August 5, 2011 in Business, Nation/World

Feds: Probe into WaMu ends with no charges

Associated Press

NEW YORK — The Justice Department says it has closed its investigation into the collapse of Washington Mutual without any criminal charges filed.

In September 2008, the federal government seized Washington Mutual’s flagship bank, based in Seattle, and sold its assets to JPMorgan Chase & Co. for $1.9 billion. It was the biggest bank failure in U.S. history.

The Justice Department, the FBI and the Securities and Exchange Commission opened investigations into Washington Mutual’s collapse in October 2008.

The Justice Department says that after an “extensive investigation that included hundreds of interviews and the review of millions of documents,” there are not grounds for criminal charges.

In July, WaMu and other defendants agreed to pay $208.5 million to investors to settle a class-action lawsuit stemming from the lender’s collapse.

© Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Get stories like this in a free daily email

Please keep it civil. Don't post comments that are obscene, defamatory, threatening, off-topic, an infringement of copyright or an invasion of privacy. Read our forum standards and community guidelines.

You must be logged in to post comments. Please log in here or click the comment box below for options.

comments powered by Disqus