3...2..1...Ignition
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Blue,
Thanks for the link, if I read his correctly there goes the "qualified acquisition" of 450MM, based on the 600MM gross offering ? - text from the article:
BK,
Why in your opinion was the FDIC-R not released? Another scrivener's error perhaps?
As always your input is appreciated.
Uncle Bo
They don't speak anyway so...it has been an extended quiet period.
BK,
Thanks for the comments, understood what you mean. We just wait and see. But the bottom line is that he has stepped aside and is letting the events unfold.
After the shareholder meeting he went to a room and spoke with Olson for about an hour or so. Maybe a good sign.
I wish for everyone that the long wait be over finally.
Uncle Bo
BK,
MW has never been in control, he was the chairman of the board, but that doesn't mean he could single handedly make decisions. Having said that MW is now Chair of the Audit committee - you know, it is the "circle of trust" - he is watching them!
As to GD you are absolutely correct and yes, we are riding the coattails As Blue has said many times. For the life of me, I cannot still fully explain why the HFs brought in KKR. I have always viewed this as a positive for former equity, but as to the "Why" - perhaps it is the GD factor and Capmark, perhaps...
GLTA,
Uncle Bo
Form S-3 - Registration statement under Securities Act of 1933
https://www.sec.gov/Archives/edgar/data/933136/000119312515243166/0001193125-15-243166-index.htm
Mine is 18.88
Dion,
The last missing piece is an S-3 (perhaps) filing - shelf registration which would at a minimum list the 3.5B authorized. It may also include registration for the issuable preferred, debt, warrants, rights and others. Sort of a blanket filing, but they have to have it ready before closing on an acquisition.
This is what they said "use reasonable efforts to file within 180 days from Jan 5th" - as Don posted few days ago. Here is a sample one:
https://www.sec.gov/Archives/edgar/data/38984/000119312513358687/d593090ds3.htm
Will WMIH file form S-3 before July 5th
Blue,
Based on your post, do you expect us to see a form S-3 filing within the next week ?
Uncle Bo
completely unrelated...?
and you know this for sure, BK ? How ?
Uncle Bo
Brain cancers like Beau Biden’s kill about 15,000 adults each year
http://www.msn.com/en-us/news/us/brain-cancers-like-beau-biden%e2%80%99s-kill-about-15000-adults-each-year/ar-BBkszxs
BK,
Let me ask you this - do you think they hired the CEO to sell pop corn or ice cream ? For most of his career he has been "Chief Credit(Risk) Officer (read what the responsibilities are), I mean does the experience matter...at all, no ?
Uncle Bo
Uz,
Good to hear from you, I like Lindi - LOL !
Well, in a nut shell, they (the BOD) are being coy - we are still looking, more actionable deal flow, have not consummated transaction etc., etc.
A key hurdle to clear was to get them executives stock grants, now that this is out of the way WMIH is ready to run and the price has started to build up in the last few days as I have predicted and expected.
It looks like the "acquisition" would be some sort of a debt portfolio assumingly at a "steep discount". Upon that the NOLs would become more meaningful and WMIH will stop reserving against them 100%, therefore some book value per share would be almost instantly "produced". An interesting piece of info came out today that the new execs get vested in all of their shares upon a "qualifying acquisition"
If none of this happens in the next few weeks, the stock will get trashed perhaps below $2 - all IMHO.
Uncle Bo
Let's close above $3 today - GLTA
DPincus,
Well said, a lot of us would probably restructure their position on the first significant move and then re-evaluate. We have almost arrived, I don't not buy the notion which they were attempting to sell and the shareholder meeting - we are continuing the search for acquisition etc. I believe, they have it - we don't know it.
Uncle Bo
Quote from: boarddork on Yesterday at 04:55:42 PM
Board,
Remember the letter to the shareholders on March 19th...
Drrugby,
5% down payment - 600MM, yeah ?
Uncle Bo
Aladin,
Thank you, this is a great slide!
The only missing piece of information would be to learn who is the owner of the trust certificate/s of the disclosed JPMs - R-203, still active 38B in loans of which 8B are non performing meaning 60+ days late. The latter would a prime candidate for sale at a steep discount - "distressed asset" etc.
Uncle Bo
BBANBOB,
Not yet, the new guys need to get onboard then I would agree...expect more stock grants after they are appointed.
Uncle Bo
Yes, he does - were you at the meeting ?
Hey Rockie,
I expected a good trashing of the stock today, it did not happen. There is always the "chance" they will do it tomorrow or the day after. Unless...the filings start to hit the wire.
Uncle Bo
SH Meeting notes, the wait continues...or may be not ?!
The meeting:
The business affairs on the agenda lasted 18 minutes exactly including counting of the votes. MW suggested a short break to count them, but Chuck promply assured him, nop no need for a break "get'er done and over with". Someone noticed after the meeting that he had a nice tan, it must be from the long hours of hard work at the office. The attendance was not huge, perhaps 30-40 people and some of them kept walking in during the first 10 minutes or so after the meeting had begun. The views were magnificent and there was a free sugar offering, I had a regular coke and a brownie. In other words, guilty as charged !
IMO: -They knew voting is a formality, we knew it, they called it - done, we are in Delaware as MW pointed out (and it was reported already) most likely the reincorporation would be completed around mid-May
Mike W. thanked the shareholders for personally attending the meeting and told us that the WMIH employees work many jobs for just one salary...He also said with a big smile hat Gene D. will provide the update on the business development front and pointed out how happy we are to have the two new execs and Tagar Olson from KKR.
IMO: - employees working really hard means...compensation is justified or what what I would like to have heard is - "we have been as busy as hell"
Tim Y. (CFO) did a brief financial overview. He noted the pay off of the 1st lien notes, the capital raise and the regular finling of the required regulatory forms. Also indicated that the company is facing somewhat of an increased regulatory burden due to additional and new SOX requirements as of the end of 2013 (Hmmm...). He mentioned that while many people do not consider this a big deal, regulatory filing are a big and important deal (paraphrasing here). Tim reminded the shareholders that the company fully reserves against the NOLs (understand offsetting entries on the balance sheet or a zero sum game, of course until such time that things begin to change)
IMO: - we are on track, I've done my part we are LISTABLE on a higher exchange and no NOLs do not mean anything until there are actual earnings. This regulatory stuff...ahhh, I don't want to think they'd consider going dark.
Gene D. came to room with a big smile (too) and gave Mike W. a pat on the shoulder. When his turn came he launched into a brief overview of how hard they have been working at deals with everyone involved Olson, the executives (to be) and the business development committee. The environment is competitive so we had to put some money in the bank to look serious (again paraphrasing, but hmmm...). Since there was not a true Q&A at this point, I would mention it here. Stephen Erico from Locust asked a string of questions, I think 3 of them, all related to a potential acquisition - how big, what industry, when etc...of course, no direct answer was provided making legal references. However, however...the ACTIONALBLE flow of deals has increased since the capital raise (OK...) GD also appeared to pitch the new execs as having lots of M&A experience...Blackstone still in the picture as advisor, but not exclusive.
IMO: -ACTIONABLE ?! Are you sure you haven't acted yet, we know you can't say...something does not add up, last time around the thought process was that we are not going to put money in the bank just to have them there. Now it is we had to have the money in the bank, really with KKR on board - they are as good as money in the bank. Having said that though, I would understand it if they have to act quickly or if there was already a string of acquisitions lined up.
Décor:
The French impressionists (few rotating slides on both sides of the speaker's desk)
IMO: - There are details, but at the end of the day look at the big picture to see anything meaningful.
Uncle Bo
Jest,
Capmark must have some platform for managing distressed mortgages which must be familiar to the new executives. Also the Bluestem brands is engaged in generating and selling consumer loans - not far from the financial services industries. Growth factor -yes, the banks are not lending.
I could not agree with you more and I would add that perhaps KKR would do their own loan underwriting for special situations, Europe etc.
Uncle Bo
BK,
The most interesting part to me is that yet again, we learn that the details of the WaMu PAA are not public information (regardless of what the FDIC web site says). I understand how he can benefit from the situation, but it makes you wonder whether he is trying "to go it alone" here ?! In the grand scheme of things could this be an indirect attempt to crack this open yet again?
Sort of like Nate Toma, why did the judge decide to listen to him specifically. To this day I have not found an answer other than this is what suited the powerful players at the time.
The possible way this may be linked to the trust is if they at least make an attempt to clean up some of the mess. Sheila has admitted as much to say that "WaMu take down was not fair".
Just my thoughts...
Uncle Bo
Justice,
Let me try this, they will pay the PIERS and then they after they reserve for the operating expense of the trust, Rosen can distribute if there is at least 25MM.
We have to wait, nothing else to do here.
Uncle Bo
Equity is in the money already...
from the last Quarterly summary report
Net assets in liquidation:
Net assets subject to disputed claims 107,931,015
Net assets available to Liquidating Trust Interests 92,107,222
Total net assets 200,038,237
The amount due to PIERS is approximately ~97,000,000.
investor,
If assets are monetized LTI will be issued. What this means is that WMILT will be sending out letters to the holders of the newly issued LTIs. Trust reporting vs. broker reporting for tax purposes.
Uncle Bo
From JPMs 2014 annual:
I would like to hear what is behind "FDIC-related expense", if we can have this itemized it would be great.
Noninterest expense
Year ended December 31,
(in millions) 2014 2013 2012
Compensation expense $ 30,160 $ 30,810 $ 30,585
Noncompensation expense:
Occupancy 3,909 3,693 3,925
Technology, communications and
equipment 5,804 5,425 5,224
Professional and outside services 7,705 7,641 7,429
Marketing 2,550 2,500 2,577
Other (a)(b) 11,146 20,398 14,989
Total noncompensation expense 31,114 39,657 34,144
Total noninterest expense $ 61,274 $ 70,467 $ 64,729
(a) Included firmwide legal expense of $2.9 billion , $11.1 billion and $5.0 billion for
the years ended December 31, 2014, 2013 and 2012, respectively.
(b) Included FDIC-related expense of $1.0 billion , $1.5 billion and $1.7 billion for the
years ended December 31, 2014, 2013 and 2012, respectively.
Az,
Thank you again for a great clue. Lares Asset Securitization, Inc. filings make an interesting reading...This is what I found there:
The blended or average fee for the loan servicing listed in the filings is 0.324%. The loans listed and serviced by WaMu sometime around the second half of 2006 are 660Billion to include their own and originated by others. I guess everyone can do that math, but let's say it quite a lot of juice ~2B every year !
Now obviously if you only bought servicing rights (JPM) for 1.9B you made a killing on your investment for the past 6 years returning over 100% every year. I would like to know what are the FDIC related expenses as stated in JPMs 10K filings ?
Uncle Bo
Technically, yes an 8K will be filed with the voting results. Practically, it is a foregone conclusion given the voting agreements with the parties who bought the SBP. We are moving to DE
Interesting, I see 7 of them 50,000 shares each
16:09:02 after market close Friday
Nranger,
I share your frustration and my cutover date was 3/20/2015. However, however...!!! The capitalization is the key to understand that the plan is in motion already. The 600MM we raised is not through bonds, this is equity given the mandatory conversion.
My advice for you to not get hung up too much on the re-insurance business. It is most likely going to be some sort of debt management business - mortgages, corporates etc. (IMVHO)
Stay put, we are almost there.
Uncle Bo
50,000 shares trades after close on Friday
Justice, Thank you for the charts. Did you see the 50,000 shares trades after the market close on Friday ? What do you think...
Uncle Bo
CAPMARK - Don & Pyramid good point:
Canyon Capital Advisors LLC
Mitchell R. Julis
Joshua S. Friedman
K. Robert Turner
Joshua S. Friedman:
Former Goldman Sachs and Drexel Burnham Lambert banker who co-founded Canyon Capital Advisors with Mitchell Julis.
Drexel, Milken and KKR basically created the junk bond marked through the invention of the LBO in the 80's.
Now, why did Joshua bought over 5MM shares of CAPMARK as per the mid-FEB-2015 13G filings, hmmm?
Uncle Bo