Chase trying to weasel out of WaMu lawsuits
The latest lawsuits filed against Chase related to WaMu can be described like this:
WaMu is being sued by large investors who say the banking giant sold securities full of mortgages but misrepresented how risky they were.
Apparently Chase wants all the good from WaMu without any of the bad, because it is trying to throw these lawsuits back to the FDIC lock, stock, and barrel by claiming it only agreed to accept liabilities specifically named at the time it purchased WaMu and securitzation lawsuits weren’t mentioned.
When I think of how much Chase ripped off WaMu shareholders and taxpayers with the WaMu deal, I feel dirty. I’m not sure if I am more mad at the FDIC for taking seizing a bank that probably would have survived and writing one of the dumbest most one-sided deals with Chase in history, or Chase for continuing to aggressively pursue more profit from the deal by denying responsibility for liabilities and going after WaMu tax credits for which it is not entitled.
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By M, November 27, 2010 @ 10:24 am
Just as a side note, Chase increased profits by the amount that paid for WaMu in ONE QUARTER. That’s not total profits – that’s additional profits. They made all the money they spent back in three months. Meanwhile, tens of thousands of lives were ruined.