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Bankruptcy deal near for WaMu

Thu., May 20, 2010, midnight

Wilmington, Del. – Washington Mutual Inc. told a bankruptcy judge Wednesday that it is close to completing an agreement with the Federal Deposit Insurance Corp. that could pave the way for the bank holding company to emerge from Chapter 11 bankruptcy.

Attorneys said further changes to Washington Mutual’s proposed reorganization plan and the disclosure statement that accompanies and explains it will be filed Friday after the FDIC board signs off on the agreement.

The case has been held up for months by wrangling among four groups, each of which is entitled to a share of WaMu’s assets and guarantees: WaMu, its bondholders, JPMorgan Chase & Co. and the FDIC.

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