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WaMu Seeks $10 Billion Reorganization Plan

Washington Mutual (WaMu) has requested a court to approve its $10 billion reorganization plan that is being opposed by its shareholders.

Washington Mutual (WaMu) has requested a court to approve its $10 billion reorganization plan that is being opposed by its shareholders, Reuters reports. The plan will distribute over $7 billion to creditors, though it will leave nothing for stock investors. WaMu has spent about $150 million on lawyers, accountants and advisers since filing for bankruptcy in September 2008, when Federal Deposit Insurance Corporation (FDIC) sold the company to JP Morgan Chase for $1.88 billion. An agreement between WaMu, JP Morgan and the FDIC will divide the disputed cash and tax refunds and settle legal issues and lawsuits that shareholders contend could be worth billions. Click here for the story from Reuters. Click here for additional coverage from The Associated Press.

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