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.
It also accused the FDIC of agreeing to an unreasonably low price in arranging the a US$1.9 billion sale of the banking business to JPMorgan on September 25, when regulators seized Washington Mutual and appointed the FDIC as receiver.
JPMorgan did not buy the parent holding company, which filed for Chapter 11 bankruptcy protection the following day.
In its complaint, Washington Mutual seeks to recover as much as US$6.5 billion of capital contributions it said it made to its banking unit from December 2007 through the seizure. (via Washington Mutual sues the FDIC for over US$13 billion - The China Post).
Fraud .. when people are in pain ...
This is very similar to Joseph Kennedy’s shorting the market before The Great Depression. It has always been a wonder to me how could Joseph Kennedy, a bootlegger and a friend of the mafiosi could become SEC Chairman? And after that did happen, would a Great Depression not follow?
First, the world was hit by Big Oil and as though that was not enough, came the Big Banks!
Hank Paulson Should be investigated
It was always 2ndlook’s suspicion that Hank Paulson’s behaviour in the Lehman collapse is similar to Bootlegger Kennedy’s behaviour. And this now coming out all in the open!! JPMorgan was blamed for Lehman collapse. This was reported widely including in The Times of India.
US bank JPMorgan Chase stands accused of precipitating the collapse of American investment bank Lehman Brothers by freezing Lehman assets days before it filed for bankruptcy protection, the Sunday Times reported.
After 60 Days
While deciding on Bear Stearns, Lehman Brothers, WaMu, was Paulson looking at his future - 60 days later, when he would need a new job!
Was the collapse of Lehman a deal for a job with Goldman - or was it JP Chase?
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