Washington Mutual demanda a la FDIC por 17 billones US$ + daños

My impression is that the recent change largely redistributes what would have been the FDIC's portion of the tax refunds to the WMB bondholders under certain conditions. This causes me to have several observations:

1. It is transparently obvious that there was a problem with all previous variations of distributing money to the FDIC since the FDIC admits there has been no cost to them as FDIC=Corporate and there is no reason for FDIC-Receiver to get anything from the Estate as the bidder was JPM not WMI. Therefore, there is no room to pay the FDIC anything.

2. Since the money can't go to the FDIC and since Rosen needs to tuck assets away from the Estate, the variation of this POR tries to give refunds to WMB bondholders directly (rather than through the Receivership) and the WMB bondholders have already been told by the court that there is no soup for them. The Estate owes nothing whatsoever to the WMB bondholders. Their only recourse is the FDIC-Receivership.

3. There were some attempts to make a quick buck in WMB bonds by post-bondholders (yes, I think pre and post actually makes a case with regard to WMB bonds only). Pre-seizure WMB bonds have some right to complain that they should have been notified of the condition of the bank after appropriate disclosure from regulators which the FDIC and OTS failed to do before seizing the bank. Post-seizure WMB bondholders had their eyes wide open when they bought failed bonds in a Receivership with a disclosed sale price that could only provide approximately 35 cents for Seniors and nothing for Juniors. I suspect the failed WMB bondholders include not only the likes of the Jackson227 crowd but also the deeper pockets of Fried Frank and friends. However, the FDIC answer to post-seizure WMB bonds will have to be only what is in the Receivership and that money will not be coming from WMI.

4. It seems likely to me that the very conditional expense of $335 million is an attempt to recoup money to the failed post-bondholders who are insiders in the bankruptcy reorganization. Those parties found out that they couldn't gain a full payout on failed post-bonds and now want a special opportunity from the Estate. Well, I just don't believe that would ever be allowed but maybe they will be able to fool someone else into buying their failed paper products instead. That is exactly what I thought when I saw the Starke comments recently that those boys were trying to create interest in failed WMB post-bonds because they firmly concluded their would be no hope for any payout once a Trustee is placed after the Examiner's report.

5. The election for those WMB bondholders to take a slice of $335 millions seems only attractive for post-seizure bondholders as pre-seizure WMB bondholders may still have a completely separate hope for recovery from the failure of regulators or through their ability to lean on JPM for other assets if the bonds were "covered".

In these comments I have only been talking about WMB bonds. The case for WMI bonds is completely different. WMI shares also is a different case because the WMI stocks and bonds have a different pool to make their recovery from rather than the WMB-Receivership.

Hay una audiencia programada para este tribunal de quiebras Viernes, 08 de octubre, en Delaware. La audiencia de declaración de divulgación se ha retrasado: "Sobre la base de un acuerdo alcanzado recientemente y las modificaciones resultantes del Plan y la Declaración de la Revelación, la audiencia de un asunto que ha sido seguido de una fecha que se determinará en el futuro próximo inmediato, pero en ningún caso después de la audiencia general prevista para el 22 de octubre de 2010 a las 10:30 am (EDT)."

El examinador sigue siendo la realización de su examen y lo que hay pocas noticias que le informe, si bien ha habido algunos interesantes artículos publicados desde la última actualización. Un artículo en el Wall Street Journal informó que "En una serie de cartas no revelada previamente enviado a la Federal Deposit Insurance Corp., [JPMorgan] advirtió que podría buscar miles de millones en la protección jurídica de la quiebra la FDIC que liquidó [Washington Mutual Bank] hace dos años, dijeron personas familiarizadas con la situación. Para la FDIC, la JP Morgan cantidad cartas a más de $ 6 mil millones en créditos, lo que el enano 1880 millones dólares de JP Morgan paga el receptor en septiembre de 2008, según personas familiarizadas con la situación."Este informe dio lugar a un aluvión de artículos derivados, tales como:

JP Morgan busca otra ventaja en el acuerdo de WaMu (Seattle Times);

JPMorgan puede perseguir los fondos de la FDIC para las reclamaciones de WaMu (MSN);

la demanda inusual de JP Morgan: El acuerdo de WaMu costo los miles de millones del banco, a su juicio (EFECOM);

FDIC caras costosa demanda de WaMu (Fortune).

El Wall Street Journal también publicó La historia no contada: ¿Cómo Ejecutivos de WaMu Luchó apoderamiento Gobierno, Que describe una carta, enviada a los reguladores por los ejecutivos de WMI un día antes de la toma de WMB, esbozando un plan para evitar la intervención del gobierno que "Crear capital 19 mil millones dólares más por WaMu y volver a colocarlo fácilmente para soportar las turbulencias del mercado actual -. Todos, sin un centavo de ayuda del gobierno" Los reguladores, obviamente, no dio WMI la oportunidad de poner en práctica este plan.

http://www.benzinga.com/pressreleases/10/10/n512622/washington-mutual-inc-files-amended-plan-of-reorganization-and-disclosur

I wrote the following in an earlier thread, and from everything I can see from the latest POS POR, NOTHING has changed. The Examiner's report, and the TPS issue/trial are still key.

We are still in a VERY good position. Here's why (ie, what I wrote eariler):
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ACTION a) The Examiners Report: WMI/WGM et al cannot "simply" ignore/contest the Examiners Report, especially as it (based on the Preliminary Report, of 9/7) is going to touch on almost EVERY SINGLE POINT that "Equity" has been pushing on for almost 2 Yrs.

I almost had (as another member here said) a "checking-account-gasm" when I read it. The Examiner would have to find "against" Equity's position on almost every single point, for the GS/DS/POS POR to continue as it is, which (IMHO) is highly unlikely.

Remember, THJMW appointed the Examiner to be a neutral party, to "Examine" the facts of this case in an unbiased manner. The Examiner gives her "Air Cover", to make rulings that she may have been tempted to make earlier but didnt due to the fact that she feels that she must give (as a matter of law and procedure) WMI/WGM (the Debtor IN POSSESSION) deference. Right now, no matter what their "antics", WMI/WGM have a "presumption of innocence".

REACTION a) ALL THAT (the "presumption of innocence", the "deference" to WMI/WGM) CHANGES if/when The Examiner (HER Examiner) comes out with a "Refco" type report.

WMI/WGM cant "simply" continue down their path, as they had hoped/planned a year ago.

ACTION b) The TPS Proceeding. This is the $4 BILLION dollar question. Who do these belong to? a) The TPS guys, b) WMI or c) JPM. This has to be decided as a MATTER OF LAW, by THJMW, before the DS/POS POR can go forward.

By WMI's own MOR's, the actual EXCHANGE happened at 8am on Sept 26th. They cant take that back. IF the "EXCHANGE" happened on the 26th, (IMHO) its GAME OVER for WMI/WGM & JPM.

Of all the options (ie, a,b, or c):

a) is the least likely. The TPS guys are citing some paperwork issue about the Exchanged shares never being registered in WMI's name in 30 days, but the TPS Prospectus says (pg 87) "Until such depository receipts are delivered OR IN THE EVENT SUCH DEPOSITORY RECEIPTS ARE NOT DELIVERED, any certificates previously representing WaMu Cayman Preferred Securities WILL BE DEEMED FOR ALL PURPOSES to represent (WMI) Fixed Rate Depository Shares" (ie, WMI Prefs). Game over, for (a).

c) is slightly "more" likely than (a) IF the EXCHANGE (not the EXCHANGE EVENT, but the actual EXCHANGE) took place on the 25th, BEFORE WMB was seized/sold to JPM. So WMI would then be following the agreed to "side letter" it had with OTS, to downstream the TPS to WMB, ONCE it received the TPS in the Exchange. Cant give what you dont have.

But by all accounts, including WMI's, the actual exchange only took place on the 26th, by which time WMB no longer existed, AND WMI filed for BK. Its not legal to transfer $4B out of a company on the day it files for BK, to a sub that DOESNT EXIST ANY MORE.

JPM would have to prove the timeline in its favor, to win, and (IMHO) it cant. Game over for (c).

Which leaves you with (b), that the TPS belong to WMI, and are part of the estate.

REACTION b) Add $4B to A, and A>L. Which means that Equity is WAY in the money, WMI isnt BK any more, AND WMI/WGM no longer control things (Equity does).

Which leads me to your last point:

"This debtor and affiliations and benefactors aren't going to give an inch because it subsequently exposes them to the entire mile of damages {bop's #s}. They will fight and wait it out."

This "exposure" is precisely WHY WMI/JPM/FDIC will (IMHO) eventually settle. They CANNOT take the risk that "Equity" gets ahold of WMI (and its legal rights to "the entire mile of damages").

Justin said $30B in Court, as what WMB was "worth". Lets say Bopfan is right and WMI was worth $70B (and damages would double/trebble that). THJMW is going to have to decide on "Valuation" to settle this, and that isnt going to be good for WMI/JPM.

To me, it makes sense to "settle" things for a "mere" $15-20B, which is still a bargain for JPM. (*****Remember my FDIC FOIA doc. Price is NOT settled yet******).

Pref's get paid, Q's get something (remember, Mike W got his at $0.20, not $20), and WMB Bondholders get paid. FDIC off the hook as well.

http://www.reuters.com/article/idUSTRE6955WV20101006

Estaba reservando un ultimo paquete para antes del 15 de octubre pero viendo que se barajan 2 fechas 18 octubre (ha aparecido en PR Newswire) y la fecha del 22 octubre me voy a esperar hasta después del 22 pendiente a valorar lo que ocurra ese día en Corte.

Espero que la Juez retrase cualquier decisión del DS. Rosen ahora mismo intenta adelantarse al informe del examiner para hacer un sprint final, tras 2 años e innumerables maniobras no creo que la Juez le permita salirse con la suya en esta ocasión.

Quien debe decidir que cojones está pasando aquí no es otro que el Examiner !!!!!
Rosen ya debería ser histria pero una alimaña como el es mucho más peligrosa cuando está herida

Si el 22 octubre se aprobara el DS (cosa que espero no ocurra) entonces habrá grandes movimientos hasta el mismo 1 de Noviembre así que más de uno va a estar tentado de vender/comprar con los dedos puestos en el gatillo (teclado).

Para los que deseaban más emoción el día de ayer/hoy va bien cargado.
Suerte a tod@s

Vene:

Fijate lo que pone la nota prensa

Shareholders, who will not receive anything under the company's proposed restructuring, have said it could have assets of as much as $30 billion, which counts potential legal claims. Shareholders also requested the examiner.

30 Billones y examiner... esto no está acabado.

Este paso dado por WMI es una solución más a su POR ya que los bondholders WMB eran un obstáculo.

Los accionistas siguen dependiendo del examiner y de su informe.

No encuentro lógico que la Juez apruebe el DS antes del informe salvo que tuviese indicios previos al informe de que el mismo deja fuera a los accionistas según criterio del examiner.