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Exactly Jackson.
Haven't we known for months that things will come out to be good for equity holders? We have discussed for months the assets of WMI which are way more than its current liabilities, regardless the negotiable dollar amounts of its liabilities.
However, when those terminologies and news come, I still can't help getting very excited. Like hunting, I wait silently.
If memory serves, the $500 MM is for equity interest. There's no protection for JPM in non-equity interest according to the P&A.
don't worry about the Q. they got 3.2 days to cover.
http://shortsqueeze.com/?symbol=wamuq&submit=Short+Quote%26%238482%3B
got your message. Thank you Jackson.
Second and Union LLC is WHOELY OWNED BY WMI! I am sure Weil found it too. But anyway I post it.
http://146.129.54.93:8193/imgcache/OPR20...
"WMI purhcased the real property described on Exhibit A hereto (the "Heliparker Property") from MDA..."
"Pursuant to the Development Agreement, 1301 (whose members are Second and Union, LLC, a Washington limited liability company ("SU")(a wholly owned affiliate of WMI), SAM and MDA is developing certain improvements (the "WASAM Project") on the real property described on Exhibit A-1 accordance with the law of the state of Washington and units therein ("Units distributed to SAM, MDA and SU."
Hope the finding helps you boost your confidence in WMI. Pay up FDIC and JPMorgan!
Let's keep pushing the press. JPM/FDIC will be forced to compensate us soon, unless they want to get bankrupt.
Excellent work Jason! Thanks as always for your hard work.
I can't care less on whether they know or what. Facts are facts. JPM has an army of attorneys who are being paid millions on studying Washington Mutual, and is seizing and making changes to properties that belong to WMI.
Proof found! They're really BS.
http://www.secinfo.com/dsvR3.z3W5.d.htm
"This AGREEMENT AND PLAN OF MERGER, dated as of June 5, 2005 (as amended, supplemented or otherwise modified from time to time, this “Agreement”), is entered into by and between WASHINGTON MUTUAL, INC., a Washington corporation (“Washington Mutual”), and PROVIDIAN FINANCIAL CORPORATION, a Delaware corporation (“Providian”). "
What can JPM/FDIC say about that? Pay it, Jimmy As* and Bair B*tch!!
It was about $43.
http://www.secinfo.com/dsvr4.s5hr.htm
"As a result of the merger, each outstanding share of Bear Stearns common stock was converted into the right to receive 0.21753 shares of JPMorgan Chase common stock. The merger was accounted for using the purchase method of accounting under U.S. generally accepted accounting principles."
Wow, I wish that was WaMu commons. BTW, is it old news?
I would put a bet that the settlement appears before May. FDIC plays important role in the economy recovery plan. Tying to WaMu's case is bad. FDIC needs to function. Many analysts say we haven't reached the bottom yet, and estimate the dip is in June/July.
When FDIC is granted the $100BB instant funds and another $500BB if necessary, they will settle in a dark way. Either FDIC or JPM must squeeze out billions for WMI. Otherwise, FDIC and JPM are bound deadily. It's all about confidence. Obama can't optimize FDIC's management on banks until FDIC gets rid of all troubles.
They must. FDIC is the pick by Obama, so is Bair. FDIC will receive all jurisdictions of OTS, and OTS is incorporated to FDIC. With greater authority, FDIC needs more funds to cover its back.
JPM has been chosen by the USGov't for years to work for the Fed. Actually, I am pointing out maybe GS is the real BOSS. Using JPM as a shield, GS is safe to play its role in keeping stealing taxpayers' money for Greeds and controlling the gov't.
Both FDIC and JPM won't be taken down. Geithner already had a plan of expanding FDIC's power to oversee banking industry. FDIC can't get bad publicity, as well as JPM. Having that said, the WaMu mess will end soon because Geithner needs FDIC to get the job done. The economy is getting worse, and can't wait for recovery tools any longer.
With that $500BB funds, I won't be suprised that "some" is for WMI.
the answer is clear. the ones accumulating/covering as much as they can don't want to trigger volatility. But remember that no one without court approval is allowed to have more than 5% of WMI shares.
Exactly. Today's or near future's stock price volatility is meaningless to me because I am holding strong til to the end. I am against to accepting the $8pps buyout/merger. Instead, we should be able to ask for a $20BB damage compensation.
In addition, let's assume the liquidated claims are fully granted. The rough computation of asset values for equities is as follows:
$20 + $16.5 + $7(current As) - $8.3(current Ls) - $3.5(preferreds in full) = $31.7BB
(not incld NOLs as before Dec. 2007 and $1.9BB from FDIC)
$31.7 / $1.7 = $18.64pps
The market knows it. However, MMs are playing with tricks. People in the corner are waiting and accumulating shares. Thanks for corrections.
I won't comment on that. I just told what I think about the case. No intention to push any buy/sell on any classes of shares. Thank you John.
How many invstors keep following this stock for months? How many shares they buy? The heavy buyers are crooks and shareholders that have followed this stock for a long while. The information insufficieny of the market gives MMs the room to manipulate the stocks.
Remembering there was a court order saying that paties who buy more than 5% of WMI shares need to get court approval? Besides preserving NOLs, I think WMI attorneys wanted to prevent any potential buyers from taking the advantage of low pps being manipulated by MMs.
You are right. Look at those 100, 200, 300, 400, 500 and so on small trades, they are signals to other crooks. We just don't know the exact meaning.
Jackson, I agree with Bofan that a lawsuit must be filed to preserve furthur legal rights. With the lawsuit filed, parties start to "really" talk. I can imagine how arrogant FDIC/JPM were. But with being sued and losing, they must offer much better than they did in the past months.
I don't think Weil/WMI accepts any offer less than $8. Someone may argue that the current economy is worse than the one in 2008. Correct. So what? FDIC/JPM are the ones that care more about the discovery of the truths. FDIC/JPM are the ones that clearly showed the public that they used means to drag WaMu down.
However, I doubt the offer will be a buyout. If they do offer a buyout of more than $8pps, they tell the market what they did to WaMu. So I guess a Merge or Fair Price Compensation is viable solution to this mess.
Is it possible that the Fed gives JPM another round of bailout?
Suppose WMI, JPM/FDIC arrive agreement on the settlement. JPM and FDIC will share the compensation amount by percentage. WMI merges with JPM. With that said, the compensation from JPM will be kept in JPM because of the merger.
Now, FDIC needs to pay its part. How much? If that's the case, I guess it's tens of billions. Part of the compensation is used to pay off bondholders(recovery ratio has been negotiated) and non-covertible preferreds. The leftover will go to WMI (JPM). It's a net inflow of cash to JPM. The WMI WAMPQ will be coverted to WAMUQ, and WAMUQ will be converted to JPM commons in a ratio of 3:1 / 4:1. JPM common will be slightly diluted as the net inflow of cash from FDIC.
So things get fixed. Truths get hided, OTS/FDIC are protected, and JPM gets sort of bailout money. This is okay to me as I mind to see this event brings up another wave of mess. Just me guess.
"(g) Authority of State Insurance Regulator and the Securities and Exchange Commission.--
(1) IN GENERAL.--Notwithstanding any other provision of law, any regulation, order, or other action of the Board that requires a bank holding company to provide funds or other assets to a subsidiary depository institution shall not be effective nor enforceable with respect to an entity described in subparagraph (A) if--
(A) such funds or assets are to be provided by--
(i) a bank holding company that is an insurance company, a broker or dealer registered under the Securities Exchange Act of 1934, an investment company registered under the Investment Company Act of 1940, or an investment adviser registered by or on behalf of either the Securities and Exchange Commission or any State; or
(ii) an affiliate of the depository institution that is an insurance company or a broker or dealer registered under the Securities Exchange Act of 1934, an investment company registered under the Investment Company Act of 1940, or an investment adviser registered by or on behalf of either the Securities and Exchange Commission or any State; and
(B) the State insurance authority for the insurance company or the Securities and Exchange Commission for the registered broker, dealer, investment adviser (solely with respect to investment advisory activities or activities incidental thereto), or investment company, as the case may be, determines in writing sent to the holding company and the Board that the holding company shall not provide such funds or assets because such action would have a material adverse effect on the financial condition of the insurance company or the broker, dealer, investment company, or investment adviser, as the case may be. "
http://www.fdic.gov/regulations/laws/rules/6000-600.html
Does that prove what Bair said FDIC can't take-over a bank with holding company?
I am looking for the link too. I remember I read something like because banks and their holding companies are highly interwinded, the siezure will bring huge damages on the holdings.
Yes Viva, I did make a stupid mistake. Haha. Thank you for correction.
Visa Inc. Class B IPO
According to the latest A/L reort, WMI is holding 5.4MM Visa Class B shares (i.e., page 14 out of 175, footnote 5).
http://www.kccllc.net/documents/0812229/0812229090224000000000003.pdf
Class B is held by financial institutions and can be converted in Class A in 2010 at a current ratio of 0.63 (i.e., the ratio is subject to further modifications). Class A is the common stock of Visa Inc., trading at around $56 per share.
http://www.tradingmarkets.com/.site/news/TOP%20STORY/2096650/
Rough calculations:
5.4MM x 0.63 = 34.02MM Visa common stocks in 2010
34.02MM x $56 = $1.9BB (consecutive estimation)
We know that WMI is fundamentally strong. Its investment is well diversified. Many hidden assets have not been disclosed. I find no reasons for a debt-to-equity swap in this case.
God bless WaMuers.
It's really an exciting news. Given the annual $2.1 BB incomes from subs, WMI has very nice profit generating capacity. WMI for sure has the ability to emerge from CH11 by going into another industry.
In the stage of liquidation, WMI has possible additional asset values from the present value of its subs' incomes for few years.
Rough Calculations:
$175 MM x 12 = $2.1 BB
PV(future 5 years incomes) = annuity($2.1 BB, 8%, 5 years) = $7.146 BB
Assumptions:
the average monthly income from WMI subs remains the same. (I don't think it's true. I expect it grows well in the next few years.)
the discount rate is set to be a little higher, given the gloomy economy. (also the future heavy tax burdens and national debts impact on returns from US equity market and business.)
the $175 MM income generation ability is effective for 5 years.
It's interesting Jackson. You finally hit the base.
But again, I feel a little risky for you in person to talk to them. Bro you need to be careful. They will do anything to cover the facts up or hide them as long as they can.
I don't mind if they offer you $500k to shut you up. But I do mind if they acquire your identity and intend to harm you. What you are doing is amazing. Mainstram media is going to be forced to report the facts regarding to WaMu deal because of your and other WaMuers' dedications in digging out the facts and accusing of their wrongdoings.
Best of luck. God bless WaMuers.
Hey Jackson, here's a review on Matt Krantz's article on mortgage prepayment back to 2005.
The review/comment was written by a guy. The article is called: Matt Krantz is an Assclown.
Here's the link:
http://assclownopolis.blogspot.com/2005/12/matt-krantz-is-assclown.html
Probably Matt is interested in reading it. ^^
In Debtor's objection to IRS's tax claim, Debtor pointed out the contradiction of IRS' assertion as to its proof amended.
http://www.kccllc.net/documents/0812229/0812229090122000000000006.pdf
Read through item 4 under "The IRS Claim", you should notice that WMI has given out reason for why that $2.3 billion owed taxes are invalid amounts.
WMI showed in the document that IRS asserted that the $2.3 billions taxes "have yet to be assessed". However in the proof (ie, the table listing all taxes that WMI owed in various years) provided by IRS showed that that $2.3 billion taxes are "under Exam" and/or "Unassessed - No Return".
On Feb 3rd, IRS filed its response to Debtor's above objection.
IRS said debtors failed to challenge the proof of claim number 8 which had been amended by a proof of claim filed on January 13, 2009. I checked KCCLLC but can't the relevant document filed by IRS. Stop here...
I want to show the logics behide IRS's "fight-back".
In the latest responding document filed by IRS, it didn't answer the question raised by WMI. That is: why does the amended list provided by IRS that show the amount of taxes owed by WMI show as "under Exam" and "Unassessed"?
No answer from IRS. However, IRS wants to "re"-direct the attention to the proof it claimed that has been filed on Jan 13, 2009(ie, I can't find it). It said the debtors have no objection on that proof.
The logics of IRS now is to bring up as many troubles as it can. Why? To me, it's obvious that it is at the edge. It has no real ground to stand. So it throws out all complicated tax issues and wants one or two of them to be valid hopefully.
ps. Being pointed out in Debtor's objection to IRS claim, we see WMI said there is a significant NOL incurred in 2008. So it's reasonable to assume that amount is mainly from the $24 billion security/capital losses from the WMB seizure.
God bless WaMu shareholders.
I hold another view.
We need to think about the initial motivation of WMI's decision on fighting instead of leaving.
All moves right now we see are telling the public that WMI won't leave the game, at least without a fight. WMI should have confidence in winning the game. Otherwise why bothers to hire the top law firms and turnaround firms at the beginning.
If WMI wants to leave creditors and equity holders nothing but the assets in possession, why did it spend so much on hiring those talents? It's not logical and reasonable.
By reading the moves, I tend to believe that WMI is goning to choose emerging from CHAPTER 11 by acquiring other income-generating operations or cooperating with other thrifts or being bought out.
Liquidation is possible, but all the info we see now doesn't build a solid base to support the liquidation choice.
I am not trying to pump. They are just my observations.
God bless WaMu shareholders.