Testimony in WaMu bankruptcy plan hearing ends

AP News
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Posted: Jul 21, 2011 6:41 PM
Testimony in WaMu bankruptcy plan hearing ends

Testimony on bank holding company Washington Mutual Inc.'s reorganization plan in bankruptcy court in Delaware ended Thursday.

Final written arguments and closing oral arguments are expected in August.

Washington Mutual filed for bankruptcy protection in 2008 after the government seized its Seattle-based flagship bank and sold its assets to JPMorgan Chase for $1.9 billion in the largest bank failure in U.S. history.

The company's reorganization plan is based on the settlement of lawsuits pitting Washington Mutual, the Federal Deposit Insurance Corp. and JPMorgan against one another.

Shareholders opposed to the plan have suggested that hedge funds that supported it used inside information from bankruptcy talks to trade improperly in Washington Mutual securities.