Is JP Morgan Chase looking to triple dip in the WaMu deal?
Chase clearly got a steal of a deal when it acquired the assets of Washington Mutual for under $2 billion in 2008. With the deal, they got 2000 branches, $188 billion in sorely needed deposits and some huge potential gains on assets that they initial severely wrote down. Additionally, they negotiated a heck of a deal with Fannie Mae and Freddie Mac so as not to be responsible for any of the loans WaMu sold off to investors blowing up. Their deal was so good, they recently estimated that they stand to make about $25 billion from Washington Mutual’s mortgages above what they original estimated in 2008.
So why do they keep trying to go back and get an even better deal?
For one, they have been trying to grab some of Washington Mutual’s $6 or so billion in tax credits for two years now.
Now, some leaked letters that JP Morgan Chase sent to the FDIC indicate that they are demanding the FDIC pay them more than $6 billion to cover the costs of WaMu related lawsuits.
Seriously? Even with $6 billion in lawsuit related costs, how was this not a smoking good deal for JP Morgan Chase? Aren’t they getting a little greedy?
double triple
Bad bad Chase, Lawsuits | admin September 29, 2010
