WaMu Files Ch. 11: Stock Crashes

Washington Mutual, Inc. has filed Chapter 11 bankruptcy protection only a couple of weeks after the resolution of the $4 billion conflict with JPMorgan Chase & Co. (NYSE: JPM) and the FDIC.

Their proposed plan, that has yet to be approved by the judge, would create a $7 billion trust fund.

The agreement also has WaMu receiving 40% of the tax refunds for operating losses with 60% going to FDIC.

The company's shares are currently selling for less than 17 cents.