WaMu Sues Chase, WaMu Suits Sue FDIC

The photo says it all, and the photo is courtesy of Seattlest Flickr pool member and all-around genius picture-taker ~wesa~

For a few months now, emails from our friend who still works at WaMu have come with the epilogue: "WaMu, now backed by the strength of JPMorgan Chase."

So you can imagine our surprise when we read that WaMu is suing its strength. Leaving aside the fact that this seems like the set-up for a terrible pickup line ("Baby, if people could sue strength, I'd be Union Carbide")--we tried to figure out what the s-bomb is happening.

Unfortunately, we fell asleep one sentence into the article. The word "subsidiaries" always has that effect on us. (We are not the most competent in financial matters, as should be evident from the fact that we write for a website that pays in pork jerky.)

Hopefully some wise commenter can make sense of this legal imbroglio (is there any other kind?), as we truly are curious.

Meanwhile, the P-I reports that former WaMu employees are suing the FDIC class-action style, claiming they were duped out of promised severance pay.

This one we do get--the employees' contracts said they'd get a bonus equal to a year-and-a-half's pay if the bank was sold, but the FDIC claims that WaMu's collapse into receivership doesn't count as a sale. Parties to the suit include Sophie Hager Hume, David Pollino, and Tom Allen, all of whom were WaMu VPs. A year-and-a-half of their salary is going to be some serious dough.

One hopes that the many local non-profits who are suffering from the disappearance of WaMu's philanthropic largess will take note and set a new target for their fund-raising drives: Local law firms.

Contact the author of this article or email tips@seattlest.com with further questions, comments or tips.

By Seth in News on May 1, 2009 11:30 AM

Comments [rss]

Lawrence147

Are you ready for the collapse of the U.S. dollar? If you are you would be buying all the WAHUQ, WAMPQ, WAMKQ, and WAMUQ You could get your hands on. WMI the Investment Company, in its last filling has asked for an expanded Finding of Fact, based on a suit out of Texas asserting collusion, espionage and the destruction of the business. In its latest claim WMI wants to know if there is anything to the Texas claim that JPM had its own people inside of WMB feeding confidential information for inappropriate use in causing deposits to be withdrawn and short selling the stock. The FDIC over steeped its duties and responsibilities when it took into receivership a well-capitalized and liquid bank worth 305 billion dollar and had sold at auction the previous day for $1,880,000,000.00. WMI is the holding company and had approximately 4 Billion on deposit with WMB The bank JPM has laid claim to that calling it a capitol contribution and not on deposit, WMI has proof it was deposited and belonged to the holding company. WMI the holding company owns WAMU tower and JPM just put it up for sale, That is interesting in its self as it leads to the question, How can you sell something you cannot deliver the title on? In the P&A agreement the FDIC sold To JPM The Whole Bank WMB and WMBfsb the credit card division and other assets. This is the tricky part as the FDIC has no authority what so ever with the and other assets part as The only authority the FDIC has is over the bank. JPM indemnified its self in the P&A agreement to 500 million dollars, this leaves the FDIC on the hook for any and all damages over that amount. WMI has filled suit against the FDIC asking the court for justice, if collusion, espionage and other charges are found to have merit, then I would expect a settlement from JPM any day just so they could buy the lawsuits and then get the FDIC off the hook.

If you are thinking that the stock is dead the WAMPQ closed today around $32.99 a share

Having never posted here before I will try and provide some interesting links.

http://www.squidoo.com/wamuq

http://www.youtube.com/watch?v=6-gV8s58ksU

http://investorshub.advfn.com/boards/board.aspx?board_id=11133

A lot of people think some of this is just crazy talk, but if you really do think about it, and look past all the trees you will see JPM is not a savior and certainly not the good bank P Obama has portrayed it as.

HROLLER

WaMu Asks To Examine JPMorgan For Fraud;

http://www.kccllc.net/documents/0812229/0812229090501000000000002.pdf

http://www.wamutruth.com/

http://wamuqd.com/

http://wamuequity.org/history.html

http://www.wamu-shareholders-resources.com/wamued.html

FQOTU

Okay, here's what's up.

You have Washington Mutual (now JP Morgan Chase), their holding company (WMI) and their investment company (No Name - NN). These companies are only allegedly associated, not owned by the same corporation, according to the article.

When the FDIC seized WaMu and sold it to JP Morgan Chase, they ALSO sold the money WMI and NN had belonging to WaMu.

The next day, WMI and NN filed for bankruptcy.

The title's misleading, and please correct me if I'm wrong, but what I'm getting from this article is that WMI and NN are suing for that money, which would have been captured and reported by their bankruptcy attorneys to the courts to protect the cash and companies.

What this means is that WMI and NN filed incorrect court papers, and now are trying to get the dough back to make it correct again.

Naturally, JPMC is like, "F you." The FDIC says that WMI and NN might actually have a $4Kbill claim on the cash.

The article is misleading because WMI is Washington Mutual Inc. -- closely resembling WaMu's given name, which is simply Washington Mutual.

Does that help?

Wesa

Flattery will get you guys everywhere.

Troy Morris

That's great! I want to be in an executive position to make decisions that destroys a company and local economy because my contract says I get 18 months of pay. Sound totally fair.