I’ve seen few details yet but a story is cirtulating about Washington Mutual’s holding company filing an amended bankruptcy plan:
DOVER, Del. — Bank holding company Washington Mutual Inc. has reached an agreement with the Federal Deposit Insurance Corporation that puts WaMu closer to exiting Chapter 11 bankruptcy.
The revised reorganization plan filed Sunday in Delaware bankruptcy court is based on a settlement involving the bank holding company, the Federal Deposit Insurance Corporation and JPMorgan Chase Bank, which filed lawsuits against one another after the FDIC seized WaMu’s flagship bank in 2008 and sold its assets to JPMorgan for $1.9 billion.
The FDIC objected to the initial settlement plan, resulting in negotiations that led to the amended plan.
In addition distributing some $7 billion in funds among various parties as part of the settlement, the plan allows certain creditors to buy new shares in the reorganized company. Holders of existing shares would receive nothing.
A hearing in the case is scheduled for Tuesday.
This formerly WaMu now Chase mortgage holder is reporting that nearly two years after WaMu was acquired by Chase, their mortgage payments are still routinely being misapplied, delayed, or otherwise unaccounted for by Chase.
Anyone else still having problems like this?
Chase is among as many as 10 large banks being investigated for misleading investors the sale of collateralize debt obligations (CDO’s) where.
If you don’t understand the previous sentence, WHERE HAVE YOU BEEN THE LAST TWO YEARS?
CDO’s are group of mortgages that were chopped up into different classes so that they could garner higher ratings from Moody’s, Fitch, and Standard and Poors to be sold to investors as high-grade investments.
According to this post, while a woman was undergoing cancer treatment, her son, who had power of attorney on her Chase account, owed Chase $6,000 on a car loan in which the card had been repossessed. So Chase went and took the money out of the mothers account, even though the son only had power of attorney.
I think Chase is taking this debt collection thing a bit too far.
This is interesting. A judge dismissed a foreclosure action with prejudice (meaning they can never try to foreclose again) after ruling that Chase, as an intermediary and not the owner of the mortgage debt, did not have the authority to foreclose.
It is not clear from the blog post all the circumstances that led up to this decision, so it isn’t clear if it might apply to a broader base of Chase mortgage holders where the loan has been sold off.
This chase-sucks.com forum post is interesting. What started out as Chase deducting charges for an old debt they claim to have found, ended with Chase posting a $9,999,999.00 (yea, almost $10 million) charge so that the customers account would be brought SO negative they could never access any of their funds. Then the filed a restraining order to prevent the customer from entering the local branch. Really bizarre stuff.
As reported here, we can only wonder why in the world would a Chase ATM show a positive balance when an account is overdrawn, unless you consider that Chase would happily give you money at an ATM so they can charge you an overdraft fee.
Customer has first and second with Chase, negotiates a short sale, Chase agrees to zero out remaining balance and sends the customer a letter. But then:
My property’s escrow closed in November 2009 – and instead of carrying out their promise – Chase sent the remainder of my balance with them to collections ($264,000) – and I was contacted by an aggressive debt collector.
All attempts to rectify the situation seem to fall on deaf ears.
This situation is not surprising. Chase’s left hand often doesn’t know what the right hand is doing.
WaMu failure | admin May 18, 2010 | 
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