Updated with details of settlement, latest share price.NEW YORK ( TheStreet) -- Shares of Washington Mutual(WAMUQ.PK) plummeted Friday after the bankrupt company reached a settlement with JPMorgan Chase ( JPM) and the Federal Deposit Insurance Corp. on Friday. P/>WaMu's Pink Sheets-listed shares dropped as low as 9 cents -- a decline of more than 70% -- in the immediate wake of the news, and Kevin Starke, an analyst at CRT Capital Group, said the common stock will be worthless if the settlement is approved. The settlement still has to be put into writing and agreed upon by the companies' boards, the FDIC board, as well as creditors and other parties. The formal plan will be filed by March 26. "Of course, it sounds like the settlement was reached behind closed doors without the participation of the equity committee, so I would expect the committee to object very vocally," Starke wrote via email to TheStreet.com. He added he expects "a ton of objections and a very contentious confirmation process" after the filing of the plan. CRT, like other broker dealers that publish research, trades in securities of WaMu and other companies, though largely on behalf of clients. As part of the agreed-upon settlement, JPMorgan will turn $4 billion in deposits over to WaMu less 70% of a $3 billion tax refund received by those accounts. A second tax refund worth $2.6 billion will be split so that 59.6% goes to the FDIC or other parties it designates, and the rest goes to WaMu. Brian Rosen of Weil Gotshal & Mange, the attorney representing WaMu, said debtors will turn $4 billion in Trust Preferred Securities over to JPMorgan "free and clear of any liens or encumbrances" in exchange for $50 million in cash or its equivalent in JPMorgan shares, meaning a recovery of just over one cent on the dollar. Starke says he expects holders of these securities to be unhappy with this offer. Among other terms of the agreement, JPMorgan will assume liabilities associated with the WaMu medical plan. In recent trades, WaMu shares had bounced back to 23 cents, but that was still a decline of 43% from Thursday's close. More than 189 million shares have changed hands on Friday. The stock was extremely volatile all week ahead of the expected settlement on the case, and they soared as high as 70 cents on Tuesday, their highest level since the Seattle-based thrift had its assets seized by the FDIC, which then sold off the majority of them to JPMorgan on Sept. 25, 2008. WaMu issued a statement about the settlement, saying it was "pleased" to reach the deal, although it didn't provide extensive details in its press release. "WMI is confident that this agreement will provide substantial recoveries for the company's creditors and that it is consistent with WMI's efforts over the last 18 months to maximize the value of its bankruptcy estate," the statement reads. "WMI is also pleased that this agreement vindicates the positions it took in court, as the company believes that its court positions created the pressure necessary to move this agreement forward." The terms of the settlement were laid out in a hearing before the U.S. Bankruptcy Court for the District of Delaware, which is overseeing WaMu's Chapter 11 bankruptcy case. -- Written by Dan Freed in New York.