Washington Mutual looks to investigate JPMorgan misconduct allegations

By Caroline Salls

Pittsburgh, May 1 - Washington Mutual, Inc. requested court approval to investigate potential claims against JPMorgan Chase Bank NA in connection with issues raised in a stakeholder lawsuit filed against JPMorgan, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

According to the motion, stakeholders of Washington Mutual Bank and WMI Investment Corp. filed a lawsuit in Texas federal court seeking billions of dollars in connection with JPMorgan's alleged misconduct leading up to its purchase of Washington Mutual Bank's assets for far below market value.

Specifically, the company said the lawsuit "lays out a premeditated plan by JPMC designed to damage two of WMI's most significant assets" so JPMorgan could buy the bank's assets "on the cheap, to the severe detriment of its largest stakeholder, WMI."

If these allegations prove true, Washington Mutual said it could also have "myriad meritorious and highly valuable claims" against JPMorgan.

A hearing is scheduled for May 20.

Washington Mutual, a Seattle-based savings and loan holding company, filed for Chapter 11 bankruptcy on Sept. 26, 2008. Its Chapter 11 case number is 08-12229.

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