh...