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|WaMu Prevails in Anchor Savings Goodwill Litigation|
$382 Million Award to Benefit WaMu and Holders of DIMEZ Litigation
SEATTLE--(BUSINESS WIRE)--March 17, 2008--Washington Mutual, Inc. (WaMu) (NYSE:WM) today announced that on March 14, 2008, the United States Court of Federal Claims published its written decision in the case of Anchor Savings Bank, FSB v. The United States of America, awarding Washington Mutual Bank $382 million for damages, and an additional amount for taxes that will be determined by the court.
The plaintiff alleged the government breached its agreement to allow regulatory goodwill to be considered in Anchor's regulatory capital calculation, thereby forcing the sale of assets in order to meet regulatory capital requirements. The government is expected to appeal the decision, a lengthy process that could delay, reduce or negate the award.
WaMu's rights in this litigation against the government arose from WaMu's acquisition of Dime Bancorp in January 2002. Dime had previously acquired Anchor Savings. Prior to the WaMu acquisition of Dime, Dime had created litigation tracking warrants ("LTWs") and had distributed them to its shareholders. The LTWs originally permitted the holders to receive common stock of Dime Bancorp at a price based on the adjusted amount actually recovered in the Anchor Savings case. Upon WaMu's acquisition of Dime Bancorp, the LTWs became exercisable for Washington Mutual common stock. Additional information on the litigation and the LTWs related to the litigation is included in the WaMu Current Report on Form 8-K dated March 12, 2003 filed with the Securities and Exchange Commission.
The LTWs trade on the NASDAQ Global Market under the symbol "DIMEZ." No shares may be acquired under the LTWs until the litigation, including all appeals, is finally concluded and the proceeds of any judgment against the government have been collected. WaMu expects to provide additional information about the effects of the judgment on the LTWs in a Form 8-K to be filed later this week.
About Washington Mutual, Inc.
Washington Mutual, Inc., through its subsidiaries, is one of the nation's leading consumer and small business banks. At Dec. 31, 2007, Washington Mutual, Inc. and its subsidiaries had assets of $327.91 billion. The company has a history dating back to 1889 and its subsidiary banks currently operate approximately 2,500 consumer and small business banking stores throughout the nation. The company's press releases are available at http://newsroom.wamu.com.
CONTACT: WaMu Media Contact Derek Aney, 212.326.6075 email@example.com or Investor Contact Alan Magleby, 212.326.6019 firstname.lastname@example.org SOURCE: Washington Mutual, Inc.