In re Wash. Mut., Inc.
United States Bankruptcy Court for the District of Delaware
June 24, 2009, Decided
Chapter 11, Case No. 08-12229 (MFW), Jointly Administered
Before the Court is the Debtors' Motion for an Order Pursuant to Bankruptcy Rule 2004 and Local Bankruptcy Rule 2004-1 Directing the Examination of JPMorgan Chase Bank, National Association ("JPM"). For the reasons set forth below, the Court will grant the Debtors' Motion.
I. [**2] FACTUAL BACKGROUND
Prior to the filing of a chapter 11 petition, Washington Mutual, Inc. ("WMI") was a savings and loan holding company, which owned Washington Mutual Bank ("WMB"). WMB owned the subsidiary bank Washington Mutual Bank fsb ("WMBfsb"). Before failing, WMB was the nation's largest savings and loan association, with over 2,200 branches and $ 188.3 billion in deposits.
Beginning in mid-2007, the slowdown in the nation's economy and, in particular, the deterioration in the residential housing market resulted in decreased revenue and earnings at WMI and trouble in the asset portfolio of WMB. By September 2008, in the midst of a global credit crisis of unprecedented proportions (which included the bankruptcy of Lehman Brothers Holdings Inc. ), WMI and WMB faced a wave of ratings downgrades by the major credit rating agencies. Deteriorating confidence in WMB fueled a bank run beginning September 15, with $ 16.7 billion in deposits withdrawn over a ten-day period.
On September 25, 2008, WMB's primary regulator, the Office of Thrift Supervision (the "OTS"), closed [**3] WMB and appointed the Federal Deposit Insurance Corporation (the "FDIC") as receiver. WMB's takeover by the FDIC was the largest bank failure in the nation's history. Immediately after its appointment as receiver, the FDIC sold substantially all the assets of WMB to JPM. On September 26, the Debtors filed chapter 11 petitions.
On December 30, 2008, the Debtors asserted various claims against the WMB receivership by filing proofs of claim with the FDIC in its capacity as receiver of WMB. Specifically, the Debtors' claims are claims for damages related to intercompany loans and receivables, taxes paid on behalf of WMB, tax refunds, capital contributions, certain trust preferred securities, preferential transfers, vendor contract claims, subrogation claims, improper asset sales, cash in demand deposit accounts, administrative claims, employment-related costs and insurance claims, and indemnification claims. The FDIC denied all claims filed by the Debtors in a letter dated January 23, 2009.Read The Full CaseNot a Lexis Advance subscriber? Try it out for free.
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408 B.R. 45 *; 2009 Bankr. LEXIS 1988 **; 51 Bankr. Ct. Dec. 229
In re: WASHINGTON MUTUAL, INC., et al., Debtors.
Subsequent History: Related proceeding at Wash. Mut., Inc. v. FDIC, 659 F. Supp. 2d 152, 2009 U.S. Dist. LEXIS 92822 (D.D.C., Oct. 5, 2009)
Related proceeding at Boilermakers Nat'l Annuity Trust Fund v. Wamu Mortg. Pass, 2009 U.S. Dist. LEXIS 123089 (W.D. Wash., Dec. 18, 2009)
Related proceeding at Am. Nat'l Ins. Co. v. JPMorgan Chase & Co., 705 F. Supp. 2d 17, 2010 U.S. Dist. LEXIS 36487 (D.D.C., Apr. 13, 2010)
Transferred by WMI Liquidating Trust v. FDIC, 2014 U.S. Dist. LEXIS 91101 (W.D. Wash., July 3, 2014)
Related proceeding at, Magistrate's recommendation at Kareem v. WMI Liquidating Trust (In re Wash. Mut., Inc.), 2016 U.S. Dist. LEXIS 13199 (D. Del., Feb. 3, 2016)
Magistrate's recommendation at Griffin v. WMI Liquidating Trust (In re Wash. Mut., Inc.), 2019 U.S. Dist. LEXIS 75445 (D. Del., May 3, 2019)
adversary proceedings, pending proceedings, examinations, deposit, parties, intervene, receiver, turnover, billion, discovery of evidence, discovery, entities
Bankruptcy Law, Bankruptcy, Case Administration, Examinations of Debtors, Procedural Matters, Adversary Proceedings, Discovery