Will Washington Mutual Soon Exit Bankruptcy?
Will Washington Mutual Soon Exit Bankruptcy? This has been a question many American consumers have been asking themselves. With many of the financial giants reporting huge profits in the past couple of quarters, most are wondering if those running WaMu are incompetent or just playing a very good game of hide and seek.
What is known is that WaMu filed for bankruptcy protection in September 26, 2008 and it was sold to JP Morgan for $1.9 billion the next day. At that time this financial institution had $188 billion in assets and most thought that JP Morgan’s deal was unfair paying only 10 cents on the dollar.
This past month WaMu has proposed a new strategy to pay off some of the smaller creditors $700 million that are owed them. This will move them one step closer to being solvent.
The reason for the long stall in emerging from bankruptcy is speculation of insider trading involving hedge funds since the 2008 filing.
There are many that believe those listed by the FDIC as possible involvement in insider trading should not be released for liability in the matter, but it looks like it will happen.
For the America consumer the Washington Mutual Online Banking system has never missed a beat and is still widely used by their customers.
What is amazing is that last year the CEO of JP Morgan received the largest bonus in the industry at $17 million. Since the acquisition of WaMu, JP Morgan has reported profits of $11.73 billion in 2009 and $17.37 billion for 2010. Not bad for a company that has one of its main sectors in bankruptcy.
It is not a question of will Washington Mutual soon exit bankruptcy, but how many of its creditors will finally be paid.