Major developments out of federal bankruptcy court in Delaware: Washington Mutual’s estate has reached a proposed settlement with JPMorgan Chase and federal regulators that will result in the return of $4 billion in deposits and nearly $2 billion in other cash that will be used to pay WaMu creditors, according to lawyers involved in the matter.
As part of the proposed settlement, which still requires bondholder approval, the bankrupt WaMu estate agreed not to pursue claims against JPMorgan and the Federal Deposit Insurance Corp. over the bank’s collapse.
