US Settles WaMu Savings, Loan Claims For $50M

Law360, Wilmington (December 22, 2011, 6:12 PM EST) -- Washington Mutual Inc. asked a Delaware bankruptcy judge on Wednesday to approve a $50 million settlement with the federal government on claims related to the 1988 savings and loan crisis that the company inherited through a merger.

The government agreed to pay the sum to WMI to resolve a judgment handed down in 2006 by the Court of Federal Claims in favor of American Savings Bank FA, which WMI acquired in 1996, according to the motion. The lawsuit was one of 125 cases — known as...
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