A swap of securities into preferred stock on the eve of Washington Mutual's (WAMUQ.PK) seizure...

|By:, SA News Editor

A swap of securities into preferred stock on the eve of Washington Mutual's (WAMUQ.PK) seizure is the basis for a lawsuit by holders of $1B of the securities against WaMu and JPMorgan Chase (JPM). Plaintiffs want the swaps undone, and a determination that JPMorgan knew about misrepresentations and can't be a bona fide purchaser of the securities.