WaMu was declared bankrupt in September 2008 and was sold by Federal Deposit Insurance Corp to JPMorgan for $1.9 billion.
The funds were seized as part of the transaction and now all three parties are disputing which one has the ownership rights.
Brian Rosen, a partner at law firm Weil, Gotshal & Manges LLP in New York, who represents WaMu, said that âthere seems to be some momentumâ to the talks.
However, his request for a one week delay in proceedings to allow the three parties more time to discuss the funds has been granted by a Delaware judge.
WaMu claimed that the funds should be used to repay creditors while JPMorgan believes it owns the assets after acquiring the failed
The Wall Street Journal reported that WaMu and JPMorgan are also discussing ownership of $5.6 billion worth of tax refunds and a pension fund.
By Jim Ottewill