WaMu bankruptcy judge agrees to fast-track hearing on shareholders request for examiner

WaMu judge schedules hearing on examiner

DOVER, Del. — A Delaware bankruptcy judge has granted a request by Washington Mutual Inc. shareholders to schedule a quick hearing on whether to appoint an independent examiner in the company’s Chapter 11 filing, the largest bank failure in U.S. history.

The judge earlier refused to appoint an examiner to investigate the proposed settlement of lawsuits among WaMu, JPMorgan Chase and the Federal Deposit Insurance Corp. that is the basis for Washington Mutual’s reorganization plan.

But after shareholders complained last week that these parties are stonewalling efforts to obtain information, the judge suggested she would entertain a new motion for an examiner.

The judge agreed Wednesday to consider the matter at a previously scheduled June 17 hearing.