DigitalDave
Sexy Beast!
http://www.justplainpolitics.com/wamu-t18021.html
This is a continuation thread of the previous Washington Mutual thread discussing the legal clusterf. Basically, Washington Mutual Bank (WMB) was owned by a holding company by the name of Washing Mutual Inc (WMI). When the Office of Thrift Supervision (OTS) seized them last September, they did so under a ton of pressure from the FDIC and Paulson. The OTS had recently declared that WMB was well capitalized, placing them in Tier 1. They had plenty of cash to withstand a bankrun and could handle a huge loss on their loans. In addtion to that, WMI had a deposit with held by WMB totalling around $4B. WMBfsb had $10B cash sitting to be transferred to WMB on Sept. 30th to help capitalize the bank even further. WMB had access to around $50B from other sources if needed. So WMB was able to withstand anything the econmoy could throw at it, and they issued a statement before they were seized saying they had the capital to last until 2010.
JPMorgan was doing all they can to scare people from the bank however, and used ratings agencies and leaked confidential information to tarnish the Washington Mutual brand. They offered to by the bank earlier in the year fro $8 a common share, and the bank had been valued at $12 a share, so needless to say, WMB rejected the proposal. JPMorgan, basically put on a fake bid to extract as much info about WMB as possible, and signed a few contracts not to buy WMB unless it cam directly from them. Which they later broke the terms on by buying them through the FDIC. Hank Paulson's egotistical ass told the executives "You should have accepted the deal" as he worked with JPMorgan to screw them over. They refused to put WMB on the short sell ban list, which was quite odd considering WMB was one of the largest banks in the world. Nevertheless, they colluded and caused any havoc on the bank they could.
Despite all this, as stated in my first paragraph, WMB was able to handle all of it. The share price was horrible, but the bank was sound. Jamie Dimon and Paulson pulled a nice stunt however to try and cause a bankrun. It was all done electronically, but they and their buddies pulled around $16B out of the bank, and tried to screw up WMB's credit. The FDIC was also involved and put on an auction for the bank that had 4 bidders, but only one was allowed to bid (JPMorgan). Jamie Dimon later stated "I could of bid $1 for the bank and still got it."
On top of this, JPMorgan had 'moles' within WMB like Stephen Rotella, who now works for JPMorgan in the loan department.
So, WMI has a couple huge lawsuits pending, and they are represented by some of the best in each area they are pressing. They are using Weil to fight the FDIC in DC, and Quinn & Emmanual to fight JPMorgan in the bankruptcy court. Quinn has been having in incredible track record so far, and was able to successfully get the judge to issue a 2004 Discovery case against JPMorgan. Documents were to be turned over August 1st, which I have yet to hear anything about, but I'll be sure to relay that once I find out what happened. A couple Ihub posters said they didn't turn them over, but I don't trust those guys. I have my own sources and most of them back their claims up with Court documents, so I'll wait until I know. In the case against JPMorgan, they are suing for their $4B deposit, and damages for JPMorgan using the Washinton Mutual logos and trademarks owned by WMI. Those could posibly net WMI $16B. The 2004 Discovery could also potentially find more causes for action, or could end up delivering some damaging criminal charges towards JPMorgan. JPMorgan is taking the stance of 'delay, delay, delay' at this point, because they can't seem to win anything in the bankruptcy court. All they can do is hold things off, in hopes for a cheaper outcome. The more they wait though, the more that can come up in the Discovery process, so I don't think they have much time left.
The FDIC case is kind of just on a standstill, and I think that's going to be handled sometime in September, near the 1 year anniversary of the seizure.
Anyways, just bring the thread over here to keep the discussion going, and keep it fresh on a board I feel is more fit for it.
This is a continuation thread of the previous Washington Mutual thread discussing the legal clusterf. Basically, Washington Mutual Bank (WMB) was owned by a holding company by the name of Washing Mutual Inc (WMI). When the Office of Thrift Supervision (OTS) seized them last September, they did so under a ton of pressure from the FDIC and Paulson. The OTS had recently declared that WMB was well capitalized, placing them in Tier 1. They had plenty of cash to withstand a bankrun and could handle a huge loss on their loans. In addtion to that, WMI had a deposit with held by WMB totalling around $4B. WMBfsb had $10B cash sitting to be transferred to WMB on Sept. 30th to help capitalize the bank even further. WMB had access to around $50B from other sources if needed. So WMB was able to withstand anything the econmoy could throw at it, and they issued a statement before they were seized saying they had the capital to last until 2010.
JPMorgan was doing all they can to scare people from the bank however, and used ratings agencies and leaked confidential information to tarnish the Washington Mutual brand. They offered to by the bank earlier in the year fro $8 a common share, and the bank had been valued at $12 a share, so needless to say, WMB rejected the proposal. JPMorgan, basically put on a fake bid to extract as much info about WMB as possible, and signed a few contracts not to buy WMB unless it cam directly from them. Which they later broke the terms on by buying them through the FDIC. Hank Paulson's egotistical ass told the executives "You should have accepted the deal" as he worked with JPMorgan to screw them over. They refused to put WMB on the short sell ban list, which was quite odd considering WMB was one of the largest banks in the world. Nevertheless, they colluded and caused any havoc on the bank they could.
Despite all this, as stated in my first paragraph, WMB was able to handle all of it. The share price was horrible, but the bank was sound. Jamie Dimon and Paulson pulled a nice stunt however to try and cause a bankrun. It was all done electronically, but they and their buddies pulled around $16B out of the bank, and tried to screw up WMB's credit. The FDIC was also involved and put on an auction for the bank that had 4 bidders, but only one was allowed to bid (JPMorgan). Jamie Dimon later stated "I could of bid $1 for the bank and still got it."
On top of this, JPMorgan had 'moles' within WMB like Stephen Rotella, who now works for JPMorgan in the loan department.
So, WMI has a couple huge lawsuits pending, and they are represented by some of the best in each area they are pressing. They are using Weil to fight the FDIC in DC, and Quinn & Emmanual to fight JPMorgan in the bankruptcy court. Quinn has been having in incredible track record so far, and was able to successfully get the judge to issue a 2004 Discovery case against JPMorgan. Documents were to be turned over August 1st, which I have yet to hear anything about, but I'll be sure to relay that once I find out what happened. A couple Ihub posters said they didn't turn them over, but I don't trust those guys. I have my own sources and most of them back their claims up with Court documents, so I'll wait until I know. In the case against JPMorgan, they are suing for their $4B deposit, and damages for JPMorgan using the Washinton Mutual logos and trademarks owned by WMI. Those could posibly net WMI $16B. The 2004 Discovery could also potentially find more causes for action, or could end up delivering some damaging criminal charges towards JPMorgan. JPMorgan is taking the stance of 'delay, delay, delay' at this point, because they can't seem to win anything in the bankruptcy court. All they can do is hold things off, in hopes for a cheaper outcome. The more they wait though, the more that can come up in the Discovery process, so I don't think they have much time left.
The FDIC case is kind of just on a standstill, and I think that's going to be handled sometime in September, near the 1 year anniversary of the seizure.
Anyways, just bring the thread over here to keep the discussion going, and keep it fresh on a board I feel is more fit for it.
