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

Post de Patience (como siempre Brillante):

My main concern with the debtors' intention to "de-link" (of mediation and plan confirmation) is two fold: (1 ) such "de-coupling" will "taking bargaining chips off the negotiation table" (as EC pointed out in the Response). This is what I meant when I said in another post (Brief Comments on Debtors' Statement) "... the debtors were eventually trying to throw SNHs off the bus too. It's part of the posturing before the mediation..." However, I should expressed myself more clearly (by separating the two - mediation and confirmation, some leverages will be lost for both SNHs and EC). (2) it will have the impact (together with restricting mediation participants) of limiting settlement options during the mediation. I've always thought the mediation will have reverberating effects throughout waterfall and distribution chain (I called it the forces of interplay by and among various players). If the mediation and plan confirmation were de-linked, the reverberating effect will be gone too. I'm glad EC addressed both my concerns and pointed out the flaws in the debtors' arguments.

Some quotes from EC Response:
"Limiting the mediation, as the Debtors’ propose, only to the dispute between the Equity Committee and the Settlement Note Holders will take bargaining chips that could have been used in settlement talks off the negotiation table and move them into the courtroom."

"... the mediation should involve all major parties in interest to this bankruptcy proceeding, including... The mediation should be completed before a revised plan is presented for confirmation so that maximum flexibility is maintained to make changes in the plan to accommodate a settlement.

The Debtors’ proposal for a truncated mediation of only the dispute between the Equity Committee and the Settlement Note Holders will decidedly not clear away all unresolved issues in this case. ...

Even more importantly, limiting the mediation as the Debtors propose and proceeding with a parallel confirmation of the Debtors’ revised plan would restrict options for settlement."

EC also addressed my concern about allocating reserves and the ownership issue of Reorganized debtors. EC essentially posted the same question to the debtors "how's that possible as a practical matter" in the midst of mediation on unresolved significant, material issues?

In general, EC did another piece of great work.

La rata está hablando...

http://es-es.justin.tv/astockinvestor#/w/1867314624

La Juez ha interrumpido el discurso de Rosen y le ha metido un petardo hablando de los NOL´s y su importancia en Enero 2012. Para mi ha sido la primera vez que veo esto en los Hearings. Buena señal.

The judge

"Will the NOL be larger after January1st"

Rosen "No"

The judge repeats the question

Rosen "My understanding is no but I'll check."

Yeah Rosie, you better check twice.

La Juez no ha tragado con los planes de Rosen así que nos vamos a mediación y a maximizar el valor de los NOL´s en Enero 2012

A la vez se protege a JPM y FDIC, y a los Hedgies se les echa a la hoguera.
Vamos bien..., mientras masacre en WAHUQ :) :) :)

Eileen's latest post

JMW happy to see no one else rising. She disagrees w Debtors assertion that confirmation could forward. Mediation will be useful, and should include all confirmation issues plus disputed claims. On November 7th omnibus hearing, she is looking for an indication if some settlement can be achieved, has been achieved or cannot be achieved. All parties execpt JPM and FDIC should be involved

Juas juas juas... los zombies parece que no hay manera de enterrarlos...
Go WAMU!!!!!

http://www.google.com/hostednews/ap/article/ALeqM5g7ZlQKKOVeNDaBYLtLBn3XXb4opQ?docId=1007e82ee44f4141aef8448efbb78459

No se que peli estas viendo, pero las acciones estan cayendo, sí tan bueno fuese el hearing no estarían cayendo.

jajajaja no me tires de la lengua anda... pelicula la que tu siempre vaticinas.
2012 el fin del mundo. Mira Rosen no se ha salido con los planes y veremos que sale de la mediación... si no sale nada NOL´´s maximizadas para Enero 2012. Entonces me comentas si suben o bajan.

WGM and Brian Rosen are not the debtors...they are the attorneys for the debtors. Kosturos (and the few in his gang) is/represents/controls the debtors, and WGM works for him. As things are in the current plan, Kosturos stands to make a boat load of money with his role in the Liquidating Trust. He and WGM continue to make tons of money simply through the bilking--oops I mean billing--of the estate on a daily basis. While some have argued that Kosturos/WGM is protecting JPM and the FDIC (which may be true), it may only be as a result of that is what needed to be done to ensure personal riches for the privileged few.

With the mediation that has been ordered, the debtors and WGM run a real risk of losing the upper hand. It may be decided that it is reasonable for Kosturos to be removed from the Liquidating trust (as the EC argued) and any other involvement in the future after bankruptcy. That could end his money train as well as WGM's. If mediation is not successful, it may be delayed to a point where the value of additional NOL's from the new year cram down everyone to get to equity, the EC appeal may be heard, or other scenarios could happen that put the debtor's control of the case at risk.

If the debtors were finally backed up into this elusive corner with certainty that their cash cow would be taken from them, would they simply accept this fate saying "that sure was good while it lasted", and let equity have its share? JPM and FDIC would be making out great with significant estate assets, SNH messed up and got caught, and Kosturos/WGM would be left with what they billed (which is not too shabby, but still could be much more). If threatened with this decision, I find it would be more lucrative for Kosturos/WGM to do one of 2 things:

1. Go to JPM and the FDIC and threaten to break off the GSA unless JPM/FDIC kick in money to satisfy everyone. Quid pro quo, Kosturos may be able to negotiate with the EC to get a lucrative (although less powerful) role in the future of the company.
2. Give JPM and the FDIC a big FU and abandon the GSA and say "well, it was worth a try. Now lets really go after these guys". This means years more of billing, Kosturos and WGM retain control, and a very real possibility of a massive recovery like was talked about in the good ol' days. If won, Kosturos/WGM would be seen as heroes that recouped a record amount in bankruptcy.

Either way, even without JPM and the FDIC involved I still think equity can make out quite well if they can impress their position on a neutral/reasonable mediator.