APP - FDIC/JPM vs WaMu

DigitalDave said:
1st filing, p. 22

"22. There is substantial evidence that, contrary to Debtors’ unsupported
assertions, at the time of the receivership and at all relevant times before the receivership, WMI, WMB, and WMBfsb were solvent. Indeed, the OTS found that “WMB met the well-capitalized standards through the receivership date.” (OTS Fact Sheet 9/25/2008 (emphasis added).)"

Funny thing is, that seems like a Fruedian slip, because they are admitting that we were solvent, which the 'Debtors' were saying all along. They point to the OTS fact sheet to show that we WERE solvent. But yet they say "contrary to Debtors' unsupported assertions", they pay these guys big bucks to be this dumb.. lol
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lawyers, love em or hate em.
 
"21. The acquisition included, among other things, a nationwide credit card
lending business, a multi-family and commercial real estate lending business, and nationwide mortgage banking activities. JPMC’s acquisition avoided an interruption in WMB’s banking services. It assured that the 2,207 branches operated by WMB, as well as the 26 additional branches operated by WMB fsb, opened for business on September 26, 2008, protecting the interests of employees, customers, vendors, and communities who were dependent on WMB’s banking operations. JPMC paid $1.88 billion dollars to the FDIC for these and other assets, and assumed all deposits. This transaction involved no financial assistance from, or cost to, the FDIC’s Deposit Insurance Fund. This stands in contrast to other recent bank failures such as the FDIC’s sale of IndyMac Federal Bank FSB, which cost the FDIC approximately $10.7 billion, despite IndyMac being a much smaller bank than WMB."
 
Superfreak said:
yeah, I saw that... I am trying to remain objective in the sense that this still may drag out for a while. Dimon is not going to go quietly.
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I'm prepared for this to go a couple years. I think it will be near the end of this year, but if not, then I'll jsut be paying capital gains tax rather than income tax ;)
 
I'm still buzzing from the massive gains from HGSI... Dude, I got that stuff at an average cost of 1.20, at one time today it was above 16.00... That's earnings..

:D

I'm looking forward to this one paying off too.
 
Media tone is starting to shift away from 'WaMu failed' to 'WaMu was given away'

http://online.wsj.com/article/SB125007909275825709.html?mod=googlenews_wsj

"Mr. Dimon, who claims his bank never needed the $25 billion it returned to the government in June, seems to have forgotten the government's aid to his firm in the purchase of Bear Stearns Cos. and Washington Mutual Inc. last year, not to mention its aid to the banking industry in the crisis, which certainly would have leveled J.P. Morgan had the government not stepped in and backed Wall Street with the nation's credit."
 
Hold tight guys :) There is no news other than this week marks the 1 year anniversary and another Omnibus hearing at the end of the week. It will be up all week.
 
DigitalDave said:
Hold tight guys :) There is no news other than this week marks the 1 year anniversary and another Omnibus hearing at the end of the week. It will be up all week.
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There was likely a lot of short covering today, I would expect a slight pullback tomorrow. 75% gains on no news?

That said, I agree that a hold is appropriate until this thing is settled, unless you want to risk the potential upside to capitalize on a potential pullback.
 
http://www.thestreet.com/_yahoo/sto...amage.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA

At first, this article didn't even mention the WaMu fiasco, but he was probably alerted that we had a case against JPMorgan already. But, today, the Judge ruled that JPMorgan filed a frivilous appeal against a previous ruling of hers to keep the dispute in her court. They are F'ed, and have no wiggle room. This is the first time I've seen the rumor of settlement actually surface on a mainstream business site. Warning JPMorgan investors to be prepared.
 
DigitalDave said:
http://www.thestreet.com/_yahoo/sto...amage.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA

At first, this article didn't even mention the WaMu fiasco, but he was probably alerted that we had a case against JPMorgan already. But, today, the Judge ruled that JPMorgan filed a frivilous appeal against a previous ruling of hers to keep the dispute in her court. They are F'ed, and have no wiggle room. This is the first time I've seen the rumor of settlement actually surface on a mainstream business site. Warning JPMorgan investors to be prepared.
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I wish I would have kept the original article. His 'updates' bring up most of the points I shot to him in an email this morning after reading the original article.
 
Yeah, the first article basically said 'Washington Mutual may go after JPMorgan as well if Lehmans succeeds.'

I was just thinking, is this guy an idiot or are we just extremely brilliant to already know this...
 
These WallStreet 'Analysts/Reporters' have really not been doing their job at all. It's amazing how ignorant they sound, and I've just gotten to the point where I just won't listen to them anymore. They don't do any research, they just base every assumption off of their incredible 'smarts'.
 
Here is some more shady shit from Chase:

http://www.prnewschannel.com/absolutenm/templates/?z=0&a=1898

(PRNewsChannel) / November 20, 2009 / Cupertino, Calif. / In a victory for former home equity line of credit (HELOC) customers of Washington Mutual Bank ("WAMU") who have been harmed by Chase’s broad-based HELOC credit reductions and suspensions, a federal court on Thursday denied a motion by JPMorgan Chase Bank (NYSE:JPM) that sought to require former WaMu customers to sue the F.D.I.C.—even in those instances where Chase itself is alleged to have acted illegally.


Cupertino homeowners Jeffrey and Jenifer Schulken, who originated their HELOC with WaMu, had their line suspended by Chase earlier this year when Chase claimed the couple’s finances would not allow them to make their HELOC payments. This is despite the fact the Schulkens enjoy excellent credit scores, maintain steady incomes, always make their payments on time and even pay extra toward the principal. The Schulkens responded by filing a lawsuit seeking class action status on behalf of all Chase customers who have had their HELOCs suspended or reduced unlawfully.

Chase responded by filing a motion to dismiss that argued it had no responsibility to former WaMu borrowers. According to Chase, although it purchased WaMu’s assets, it supposedly did not acquire any liability—even for its own misconduct. “Chase’s unprecedented position was fairly simple: Chase can harm former WaMu customers with impunity, and anyone who suffers damages should have to go sue the F.D.I.C.,” says the Schulkens’ attorney Jay Edelson, whose law firm, KamberEdelson LLC, has filed similar class actions against Chase, WaMu, Wells Fargo and Citibank. As Edelson explains, “Under Chase’s reasoning, it could seize former WaMu borrowers’ homes by force and throw people out on the street, and the only recourse would be for the former WaMu customers to sue the F.D.I.C. The court saw through Chase’s arrogant– and frankly scary – position.”

Chase purchased WaMu from the F.D.I.C. in September 2008 for $1.9 billion. Through creative “purchase accounting,” experts have forecast that Chase will realize a $29 billion windfall as a result of the acquisition.

“Its have your cake and $29 billion too,” continued Edelson. “Chase was supposed to use the bailout money to lend to consumers—not to freeze up credit lines. More than anything, it shows that Chase’s attitude is that no matter how poorly it behaves, the government should be on the hook for its improper acts. Its as if the bailout taught it nothing.”

Edelson had called upon Congress to act, a movement that is gaining significant support. “Call your Congressman and ask them where the bailout money went. It isn’t being used to get credit flowing, that’s for sure.”

Edelson is joined in the suit by KamberEdelson (http://www.kamberedelson.com) attorneys Evan Meyers, Steven Lezell and Irina Slavina.

About KamberEdelson: Jay Edelson testified before the U.S. Senate in 2008 in connection with the contaminated pet food recall, in which his law firm was lead counsel and achieved a result in a settlement of over $24 million. He has a reputation for bringing and winning high profile class action lawsuits. Just last year, Edelson settled a nationwide case involving lead paint contamination with Thomas the Tank Engine & Friends Wooden Railway children’s toys that was valued at over $30 million.

Media Contacts:
Glenn Selig
PR Firm: The Publicity Agency
(813) 708-1220 x 7777 Cell: (813) 300-5454
Email: glenn@thepublicityagency.com (BlackBerry)

Justin Herndon
PR Firm: The Publicity Agency
(813) 708-1220 x 7778 Cell: (813) 528-6815
Email: justin@thepublicityagency.com (BlackBerry)

Source: kamberedelson.com
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So Chase tryed to push their illegal activity off on the FDIC. Like's like you are striking out Mr. Dimon. Did you also notice Chase should realize a $29 Billion windfall?

That will most certainly cost the FDIC for that mistake.
 
BTW, SF and Damo, have you looked lately at new law on the NOL's? Can we say KACHING!? lol

Anyways, they can now go back 5 years on the NOL's since they never took TARP money. WMI owns the NOLs and JPM can not claim them. Judge Mary Walrath already ruled that WMI own's the NOLs last year, but now they just increased in value by at least a couple billion.
 
With all this shady (outright illegal?) background to the WaMu fiasco coming out, have former share holders and/or WaMu customers considered filing a class action suit of their own? I dumped WaMu from my portfolio for other reasons over a year before the JPM/FDIC heist, but I know a lot of shareholders were badly hurt in the proceedings.

I'd like to see JPM/Chase sued into non-existence, personally.
 
My son has an immaculate credit history, score well into the high 700s. He had a WaMu rewards credit card which he used for casual purchases, then paid it off each month. Only once did he keep a balance for 3 months - to buy a 54" plasma TV. His WaMu card online account had a very nice feature - for free - that kept a running tally of his credit score, plus auto pay and other niceties. First thing Chase did when they took over is halve the rewards for purchases, and take away most of the online features. Then they lowered his credit limit for no reason what so ever. Then not long ago they upped his standard interest rate (6.49%) to a variable rate: prime + 16%. By that time he'd shifted his casual purchases to another card, so didn't bother him much, except for the principle of it.

And they actually stated the reason for their change in policy right on the form: to "keep his account profitable."

Since when is almost 20% merely "profitable" - especially on a low risk account? It's more like outright robbery.

Or do they know something we don't? Like maybe an upcoming severe money crisis ala late 70s, when an interest rate of 16% barely kept up with inflation? OR are they anticipating taking a big bite in the butt from their outright theft of WaMu.

Not only do I hope they are sued into oblivion, I also hope several of the higher ups find themselves making little ones out of big ones at a federal pen.
 
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