The equity committee wants information that could lead to potential claims against JPMorgan if they can show that the investment bank had a role in the bank’s failure, the largest in US history.
Washington Mutual Bank was seized in September 2008 during a bank run at the height of the financial panic. The Federal Deposit Insurance Corp sold the bank immediately after it was seized to JPMorgan for $1.9bn.
The shareholders are seeking to pick up where Washington Mutual left off. The holding company was locked in a battle for documents and depositions from JPMorgan when it reached a settlement now at the heart of the company’s proposed reorganisation.
The proposed plan leaves nothing for shareholders and distributes around $7bn to creditors. It also provides a range of liability releases.