WaMu examiner finds no smoking gun
Joshua Hochberg, the examiner tasked into reviewing the failure of Washington Mutual and its sale to JPMorgan Chase for signs of wrong doing released his report today and found that the current settlement before the bankruptcy court is reasonable.
While not surprising given the potential for instability of the nations second largest bank if JPMorgan Chase was found guilty of manipulating WaMu to get a better deal before WaMu failed, the finding is disappointing, especially considering the following statement made by in the report:
It also found that JPMorgan was able to make changes to the FDIC’s purchase and assumption agreement even though other bidders were told it was nonnegotiable.
“While the foregoing facts suggest that the sale process could have been better, they do not, in the examiner’s view, suggest an unfair process under the circumstances or that a different process would have changed the outcome,” the report said.
That deck definitely seemed stacked against WaMu and in favor of JPMorgan Chase.
WaMu failure | admin November 1, 2010
