$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.
Derek Aney, 212.326.6075
Alan Magleby, 212.326.6019
SOURCE: Washington Mutual, Inc.