Meritor Savings Bank (MSVP)

[MrchntDeth]

News from the FDIC!

A special thanks to vetteman1942 from the yewhoo board for the great find on philly.com:

Website established by FDIC for Meritor shareholdershere

The FDIC has established a website for Meritor Savings (MSVP) shareholders updating the latest information for the distribution to current shareholders:

Notice to Current Shareholders of Meritor Savings Bank

And special thanks to Messrs. Slattery and Buchanan for fighting the good fight and never having backed down against the goons no matter how big they are, and no matter that these goons almost always win because they are the government. Because the gov't writes the rules, they call the shots.

And another special thanks to the Hon. Loren A. Smith for having the courage and the chutzpah to tell the gov't that wrong is wrong, no matter how much of a bully you try to be, and no matter how long you try to beat the little guy into submission.

[merbendim]

54,622,581

[thurstonroyce]

Any news?

[fudgelady]

How many shares are outstanding?

[MrchntDeth]

The dollar figure cited is NOT related to MSVP.

Mesa was writing about an unrelated security that has nothing to do with the Meritor case, and while I own some shares in that "other" security, THIS is NOT the appropriate forum to be discussing THAT stock.

WRT MSVP, it is my understanding that the FDIC will begin disbursing funds to either the DTC (for those holding shares in "street name"), who will then forward the proceeds to your broker(s), and/or directly to shareholders who own their shares in the own name, and who "tender" their shares. Don't know what the procedure will be for individual holders. Sorry. I'm assuming that they'll be sending the information to your last known address (if you holder your shares in your own name). You do NOT need to worry about this issue if your shares are held in street name at your brokerage(s).

My understanding is that the dollar figure is approximately $236 million dollars (with approx. an additional $7.6 million to be held in escrow pending resolution of the Roth matter, as an Intervenor in the Slattery v. U.S. case), for a total of $244 million to be paid out by the FDIC to shareholders, after having taken out legal fees and expenses.

I hope that this answers your questions.

If not, please let me know and I'll do my best to answer what I "believe" to be the answer(s).

Please note that this is JMHO.

Ps: to Mesa, while I appreciate your enthusiasm for some other securities, this is not the proper place to tout those shares. Please be respectful to Meritor shareholders who are looking for information regarding Meritor, and not some other great jackpot play.

TIA

[thurstonroyce]

You posted $500 to $900 million in cash from the FDIC for Meritor. Where did you get that information from?

[Mesa8888]

Expect FDIC $500---$900 million settlement by cash in couple years.

O/S = 29.26 million shares

How much per shares going up be?


Mesa

[Mesa8888]

MrchntDeth , congratulations for your LONG holding shares!
I bought at $2.65/pps couple years ago.

Please check UWBK lawsuit case and do the DD

If there is the hope from $0.17/pps to $4.35/pps the same as MSVP???

They just update o/s shares from 29.43 million to 29.26 million.
And the OCC lead counsel withdraw from this case & replace by another one.
OCC can't provide the complete Administration Record.
lawsuit under expedite request and Judge said YES

I guess the low-ball settlement deal has been out on the table but the holding company need the reasonable damages compensation.

This one will be BIG TIME !!!

keep an eyes on it !!!

MESA/Missionary

[JayBird3]

Can anyone tell me where I can go to find out where things stand, and what to do and where to go when the time comes?

[MrchntDeth]

We win!

Here's the regarding Judge Loren Smith's Final Order regarding Meritor distribution(s):

PSFS shareholder funds to be released

Only $7.6 million will be set aside for Roth (in the event that he decides to appeal AND is successful). It was originally reported that $8.6 million would be set aside for this clown. And once he loses (or his time to appeal is over), and there is a final judgment against Roth, those funds will go to EXISTING Meritor shareholders.

Additionally, word around the campfire is that the bulk of the distribution of the net judgment (after legal fees and other expenses), will go to DTC for sidtribution to holders that hold their MSVP shares at their brokerages in "street name."

It is estimated that around 93% of all MSVP shares are held in street name. If it is known who owned any certificated shares, and those shares are not tendered, that money will be escheated to the state of their last known address.

To the extent that records may have been lost, and where no certificates are tendered for payment (and where those is no record of an owner or his last known address), it is presumed that those funds would ultimately also be distributed to the known (remaining) shareholders, whether in street name, or in certificated form.

Thank you Mr. Slattery and Mr.Buchanan!

[MrchntDeth]

PSFS funds move toward distribution -

The federal government is expected by the end of this month to turn over $276 million awarded to shareholders in the defunct Philadelphia Savings Fund Society, said Thomas Buchanan, lead attorney in a lawsuit that was filed in 1993. The government had argued that all of the money should be held back until a potential appeal by one shareholder was settled, Buchanan said. Instead, $8.6 million will be held in reserve, with the rest available to cover expenses and pay shareholders starting early next year, said Buchanan, who participated Thursday in a conference call with the judge to discuss the final order in the case.

[Mesa8888]

MrchntDeth, UWBK similar case in lawsuit Fed. Court since Feb.18th, 2011.
And UWBK (United Western Bancorp, INC.) attorneys request Judge expedite this case for wrongly seized bank that has been approved.

MSVP(PSFS) lawsuit has been over 19 years.
But UWBK estimate closed the lawsuit case in 3 years!!!

UWBK damaged over $400 million ($2.1 billion assets-$1.65 billion liability)........Even FDIC pay out 50% for shareholders ($200 million)........UWBK's PPS will be over $6/pps (O/S=29.43 million)

UWBK pps=$0.07/pps now and has huge potential $10/pps in the near future!

Congratulation to all MSVP shareholders

And do your DD in UWBK.pk
This is your another chance of x100 rewards of investment!!!

Mesa

[MrchntDeth]

We Win!

Current Shareholders to get PSFS Payout

Judge Loren Smith ruled that CURRENT (and NOT FORMER), MSVP shareholders to receive the $276 Million Dollar Award against the FDIC that the government chose not to appeal this past June 24, 2011.

Former shareholder Steven Roth (who sold his shares back in 1993), Intervened in the case, in an attempt to tie up the case and any eventual payout to CURRENT shareholders. Had he been successful, he would have received payment for shares that he had SOLD almost 20 years ago!

The next hearing will be December 1, 2011 Conference Call between Judge Smith and lawyers for the government and CURRENT shareholders, to discuss a Final Order (for payment of the award) . . . to CURRENT shareholders.

Payout to CURRENT shareholders is estimated to be around $4.50/share.

Congrats to all . . . and a big thanks to Mr. Frank Slattery, for bringing this case against the government . . . and for his perseverance to take this stand against the government.

A thanks also goes to Mr. Tom Buchanan for winning this case for Meritor shareholders. Congrats, Mr. Buchanan, on a job well done!

Sorry, Mr. Roth.

[MrchntDeth]

I like ABCP. Great Risk/Reward Profile (at least from MY perspective). Again, DD is SO necessary for these types of "bets," and YMMV.

In fact, I bought a small slug of ABCP after seeing a reference to it on the WAMUQ boards. You might have even been the one to clue me in on it (New York Times, "The Bank that refuses to die" October 1, 2011)

It might be a while before there is a payout, but given that the U.S. gov't has played out the Winstar related cases to the point of severely ticking off Judge Loren Smith, my GUESS/HUNCH is that it might be sooner rather than later.

I also lke that it diversifies my FIRREA Goodwill Litigation "portfolio" to reduce risk.

I'd like to know of any other publicly traded Winstar plays that might still be outstanding, so if you (or anybody else for that matter) knows of any, please post them here.

The only other one that I know of is Ben Franklin Savings (Oregon), symbol BFSL, and I DON'T particularly like that one because theirs is an uphill battle (as of right now).

D. (aka, MoD)

Ps: I no longer think of DIMEQ as a true "Winstar related" case, due to the Breach of Contract by the "gentlemen" that are running WMI, and by their gifting of the Anchor Savings Litigation to JPMC. I haven't even gone into the Breach of Fiduciary Duty by the WMI BOD. Now, WMI is the entity on the hook for our portion of the litigation that they gave away, so that the outcome of the Anchor Litigation is no longer particularly relevant.

IMHO.

[loginusername]

Hey Merch - What do you think of abcp? Another winstar case. Seems like a reasonable shot to me.

[MrchntDeth]

Ok, here is the latest info on the Meritor saga:

Steven Roth (aka, the guy that sold his 1.7 million shares of MSVP for a few pennies back in 1993, and has since had a change of heart, and would now really like to do a "do-over)," is still trying to shake us down, and tie up the money in litigation/appeals so that we don't get our money unless he gets PAID IN FULL for the 1.7 million shares of MSVP that he NO LONGER OWNS!

There has been no word on whether Roth has any intention of reimbursing the NEW SHAREHOLDERS THAT BOUGHT UP HIS SHARES the few pennies per share that he got for those 1.7 millions shares, when he SOLD AND GOT RID OF THEM over 18 years ago, or how he will account to the IRS for the tax write-off that he presumably took for that Tax Year (around 1993). Apparently, the very people that bought up his shares and ALLOWED ROTH TO TAKE A TAX DEDUCTION for his capital losses, are the very people that Roth says should be left holding the bag (and not receiving anything).

I guess that a do-over sounds really good right about now. Hey, he's 18 years too late, but I guess better late than never.

Kinda like if you buy a stock and it goes down, you want your money back from the guy that sold you his shares, and got your money. Except in this case, he SOLD 1.7 million shares into the market (and his holdings amounted to about 5% of the company). And then 18 years later, he realizes that "oops . . . he made a boo-boo."

Essentially, he wants to SHAKE-DOWN, THREATEN, EXTORT us, by holding up the entire process on appeals, and delaying our payout, hoping that Mr. Slattery will cave in and give this clown FULL PAYMENT ON SHARES THAT HE SOLD 18 YEARS AGO!

Mr. Slattery said that no agreement could be reached, as per recent reports in philly.com:

Judge to rule in PSFS court fight

I'm assuming that Slattery (and our lawyer, Thomas Buchanan), might have been willing to give Roth a token payment as walk-away money for the nusiance-value of his suit, but with Roth wanting full payment, there's no way in Hell that Buchanan was agreeing to what was referred to in the story by another investor as "white-collar piracy."

It appears that Buchanan is asking Judge Loren A. Smith for a partial order next month, setting aside 8 or 9 million dollars for this clown, and he can appeal all he wants, but he will not have any further leverage over the REAL owners of this company (i.e., the EXISTING SHAREHOLDERS), by trying to HOLD-UP the entire process until we cave in and give in to his demands.

Given how Judge Smith's views on the Goodwill Savings litigation cases, and given how long these payment are in coming, I'd wager to say that Judge Smith will agree to a partial order, setting aside (or doing a "ring collar" around the money that Roth would receive if he were to fully prevail), and disbursing the remaining money to the TRUE shareholders of the company.

"Justice delayed is justice denied."

Then, Roth will be the one that will be tied up in litigation for years and he will not be able to FURTHER EXTORT the real, EXISTING shareholders of this company.

And after Roth loses his case, the current MSVP shareholder/owners will receive the remaining payout from the money that was set aside (i.e., the 8 or 9 million dollars mentioned above.)

JMVHO

YMMV

[MrchntDeth]

The new court date regarding the Meritor Savings matter (i.e., Slattery v. the United States, Case No. 93-280C), is now set for October 13, 2011.

Thomas Buchanan of Winston & Strawn is the attorney for the named Plaintiff (Frank Slattery), and all investors similarly situated. Judge Loren A. Smith gave Buchanan 2 weeks to allow for a possible settlement with a former director at Meritor (Steven Roth).

See Former investor seeks share in $276M PSFS settlement

Roth had sold all of his 1.7 million shares in MSVP, and took a tax break for the capital losses he incurred after the bank's seizure. I believe that he sold these shares for a penny a piece. Roth is now taking the position that he should receive his share of the settlement, ignoring the fact that he sold ALL his interests in his shares about a dozen years ago.

Tellingly, Roth does not appear to have reimbursed the purchaser(s) of the shares that he sold. Apparently, you can have your cake and eat it too.

It appears that this "gentleman" is holding up the Meritor payout that we won after the government finally threw in the towel back in June 2011.

Now, the only "hold-up" (pun somewhat intended), is the Roth matter. His position is incredibly week, and I'm pretty sure that he and his lawyers are aware of that.

Nonetheless, Buchanan might be willing to give this joker a token amount (for the sheer nuisance value of his lawsuit), just to avoid the possibility of further delays from the appeals process.

I guess that we'll have more information after October 13th.

As an aside, if Roth's position were correct (and as an attorney, I most certainly believe that it is NOT), no investor/speculator would ever provide a market for shareholders of companies that file for bankruptcy.

If you had told the purchaser(s) of Roth's shares that they are buying nothing but a bunch of hot air, and that Roth would maintain all ownership rights in MSVP, notwithstanding the fact that he "sold" these shares, there would NOT have been ANY purchasers at ANY price, and Roth would not have been able to obtain the benefits of his capital losses.

It appears that any settlement (if any), would only apply to Roth, and to no other investors that dumped their shares because of the uncertainty regarding the Meritor lawsuit.

This is definitely a case of "seller's remorse." If Roth knew that these shares would ultimately be worth about $4.50 to $5.00 per share, he would NEVER have dumped them for $0.01/share. He's gotta be feeling pretty stupid to have sold his shares for a penny a piece, but would like for some of that stupidity to go away by trying to do a SHAKE-DOWN of all of the REAL owners of MSVP.

[MrchntDeth]

If everthing is still on track, Attorney Tom Buchanan (from Winston & Strawn), will be heading into court on September 30, 2011.

That's just about 3 weeks away, so we should have a little more clarity as to when we get our money.

Regards,

David

[MrchntDeth]

I LOVE UWBK, but I had been lightening up a little on a big position that I had built up in the 3-4 cents range.

But, even at 6 cents, you are buying into a plaintiff's position (with what I believe is a good shot at a multi-million dollar payout), with a stock that the market is capitalizing at around $1.8 million dollars.

Not a bad risk reward.

Additionally, I'm still in MSVP, as well, just waiting for the U.S. Government to cut us our check. No word on when this is happening, but it WILL be happening.

DB

[Mesa8888]

UWBK = MSVP x 2 or x 3 by the end of 2011

Do your DD

[merbendim]

4.60 by year end.

[MrchntDeth]

Any thoughts out there on MSVP?

Anyone?

[MrchntDeth]

Shares outstanding appear to be around 54.5 to 55 million.

Word around the campfire is that the payout here could be as high as $4.60/share.

The question then becomes one of the timeframe for all the "housekeeping" issues to be taken care of before we get cashed out.

Right now, the price is discounting that potential payout by around 9%. I've got to assume that the timeframe for payout is much less than 12 months. Payment by the federal government is guaranteed, given that by not appealing to the U.S. Supreme Court, the ruling by the Court of Appeals is final.

Any guesses as to:

1. Final payout per share?
2. Timeframe for us to be cashed out?
3. Annual Rate of Return at this price until payment?

Merchant

[MrchntDeth]

Home page to the Meritor Savings Bank Shareholder Association website:

http://www.meritorpsfs.com/index.htm

[MrchntDeth]

Thanks for the link.

I bought more today at $4.12.

The last hurdle has been removed. Now, there are just a few house-keeping details before payment is made by the feds.

Hopefully, this shouldn't take too long.

Merchant

[fixedops]

http://blogs.forbes.com/danielfisher/2011/06/24/fdic-gives-up-in-meritor-case-will-pay-judgment/

The decision, announced today on a website for Meritor shareholders, means the government likely will pay a $276 million judgment it has been fighting since 2003.

[MrchntDeth]

Anybody have have ideas/guesses as to what is going on here?

Market appears to think that the government will not be appealing this case to the United States Supreme Court, and that a payout is just around the corner.

JMHO