WaMu Seeks $7.4M Transfer To Prop Up Subsidiary

Law360, New York (November 13, 2008, 12:00 AM EST) -- Washington Mutual Inc. is asking a federal bankruptcy judge to allow the bankrupt holding company to immediately transfer $7.4 million to subsidiary WM Mortgage Reinsurance Co. Inc. to shore up a capital deficiency in one of its trusts and preserve close to $400 million in value for creditors.

In a motion filed Monday, WaMu told the U.S. Bankruptcy Court for the District of Delaware that the funds must be paid by Friday to cover expected claims on delinquent loans insured by Genworth Mortgage Insurance Corp. The...
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