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Someone a few posts back said you cannot trust the FDIC....From personal experience I can vouch for that statement.....
This is how the regulatory body can take out any bank that it wants to take out....When the auditors come into the bank they review the loan portfolio....They can value that portfolio at whatever level THEY feel they can get away with...When it is valued at less than what the bank carries the portfolio on the books...additional "loan loss reserves" from CAPITAL are required...This reduces the capital position of the bank and all of a sudden the bank is undercapitalized...ie, regulator takes over the bank...
From what I know based on experience and looking at the WAMU takeover...They were NOT under capitalized..their assets were written down by the regulators....additional loan loss reserves were required and their capital position was weakened...take over occurred...
This is how its done...the larger story involves the politics of competition and those friendly and favored by the regulators vs those not as favored by the regulators..
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I can tell you from experience with FDIC, FSLIC, State Regulators AND Regulators colluding with selected "competitors" who want another competitor to disappear....It HAS happened..It happens NOW...
HOW ITS DONE: All it takes...A couple of Attorneys...a cooperative Regulator and a few Auditors to "write down/re-value assets" to require additional reserves...Capital Ratio drops...Institution in trouble...POOF...Financial institution seized and sold to one of the "friendlies"...Competition Gone...
In politics its called the deep state....You dont mess with 'em...
The only way to determine ownership rights/percentage of ownership and percentage distribution of funds based on servicing one or more portfolios of loans/MBS is to read/see a copy of EACH Servicing agreement. That document spells it out and is contractually based detailing obligations of servicer/owners
Looks like ANOTHER bomb....
Has anyone added up what has been paid out/settled to date vs how much is in the total pot? Seems to me that would give us some idea of what is left to think about...
Someone ask how the FDIC could sell a $29 Billion company for $1.9 Billion.....Lol Thats how the government counts money..when they take it from you its worth 20x what it is worth after they are done washing it thru the system
Seems I recollect running a corporation a few years ago...We wanted to expand our operations and increase our outlets...Board approved a growth and acquisition plan....we acquired two branches from another institution..bought another bank...and opened three new branches in 4 years...Went from $100 million and one branch to $500 million and 6 branches in 6 years...Became a national top 10% performer for its asset category...
WHATS WRONG WITH WMIH????? WHATS WRONG WITH THIS BOARD AND MANAGEMENT???
Kinda Dumb and Dumber if you ask me...
Season is over...Team is 2 and 14..... Time for a change...
LP...Thank you for the perspective and excellent history....Understand all that you have said and agree...But still think JPM "bought" a bargain at $1.9 Billion...and Sheila cut the deal with Jamie D behind closed doors...FDIC can be sharks and snakes...Also know what was.going on in the markets at that time...very nervous for all internationally...Interesting to see how this all plays out for all parties..
WAMU was gifted to JPM for $1.9 billion.to save FDIC from having to take over/pay out on JPM collapsing...FDIC self dealt in this deal all the way...Sheila looked like a fool...but she "saved" JPM...Kind of a worst case scenario commercial bank vs Former S & L...Commercial bank won...former s & L went bye bye like all the rest of them because they were getting into the pants of the commercial banks via new commercial lending laws.. .
All of this makes me wonder how much if any will be left after all the attorneys/consultants/managers/settlements,etc. are finished sucking on the WAMU nipple....
Is there ANYONE in or out of this BK who knows ANYTHING for certain? Has anyone added up all of the claims and subtracted them from the estate to determine what if anything is left over for equity? (Assuming there is something left over for equity after all the leeches suck it dry)
I got out today...made money...Will wait and see where it goes over next 30 days ...buy back in at buck 10 buck 20...My opinion? Board is a bunch of "stock" suckers milking their options collecting fat salaries doing nothing..If this was a normal corporation they'd have been gone 2-3 years ago...I hold both Ps and Qs in escrow so will see what happens...
I cant wait to vote NO on the whole board...These guys are milking it...No information/updates...NADA...No deal or deals..NADA....Making the money they are making PLUS options?? Come on
IMHO of course....
All I can say is this...IF there are off book assets somewhere..someone knows about them..they are accounted for somewhere..and my GUESS is they DO exist. A company the size of WAMU and as spread out as much as it was...multiple states/layers of organization/corporations...there HAS to be some. The way this was handled it could be the "Killing WAMU" book of the year for an O'Reilly style writer. I dont think we'll ever know the true intrigue and covert actions..the behind closed doors account of what really happened...All I know is the guys with the gold made the rules...Paul Volcker was the head of the Fed during the 80"s....I was told by a reliable high placed source who was in the room when he made this comment in 1982..."The
S & L's are going down...the FDIC will take care of business" Im not a conspiracy theorist...very much a realist...but the big guys play by their own rules and you dont get in the way of what they want....S & L's were getting in the way...via legislation that allowed them to enter the "bankers box" of commercial lending...WAMU had to be taken down...for two reasons...They were becoming too competitive in the commercial marketplace and had the geography and network to impact major bank market share...JPM needed a savior...that came from the FDIC who "managed" the affair...
I can tell you this having gone thru the S & L crisis in the 80's as a President/CEO/Director...The commercial banking industry DID NOT like the S & L's getting into the commercial lending arena...They were starting to make inroads into THEIR markets and taking business. The big guys in the banking industry didn't like what was happening as some of their market share was decreasing...
They had "friends" in the regulatory agencies who started putting pressure and reserve requirements on the S & L's that took away capital and began squeezing them...YES there were some who got greedy...but the majority of them were straight up and ran their business the right way...Bottom line the banking industry/regulators CAUSED the S & L failure thru over zealous regulatory scrutiny/pressure...Pen is mightier than the sword kind of deal...An auditor could come in...write down loans on the books that WERE PERFORMING..require additional reserves...taking capital away...and down you go...here come the regulators..
Why do I relate this story? Because it appears the same thing happened to WAMU via JPM in cahoots with the regulators!!! You see I had a friend who was an auditor for the FHLBB...He told me things about how the "regulators" could make someone look good...OR look very sick just with a few strokes of the pen in an audit..I had a glowing audits for 5 years..The audit in year 6 was glowing as well...UNTIL it went for review..It came back with changes made by a regulatory supervisor that put the operation under scrutiny... I have secure copies of BOTH the original audit and the revised audit and how it was changed...In a regulatory exit review at which our board was being chastised for under performance by the regulator...I pulled out the two copies and showed them THEIR work....and how the field audit was excellent but the reviewed audit was under performing...Someday I will tell the rest of the story...This is factual and I still maintain both copies of the audit...I HAVE NO DOUBTS IN MY MIND THAT WAMU WAS AN ENGINEERED FAILURE BY THE REGULATORY BODY FOR THE BENEFIT OF JPM ...
Im wondering...Will there be ANYTHING left for equity after all the claims are made and settled while management in the mean time drains the assets of WMIH without even a peep about any M and A?
Does anyone know if Gene Davis is the Gene Davis from the S & L industry in the 70's-80's?
Seems to me...the Management of WMIh just doesnt know what its doing OR are in it until they get thrown out for malfeasance...then exercise all their options for retirement....Were they hired with ANY performance requirements??
I am beginning to think this "BOD/Management Team" either doesn't know what they are doing or are totally incompetent..or both....At the VERY least there should be SOME communication (even without details) to calm the angry herd....Ok there are the big guys in this thing understand...but Im thinking they are going to bail if something doesnt happen soon...Why stay in if it keeps losing...unless THEY havent hit their buy price yet...? Just seems strange to me that there has been NOTHING from this group...WHY NOT?
Does anyone ever feel like this thing is being "milked" and we are on the wrong end of the 'tit? Just sayin....
Just a comment from a bystander..(Escrow Holder..but still a bystander) Seems to me there are whole lot of interested parties to this transaction who are milking this operation for all that its worth...Kinda reminds me piglets on a sows' nipples... Hope there is some milk left at the end...