WaMu Judge Allows Creditors to Join Insider Trading Probe

A group of Washington Mutual Inc. shareholders, including Black Horse Capital, can join a probe of four hedge funds accused of using confidential data to trade debt of the bankrupt former bank holding company, a judge ruled.

U.S. Bankruptcy Judge Mary Walrath today gave the holders of WaMu trust preferred securities access to information already collected by an official shareholders committee. Walrath declined to give either group any more information, except for a single compliance report from one of the four hedge funds, Aurelius Capital Management LP.