NEW YORK (AP) — A Delaware bankruptcy judge has rejected Washington Mutual Inc.’s reorganization plan. The judge says the protection from future liabilities that it gives to the bank holding company’s former executives is too broad.
Judge Mary Walrath said the reorganization plan is reasonable in the way it calls for dividing up the company’s disputed assets. Doling out those assets is intended to end lawsuits that WaMu, JPMorgan Chase and the Federal Deposit Insurance Corp. filed against one another after the collapse of Seattle-based Washington Mutual Bank in 2008.
But the judge found that WaMu’s efforts to protect its former directors, officers and other employees from future liabilities are “too broad,” and “inappropriate.”
