Dime Bancorp Inc (fka DIMEQ)

[Bluzie2]

IMHO, it's hard to overstate the "wow" factor.

The vast majority of Wamu's argument in its motion for summary judgment relies upon analyzing Section 4.4 of the LTW Agreement and contrasting it to the Golden State Warrant Agreement.

http://www.kccllc.net/documents/0812229/0812229101103000000000031.pdf

For example, one of Wamu's most important arguments is that it hasn't breached Section 4.4 of the Warrant Agreement. After a page long introduction, at p.28 they start contrasting the Golden State agreement with the Dime agreement. They even go so far as to state:

"A letter sent by Dime to the [SEC] regarding the LTWs explicitely confirms that DIME was aware of the distribution of the Golden State Securities and had carefully analyzed their structure and governing documents - including the Golden State Warrant Agreement - in preparation for its own issuance of the LTWs." p. 29

The motion then goes on to make a big deal of the use of the word "shall" in the <draft> Golden State warrant agreement versus "may" in the DIME on - except that as the LTW Class has now pointed out, the final Golden State agreement also said "may," and the LTW holders there got paid out after the Citi merger.

In its reply memorandum in support of its motion for summary judgment, Wamu argues that the court can take "judicial notice" of "securities filings related to precedent transactions for similar litigation participation securities, such as those issued by Coast and Golden State." Sadly for them, they provided the court with the wrong document to consider, as the court is now aware. So they essentially said "court, look at this, trust us," and the information they provided was wrong.

The whole thing is a mess. I can't imagine the court will allow their motion to dismiss under any circumstances, and I'd be stunned if their arguments carried the day in the end. This is really big.

It's also really big for WAMUQ and WAMPQ, but I don't think people there realize just how this may eviscerate Wamu's credibility (and the credibility of any witnesses they may put forward).