Bankruptcy Judge Mary Walrath yesterday tied up a remaining loose end from the 2008 collapse of Washington Mutual Bank, endorsing a $37 million settlement of the company’s claims against its former leaders, the Wall Street Journal reported today. Regulators seized the troubled subprime lender and sold it to JPMorgan Chase & Co. The settlement approved Tuesday ends some of the litigation over who was to blame for Washington Mutual’s failure including legal fights with insurance companies that balked at paying. Among other things, the settlement could free up about $18 million that has been held in reserve in the event the bankrupt company was required to cover the defense fees and costs of sued executives.
