WaMu Sues FDIC Over Fire Sale

Washington Mutual's holding company is suing federal regulators for billions of dollars, saying the fire sale of the bank's assets to J.P. Morgan Chase violated its rights.

The lawsuit was filed Friday in U.S. District court in Washington, D.C., against the Federal Deposit Insurance Corp., which seized the Seattle-based savings-and-loan in September. It was the largest bank failure in U.S. history.

Lawyers for the holding company, Washington Mutual Inc., argued that Washington Mutual Bank was worth more than the $1.9 billion JPMorgan paid for it in a deal arranged by the FDIC. The lawsuit argues that if WaMu's assets had been liquidated prudently, they would have been worth more than that.

An FDIC spokesman did not immediately return a call seeking comment Saturday.

[HROLLER30]

What about the other institutions that had billions of dollars withdrawn from their accounts???? http://www.youtube.com/watch?v=_NMu1mFao3w

[SJC1701]

I honestly wish someone on this board was old enough to remember the panic of the Great Depression when people woke up to find bank out of business and loosing all their money.
My bank failed last year during the election (to no real media fanfare, wonder why) and let me tell you it was scary. My deposits were FDIC insured and I got my funds.

It seems so many are not making the connection to bank failure and loosing all your money deposited. Yes the looser management who were asleep at the wheel are not being punish but this is why we need the regulation born from the Great Depression back on the books along with sound accounting practices.

And to the person who thinks Obama is a communist, can you explain further?...I am wondering
1. if you know what the term means
2. Specifically what he has done that was not started last year with Bush - you know that great defender of free market economics?

Please explain.

[CnUHerMeNow]

Oh yes, I can't gush enough the sympathy I feel for WaMu. Drop dead you freaks. No one cares about you or your woes. You helped get us into this mess, you irresponsible fools. I hope you have to pay back the money you use to defend yourself too. They sure have a lot of nerve don't they? Amazing.

[sportcarrera]

It is you who have the nerve. Intelligence appears to be absent in your missive.

[jsf14]

The one agency we careful people have to protect our savings is the FDIC. WAMU, having rechklessly, imprudently, carelessly, greedily, and thoughtlessly thrown its depositors' money at people who could not repay it, wants to drain that one agency. That's just evil. The FIDC already has to charge careful banks more for their insurance.

[sportcarrera]

Really? Citi wasn't reckless? B of A, Wachovia? Jamie Dimon didn't want them. Are you drinking?

[kphx]

Go to hell WaMU a**holes. Take your friends AIG with you as well.

[sportcarrera]

Go back to South Dakota you ignorant mule.

[msay3]

This kind of thing only happens in communist countries just the direction Obama is taking us. Posted by pizzanick at 12:30 AM : Mar 22, 2009
~~~~~~~~~~~~~~~~~~~~~
Talk about ignorant comments.......

[sportcarrera]

Well said.

[w3research]

JPM/WAMUQ: Request an OTS, FDIC and JP Morgan Investigation by the State of Washington, FBI and SEC ...

I would like to request an Investigation by the State of Washington, FBI and SEC about the Washington Mutual Bank Heist, opps Sale, and how it also has virtually destroyed Private Capital from wanting to risk investing in the Financial Sector. I would like JP Morgan's Mr. Jamie Dimon to answer the following. What about the $300 Billion in Assets and $250 Billion in Deposits of WaMu that were stolen, opps Sold, for the laughable sum of $1.9 Billion by a corrupt and colluding OTS and FDIC to a conniving JP Morgan? What about the Banking Industry not being able to Capitalize itself because Bondholders, Noteholders, Preferred and Common Shareholders now see how they can be wiped-out by an illegal seizure? What about TPG-Texas Pacific Group and the Chinese, who are now balking at buying our Treasury Debt, and who are very upset over this WaMu Bank Heist by JP Morgan's Mr. Jamie Dimon and his Government Helpers? For all these reasons and many more, I ask that you and your readers investigate the following ...

Washington Mutual - WaMu Investors Demand Hearing, Investigation & Reversal of Washington Mutual Seizure ...

WAMUQ: Shareholder Information ...

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

http://www.wamurape.org

http://www.wamustory.com

http://www.wamuqd.com

[sportcarrera]

You are right. Why won't people wake up? JPM was in bed with the FDIC and Treasury. This is easier to solve than Watergate. This IS the WATERGATE SCANDAL OF WALL STREET. WHERE IS THE REPORTAGE? Oh right, CNBC is in bed with Jamie Dimon, too. Heck, they'll never get another interview with him if they blow the whistle.

[spaceatoms]

Although I totally agree that the company shouldn't have been bailed out by government intervention, Bush could have said no to bailouts and this type of frivolous business activity and set the stage for a meltdown. The government is only protecting the phantom oligarchy created by the pseudo investment world of the 80's and 90's. Google's shares rose to over 700.00 and cleary doesn't carry a value of that magnitude based on their technology. People like Buffet made all of their money via inflation and although I like him and agree he is a knowledgeable person, I think it is time to have interest rates rise and a major slowdown in the economy, we as a society have sustained throughout periods like this in the past, but some of the top thinkers said no to this, they are only delaying the inevitable and now your see the embarrassing meltdown of several companies that really couldn't stand on their own two feet and survived purely on derivatives, write downs. In my neighborhood, so many shopping centers went up and with the most idiotic planning that 1/2 are empty. The banks simply gained to much control and destroyed the entrepreneurship of the country with their inside deals and iconic attitude. Its not justifiable to have suits in a losing company walk away with millions of dollars, it just tanks the motivational factors for the yea "Joe the Plumbers".

[aziridine]

This is why banks like WaMu should watch their capital ratios. If WaMu had been responsible they would have been the ones picking up cheap assets. As WaMu well knows, when you puke your position into a falling market the bid you hit is rarely anything like "fair value"...but it IS the market on the day you puked. So live with it.

FDIC could never have taken WaMu out if their management had been competent.

[sportcarrera]

Oh, really? How about Citi (allowed to survive), B of A (allowed to survive), Wachovia (allowed to survive), etc.

Gee, I hope you aren't procreating or this country is in trouble.

[hetup-2009]

HA HA HA HA HA

[sportcarrera]

Keep laughing...