WAMUQ Stock Quote, News, Charts

About  Washington Mutual Inc.

Washintgon 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 existance.  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.  Durign 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 companies 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 mortage 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 incresingly disaterous through 2007.  As housing rates were at all time highs before the recession began, Wamu would use its considerable leaverage 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 eventully 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 with the falling home prices throughout most of the US meant that even with forclosures 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 belived 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 it's 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.

_______________________________________________________________________________________________________________________________

The following screenshot is from WAMUQ Ch11 filing in Delaware. It shows that the company anticipates having enough funds available for

unsecured creditors, i.e Shareholders.  This indicates that the shares will NOT be worthless. Also from the filing: Assets $32B, Debts: $8B.

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 - Video

WAMUQ'D The Movie: www.WAMUQD.com (Awesome Website!!)

Asset and Liability Schedule: www.kccllc.net/documents/0812229/0812229081219000000000011.pdf

Equity Commitee (Shareholder's Rights during Ch 11): ceb.com/newsletterv3/business_law2.htm

Pacer Court Filings (8 cents per page): http://pacer.psc.uscourts.gov/

Kurtzman Carson Link to Court Filings: http://www.kccllc.net/wamu

Willian Kosturos. Alvarez and Marsal: http://www.alvarezandmarsal.com/index.aspx

WaMu Rape by FDIC Document: www.fdic.gov/about/freedom/Washington_Mutual_P_and_A.pdf
 

Large Shareholder Data: http://data.cnbc.com/quotes/WAMUQ/tab/8

Institutional Holders: http://www.mffais.com/wm.html
 

Great Video on What Happened: revelationsmedia.com/

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.

If the government lets another large financial or insurance institution fail, or severely punishes their shareholders, Paulson's $700B slush fund would be the same as you know what in the wind. Proactively, the most cost effective thing the government can do to prevent bank runs is to raise the FDIC insurance limit from $100K to at least $1M for individuals and $5M for businesses.

****** 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 Robber 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 repeated 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 (Thanks rheddle):

 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 filings. The numbers are in millions (i.e. 7,235 is $7.235 billion)

From the last Q:

Assets

Cash and cash equivalents
$ 7,235 $ 9,560

Federal funds sold and securities purchased under agreements to resell
2,750 1,877

Trading assets (including securities pledged of zero and $388)
2,308 2,768

Available-for-sale securities, total amortized cost of $25,756 and $27,789:

Mortgage-backed securities (including securities pledged of $121 and $1,221)
18,241 19,249

Investment securities (including securities pledged of $112 and $3,078)
6,134 8,291

Total available-for-sale securities
24,375 27,540

All the following is what was sold to JPM

Loans held for sale
1,877 5,403

Loans held in portfolio
239,627 244,386

Allowance for loan losses
(8,456 ) (2,571 )

Loans held in portfolio, net
231,171 241,815

Investment in Federal Home Loan Banks
3,498 3,351

Mortgage servicing rights
6,175 6,278

Goodwill
7,284 7,287

Other assets
23,058 22,034

Total assets
$ 309,731 $ 327,913

COURT CALENDAR:     www.my.calendars.net/wmi

Updated Calendar for WMI events:

5/11/2009 Texas suit: FDIC response due to Ins Cos response to FDIC motion to remove to D.C. or dismiss

5/13/2009 Objection deadline for WMI motion for examination of JPM alleged misconduct (Del)

5/14/2009 JPM reply due to WMI and FDIC responses to JPM intervene motion (D.C.)

5/20/2009 Court date, Omnibus (includes reorganization extension; motion for examination of JPM misconduct) (Del)

6/15/2009 (approx) FDIC response due to WMI suit; extended by 4/14 waiver (D.C.)

6/24/2009 Court date, Omnibus (Del)

7/23/2009 WMI reorganization plan due (if exclusivity extension accepted) (Del)

9/21/2009 WMI reorganization plan acceptances due (if exclusivity extension accepted) (Del)

 Summary Assessment by Blind Bus Driver:

It's really complicated!

There is an obvious trend afoot here. WaMu is 4th is a series of high-profile institutions to "fail" (by regulation). In each prior case the company had weeks, if not months, to sell off assets to raise cash and avert the problem. But none of them did anything like that. They just continued to be in denial and pander to the public with statements that there was no problem, FOR THEM. Until it was too late. The Fed is the cause of this, and NOT the insolvancy of these institutions.

In each case, the Fed regulators stepped in and took over, and sold assets. They had this stupid "Mark to Market" rule that gave them the right to do that. And in each case they also confiscated "the books". And now the courts are involved. And the many lawyers are just loving this. After the Fed makes its initial move I doubt any more assets will be sold until the dust clears, many months from now. This is turning into a gigantic political scandle and swindle, and WaMu is just one victim.

From the most recent press release it sounds like there is official acknowledgement that the $5B on deposit at the former WaMu bank, now JPM bank, does IN FACT, belong to WaMu Holdings. And THAT is a direct benefit to we shareholders. From my viewpoint that was the most important issue for us.

The $5B is safe where it is for now, in a bank. But WaMu is pushing for actual re-possession of the money; a withdrawal. So what would WaMu do with it if they got it back? Put it into ANOTHER bank. Or maybe start another bank to put it into. I don't think they really NEED the money right now for any specific operational purpose.

It looks to me like WaMu is trying to get the money back in order to do some real physical damage to JPMorgan. And rightfully so. From my viewpoint there is some real heavy duty "hanky panky" going on behind the scenes; corruption at a very high level involving the Federal Government. It looks like there are going to be at least two major law suits filed against JPMorgan. This is going to turn into a magnificent "soap opera" that will be entertaining for a long while. But I don't think it will affect OUR SITUATION much going forward.

Now that WaMu's ownership of the $5B seems to be settled, What's left to be done? WaMu needs to get their records back so they can determine the value of what they still own. THAT will translate directly into a valuation for each share of WaMu stock. That is what we, as shareholders, want to know. Right? I think the $2+ estimate is in the ball park.

As far as the BK goes, that could be discharged at any time at the discretion of WaMu, whenever they feel they no longer need the Ch11 protection. The BK was voluntary to start with and can end quickly with the filing of one court document.

As far as we know, WaMu's assets exceed their debts by several multiples. So paying off their creditors is really not a big issue. We just don't know the financial details. As the info becomes available the stock price will be adjusted, higher and quickly. That is, barring any unforseen bad circumstances developing.

The damage has already been done to WaMu. I really don't anticipate any more bad news. But I do see a lot of bad news forth coming for JPMorgan. From what I understand, the Wall Street "smart money" is gobbling up these WaMu shares and buying PUTS on JPMorgan that has a relatively high PPS right now.

I am not sure if that arbitrary restriction against shorting the 500 financial institutions has been recinded. But when it is removed- watch out! I have heard that there are another thousand banks across American that can be put into failure mode by the Fed. The question is, will they do it?

For WaMu shareholders, we are "ready to launch and the countdown has begun".

All just my opinion...

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
http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=6394997

Filed on: June 26, 2009
 

Fridays Video chart by Clayton

http://investorshub.advfn.com/boards/playvideo.aspx?v_id=193