WaMu

DigitalDave

DigitalDave

Sexy Beast!
Guys, just letting you know, this WaMu vs FDIC thing is going to get ugly. JPM thinks they are entitled to the 4B cash that WMI owned even though they only payed 1.9B for the bank altogether. The FDIC is now getting sued by both parties (JPMorgan is just doing it to save face and have little hope of protecting what they stole). WaMu has a very strong case. Keep watching. JPM just filed last night, and I am quite certain the FDIC will have to settle in order to stay under the radar for the theft they help commit.
 
Damocles said:
So you are saying we shouldn't buy JP Morgan?
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I won't say anything as far as what to buy because, well, if we look at my picks previously they look horrible. My biggest blunder was WaMu but at the same time, I did not expect the government to step in and force their hand when Wells Fargo was on the hook to buy WaMu. The government created panic by forcing the 'biggest bank failure in the history of the US'. Jamie Dimon was pretty well connected to them and got WaMu, the largest bank in the US, at $1.9 Billion. There was cash on hand much greater than that, think about it. There isn't much talk about it yet in the news, but there should be today with JPM actually throwing their hat in there.
 
Well i will say this, if you are going to buy anything. WaMu is a penny stock now.... if they get what they are asking for, they'll be a multi-billion dollar company out of bankruptcy again.

JPMorgan seems to think WaMu has a strong case and is trying to protect itself with it's counter-suit, saying its the FDIC's fault, not theirs.
 
Just to give you an idea of how weak JPM's countersuit is, on page 9 they claim "JP Morgan Chase only had two days after being briefed by the FDIC to submit a bid and then only twenty-four hours from the time the bid was accepted by the FDIC until the time the acquisition closed to complete the single largest acquisition of a failed institution in United States history. The circumstances which led to the execution of the P&A (purchase and agreement) meant that JP Morgan Chase had limited opportunity to prepare for this unprecedented transaction."

In the 9/25/08 Conference call, JPMorgan said this:

Question: You sounded as if you really had had a lot of time to look at the loan tapes and everything else as you said. How long did you really have to get into the data rooms and do the due diligence here?

JPM Answer: I don't want to go into the details specifically but we had a lot of time. We had a lot of detail. And a lot of very direct conversations. I mean we had probably 75 people at JP Morgan Chase involved in the process, both going through data as well as talking to member of the company. And we used our full resources including our mortgage folks in the investment bank to run the loan tapes and get views on values. It was not a rushed analysis.

Question: So it was more weeks than days? Is that fair?

JPM Answer: It was... I'll just tell you it was probably one of the most thorough things that we've ever done
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http://wamuqd.com/
 
uscitizen said:
The JPM one was what I was referring to.
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I was just clarifying, since there are two of them.

Anyways, I think OTS is going to take the fall on this one, since they are the ones that seized WaMu, and the FDIC will shrug their shoulders and point the finger right at them. Even though OTS was complaining of the pressure the FDIC was putting on them to seize WaMu.
 
See what happens when you try and be nice and bail out evil corps?

Should have just let them fail as I said.
 
uscitizen said:
See what happens when you try and be nice and bail out evil corps?

Should have just let them fail as I said.
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Right usc, WaMu had capital to survive until 2010 at least. They were also positioning to sell themselves to Wells Fargo, which was in the works, but explains the pressure the FDIC was putting on OTS to seize. Jamie Dimon has his hands in the FDIC, trust me.
 
BTW, check the media blackout on this. JPM got press for sueing Washington Mutual (no mention of them putting the FDIC as a defendent as well), but Washington Mutual filed last friday and nothing was said.
 
DigitalDave said:
BTW, check the media blackout on this. JPM got press for sueing Washington Mutual (no mention of them putting the FDIC as a defendent as well), but Washington Mutual filed last friday and nothing was said.
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I wonder if that bodes well for the WaMu lawsuit. I'm tempted to buy a bit of WaMu at penny-ante pricing. This would be a good boon for WaMu...
 
Damocles said:
I wonder if that bodes well for the WaMu lawsuit. I'm tempted to buy a bit of WaMu at penny-ante pricing. This would be a good boon for WaMu...
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Are you looking at preferred or Common? In order for the common's to really be affected they need to settle or win over $5B, which is very very likely. They could get anywhere from $20-$40B.

If they win $13B, commons should go to somewhere are $4.70 a share, while $20B will make it $8.80. So... $100/.062 = 1612

1612 * 4.7 = $7,576
1612 * 8.8 = $14,185.60

You see what $100 can get you ;)

Anyways, this is a bankruptcy issue, so you might completely lose that $100. I'm not going to tell you what to do but I'm throwing a little bit at this. (On top of my original investment back when it was $4.99 a share)
 
Its easy to pick what stocks will sky rocket. just find the ones that were targeted by bear raids. Look for Naked short volume.

$100 bucks in Washington Mutual could make you 10k... worth a shot.
 
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