FDIC Seeks Control Of $4B In Disputed WaMu Funds

Law360, New York (November 5, 2009, 5:54 PM EST) -- The Federal Deposit Insurance Corp. has asked a bankruptcy court to modify the automatic stay for Washington Mutual Inc. to allow the agency — the receiver for WaMu's banking unit — to compel JPMorgan Chase & Co. to turn over roughly $4 billion in deposits while the three figure out to whom the money belongs.

The motion — filed Wednesday in the U.S. Bankruptcy Court for the District of Delaware — argues that the sales agreement between the FDIC and JPMorgan that sent the troubled savings...
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