NEW YORK (Reuters) \u2013 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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
JPMorgan did not buy the parent holding company, which filed for Chapter 11 bankruptcy protection the following day.<\/p>\n
In its complaint, Washington Mutual seeks to recover as much as $6.5 billion of capital contributions it said it made to its banking unit from December 2007 through the seizure.<\/p>\n
Washington Mutual also seeks the return of $4 billion of trust preferred securities it said were wrongfully transferred to the banking unit, and said it may be entitled to as much as $3 billion of tax refunds. It also seeks damages of $177.1 million related to unpaid loans made to the banking unit.<\/p><\/blockquote>\n
I don’t have any specific comments on this case although I have the feeling this may be the first of many suits filed against the FDIC.<\/p>\n","protected":false},"excerpt":{"rendered":"
Washington Mutual Inc. has filed suit against the FDIC seeking to recover roughly $13 billion connected to the seizure and sale of its banking arm by federal regulators. From Reuters: NEW YORK (Reuters) \u2013 Washington Mutual Inc, the failed U.S. savings and loan, has sued the Federal Deposit Insurance Corp for well over $13 billion […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[26],"tags":[344,533,532],"class_list":["post-1764","post","type-post","status-publish","format-standard","category-economy","tag-fdic","tag-jpmorgan-chase","tag-washington-mutual","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/pfpI7-ss","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":1978,"url":"https:\/\/www.jasetaro.com\/blog\/2009\/04\/21\/dianne-feinstein-routed-government-money-to-husbands-firm\/","url_meta":{"origin":1764,"position":0},"title":"Dianne Feinstein Routed Government Money to Husband’s Firm","author":"Jeff","date":"April 21, 2009","format":false,"excerpt":"The Washington Times is reporting today that Senator Dianne Feinstein (D-CA) took unusual steps to route route taxpayer dollars to the Federal Deposit Insurance Corp. which had just awarded her husband\u2019s firm a lucrative contract: On the day the new Congress convened this year, Sen. Dianne Feinstein introduced legislation to\u2026","rel":"","context":"In "Culture of Corruption"","block_context":{"text":"Culture of Corruption","link":"https:\/\/www.jasetaro.com\/blog\/category\/culture-of-corruption\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2091,"url":"https:\/\/www.jasetaro.com\/blog\/2009\/04\/27\/tarp-price-tag-could-reach-29-trillion\/","url_meta":{"origin":1764,"position":1},"title":"TARP Price Tag Could Reach $2.9 Trillion?","author":"Jeff","date":"April 27, 2009","format":false,"excerpt":"CNSNews has a rather frightening report on the Special Inspector General for the Troubled Asset Relief Program's report to congress. In short the report says that although Congress limited the Treasury Dept. to spending only $700 billion on TARP\u00a0 the program's partnerships with the Federal Reserve and the Federal Deposit\u2026","rel":"","context":"In "Economy"","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2300,"url":"https:\/\/www.jasetaro.com\/blog\/2009\/06\/03\/were-healthy-banks-forced-forced-to-surrender-ownership-stakes-to-government\/","url_meta":{"origin":1764,"position":2},"title":"Were Healthy Banks Forced Forced to Surrender Ownership Stakes to Government?","author":"Jeff","date":"June 3, 2009","format":false,"excerpt":"Were Healthy Banks Forced Forced to Surrender Ownership Stakes to Government? It's question that needs to be answered... From reading this CNSNews.com piece it would seem at least a few \"healthy\" banks were forced into surrendering ownership stakes to the government: Last October, then-Treasury Secretary Henry Paulson ordered nine banks\u2026","rel":"","context":"In "Economy"","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1049,"url":"https:\/\/www.jasetaro.com\/blog\/2008\/11\/24\/here-we-go-again-feds-agree-to-citibank-bailout\/","url_meta":{"origin":1764,"position":3},"title":"Here We Go Again: Feds Agree to Citibank Bailout","author":"Jeff","date":"November 24, 2008","format":false,"excerpt":"From the Wall Street Journal: The federal government agreed Sunday to take unprecedented steps to stabilize Citigroup by moving to guarantee close to $300 billion in troubled assets weighing on the bank's books. Treasury has agreed to inject an additional $20 billion in capital into Citigroup under terms of the\u2026","rel":"","context":"In "Economy"","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1785,"url":"https:\/\/www.jasetaro.com\/blog\/2009\/03\/24\/obama-administration-seeks-broad-power-to-seize-firms\/","url_meta":{"origin":1764,"position":4},"title":"Obama Administration Seeks Broad Power to Seize Firms","author":"Jeff","date":"March 24, 2009","format":false,"excerpt":"This is rather frightening, the Obama administration is not only seeking broad power to regulate risk on Wall Street, they're also seeking the broad power to seize companies that the Treasury Department thinks may represent a risk to our economy if they fail: Treasury Secretary Timothy F. 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