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Status of Washington Mutual Bank Receivership

On September 25, 2008, the Federal Deposit Insurance Corporation was appointed the Receiver for Washington Mutual Bank ("WAMU"). The Receiver transferred substantially all WAMU's assets and liabilities to JPMorgan Chase ("JPMC") pursuant to a Purchase and Assumption Agreement dated September 25, 2008 . The next day, Washington Mutual Inc. ("WMI"), the holding company for WAMU, filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware (assigned to Judge Mary F. Walrath). Thereafter, WMI, JPMC, the FDIC, in its Corporate capacity, and the Receiver became involved in several lawsuits contesting the ownership of over $20 billion in assets.

The parties reached a settlement that was approved by the FDIC's Board of Directors on May 20, 2010, and WMI filed a plan of reorganization incorporating the terms of the settlement ("Settlement"). Several parties objected to WMI's proposed plan, and in particular, WMI's proposal to release its claims against JPMC, the FDIC and the Receiver. At the request of WMI's equity holders, the Bankruptcy Court appointed an Examiner to thoroughly investigate WMI's claims against JPMC, the FDIC and the Receiver, and to determine whether the proposed settlement (which would release these claims) was fair and equitable to WMI. The Examiner found that the settlement was a fair resolution.

On February 24, 2012, the Bankruptcy Court entered an order confirming the seventh amended plan proposed by WMI and its co-debtor WMI Investment Corp (the "Plan"). The Settlement, as amended from time to time, remains integral to and incorporated in the Plan. The Plan and Settlement became effective on March 19, 2012. The Receiver received $843.9 million pursuant to the terms of the Settlement. When added to the approximately $1.87 billion currently held by the Receiver (WAMU Quarterly Receivership Balance Sheet Summary ) , the Receiver will have a total of approximately $2.71 billion to distribute to holders of claims allowed by the receivership, according to the priority established in 12 U.S.C. 1821(d)(11)(A). Before the Receiver can distribute these funds, however, it must pay administrative expenses and resolve a number of lawsuits that have been filed against it, the largest of which was filed by Deutsche Bank National Trust Co. claiming $6 to $10 billion in damages arising out of WAMU's alleged breach of representations and warranties made in connection with mortgages sold to securitized trusts. (Amended Complaint)

Also, the Receiver must resolve a number of indemnity claims made by JPMC. JPMC has submitted over 100 notices of potential indemnity claims. (Notices can be found at Group 1: JPMorgan Chase Notices relating to Washington Mutual Whole Bank P&A in the Freedom of Information Act (FOIA) Service Center Reading Room and, JPMorgan Chase Notices relating to Washington Mutual Bank Whole Bank P&A at, Group 2: JPMorgan Chase Notices relating to Washington Mutual Whole Bank P&A). Should the Receiver be found liable on any of JPMC's indemnity claims, under the P&A, those claims will be satisfied as administrative expenses and thus before the claims of general unsecured creditors. Current information indicates that the Receiver is unlikely to have sufficient funds to distribute to holders of receivership certificates issued to junior note holders or equity holders of WAMU.