Today, Washington Mutual, Inc. (WMI) announced a Global Settlement Agreement with J.P. Morgan Chase and the FDIC. Under the agreement, J.P. Morgan Chase will give WMI over $4 billion in WMI deposits in its former failed bank subsidiaries in exchange for over $6 billion in other assets. Also, the three parties will split two potential tax refunds worth a total of $5.6 billion. In September 2008, J.P. Morgan Chase paid the FDIC $1.9 billion in cash to acquire substantially all of the assets of WMI's failed banking subsidiaries and assume all of their deposits.
WMI stated that it "is confident that this agreement will provide substantial recoveries for the company's creditors and that it is consistent with WMI's efforts over the last 18 months to maximize the value of its bankruptcy estate." Last week, the judge in WMI's bankruptcy case postponed a hearing to give the parties time to reach a resolution.