This board is for discussion of Washington Mutual Inc. old ticker WAMUQ now (WMIH)
TABLE OF CONTENTS
About Washington Mutual Inc
Hearing Audio Archives
About Washington Mutual Inc
Washington Mutual Inc (WAMU), is a savings bank holding company. Founded in 1889 as a loan and investment association, the company which later undergo several name chances as well as strategic shifts in it's banking and loan practices through its nearly 120 years of existence. From it's inception until 1983, WaMu operated as a mutual company deriving profits and gains to be reinvested towards services and products for its existing and future members. During the time which WaMu operated as a mutual company, a series of purchases of other banks and holdings were made as a way to expand the membership of the bank and it's services.
In 1983 the company went through demutualization following 94 years of operation. For the first time in it's history WaMu would issue capital stock onto the free market and change it's overal business purpose to "for profit", while it strives to maintain the same benefits and services that it had provided before demutualization. Shortly after converting over the company, WaMu would see its assets double in just 6 years. During that time and the years that followed, the company would go on to acquire 29 more banking companies and divisions, adding more assets to the company's portfolio. WaMu also saw the addition of several mortgage companies and a credit card division into its business plan. By 2005, WaMu had become the 3rd largest mortgage company in the United State, as well as the 9th largest credit card company.
As early as late 2006, WaMu would begin to become a victim of what would eventually become the worst recession in US history since the Great Depression of 1929. WaMu's aggressive business strategy would begin to unfold throughout the end of 2006 and become increasingly disastrous through 2007. As housing rates were at all time highs before the recession began, WaMu would use its considerable leverage and assets to make large amounts of loans in both subprime mortgages and subprime credit cards. The banking division of WaMu at one point before the end of 2007 had nearly 336 stand-alone branch buildings where various types of home loans were processed and approved. WaMu would eventually over leverage themselves due to the high number of Adjustable Rate Mortgages (ARMs). As the US economy slowed down, the number of home loan defaults began to rise in quick succession. This coupled with the falling home prices throughout most of the US meant that even with foreclosures and the properties back in the hands of the company, they were unable to sell them back into the market, or were not able to derive enough revenue from the sale to cover the loan that was made on them. In the mean time, the credit card division was also seeing a surge in the number of late and non payments being made.
By September of 2008, WaMu's stock price had fallen to $2 from its previous highs of around $50 just two years earlier. Amid strong voices from the shareholders, then company CEO Kerry Killinger was dismissed by the company board. In the meantime, the company went looking for a buyer for part of its banking division. WaMu had been unsuccessful in finding an appropriate buy until its seizure by the FDIC. Overnight the companies banking division was bought by JP Morgan Chase in a secret deal brokered by the FDIC for 1.9 billion dollars. At the time it was believed that the assets sold were worth many multiples more than what it was forced to sell for by the FDIC. Particularly troubling was that the deal was done by the FDIC as a result of the failure of IndyMac bank earlier in the year. The FDIC feared that if it did not sell the bank quickly they would not have enough capital reserves in its insurance fund to cover all the accounts should something have gone wrong. This action by the FDIC resulted in massive losses to WaMu shareholders who felt that their holdings were worth far more than what the government had forced upon them.
Shortly after the sale of WaMu's banking division, the holding company would file for Chapter 11 bankruptcy protection, citing $33 billion dollars in assets and $8 billion dollars in debts.
Presently WaMu is operating under Chapter 11 as it tries to reorganize the company. A number of lawsuits have been filed by the company and individuals against JP Morgan and the FDIC concerning potentially illegal activities regarding the sale of the WaMu banking division. The outcome of these lawsuits will have a large impact on the reorganization plan and eventual outcome of WaMu Holding Inc.
Pacer Court Filings (8 cents per page)
Kurtzman Carson Link to Court Filings
Willian Kosturos. Alvarez and Marsal
PURCHASE AND ASSUMPTION AGREEMENT
AMENDED PURCHASE AND ASSUMPTION AGREEMENT - Settlement Extension to August 30, 2010
AMENDED PURCHASE AND ASSUMPTION AGREEMENT - Settlement Extension to September 30, 2010
Large Shareholder Data
NOTE: Those numbers are no longer accurate.. See the filings for updated information. Bottom line: If they get the $4B deposit back from JPM, A/L are roughly equal.
Washington Mutual (WAMUQ) Central. Complete Info: www.WaMu411.com
The Fall Of Washington Mutual
Asset and Liability Schedule
FDIC and JPM Colluded to Steal WAMU:
FDIC Chairwoman Sheila C. Bair, together with JPMorgan Chase (JPM) CEO Jamie Dimon shared the spotlight for saving Washington Mutual (WM) depositors without costing the government a dime. The story is old by now; JPM got the good and the bad of the bank without the holding company's ugly debt. (Think Clint Eastwood.)
After the glory fades, the reality will come out that the FDIC cannot be trusted. JPM and others were conducting real negotiations with the FDIC at the same time they were conducting fake negotiations with WaMu's management. During the consummation conference call, Jamie Dimon disclosed that JPM had unprecedented access to WaMu's mortgage detail. JPM received computer tapes with the most granular mortgage detail (FICO scores, LTVs, and MSAs) to compare with their own data and develop loss projections. JPM had the time to do a true bottom up analysis.
I do not know if it is common FDIC practice to negotiate the sale of a to be closed bank without informing management. But in this case, it sabotaged WaMu's effort to sell its valuable branch system. I also do not know when the FDIC undercut WaMu's management. Was it before or after the fall of Lehman? WaMu started to face a bank run on September 15 - the day Lehman filed for Chapter 11.
The FDIC alone could be proud of its accomplishment, but in the overall context they further eroded investor confidence. Now the moral hazard has spread beyond equity holders to bond holders. While WaMu had been slowly losing deposits, the fall of Lehman and subsequent nonstop media coverage accelerated withdraws. The $16.7B (9%) deposit loss since September 15 alarmed regulators.
We are on the cusp "investing" $700B in government money to liquefy toxic bank assets and rebuild investor confidence. We got here through a series of miscalculated idealistic policies based on moral hazard. At this juncture moral hazard has proved extremely expensive with little investor confidence to show for it. Surely backstopping a Barclays (BCS) purchase of all of Lehman and a JPM purchase of all of WaMu would have bought a great deal of investor confidence at a cost far less than $700B.
Where does this leave Wachovia (WB)? The stock market and the media would have us believe that the vultures (the mode of JPM) will wait for the FDIC to serve them the carcass. There are many reasons why it is not in the best interest of the government to let that happen. Beyond the shock to investor confidence, the United States should not be limited to a handful of mega banks. JPM, Bank of America (BAC) and Citigroup (C) need competition.
The Paulson/Bernanke team has not been very pragmatic in creating value in the form of investor confidence for their bailout money. Punishing or killing shareholders and now bond holders have proved very expensive to the government. With each new implementation of moral hazard, the government has to lay out more money to lift investor confidence. The latest trade off - forgoing possibly $60B in Lehman and WaMu backstops created the need for Paulson's $700B market maker fund.
****** JPM ROBBERY EVEN ********
19-Dec-08 11:53 am
On Apr 08- JPM has eyes set on WAMU. It finds WAMU books really attractive and valuable and offers $8 per share. WAMU turns down and gets $7 bil investment from private group TPG
Fast Forward- Sept 08 - its been 5 months since JPM offered $8per share.
WAMU assures investors that it is well capitalized till 2010 with $50 billion liquidity
As per this video, WAMU CEO also sends out letter to stock holders assuring things are good http://www.youtube.com/watch?v=qCyGxV0_v...
Investors invest in WAMU as it is well capitalized, assurances from CEO and also a bailout is surely going to pass. They are in this struggle with wamu and determined to come out flying. They believe in america! They know to the core, WAMU wont be going bankrupt anytime soon. Ofcourse what they forgot is they could be ROBBED!
In all the turmoil in credit crunch, JPM sets its eyes on WAMU again. And FDIC does to. They start plotting failure of WAMU? even before single penny was withdrawn - http://online.wsj.com/article/SB12227476...
FDIC calls JPM and says be ready 3 weeks before final act!
Coincidentally in the same these 3 weeks, rating agencies cut rates from "junk" to "junk".
Coincidentally in these same 3 weeks, $16.5 billion is withdrwan, still a small percentage.
During this time, WAMU tries to sell itself
On one hand JPM is dealing with FDIC in closed doors, and on another hand, they are acting like they are bidding in open market sabotaging any other true bids.
Finally Congress steps in and discusses bailout package to save wallstreet and mainstreet. Guess what there is wamustreet, which is mainly mainstreet. Wamu investors feel good!
Bidders decide to wait one more day. ONE FREAKING MORE DAY! wait for bailout.
FDIC & JPM sense WAMU slipping out of hand, they move quickly and seize wamu thursdaynight. Obviously would a Roepeated calls from analysts to drop. Well guess what JPM is different!
And what does an average WAMU investor do? well, they blog, they helpout each other, they share their pain, they protest, and they hope -- they HOPE may be there is one soul in WAMU board, or CEO, or management OR employees OR powerful media OR one with big investment, big bucks --who is atleast couregeous enough to demand justice and for a hearing & FBI investigation.
Financial Synopsis JPM bought the customer deposits (including WAMU Holding company $5 billion cash, the future of which is yet to be determined), the mortgage loans and the bank branches. They bought nothing else.
In the last quarterly report there are other assets in there including $18.2 billion in mortgage backed securities (only 155 million of which are the dodgy sub-prime kind) and I copy full details below. What is in bold is what was not sold to JPM according to the fibber notify the owner of a house before robbing the house? Hell NO!. JPM & FDIC maintain total secrecy not to notify the CEO & board.
FDIC makes sure they dont halt trading right after seizure decision. This would allow leaking of new. They makesure reports leaked well in advance so all big fish gets out in time! http://seattletimes.nwsource.com/html/bu...
FDIC brags about the great WAMU save, forgets to mention its true owners wont get a penny, not even a penny from $1.9 billion that JPM paid
FDIC says WAMU failed
Media buys it. No mainstream media person asks what exactly does "Failed mean?" and how did you measure it?
Some People loose lot of money, Some people loose life savings, and some people even goto depression
Meanwhile another intersting story unfolds, Citi acquires Wachovia. Guess what? Citi has some heart. Unlike greedy, crooked JPM, they do leave WB shareholders with fair value. It is a common practice for many huge companies to honor shareholder value to certain extent. BAC bought countrywide and honored their deal even after rlings. The numbers are in millions (i.e. 7,235 is $7.235 billion)
Cash and cash equivalents
$ 7,235 $ 9,560
Federal funds sold and securities purchased under agreements to resell
Trading assets (including securities pledged of zero and $388)
Available-for-sale securities, total amortized cost of $25,756 and $27,789:
Mortgage-backed securities (including securities pledged of $121 and $1,221)
Investment securities (including securities pledged of $112 and $3,078)
Total available-for-sale securities
All the following is what was sold to JPM
Loans held for sale
Loans held in portfolio
Allowance for loan losses
(8,456 ) (2,571 )
Loans held in portfolio, net
Investment in Federal Home Loan Banks
Mortgage servicing rights
$ 309,731 $ 327,913 ________________________________________________________________________________________________________________________________________________________________________
RSS Feeds RSS Feeds:
Newest 250 WMI documents on the docket, updated hourly from KCCLCC http://feeds.feedburner.com/WMI_08-12229_Newest250Documents ________________________________________________________________________________________________________________________________________________________________________
Hearing Audio Archives WMI Hearings - Audio Archive - www.viewip.net/WMI/Hearing
Court Documents/How Court Works
Court Documents: http://www.kccllc.net/wamu
Click on 'Court Documents'. The documents listed are exactly what is on Pacer, and include every document filed in court.
However, there is a delay of several hours before the documents get posted there.
You can get a Pacer account and will see the latest filings much sooner: http://pacer.psc.uscourts.gov/
The signup is free, but you will have to pay 8 cents for each page viewed.
How Court Works:
All these court proceedings are pretty simple. Once you start reading some of these filings, you'll see that.
The 2 main things are motions and orders.
A motion is when somebody asks something from the court. An order is where the court 'makes it so'.
An order due under certification of cousel is an order that only needs to be revised by the lawyers and then the judge will sign it.
A motion usually has the order granting it attached, to make it easier on the judge, since all they need to do is sign it.
Usually they try to agree on the motion, and then the judge just signs it (orders it).
Other times, someone will 'object' to the motion, which means they don't like it, or something about it.
If a motion is unopposed (nobody objects), the judge will mostly just sign it, unless she disagrees with something in it.
Sometimes they will discuss the motion in court, and change stuff, so they can all agree. That's when you'll see that 'Order due under certification of counsel'. The atty's will rewrite it to match what was agreed upon in court, give it to the judge, and she'll sign it.
If they can't agree the judge will make a decision and grant(make it an order) or deny the motion. But she really hates to do that. She wants em all to agree somehow.
The players are: WMI (the debtors), the US Trustee, the FDIC, JPM, and various other creditors/creditor associations.
WMI Deposit Statement showing $3.7B deposit:
Form 8-K WASHINGTON MUTUAL, INC For: Jun 26BY 10K Wizard
- 3:54 PM ET 06/26/2009
Filed on: June 26, 2009
CHAPTER 11 : http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter11.html#reorg
Kurtzman Carson Link to Court Filings
Wamu calendar of court dates (*note: may need to refresh a couple of times, this link sometimes gives an error message)
Twitter updates during court proceedings when possible
Links to audio dial-in during court proceedings, and archived audio from previous hearings
Wamu Creditors' Committee site, some pertinent info and FAQ
http://en.wikipedia.org/wiki/Washington_Mutual Wikipedia Wamu page, info and 50 links to outside news
http://en.wikipedia.org/wiki/JPMorgan_Chase#Controversy Wamu on Wikipedia JPM page
PDF of Wamu's lawsuit action against the FDIC
Office of Thrift Supervision (OTS) fact sheet on Wamu dated Sept. 25th 2008
FDIC's Wamu page
FDIC press release the day of the seizure "JPMorgan Chase Acquires Banking Operations of Washington Mutual" - September 25, 2008
Link to FDIC P & A of the Wamu sale
ROI Stock Calculator
SOME SELECTED MEDIA LINKS:
WaMu Truth: JP Morgan and FDIC Take Out Washington Mutual Video
Washington Mutual's Legal Team Turns on WaMu Shareholders & Equity Committee - January 12, 2010
Washington Mutual Shareholders Asking Questions About FDIC - March 3, 2010
WaMu, JP Morgan Near $4B Deposits Deal - March 8, 2010
Why WaMu Stock Has Soared: It's A "Cheap Lottery Ticket - March 10, 2010
WaMu Holding Company Reaches Settlements With FDIC, Chase - March 12, 2010
WaMu Falls on JP Morgan Settlement on Cash, Tax Refund (Update 3) - March 12, 2010
WaMuTruth.com & Washington Mutual Shareholders Denouce Global Surrender of the Company to JP Morgan & FDIC - March 14, 2010
Washington Mutual, Inc. Announces Global Settlement Agreement With JP Morgan Chase and FDIC (Press Release) - March 12, 2010
Jamie Dimon's Letter to Shareholders - Increased Profits from Seizure of WaMu - March 26, 2010
WaMu Shareholders Can Persue Annual Meeting - April 21, 2010
WaMu Is Seized, Sold Off to J.P. Morgan, In Largest Failure In US Banking History - September 26, 2008 (WSJ)
Goldman makes the Short List - Is the Wall Street giant "playing with fire" by recommending short sales of struggling financials like Washington Mutual? - May 5, 2008 (Roddy Boyd) ** Goldman's recommendation to short Wamu, right after they brokered the TPG deal. **
WaMu Insider Trading and Naked Short Selling - October 19, 2009 (Mike Stathis)
The Biggest Banking Heist in World History: Washington Mutual - October 1, 2009 (Mike Stathis)
Interesting articles/opinions about Wamu, the FDIC, JPM, and the trading activity that went on prior to seizure.
Kirsten Grind's excellent article of 12-07-09, shows in detail that Wamu was railroaded by the FDIC. Also, a previous article by Grind, written on the anniversary of the seizure and giving a good synopsis of events leading up to the seizure, may be found here:
And more from Kirsten:
http://www.ghostofwamu.com/Audio/DaveRoss.mp3 *9.5 mb Mp3 file, so allow some time for download, cut down to just the interview portion.
Radio 97.3 Seattle 12-09-09, Dave Ross interview with Kirsten Grind and Al Scott of the Puget Sound Business Journal-Why did they close Wamu?
Kirsten Grind interview from KTS9 TV on youtube.
The Nasty JPMorgan-WaMu Fight - February 9, 2010
A list of common acronyms:
A/L = Assets / Liabilities
JPMC/JPIG = JP Morgan Chase
AH = After Hours
JD = Jamie Dimon / Jack Daniels
AUSA = Assistant US Attorney
MM = Market Marker
BOD = Board of Directors
NSS = Naked Short Sale
DD = Due Dilligence
NOL = Net Operating Loss - Appears to be AWOL
DOJ = Dept of Justice
DS = Disclosure Statement
EC = Equity Committee
PM = Pre-Market / Private Message
EOD = End of Day
SJ = Summary Judgement
EOM = End of Message
TIA = Thanks in Advance
EOW = End of Week
THJMFW = The Honorable Mary F. Walrath
FF = Frankfurt Germany
UST = United States Trustee
GLTY = Good Luck to You
PS = Pink Sock
GLTA = Good Luck to All
PPS = Price Per Share
HOD = High of Day
BR = Brian Rosen
IMO = In My Opinion
SS = Steve Susman
| = BR || WAG = Wild Ass Guess |
| DWE= Dick with Ears [J.Hochberg] || MOR = Monthly Operating Report |
| FJR= Federal Judgement Rate || BGSTFU = Big Glass of Shut The F Up |
NYSE "behind the dot" or Nasdaq fifth-letter codes and other special codes
| A - Class "A" || K - Nonvoting (common) || U - Units |
| B - Class "B" || L - Miscellaneous || V - Pending issue and distribution |
| C - Continuance - or Nasdaq exception || M - fourth class - preferred shares || W - Warrants |
| D - New issue || N - third class - preferred shares || X - Mutual fund |
| E - Delinquent SEC filings || O - second class - preferred shares || Y - American Depositary Receipt (ADR) |
| F - Foreign || P - first class preferred shares || Z - Miscellaneous situations |
| G - first convertible bond || Q - In bankruptcy || Special codes |
| H - second convertible bond || R - Rights || .PK - A Pink Sheet, indicating over-the-counter |
| I - third convertible bond || S - Shares of beneficial interest || SC - Nasdaq Small Cap |
| J - Voting share - special || T - With warrants or rights || NM - Nasdaq National Market |
___________________________________________________________________________________________________________________________________________________________ Here's how old shares relate in value to the new share.
THE NEW COMPANY
Washington Mutual Inc. has reorganized to Washington Mutual Holding Inc.
(WITH SHAREHOLDERS INTACT)
WASHINGTON MUTUAL EMERGES FROM BANKRUPTCY ON 3/19/12
WMI STARTS TRADING UNDER NEW TICKER (WMIH) 3/28/12
OPENED AT .63 CLOSED AT $1.00 HOD $1.10
1 WAMUQ = 0.03349842 WMIH
1 WAMKQ = 0.4950146 WMIH
1 WAMPQ = 19.8005825 WMIH
1 WMIH = 29.85215422 WAMUQ
1 WMIH = 2.020142436 WAMKQ
1 WMIH = 0.050503565 WAMPQ
WMIH 8-K Filed 4/16/12