FDIC, PBGC Balk At WaMu's Disclosure Statement

Law360, New York (May 14, 2010, 2:23 PM EDT) -- The Federal Deposit Insurance Corp. and Pension Benefit Guaranty Corp. are objecting to the proposed disclosure statement for bankrupt Washington Mutual Inc., arguing it is premised on an unlikely global settlement of substantial pending litigation.

A proposed settlement that would resolve claims against WaMu, its new owner JPMorgan Chase Bank NA and the FDIC is only a draft and not all parties have yet agreed to it, according to objections filed Thursday in the U.S. Bankruptcy Court for the District of Delaware.

As receiver for WaMu,...
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