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Washington Mutual Bank Investors

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Washington Mutual Bank Investors

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Shared by: Shelby Summers
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9/27/2008
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Washington Mutual Bank Investors On September 25, 2008, Washington Mutual Bank was closed by the Office of Thrift Supervision and the Federal Deposit Insurance Corporation was named receiver. Subsequent to the closure, JPMorgan Chase acquired the assets and most of the liabilities, including covered bonds and other secured debt, of Washington Mutual Bank from the FDIC as Receiver for Washington Mutual Bank. Claims by equity, subordinated and senior unsecured debt holders were not acquired. Washington Mutual, Inc., the holding company for Washington Mutual Bank, and the interests of equity, debt holders or other creditors of Washington Mutual, Inc., are not included in the closure or receivership of the Bank. The holders of equity, subordinated and senior unsecured debt in Washington Mutual Bank are creditors of the receivership for Washington Mutual Bank and should file claims in the receivership for recovery of any amounts that may be due to them. Please note that under federal law, 12 U.S.C. § 1821(d)(11), claims by equity and subordinated debt holders are subordinated to claims by general creditors of the institution. At this time, the FDIC as Receiver for Washington Mutual Bank does not anticipate that equity and subordinated debt holders of the bank will receive any recovery on their claims.

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