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WaMu is in FDIC receivership

Posted on Mar 20, 2009 in Uncategorized

Washington Mutual is gone.  It looks like Chase has taken it over.  But that’s not exactly how it works.  You may be able to get your deposits from Chase.  However, non-depository claims against WaMu may not be available against Chase.

As a matter of fact, it seems that the Federal Deposit Insurance Corporation has become the receiver of Washington Mutual.

We have heard that all claims against Washington Mutual must be made against the Federal Deposit Insurance Corporation as Receiver of WaMu.  The details of this follow at the end of the post.

Lakelaw thinks that the Federal Deposit Insurance Corporation as Receiver has a fiduciary obligation to all creditors of WaMu.  This means that it can’t treat depositors better than people that WaMu ripped of on defective mortgage loans, for example.  What do you think?

Here are the details about the FDIC receivership of Washington Mutual:

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On September 25, 2008, Washington Mutual Bank, Henderson, Nevada (the “Bank”), was closed by the Office of Thrift Supervision, and the Federal Deposit Insurance Corporation (“FDIC”) was appointed receiver (the “Receiver”). The Receiver retained liability for claims based on the acts or omissions of the Bank. Claims related to any such receivership liability must be timely asserted against the Receiver. Receivership Claims Creditors with claims against the Receiver must first comply with the receivership administrative claims process before filing litigation — or continuing existing litigation — against the Receiver. See 12 U.S.C. §1821(d)(3) – (13). The time for filing administrative claims against the Receiver expires on December 30, 2008 (the “Claims Bar Date”). IF YOU DO NOT FILE A CLAIM YOU WILL HAVE NO FURTHER RIGHTS OR REMEDIES WITH RESPECT TO YOUR CLAIM, INCLUDING PURSUING LITIGATION AGAINST THE RECEIVER. For the Receiver to consider whether your claim will be allowed against the Bank’s estate, you must do ALL of the following: · Complete a Proof of Claim Form; · Sign the Proof of Claim Form; · Provide supporting documentation; and · Present the properly completed Proof of Claim Form and the supporting documentation to the Receiver by the Claims Bar Date. The Receiver may, in its sole discretion, consider a late filed claim under certain circumstances. See 12 U.S.C. §1821(5)(C)(ii). If you want your Proof of Claim to be reviewed if filed after the Claims Bar Date, present any reasons you may have for filing late in your documentation. You may request a Proof of Claim Form from the Claims Agent at the address below. Return your completed Proof of Claim Form and the supporting documentation to the same address: FDIC as Receiver of Washington Mutual Bank. 1601 Bryan Street Dallas, TX 75201 Attention: Claims Agent After the Receiver receives your claim, it has up to 180 days to determine (1) whether to permit the late filing of your claim, and, (2) if it is permitted, whether your claim will be allowed against the Bank’s estate. If the Receiver notifies you that your claim has been rejected or disallowed, or if you do not receive any decision before the end of the 180-day period, you have the right to file a lawsuit (or continue any lawsuit commenced before the appointment of the Receiver). Your lawsuit must be filed within 60 days after the date of the notice of the Receiver’s decision OR within 60 days after the end of the 180-day period, whichever is earlier. You must file your lawsuit either in the U.S. District Court in which the Bank’s principal place of business was located (in this case, the Eastern District of Washington), or in the U.S. District Court for the District of Columbia. The proper agent for service of process for litigation against the Receiver is: Donald B. McKinley Regional Counsel Federal Deposit Insurance Corporation 1601 Bryan Street Dallas, TX 75201 IF YOU DO NOT FILE A LAWSUIT BEFORE THE END OF THE 60-DAY PERIOD, THE RECEIVER’S DETERMINATIONS WILL BE FINAL AND YOU WILL HAVE NO FURTHER RIGHTS OR REMEDIES WITH RESPECT TO YOUR CLAIM.

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