3/13/2010-A Washington Mutual attorney said Friday that the company has tentatively resolved disputes with JPMorgan Chase (NYSE:JPM) and the Federal Deposit Insurance Corp. over some $4 billion at issue in the bank holding company's Chapter 11 bankruptcy.
After the FDIC seized Washington Mutual's flagship bank in 2008 and sold its assets to JPMorgan for $1.9 billion, the two banking companies and the government agency have been trading lawsuits over roughly $4 billion in disputed deposit accounts.
JPMorgan has agreed to turn over the money to Washington Mutual after deducting $172 million as its share of tax refunds received.
"WMI is confident that this agreement will provide substantial recoveries for the company's creditors, and that it is consistent with WMI's efforts over the last 18 months to maximize the value of its bankruptcy estate," the company said in a prepared statement. "WMI is also pleased that this agreement vindicates the positions it took in court, as the company believes that its court positions created the pressure necessary to move this agreement forward."