The WaMu bankruptcy just got a little more interesting.
Washington Mutual, the bankruptcy holding company, is asking a court to compel the FDIC, JPMorgan, Goldman Sachs, and several ratings agencies to turn over emails and other documents relating to JPMorgan’s acquisition of the bank.
Reuters: The company wants to investigate discussions between JPMorgan Chase, regulators, competitors and rating agencies it said led to the seizure of Washington Mutual, or WMI, according to a filing in bankruptcy court on Monday.
It said the alleged misconduct includes JPMorgan “disclosing confidential information, in violation of the confidentiality agreement, to government regulators, ratings agencies, media and investors in an effort to harm WMI by driving down WMI’s credit rating and stock price.”
Washington Mutual said it needs to determine if it has valuable claims against regulators and others that could be pursued on behalf of its creditors.
The filing cited to an internal JPMorgan email it said shows that the FDIC contacted JPMorgan executives a week before the FDIC took over Washington Mutual. It also accuses JPMorgan of engaging in “sham negotiations” with Washington Mutual to learn confidential information about the bank and then leaked the information to FDIC and others in order to eventually buy WaMu’s assets at what it called a “fire sale” price.
The filing also said Jamie Dimon discouraged a rival bidder by saying Washington Mutual’s potential losses exceeded estimates.
JPMorgan acquired $1.9 billion Washington Mutual in September 2008.
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