Legal News

A Recent Ruling Gives the FDIC the Responsibility to Pay WaMu Claims
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)

J.P. Morgan Chase & Co

Summary: An important decision has finally been made regarding whether the FDIC or J.P. Morgan Chase should pay the claims leftover from the once Washington Mutual bank.

J.P. Morgan Chase & Co bought Washington Mutual for $1.88 billion seven years ago during the financial crisis but is still dealing with issues and liabilities from the purchase of the banks operations. They are now one step closer to putting the issues aside when U.S. District Court Judge Rosemary M. Collyer ruled Wednesday that the Federal Deposit Insurance Corp was responsible for any remaining legal claims before WaMu was bought by J.P. Morgan in 2008.


Judge Rosemary M. Collyer

The FDIC and J.P. Morgan have been arguing over who should be required to pay the billions of dollars in mortgage and other claims. J.P. Morgan believes that the FDIC receivership that liquidated WaMu is responsible whereas the FDIC claims that J.P. Morgan has sole ownership since they bought the business. The FDIC states that J.P. Morgan took on the liabilities that were attached to the mortgage loan-securitization trusts and not just the operations from their purchase of WaMu.

J.P. Morgan has already paid a $13 billion penalty to the Justice Department for second mortgages issues. The bank has paid out over $26 billion in the last few years for various crisis-related legal suits and fines so the ruling comes as a relief that they most likely won’t be forced to pay out more.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!

The largest claim comes from Deutsche Bank National Trust Co for $10 billion on behalf of 100 trusts holding poorly performing bonds that were issued by WaMu. The ruling would place this claim on the FDIC receivership. Bondholders did not like this decision because they are owed $13 billion from WaMu, so if the FDIC pays the claim, there won’t be much money left over for them.

The FDIC and others that are part of the case can still appeal. The full decision will be released later this month.




Interesting Legal Sites You May Like




Search Now

General Municipal Law Attorney with land use experience


Oakland office of our client seeks general municipal law attorney with experience advising public ag...

Apply Now

Senior Land Use Attorney with experience

USA-CA-San Francisco

San Francisco office of our client seeks senior land use attorney with 7+ years of experience. The c...

Apply Now

Immigration Attorney with portable business


McLean office is seeking an immigration attorney with $500,000+ in portable business.

Apply Now

Commercial Litigation Attorney with 4+ years of experience


Chicago office of our client seeks commercial litigation attorney with 4+ years of experience. The c...

Apply Now


Litigation Associate (Junior to Mid-Level) - Medical Malpractice - Garden City, NY

USA-NY-Garden City

Defense firm seeking junior to mid-level associate for Garden City office to fill Medical Malpractic...

Apply now



Lang, Richert & Patch a Fresno area AV-rated law firm located in the highly desirable Fig Garden Fin...

Apply now



INSURANCE DEFENSE / TRANSPORTATION LITIGATION Law firm located in North Houston seeking an associ...

Apply now

Hotline & Training Managing Attorney (IMMIGRATION)

USA-NY-New York City

Summary: The Hotline & Training Services Managing Attorney will guide, develop, and supervise the Ho...

Apply now

Most Popular


To Top