Shareholders of Washington Mutual Inc. won court approval of a new investigation of the biggest U.S. bank failure, further delaying the company’s effort to reorganize in bankruptcy.
U.S. Bankruptcy Judge Mary F. Walrath in Wilmington, Delaware, agreed that an examiner should be appointed to review WaMu’s assets, including the value of a potential lawsuit against JPMorgan Chase & Co. and the Federal Deposit Insurance Corp. for their role in the 2008 collapse of Washington Mutual Bank.
Shareholders claim that lawsuit could be worth $30 billion, a figure disputed by the FDIC, WaMu and its creditors.
“An examiner is necessary both to reduce the cost of litigation and to ensure that all parties have a forum,” Walrath said.
WaMu, based in Seattle, dropped its opposition today to a new investigation, provided that it doesn’t cause a long delay in its proposal to distribute more than $6 billion to creditors.
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