WASHINGTON MUTUAL BANKRUPTCY CLASS ACTION LAWSUIT Research Paper - 1

WASHINGTON MUTUAL BANKRUPTCY segmentation ACTION LAWSUIT - Research Paper ExampleThe total collapse of WaMu would have been disastrous for the Government.Besides, the FDIC is non in the banking business and a last minute deal was brokered between the Government and JP Morgan Chase. The same daytime as the takeover, Chase purchased the bank from the FDIC for a little little than two billion and agreed to model all secured debts, minus equity shareholders. With that Chase became the one of the largest banking firms in the country (Dash).WaMus parent ships company, cap Mutual, Inc., was left with just twenty-five billion dollars in assets minus liabilities and filed a voluntary petition for Chapter 11 nonstarter protection the very next day, September 26 in its home state of Delaware. The Bankruptcy itself has been an ongoing issue for three years straightaway and is still in litigation. With the FDIC and Chase agreeing with WaMu in principal, the companys proposal was that sev en billion dollars was to be distributed to its creditors. However,the plan was rejected on September 14, 2011 by US Bankruptcy Judge Mary Walrath in Wilmington. Siding with the plaintiffs, she ordered the two sides into mediation. As much(prenominal) the companys stock plummeted more than seventy per cent in the days following the samples ruling.Why then did a bank formerly known as the Wal Mart of banking emit so completely? It was for the same reasons a lot of financial firms fell during the summer and fall of 2008. During more or less of the first decade of the twenty-first century, credit was cheap and easy to come by. The so-called sub-prime consumers, those with far less than stellar credit, were able to obtain credit cards and home mortgages when they would have probably been turned charge any other time. WaMu was almost leading the charge, with its Providian credit card division. It also controlled a likewise now