"WaMu Asks Judge for Probe of JPMorgan Merger Conduct (Update1)
By Vivek Shankar
May 1 (Bloomberg) -- Washington Mutual Inc., the bankrupt former parent of the biggest U.S. bank to fail, asked a Delaware judge for an investigation of JPMorgan Chase & Co. related to its conduct in acquiring the failed bank.
The motion expands on a Texas case in which stakeholders in Washington Mutual seek billions of dollars from New York-based JPMorgan, alleging misconduct leading up to the $1.9 billion acquisition of Washington Mutual’s thrift unit.
Washington Mutual, based in Seattle, alleged JPMorgan held “sham negotiations” about a potential merger and made public some confidential data that drove down the value of its thrift unit. Joseph Evangelisti, a spokesman for JPMorgan, declined to comment on Washington Mutual’s investigation request filed today in U.S. Bankruptcy Court in Wilmington, Delaware.
Regulators seized Washington Mutual’s banking units and sold them to JPMorgan on Sept. 25. Washington Mutual filed for bankruptcy the next day.
The case is In re. Washington Mutual Inc., 08-12229, U.S. Bankruptcy Court, District of Delaware (Wilmington).