EX-99.1 2 mm05-2810_8ke991.htm EX.99.1 - MONTHLY OPERATING REPORT APRIL 2010

mm05-2810_8ke991.htm

EXHIBIT 99.1

UNITED STATES BANKRUPTCY COURT

DISTRICT OF DELAWARE

In re Washington Mutual, Inc., et al.	Case No. 08-12229 (MFW)
	Reporting Period: 04-01-10 to 04-30-10

MONTHLY OPERATING REPORT

REQUIRED DOCUMENTS	Form No.	Document Attached	Explanation Attached
Schedule of Cash Receipts and Disbursements	MOR-1	Yes
Bank Reconciliation (or copies of Debtors’ bank reconciliations)	MOR-1a	Refer to attached stmt
Schedule of Professional Fees Paid	MOR-1b	Yes
Copies of bank statements	MOR-1c	Refer to attached stmt
Cash disbursements journals		n/a	Refer to MOR 1 for summary of all disbursements.
Statement of Operations	MOR-2	Yes	See attached notes
Balance Sheet	MOR-3	Yes	See attached notes
Status of Post petition Taxes	MOR-4	Yes
Copies of IRS Form 6123 or payment receipt		n/a	Payroll services outsourced including remission of taxes
Copies of tax returns filed during reporting period		n/a	See listing of filings
Summary of Unpaid Post petition Debts	MOR-4	n/a	Detail on face of balance sheet.
Listing of aged accounts payable	MOR-4	Yes
Accounts Receivable Reconciliation and Aging	MOR-5	n/a	No trade receivables
Debtor Questionnaire	MOR-5	Yes

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the documents attached are true and correct to the best of my knowledge and belief.

/s/ John Maciel		May 28, 2010
Signature of Authorized Individual*		Date
John Maciel		Chief Financial Officer
Printed Name of Authorized Individual		Title of Authorized Individual

*Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.

In re Washington Mutual, Inc., et al

Case No. 08-12229 (MFW)

DISCLAIMER

Washington Mutual, Inc. (“WMI”) and WMI Investment Corp. (together, the “Debtors”) caution investors and potential investors in WMI not to place undue reliance upon the information contained in this Monthly Operating Report, which was not prepared for the purpose of providing the basis for an investment decision relating to any of the securities of WMI. The Monthly Operating Report is limited in scope, covers a limited time period, and has been prepared solely for the purpose of complying with the monthly operating guidelines as described in the Chapter 11 Trustee Handbook, United States Department of Justice, May 2004 in accordance with 28 U.S.C §586(a)(3). The Monthly Operating Report was not audited or reviewed by independent accountants; does not purport to present the financial statements of WMI in accordance with generally accepted accounting principles; does not purport to present the market value of WMI’s assets and liabilities or the recoverability of WMI’s assets; is in a format prescribed by applicable bankruptcy laws; and is subject to future adjustment and reconciliation. There can be no assurance that, from the perspective of an investor or potential investor in WMI’s securities, the Monthly Operating Report is complete. Results set forth in the Monthly Operating Report should not be viewed as indicative of future results. This disclaimer applies to all information contained herein.

On September 26, 2008 (the “Petition Date”), the Debtors each commenced voluntary cases under chapter 11 of title 11 of the United States Code with the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”). Prior to the Petition Date, on September 25, 2008, the Director of the Office of Thrift Supervision, appointed the Federal Deposit Insurance Corporation (the “FDIC”) as receiver for Washington Mutual Bank (“WMB”) and advised that the receiver was immediately taking possession of WMB’s assets. Immediately after its appointment as receiver, the FDIC sold substantially all the assets of WMB, including the stock of Washington Mutual Bank fsb, to JPMorgan Chase Bank, National Association (“JPMorgan”) pursuant to that certain Purchase and Assumption Agreement, Whole Bank, dated as of September 25, 2008 (the “Sale”).

Prior to the Petition Date, WMI and WMB jointly maintained their respective financial records. As a result of the Sale, many of the Debtors’ books and records were seized by the FDIC and transferred to the custody of JPMorgan. Accordingly, the Debtors are not in control of certain information relating to their operations and financial affairs, including, but not limited to, certain accounting information. In addition, as of the date of the Sale, substantially all of WMB’s employees became employees of JPMorgan. Accordingly, this Monthly Operating Report was prepared, in part, based upon the information and work product and/or representations made available to the Debtors and their professionals by representatives of WMB and JPMorgan.

Results represented in this Monthly Operating Report are consistent with WMI’s accounting practices as of the Petition Date. However, records of prepetition assets and liabilities, including, among other things, liabilities owed by WMI to WMB and its affiliates are likely to be adjusted. Further, claims have been filed against the Debtors in their chapter 11 cases that are not currently recorded on WMI’s books that, if allowed, would change the reported balances for pre-petition liabilities. The Debtors reserve all rights to amend the results represented in this Monthly Operating Report.

Washington Mutual, Inc., et al.
April 2010 Monthly Operating Report -- UNAUDITED	Case No. 08-12229 (MFW)
MOR 1 -- Schedule of Cash Receipts and Disbursements

	Washington Mutual, Inc.							WMI Investment Corp.
Account	Deposit	Deposit	Deposit	Deposit	Money Market	General		Deposit	General
Bank	WMB/JPM	WMB/JPM	WMB/JPM	WMB/JPM	Bank of America	Bank of America		WMB/JPM	Bank of America
Bank Account	xxx0667	xxx4234	xxx9626	xxx9663	xxx0658	xxx4228	WMI	xxx4704	xxx4231	WMI Inv Corp	Combined
GL Account	70 /10450	70 / 10441	70 / 10451	70 / 10452	70 / 12510	70 /10305	Total	467 / 10450	467 / 10305	Total	Total
Opening Balance - 03/31/2010	261,971,934	3,676,983,920	4,660	749,607	6,947,385	6,563,772	3,953,221,278	53,617,915	258,089	53,876,004	4,007,097,282
Receipts
Interest & investment returns	31,130	436,936	-	89	2,263	-	470,419	6,575	-	6,575	476,994
Tax refunds						370,303	370,303			-	370,303
Reimbursements/distributions from subs						-	-			-	-
Sales of assets/securities						-	-			-	-
Net proceeds from BOLI/COLI						46,125,649	46,125,649			-	46,125,649
Other miscellaneous receipts						274	274			-	274
Total Receipts	31,130	436,936	-	89	2,263	46,496,226	46,966,644	6,575	-	6,575	46,973,220
Transfers
Sweep to/(from) Money Market account					8,000,000	(8,000,000)	-		-	-	-
Transfer (to)/from Wells Managed Account					-	-	-		-	-	-
Total Transfers	-	-	-	-	8,000,000	(8,000,000)	-	-	-	-	-
Disbursements
Salaries and benefits						349,450	349,450	-	-	-	349,450
Travel and other expenses						33,331	33,331	-	-	-	33,331
Occupancy and supplies						123,546	123,546	-	-	-	123,546
Professional fees						10,923,645	10,923,645	-	6,000	6,000	10,929,645
Other outside services						552,802	552,802	-	-	-	552,802
Bank fees						57,956	57,956	-	9	9	57,965
US Trustee quarterly Fees						-	-	-	-	-	-
Directors fees						60,000	60,000	-	-	-	60,000
Ahmanson Executive Plan Settlement						31,482,976	31,482,976
Taxes paid						2,686	2,686	-	-	-	2,686
Total Disbursements	-	-	-	-		43,586,393	43,586,393	-	6,009	6,009	12,109,426
Net Cash Flow	31,130	436,936	-	89	8,002,263	(5,090,167)	3,380,252	6,575	(6,009)	566	3,380,818
Cash - End of Month	262,003,064	3,677,420,856	4,660	749,696	14,949,648	1,473,605	3,956,601,530	53,624,490	252,080	53,876,570	4,010,478,100
GL Balance	262,003,064	3,677,420,856	4,660	749,696	14,949,648	1,473,605	3,956,601,529	53,624,490	252,080	53,876,570	4,010,478,099
Net value - short-term securities							613,266,871			221,402,356	834,669,227
Total Cash & Cash Equivalents							4,569,868,400			275,278,926	4,845,147,326

In re Washington Mutual, Inc., et al.

Case No. 08-12229 (MFW)

April 2010 Monthly Operating Report -- UNAUDITED

MOR 1a and MOR 1c -- Cash

Bank Reconciliations

The above-captioned debtors (the "Debtors") hereby submit this attestation regarding bank account reconciliations in lieu of providing copies of bank statements and copies of all account reconciliations.

I attest that each of the Debtors’ bank accounts is reconciled to monthly bank statements except those certain accounts ending in 0667, 9626, and 9663 (the “Excluded Accounts”). The Debtors’ standard practice is to ensure that each bank account is reconciled to monthly bank statements for each calendar month 30 days after month end.

In May 2009, JPMorgan started transitioning bank accounts from the WMB deposit platform to the JPMorgan deposit platform. Since the transition, JPMorgan has only provided the Debtors with bank account statements for certain months. The Debtors have not received bank statements for the period covered by this MOR for the Excluded Accounts. Therefore, the Debtors are unable to reconcile information related to the Excluded Accounts against a related bank statement. The Debtors have continued to record interest income on the accounts consistent with prior practice and based on an existing agreement with JPMorgan.

/s/John Maciel              

John Maciel

Chief Financial Officer

Washington Mutual, Inc.

Case No. 08-12229 (MFW)

Washington Mutual, Inc., et al

MOR-1B: Schedule of Professional Fees Paid

Month Ended Apr 30, 2010

Washington Mutual, Inc.

				Check					Amount Paid - Apr'10*								Amount Paid CTD
Payee		Period Covered		Number			Date		Fees				Expense				Fees				Expense
Akin, Gump, Strauss, Hauer & Feld LLP		10/01/09 - 02/28/10		Wire			04/29/10		$	860,813.97			$	-			$	10,293,681.23			$	305,566.47
Alvarez & Marsal		03/01/10 - 03/31/10		Wire			04/29/10			2,315,174.25				86,867.82				36,119,968.49				1,730,188.49
CONSOR Intellectual Asset Management										-				-				255,318.00				3,249.00
CP Energy Group, LLC										-				-				91,347.88				159.47
Davis Wright Tremaine LLP		10/01/09 - 01/31/10			2443		04/29/10			4,061.10				-				676,128.50				24,499.50
Elliott Greenleaf		10/01/09 - 01/31/10		Wire, 2444			04/01/10, 04/29/10			159,653.95				-				579,917.25				32,756.45
FTI Consulting, Inc.		10/01/09 - 01/31/10		Wire			04/29/10			183,404.00				-				4,323,738.30				35,856.90
Gibson, Dunn & Crutcher LLP		06/01/09 - 01/31/10			2398, 2445		04/15/10, 04/29/10			65,087.90				2,306.63				680,607.25				12,423.11
Grant Thornton		10/01/09 - 01/31/10			2399, 2446		04/15/10, 04/29/10			47,162.20				3,520.22				414,433.40				35,171.96
Joele Frank, Wilkinson Brimmer Katcher		03/01/10 - 03/31/10			2383		04/08/10			17,836.88				2,594.36				156,173.13				12,150.76
John W. Wolfe, P.S.		10/01/09 - 02/28/10		Wires			04/15/10, 04/29/10			315,240.70				316.36				1,541,124.90				2,245.19
Kurtzman Carson Consultants LLC		03/01/10 - 03/31/10		Wire			04/22/10			71,383.22				144,345.16				1,603,463.19				144,345.16
McKee Nelson LLP / Bingham McCutchen LLP		10/01/09 - 02/28/10		Wires			04/15/10, 04/29/10			448,657.68				51,645.99				2,230,904.03				168,219.65
Miller & Chevalier Chartered		06/01/09 - 2/28/10		2405, 2423, Wire			04/15/10, 04/22/10, 04/29/10			187,733.22				974.24				460,846.96				1,084.87
Milliman										-				-				29,697.49				-
Pepper Hamilton LLP		10/01/09 - 01/31/10		Wire			04/29/10			62,857.10				-				1,839,164.73				90,677.25
Perkins Coie LLP		09/01/09 - 01/31/10		Wires			04/15/10, 04/29/10			116,717.50				5,311.94				1,589,837.54				71,816.76
PricewaterhouseCoopers LLP		03/01/09 - 01/31/10		Wire			04/29/10			404,141.80				-				2,061,829.00				184,532.35
Quinn Emanuel Urquhart Oliver & Hedges		10/01/09 - 01/31/10		Wires			04/01/10, 04/15/10, 04/29/10			1,710,032.10				52,020.28				7,916,840.50				238,139.26
Richards, Layton & Finger P.A.		10/01/09 - 02/28/10		Wire			04/29/10			54,212.20				-				467,877.80				52,362.93
Shearman & Sterling LLP		10/01/09 - 01/31/10			2407, 2456		04/15/10, 04/29/10			52,408.56				733.08				945,101.96				18,898.61
Silverstein & Pomerantz, LLP										-				-				14,826.00				77.53
Simpson Thacher & Bartlett LLP		11/01/09 - 01/31/10			2408, 2457		04/15/10, 04/29/10			5,207.20				-				455,476.25				11,045.33
Towers, Perrin, Forster & Crosby, Inc.										-				-				127,901.43				-
Venable LLP		01/11/10 - 01/31/10		Wire			04/29/10			184,473.96				-				184,473.96				-
Weil, Gotshal & Manges LLP		09/01/09 - 12/31/10		Wires			04/15/10, 04/29/10			3,306,749.90				-				18,939,325.90				456,149.30
Total									$	10,573,009.39			$	350,636.08			$	94,000,005.07			$	3,631,616.30
WMI Investment Corp.
				Check					Amount Paid - Apr'10*								Amount Paid CTD
Payee		Period Covered		Number			Date		Fees				Expense				Fees				Expense
CP Energy Group, LLC										-				-				22,000.00				42.77
Goldman, Sachs & Co.										-				-				300,000.00				-
Total									$	-			$	-			$	322,000.00			$	42.77

* Interim fee applications and multiple invoices were paid during this period.

Washington Mutual, Inc., et al.	Case No. 08-12229 (MFW)
April 2010 Monthly Operating Report -- UNAUDITED
MOR 2 Statement of Operations for the period 04/1/10 to 04/30/10

	Washington Mutual, Inc.				WMI Investment Corp.
	April 2010		Cumulative to Date		April 2010		Cumulative to Date
Revenues:
Interest income:
Cash equivalents	595,357		14,473,186		34,580		754,525
Securities	247,365		4,973,668		-		2,976,201
Notes receivable - intercompany	48,480		1,309,496		-		1
Other	155		1,031,266		-		-
Total interest income	891,356		21,787,617		34,580		3,730,727
Earnings (losses) from subsidiaries and other equity investments	7,419,538		(180,258,572)		(358,974)		(5,496,152)
Gains (losses) from securities / investments	(42,022)		(10,043,716)		-		(112,260,368)
Other income	172,637		3,451,242		-		(0)
Total revenues	8,441,509		(165,063,429)		(324,394)		(114,025,793)
Operating expenses:
Compensation and benefits	639,812		8,239,054		-		-
Occupancy and equipment	80,823		1,735,361		-		-
Professional fees	721,391		11,251,660		-		148
Loss / (Income) from BOLI/COLI policies	(517,595)		(7,661,278)		-		-
Management fees / Transition services	30,000		2,270,014		-		-
Insurance	225,000		16,104,204		-		-
Other	394,884		2,567,746		14,453		495,181
Total operating expenses	1,574,315		34,506,762		14,453		495,329
Net profit (loss) before other income and expenses	6,867,194		(199,570,191)		(338,847)		(114,521,123)
Other income and expenses:
Interest expense:
Notes payable - intercompany	-		-		-		-
Borrowings	-		-		-		-
Total interest expense	-		-		-		-
Other expense / (income)	-		(55,028,000)		-		-
Net profit (loss) before reorganization items	6,867,194		(144,542,191)		(338,847)		(114,521,123)
Reorganization items:
Professional fees	6,446,753		102,797,774		-		322,043
Claims Adjustments	1,060,528		24,336,509		-		-
US Trustee quarterly fees	30,000		143,000		325		11,375
Gains (losses) from sale of assets	-		-		-		-
Other reorganization expenses	258,105		9,249,598		-		-
Total reorganization items	7,795,386		136,526,881		325		333,418
Net profit (loss) before income taxes	(928,192)		(281,069,072)		(339,172)		(114,854,540)
Income taxes	-		4,050		-		-
Net profit (loss)	(928,192)		(281,073,122)		(339,172)		(114,854,540)
Income tax rate	0.0%		0.0%		0.0%		0.0%

Washington Mutual, Inc., et al.	Case No. 08-12229 (MFW)
April 2010 Monthly Operating Report -- UNAUDITED
MOR 3 Balance Sheet as of 04/30/2010 and 9/26/2008

	Washington Mutual, Inc.				WMI Investment Corp.
	4/30/2010		9/26/08		4/30/2010		9/26/08
Assets:
Unrestricted cash and cash equivalents	4,569,868,400		4,018,083,009		275,278,926		52,974,376
Restricted cash and cash equivalents	94,604,280		145,668,884		-		-
Investment securities	68,453,974		59,688,627		-		266,444,881
Accrued interest receivable	764,264		413,253		3,746		4,084,658
Income tax receivable	475,913,725		742,680,150		22,187,560		22,187,560
Prepaid expenses	2,821,518		11,311,510		-		-
Cash surrender value of BOLI/COLI	44,364,032		84,039,738		-		-
Funded Pension	39,173,922		638,870,071		-		-
Other investments	-		23,668,909		58,171,550		65,952,708
Investment in subsidiaries	1,484,162,277		1,895,218,467		-		-
Notes receivable - intercompany	12,699,618		58,001,133		565,844,197		565,844,197
Fixed Assets	79,113		-		-		-
Other assets	96,532,643		23,489,277		-		-
Total assets	6,889,437,767		7,701,133,028		921,485,980		977,488,380
Liabilities not subject to compromise (Postpetition):
Accounts payable	2,298,719		-		4,875		-
Accrued wages and benefits	547,063		-		-		-
Other accrued liabilities	15,369,966		-		14,825		-
Minority interest	1,113,533		3,104,022		-		-
Total post-petition liabilities	19,329,282		3,104,022		19,700		-
Liabilities subject to compromise (Pre-petition):
Senior debt	4,132,421,622		4,126,545,947		-		-
Subordinated debt	1,666,464,970		1,662,295,485		-		-
Junior subordinated debt	765,674,200		752,445,436
Intercompany payables	684,095,259		684,095,258		-		-
Accounts payable	4,480,720		3,941,450		-		-
Taxes payable	550,769,514		550,080,833		-		-
Payroll and benefit accruals	386,864,900		407,215,221		-		-
Other accrued liabilities	76,325,795		92,259,015		-		-
Other pre-petition liabilities	198		223		-		-
Total pre-petition liabilities	8,267,097,177		8,278,878,868		-		-
Total liabilities	8,286,426,458		8,281,982,890		19,700		-
Shareholders' equity:
Preferred stock	3,392,341,954		3,392,341,953		-		-
Common stock	12,988,753,556		12,988,753,556		1,000,000,000		1,000,000,000
Other comprehensive income	(754,819,113)		(222,770,180)		22,187,560		(36,644,880)
Retained earnings - pre-petition	(16,742,191,966)		(16,739,175,191)		14,133,260		14,133,260
Retained earnings - post-petition	(281,073,122)		-		(114,854,540)		-
Total shareholders' equity	(1,396,988,691)		(580,849,862)		921,466,280		977,488,380
Total liabilities and shareholder's equity	6,889,437,767		7,701,133,028		921,485,980		977,488,380

In re Washington Mutual, Inc., et al.

Case No. 08-12229 (MFW)

NOTES TO MOR-2 and MOR-3

Note 1: Plan of Reorganization and Settlement Agreement

On March 26, 2010, the Debtors filed a proposed plan of reorganization pursuant to chapter 11 of the Bankruptcy Code and related Disclosure Statement, which were first amended on May 16, 2010.

On May 21, 2010, the Debtors filed their Second Amended Joint Plan of Affiliated Debtors Pursuant to Chapter 11 of the Bankruptcy Code [D.I. 2622] (the “Plan”) and related Disclosure Statement [D.I. 2623] (the “Disclosure Statement”) with the Bankruptcy Court. The Plan is premised upon implementation of a Settlement Agreement (the “Settlement Agreement”) which represents a compromise of certain disputes among the Debtors, JPMorgan, the FDIC (as receiver for WMB and in its corporate capacity), the Creditors’ Committee and certain significant creditor constituencies (as described below).

The Settlement Agreement is an integral part of the Plan and is subject to final confirmation of the Plan. On the basis of the foregoing, the balance sheet and operating statement in this monthly operating report do not reflect any of the financial arrangements or settlements set forth in the Settlement Agreement.

The foregoing notwithstanding, aspects of the Plan are referred to in the Notes to MOR 2 and MOR 3 herein; however, users of this monthly operating report should refer to the Plan, Disclosure Statement, Settlement Agreement and related documents directly for complete information.

Note 2: Washington Mutual Preferred Funding

On September 25, 2008, the Office of Thrift Supervision concluded that an “Exchange Event” had occurred with respect to the following securities (the “Securities”):

·   Washington Mutual Preferred Funding Trust I Fixed-to-Floating Rate Perpetual Non-cumulative Trust Securities (to be exchanged into depositary shares representing Series I Perpetual Non-Cumulative Fixed-to-Floating Rate Preferred Stock of WMI);

·   Washington Mutual Preferred (Cayman) I Ltd. 7.25% Perpetual Non-cumulative Preferred Securities, Series A-1 (to be exchanged into depositary shares representing Series J Perpetual Non-Cumulative Fixed Rate Preferred Stock of Washington Mutual, Inc. (“WMI”));

·   Washington Mutual Preferred (Cayman) I Ltd. 7.25% Perpetual Non-cumulative Preferred Securities, Series A-2 (to be exchanged into depositary shares representing Series J Perpetual Non-Cumulative Fixed Rate Preferred Stock of WMI);

·   Washington Mutual Preferred Funding Trust II Fixed-to-Floating Rate Perpetual Non-cumulative Trust Securities (to be exchanged into depositary shares representing Series L Perpetual Non-Cumulative Fixed Rate Preferred Stock of WMI);

·   Washington Mutual Preferred Funding Trust III Fixed-to-Floating Rate Perpetual Non-cumulative Trust Securities (to be exchanged into depositary shares representing Series M Perpetual Non-Cumulative Fixed Rate Preferred Stock of WMI); and

·   Washington Mutual Preferred Funding Trust IV Fixed-to-Floating Rate Perpetual Non-cumulative Trust Securities (to be exchanged into depositary shares representing Series N Perpetual Non-Cumulative Fixed-to-Floating Rate Preferred Stock of WMI).

In accordance with the terms of the documents governing the Securities, the Conditional Exchange (as defined in the disclosure materials related to the Securities) of the Securities occurred on Friday, September 26, 2008 at 8:00 A.M. (New York time). The documentation governing the Securities contemplates that at the time of the

Conditional Exchange, each outstanding Security was intended to be exchanged automatically for a like amount of newly issued Fixed Rate Depositary Shares or newly issued Fixed-to-Floating Rate Depositary Shares, as applicable, each representing a 1/1000th interest in one share of the applicable series of preferred stock of WMI. If and until such depositary receipts are delivered or in the event such depositary receipts are not delivered, any certificates previously representing Securities are deemed for all purposes, effective as of 8:00 AM (New York time) on September 26, 2008, to represent Fixed Rate Depositary Shares or Fixed-to-Floating Rate Depositary Shares, as applicable.

WMI and its advisors currently are assessing a number of legal, accounting and tax issues related to the Securities and the transactions related to the Conditional Exchange. Because of these unresolved issues, WMI has not yet reflected the Conditional Exchange and/or its attendant transactions on its financial statements, including any possible interests (direct or indirect, contingent or otherwise) in the Securities and the assets, as the case may be, of Washington Mutual Preferred Funding LLC.

Assuming that the Conditional Exchange had been completed in accordance with the terms of the relevant documentation, on a pro forma basis, WMI’s financial statements would reflect (a) a credit to shareholders’ equity of approximately $3.9 billion upon issuance of the new classes of preferred stock; (b) an investment in subsidiary (i.e. WMB) of approximately $3.9 billion upon contribution of the Preferred Securities by WMI to WMB; and (c) an immediate and corresponding write-down of such investment in subsidiary.

Pursuant to the terms of the Settlement Agreement, upon consummation of the Plan, WMI and relevant third parties will complete the Conditional Exchange.

Note 3: Restricted Cash and Cash Equivalents

WMI’s restricted cash and cash equivalents of $95 million includes $36 million of accumulated dividends related to amounts held in escrow pertaining to that certain action styled as American Savings Bank, F.A et al. v United States, Case No 92-872C pending in the United States Court of Federal Claims, $53 million in a deposit account pledged as collateral to secure prepetition intercompany transactions between WMI and WMB and $6 million held as part of a Rabbi Trust.

Pursuant to the terms of the Settlement Agreement, upon consummation of the Plan, WMI will take possession of the $53 million deposit account pledged as collateral for prepetition intercompany transactions with WMB, free and clear of any interest or liens asserted by JPMorgan.

Note 4: BOLI/COLI

On April 2, 2010, the Bankruptcy Court entered an order approving a settlement between WMI and certain employee benefit plan participants. Pursuant to that order and the settlement agreement, participants in the H.F. Ahmanson & Company Senior Executive Life Insurance Plan (SELIP) surrendered life insurance policies in which WMI held a collateral assignment, resulting in the liquidation of WMI's share of such policies' cash value. In consideration thereof, WMI provided the participants with funds intended to (i) replicate the cost for each participant to purchase a new life insurance policy providing the same death benefit and (ii) assist with related tax liabilities. Further, in a compromise and settlement of certain claims asserted by the plan participants, WMI agreed to pay amounts owed under the H.F. Ahmanson Supplemental Executive Retirement Plan to the plan participants.

WMI received $14.6 million pursuant to the H.F Ahmanson & Company SELIP settlement.

Note 5: Investment in Subsidiaries

WMI’s investment in subsidiaries represents the book value of WMI’s subsidiaries, including WMI Investment. This balance does not represent the market value of these entities.

WMI subsidiaries hold unsecured notes receivable from WMB or JPMorgan, as the case may be, totaling approximately $180 million.

Pursuant to the terms of the Settlement Agreement, upon consummation of the Plan, JPMorgan will repay with interest the unsecured notes receivable to WMI subsidiaries.

Note 6: Funded Pension

The funded pension balance reflects the (1) the market value of assets as of December 2, 2008 less (2) the November 2008 actuarial estimated settlement value of September 25, 2008 liabilities. The value does not reflect any recent changes in market values, interest rate assumptions and the participants since November 2008 which could materially affect the results.

Pursuant to the terms of the Settlement Agreement, upon consummation of the Plan, WMI will transfer sponsorship of the pension plan to JPMorgan, including certain related assets, and JPMorgan will assume the pension plan liabilities.

Note 7: Taxes

The tax asset and liability balances are recorded consistent with WMI’s historical accounting practices as of the Petition Date and adjusted for refunds collected. Generally, tax related claims and payables are recorded on WMI’s books and records on a consolidated basis with the other members of the consolidated tax group and have not been adjusted for any potential claims against these assets. The current recorded balances do not reflect all expected refunds or payments as these amounts are currently being reviewed. The current estimate for the total expected refunds, net of potential payments, is in the range of approximately $2.7 - $3.0 billion (including interest but excluding tax refunds attributable to the Act, as described below). Various parties claim ownership rights to these refunds. As set forth in the Settlement Agreement, upon consummation of the Plan, WMI and JPMorgan will split the above-referenced net tax refunds 20%/80%, respectively (once received). Further, since Petition Date, WMI has received approximately $250 million in tax refunds. These refunds are subject to the same allocation as referenced above.

On November 6, 2009, the Worker, Homeownership, and Business Assistance Act of 2009 (the “Act”) was enacted into law. The Act provides, in pertinent part, that corporate taxpayers, subject to certain limitations, may elect to extend the permitted Net Operating Loss (“NOL”) carryback period from two years to five years (with such taxpayers only receiving half this benefit in the fifth year). Pursuant thereto, WMI elected to carry back its 2008 NOL five years. WMI currently estimates an additional expected tax refund attributable to the Act of approximately $2.8 billion, including interest, as to which there are competing claims of ownership. As set forth in the Settlement Agreement, upon consummation of the Plan, WMI and the FDIC will split the tax refunds attributable to the Act (and actually received) 65.178%/34.822%, respectively. Pursuant to the terms of the Plan and the Settlement Agreement, if the Class of Non-Subordinated Bank Bondholder Claims (as defined in the Plan) votes to accept the Plan, then, such claims will be deemed allowed against the Debtors and will receive 5.357% of refunds attributable to the Act, subject to a cap of $150 million. If the Class of Non-Subordinated Bank Bondholder Claims votes to reject the Plan, then the Debtors will distribute amounts for such claims to the extent they are determined to be allowed by the Bankruptcy Court against the Debtors.

No provision or benefit from income taxes has been recorded as the NOLs are expected to be sufficient to offset income during the reported period. Income tax expense contains minimum taxes paid in certain states.

Note 8: Liabilities Subject to Compromise (Pre-Petition) – Payroll and Benefit Accruals

WMI’s pre-petition payroll and benefit accruals include balances reflecting WMI’s historic accounting policies related to pension accounting. Prior to the Petition Date, WMI recorded a $274 million liability in respect of such accruals and WMB recorded a $274 million asset, which amounts were netted out and eliminated on a consolidated basis. Neither balance was reported as an intercompany balance. WMI is analyzing these accounting entries and treatment within the context of its bankruptcy proceedings.

As set forth in the Settlement Agreement, upon consummation of the Plan, any potential liability related to this pension accounting will be waived.

Washington Mutual, Inc. / WMI Investment Corp.

April 2010 Monthly Operating Report -- UNAUDITED

MOR 4 Status of Postpetition Taxes

		Washington Mutual, Inc.					WMI Investment Corp
		Beginning Tax Liability	Amt approved for pmt	Taxes collected	Taxes remitted	Closing Balance Post Petition	Beginning Tax Liability	Amt approved for pmt	Taxes collected	Taxes remitted	Closing Balance Post Petition
Federal	NOTES
Withholding	***	29,986.00	-	9,596,244.37	(9,599,783.37)	26,447.00					-
FICA -- Employee	***	4,500.19	-	195,935.13	(196,364.06)	4,071.26					-
FICA -- Employer	***	4,500.19	195,935.13	-	(196,364.06)	4,071.26					-
Unemployment	***	952.00	672.00	-	(1,624.00)	-					-
Income	*	-	-	-	-	-					-
Other		-	-	-	-	-					-
Total Federal		39,938.38	196,607.13	9,792,179.50	(9,994,135.49)	34,589.52	-	-	-	-	-
State and Local
CA Withholding	***	-	-	2,864,445.26	(2,864,445.26)	-
CA Disability	***	-	-	12,317.76	(12,317.76)	-
CA Unemployment	***	-	2,856.00	-	(2,856.00)	-
CA Employment Training Tax	***	-	84.00	-	(84.00)	-
WA Withholding	n/a	-	-	-	-	-
WA Disability		1,165.31	230.65	165.14	(1,165.31)	395.79
WA Unemployment		16,478.45	1,066.96	-	(16,478.45)	1,066.96
Sales/Use	**	-	-	-	-	-
Real Property	n/a	-	-	-	-	-
Personal Property	n/a	-	-	-	-	-
Other		2,686.14	928.38	-	(2,686.13)	928.39
		-				-
Total State and Local		20,329.90	5,165.99	2,876,928.16	(2,900,032.91)	2,391.14	-	-	-	-	-
Total Taxes		60,268.28	201,773.12	12,669,107.66	(12,894,168.40)	36,980.66	-	-	-	-	-

NOTES
*		WMI has booked no federal income tax on its post-petition income tax provision, nor has it made any federal payments.
**		WMI does not have any Washington or City of Seattle sales/use tax liability for the month of April
***		Includes effect of tax withholding from payout to SSERP/SELIP participants

I attest that all tax returns have been filed in accordance with federal / state / county / city requirements for the above period.

/s/ John Maciel

John Maciel

Chief Financial Officer

Washington Mutual, Inc., et al

Washington Mutual, Inc. and WMI Investment Corp.

Tax Return Filings

For the Period 4/1/2010 through 4/30/2010

Property Tax Filings:

No property tax returns were filed during the period 4/1/2010 through 4/30/2010.

Sales/Use Tax Filings:

No sales/use tax returns were filed during the period 4/1/2010 through 4/30/2010.

Payroll Tax Filings:
Entity	Jurisdiction	Filing Description	Due Date	Date Filed
WMI	IRS (Federal)	Withholding summary of deposits and filings (semi-weekly)	4/07/2010	4/07/2010
WMI	IRS (Federal)	Withholding summary of deposits and filings (semi-weekly)	4/16/2010	4/16/2010
WMI (1)	California	Withholding summary of deposits and filings	4/16/2010	4/15/2010
WMI (1)	California	Disability insurance filings	4/16/2010	4/15/2010
WMI (1)	California	Unemployment summary of deposits and filings	7/31/2010	4/15/2010
WMI (1)	California	Employment training tax reporting	7/31/2010	4/15/2000
WMI	Washington	Unemployment summary of deposits and filings (quarterly)	4/30/2010	4/30/2010
WMI	Washington	Labor and industries (quarterly)	4/30/2010	4/30/2010
Corporate Income Tax/Franchise Tax/Gross Receipts Tax Filings:
Entity	Jurisdiction	Filing Description	Due Date	Date Filed
WMI & Subs	Alaska	Corporation income tax return	4/15/2010	4/13/2010
WMI	Washington	Business and occupation tax return	4/30/2010	4/23/2010
WMI	City of Seattle	Business license tax return	4/30/2010	4/23/2010

(1) Filings required based on tax withholdings from SSERP/SELIP payouts

Case No. 08-12229 (MFW)

Washington Mutual, Inc., et al

MOR-4: Post Petition Accounts Payable Aging by Vendor

As of April 30, 2010

Washington Mutual, Inc.
Vendor		Current *					31 - 60				61- 90			91 and Over				Total
Akin, Gump, Strauss, Hauer & Feld LLP		$	108,706.45			$	-			$	-			$	-			$	108,706.45
BANG Office Interiors			1,267.92				-				-				-				1,267.92
Bingham McCutchen LLP / McKee Nelson LLP			49,799.40				-				-				-				49,799.40
Bowne of Los Angeles, Inc.			103,234.80				-				-				-				103,234.80
Brouwer, Curt			2,128.54				-				-				-				2,128.54
Comcast			199.90				-				-				-				199.90
CVM			25,667.00				-				-				-				25,667.00
Davis Wright Tremaine LLP			7,271.45				-				-				-				7,271.45
FTI Consulting, Inc.			482,109.38				-				-				-				482,109.38
Grant Thornton			27,401.82				-				-				-				27,401.82
John W. Wolfe, P.S.			269,283.09				-				-				-				269,283.09
Miller & Chevalier Chartered			125,928.42				-				-				-				125,928.42
Pepper Hamilton LLP			42,648.70				-				-				-				42,648.70
Pitney Bowes Inc.			1,379.39				-				-				-				1,379.39
Quinn Emanuel Urquhart Oliver & Hedges			750,621.28				-				-				-				750,621.28
Richards, Layton & Finger P.A.			7,092.40				-				-				-				7,092.40
Shearman & Sterling LLP			56,674.94				-				-				-				56,674.94
Silverstein & Pomerantz, LLP			3,706.50				-				-				-				3,706.50
Simpson Thacher & Bartlett LLP			5,159.50				-				-				-				5,159.50
Struck, Peter			1,438.55				-				-				-				1,438.55
Towers Watson Pennsylvania Inc.			227,000.00				-				-				-				227,000.00
Total		$	2,298,719.43			$	-			$	-			$	-			$	2,298,719.43
WMI Investment Corp.
Vendor		Current					31 - 60				61- 90			91 and Over				Total
U.S. Trustee		$	4,875.00			$	-			$	-			$	-			$	4,875.00
Total		$	4,875.00			$	-			$	-			$	-			$	4,875.00

NOTES

*Any holdback for professionals pursuant to their respective retention orders are included in “Current.”

DEBTOR QUESTIONNAIRE

Must be completed each month		Yes	No
1.	Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide an explanation below.	X
2.	Have any funds been disbursed from any account other than a debtor in possession account this reporting period? If yes, provide an explanation below.		X
3.	Have all post petition tax returns been timely filed? If no, provide an explanation below.	X
4.	Are workers compensation, general liability and other necessary insurance coverage in effect? If no, provide an explanation below.	X
5.	Has any bank account been opened during the reporting period? If yes, provide documentation identifying the opened account(s). If an investment account has been opened provide the required documentation pursuant to the Delaware Local Rule 4001-3.		X

Explanations:

1.     During April 2010, various life insurance policies underlying the Supplemental Executive Life Insurance Plan established for eligible senior executives of H. F. Ahmanson & Company (HFA) in 1993-94 were surrendered and WMI received distribution of the proceeds, pursuant to the order of the Bankruptcy Court dated April 2, 2010. WMI acquired HFA on October 2, 1998 and assumed all rights and obligations of HFA under the plans.