October 31, 2008 in City

Judge OKs limits on WaMu stock sales

Associated press

WILMINGTON, Del. – A Delaware bankruptcy judge has agreed to restrictions on large-scale deals in Washington Mutual stock if the sales affect the company’s tax position.

Judge Mary Walrath on Wednesday granted Washington Mutual’s request that the company, its creditors and the court be notified in advance of the purchase or sale of large amounts of Washington Mutual stock.

Washington Mutual wants the right to object to the transactions if they affect its operating tax losses, which can offset income and reduce the company’s tax liability.

WaMu, parent company of Washington Mutual Bank, filed for Chapter 11 reorganization along with its Washington Mutual Investment Corp. affiliate in late September.

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