Democracy starts with you, tag your it! ...Thom Hartman
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No, GS became a bank holding company on that day - 9/25/2008
http://www.goldmansachs.com/media-relations/press-releases/archived/2008/bank-holding-co.html
JPM probably booked the $650M settlement ~seemingly~ prematurely.....
-but they must know who the only potential objectors could be, and that's us/legacy WMI - and they know we just want our share of the money now finally.
Thx AZ. Very important distinction as noted. Good to see you back here.
But, per Dept of Justice 2013 Settlement Agreement with JPMChase.......JPMChase did not become "Successor in Interest" to the investors "a"ssets of the "A"ssets of WAAC, WMMSC as shell servicing subs.
Who were the investors? Legacy shareholders who released.
Fox v. JPMorgan Chase
Chase Stipulated Fact – AO1 – WMAAC)
Stipulated Facts:
“8. Investor Code AO1 in the Loan Transfer History File represents WaMu Asset Acceptance Corporation.”
“9. Investor Code 369 in the Loan Transfer History File represents Washington Mutual Mortgage Securities Corporation.”
“10. JPMorgan Chase Bank, N.A. did not purchase the loan from the Federal Deposit Insurance Corporation.”
Stipulated = admitted as fact.
* per the 2013 Dept of Justice Settlement Agreement with JPMChase; JPMChase DID NOT become Successor In Interest to these Investors AO1 and 369, WaMu Asset Acceptance Corp and Washington Mutual Mortgage Securities Corp
* per the Purchase & Sale Agreement, "a"ssets of "A"ssets are not included in the sale to JPMChase
* per the Purchase & Sale Agreement, JPMChase can PAY....."BOOK VALUE" for "mortgage "a"ssets"
* JPMChase can't buy 'CASH' on WMI consolidated' liquidated properties backing the MBS, despite its attempts thru robo-signing, refinance, foreclosure, etc., so they must disgorge CASH from such plus compounding interest
* Legacy escrow is owed for 1) safe harbored mortgage portfolio product unwriting MBS, AND, 2) ALL investor certificate participation income since Sept 2008 - nearly 10 years years worth + compounding interest. 3) other ABS (asset backed securitization) participation income from credit cards, HELOCs, LOC, etc.
* Every single trust continues to perform, not one MBS trust is insolvent. Investor money continues to be collected every single month. Hundreds and hundreds of MBS trusts, each their own sovereign Delaware entity. Operating quietly since 2008 for each's investors. Thanks to DB, USBANK, BNY, BofA, LaSAlle, and other trustees for managing our money while in SAFE HARBOR & LEGAL ISOLATION
Also notice that at Schwab, your P markers on held separately in Bonds, while any Q markers are in Cash, Stock.
Also, note that you can click the P escrow link to open a bonds trading window at schwab, as if its to be a tradeable asset at some point in the future. BUT, the commons Q escrow marker, isn't highlighted, and can't be clicked on for more detail. It sits purely as a tracking marker for future Cash, untradeable.
In fact hovering over the Q marker, the pop up says "for future payment".
For My P escrow, the hover window states "escrow position".
One of many indicators, AZ is Right!
Absolutely agree! Thanks for sharing your experience.
Now those, are some stunning facts!
"Sourced directly from the WMILT 10Q, filed on the 30/01/2017.... LBA does not require assets not in liquidation to be reported in any financial filing. Not an OPINION but FACT, as presented!!!"
Exactly. The Declaration of Mike Willingham has a few revealing supporting nuggets of information as well.
Yes, but is that POR reorg for WMI or WMIIC (who had no debt or creditor claims)?
POR 7 is for WMI only. Jointly administered for efficiciency, but not jointly reorganized.
Bit of bait n switch, has been sold to us over the years to keep a lid on the loot. First in 2010, then with Dimes, and finally switching to Preferreds over commons before 2012 reorg.....
Equity has always been hated, and years have been spent to trick us back out of our future.
The Preferreds would NOT have the rights to the majority of waterfall excess in any BK, if there are enough assets to reach commons. And through WMIIC and MBS income participation, there is.
I don't think its a mic drop kinda ending. I think things are close to starting......and the DB Probate case in May 2017 will kick off some goodness. Further, the March 17 2017 Capital Loss expiration becomes the tell card - We gotta use it or lose it.
So either we take the loss, or we are reimbursed for a 5th Amendment Taking of our bank. We shall see....
Thanks for being open minded at least. I've been looking at this for a while, and I believe Preferreds are capped + 10 years interest.
Remember there were 2 bankruptcies.
WMIIC filed #1.
Minutes later, WMI filed #2.
WMIIC with no debts, claims, or creditors, was protected by filing for bankruptcy first. Why file if it had nothing to protect?
I think the big picture, is everyone fought over WMI BK #2 and its payout matrix, which was spotlighted in the media, on MB, etc.
Meanwhile the BK #1 residuals will utilize the LT as a non taxed pass thru entity down to class 22 eventually.
The LT will continue to run down, and any WMB residuals or WMI BK #2 residuals roll out as 75/25, until cap + 10 years FJR interest is reached, imo. If anything remains in BK#2 and WMB, And everything from BK #1 is uncapped Commons interest class 22.
The main players were facing JMW "colorable claims" punishable by the EC asking for an "Equitable Disallowance" penalty..
The main players didn't have the postion of strength you think they had. If I was MW in mediation I'd have burnt them to the ground, or else......
WMI estate has 2 areas of separate and great value:
1) Actual mortgages. The $240B mortgages held in portfolio (BOOK VALUE), that were 'rented' or 'pledged' to various trusts like DB, USbank, LaSalle, etc, until the securitizations that used these as TEMPORARY collateral, wound down over time through refinance, foreclosure, pay downs, etc. Eventually over the prescribed time of each prospectus, the securitization collateral ball & chain is removed, and these mortgages held in portfolio, whatever is left, are free for the WMI estate to exploit. Any mortgages held in portfolio converted to cash, is owed in cash, to the WMI estate.
2) Actual strip cert participation income. Per SEC regulations, and to qualify as "true sales" even though selling to itself, WMI participated in securitization schemes by selling to itself all phases of the securitization until a "true sale" had occurred and the originator, was 'corporate veiled' from the actual income participation cert strips. SEC requires 25% minimum in-house certificate retention, as its believed to keep the securitization scheme 'honest' as they are invested as much as any other buyer of the securities. And again, I believe WMI held much more than 25%. I'd bet there's at least $60B + just in these (including 10 years interest)
(Remember, per Reuters last year, JPM just offered up MB securities for sale (based largely on cherry picked WMI loans) where JPM is retaining 90% of the income participation certificates.)
I posted where to find in WMI's 10-ks from 2005-2007, where they made an average $5B minimum from securitizations. That's number 2) above. Now factor in 1) above.......$240B in either liquidated CASH from 9/2008 => now, and any unliquidated mortgages still performing.
Compound interest didn't stop ticking in 2008.......We are not dealing with a 2008 snapshot in time. Compound Interest is the 8th wonder of the world....
Now, how do $151B in deposit liabilities factor in versus what JPM got? $240B + $60 B minus deposit liability = $151B
24% income cert retention is SEC regulation. Its meant to keep the securitization maker honest.
Per Reuters in 2016, JPM was actually retaining 90% of their securitization certs (much to my chagrin, they are probably the WMI cherry picked loans)
We can come close to guessing how much was in the trusts and being earned just by looking at WMI's 10-ks prior to 2008. They tell you where they report the MBS, ABS, etc. income.
Just look at income from the mortgage strips and certs income stream only..... averaged $40B before FJR interest rate per 8 years....
"from WMI 2007 10-k...pg 5
" For other retained interests in securitization activities (such as interest-only strips and residual interests in mortgage and credit card securitizations), the discounted cash flow model used in estimating fair value utilizes projections of expected cash flows that are greatly influenced by expected prepayment speeds and, in some cases, expected net credit losses or finance charges related to the securitized assets. Key economic assumptions and the sensitivity of retained interests fair value to immediate changes in those assumptions are described in Note 7 to the Consolidated Financial Statements – "Securitizations." Changes in those and other assumptions used could have a significant effect on the valuation of these retained interests. Changes in the value of other retained interests in securitization activities are reported in the Consolidated Statements of Income under the noninterest income caption "Loss on trading assets" and in the Consolidated Statements of Financial Condition as "Trading assets."
WMI consolidated states it posts the income value from securities under Trading Assets in the Consolidated Statements of Financial Condition. So:
2007 WMI 10-K
Trading Assets:
2007 $4.5 Billion income generated
2006 $7.8 Billion income generated
2005 $7.2 Billion income generated.
Kerry Killenger testified and we know losses were not that bad in 2008. Additionally what DB settled for in damages as trustee, is minute compared to the assets they managed.
If 2008 is the bottom and a slow recovery from there......to now 2016......could one assume an average of $5B per year + interest? That's $40B + 8 years interest.....AND THIS IS JUST CERT INCOME ( 1) above).
In the verbiage of the signed order, it says it's is unappealable. It's done done.
FDIC Safe Harbor and Legal Isolation are bankruptcy remote mandates of the FDIC to protect all stages of securitizations from bankruptcy and receivership creditors receiving more than their entitled....from actual pledged mortgages, up through to actual investor strip cert participation income.
The FDIC cant release its 'frozen in place' bankrutpcy remote assets without reconciling the receivership estate first. While these assets were frozen, neither the FDIC nor JPM reimbursed DB for the put-back claims from non-performing loans. DB, held the WAMU custodial investor funds as hostage to cover the tab (rob peter to pay paul) until one of the two responsible (FDIC or JPM if they bought the mortgages per PAA at BOOK VALUE) finally pays them back. Thus this 3-way Global Settlement Agreement between DB/FDIC/JPM.
Remember, the FDIC publicly exclaimed the receivership "cost them nothing". So nothing will be released until the last of the unknown potential put-back claim associated with WaMu's bankruptcy remote assets is finalized.
in other words.......as far as these above residuals go, imo, the Deutsche Bank 3 way Global Settlement Agreement with JPM/FDIC, needs to be settled prior to or during the May 17, 2017 Probate Court hearing in Orange County California. (case # 30-2016-00892014-PR-TR-CJC)
If another judge, or 3rd party investor in DB securities throws a wrench in the settlement works prior to the May 17, 2017 probate court hearing, the fallout could affect the FDIC receivers bottom line, imo.
I agree 100%
to add: Check out Mike Willinghams declaration. MW discusses the reasonableness of the settlement coming to EC constituents. There is ZERO mention of 75/25 being in relation to anything beyond the share split of re- org. WMIH. In fact, in 2 separate paragraphs MW mentions only the stock split.............the more I re-read supporting docs and refresh my memory versus what myth & lore has been pumped into us when we are too lazy/busy/tired to read pages of eye glazing court docs, the more I know AZ is right on the money!
pg 16-17
"36. The Plan further provides that of the remaining 95% of Reorganized Common Stock, 70% will be distributed to the holders of WMI Preferred Equity Interests who elect to grant the releases set forth in section 41.6 of the Plan and 30% will be distributed to the holders of WMI Common Equity Interest who elect to grant the releases set forth in section 41.6 of the Plan. By the terms of the Plan, those holders of Preferred Equity Interests of Common Equity Interests that elect to not grant releases set forth in section 41.6 of the Plan will not be entitled to receive any distribution from the Debtor's estate."
(70/30 is specifically referenced to only re-org WMIH shares. Seems like a good time to mention that Preffereds are uncapped regarding legacy estate returns, doesnt it? yet MW doesnt declare that.)
"38. The Equity Committee, which represents the interests of both WMI Preferred Equity Interest holders and WMI Common Equity Interest holders, unanimously believed it appropriate to provide in the Plan, subject to solicitation of votes of WMI equity holders to accept of reject the Plan, the foregoing sharing of Reorganized Common Stock between WMI Preferred Equity Interest holders and WMI Common Equity Interest holders. Both classes are being asked to consent to the very same release and therefore both classes of shareholders should be compensated for the rights and claims being released.
The Equity Committee also felt it appropriate to suggest the sharing of Reorganzied Common Stock proposed in the Plan on account of the loss of billions of dollars in value suffered by all WMI equity holders while at the same time recognizing the WMI Preferred Equity Interest holders' structural seniority in priority of repayment. The suggested sharing of REorgannized Common Stock contained tin the Plan is also subject to the Court's determination as to whether it is appropriate under the bankruptcy code."
Again, zero mention of 70/30 being related to ESCROW TRACKING MARKERS distributions.
There are some bills and receiver claims ahead of that. And maybe JPM paying BOOK VALUE is based on what is left over 'after' non-performing liquidations ? not sure. Either way, JPM R203, (its been a while....) non-performing was for sure much less than 30% of total, and even at that, half the value on average, returns from an auction.
I don't see any way it could be anything less than $40B. We shall see.
What does owning common shares mean? It means unlimited value after everything senior is paid. That is commons face. There is no cap.
1) It started at WMI's 2007 10-K $240b "held in portfolio", which is BOOK VALUE, imo. WMI had $70B or so owed to FHLB which I believe was held in WMI's 3 Thackeray's => Thackeray III Bridge => Thackeray Lane now (think Maiden Lane, Treasury) which would leave about $170B ish to JPM to 'manage as servicer and/or buy at Book Value per P&A.
Remember, JPM robo-signing foreclosure cash machine. illiquid => liquid
However, JPM owes BOOK VALUE either way, end of the day. Whether they liquidated 60% or whatever. If JPM saved some, spent some.......end of day they still gotta pay the bill per P&A, BOOK VALUE.
Safe Harbor assets are FDIC required to be held off balance sheet. JPM R203 10-K, off balance sheet legacy WaMu, imo was proof of life. $173B
JPM then last year raised about $170B. Coincidence? I don't think so. I think JPM has exercised their right to purchase WaMu mortgage assets for BOOK VALUE as allowed by exception in the FDIC/JPM P&A Agreement.
2) But ABOVE..... that's just actual mortgages, which once pledged into securitizations, (like a car is pledged to lessee in a car lease), still revert back to legacy owner when 'lease' is up.
The securitizations allowed WMI, through a "true sale" to sell securitizations to itself and a few others. Managed by DB, USBANK, BofA, LaSAlle, etc. WMI through WMIIC kept a large percentage, imo of the monthly interest certs.
However, the receivership FROZE the put-back liability due to WaMu to replace a 'non-performer' for a 'performing loan'. This affected DB, and any other trustee's ability to service their portfolio in custodial management. DB and all trustees, had a monthly duty to pay EVERY strip cert investor their monthly % allotment, including WMI/WMIIC. DB had costs to absorb while paying all investors, while put-back liability remains Receivership FROZEN. imo, DB had to rob Peter to pay Paul, from their custodial account, and deserves it back.
That is DB cost and thus the lawsuit against JPM (who didn't put-back and said its FDIC's problem) and the FDIC said no its JPM's problem (cause they're gonna buy at BOOK VALUE and eventually own it). So 3 way settlement, waiting on probate court in CA.
Why probate court? (from my research on BP board)
[quote author=boarddork link=topic=10775.msg169234#msg169234 date=1484778471]
DB's request for "instruction regarding the internal affairs of the Trusts and/or to instruct the Trustee regarding its actions with respect to a settlement of litigation brought by the Trustee on behalf of the Trusts", was filed in CA Probate Court, and mentions Code Section 17200(b).(http://www.globic.com/wamurmbssettlement/pdfs/Verified%20Petition%20and%20Exhs%201-29.pdf)
CA Probate Code 17200(b): http://www.californiatrustestateandprobatelitigation.com/02-trusts/01-trust-contests/stop-or-ill-file-a-will-contestvolume-2-how-to-freeze-trust-assets/
"Petition for Instructions and Blocked Accounts. California Probate Code Section 17200(b)(6) provides a procedure where a beneficiary can ask the Court to instruct a Trustee to do certain things, such as follow the Trust terms. And the Court has a good deal of leeway in fashioning remedies to help protect Trust and Estate assets. One example is the use of Blocked Accounts.
A Blocked Account is just a bank account set up by the Trustee or Executor into which the estate funds are deposited. Once on deposit, the money cannot be withdrawn, transferred, spent, etc. without a Court order authorizing the action. In other words, the account is blocked in the sense that it cannot be accessed without the Court’s approval. As you might imagine, a blocked account is very helpful in terms of freezing liquid (i.e., cash) assets pending a lawsuit."
Must be AT LEAST the same amount in that 'frozen liquid assets" account, as there was in DB's 'original' $10Billion dollar claim....... 8)
WMIIC, along with Pimco, etc, were holders of investor certificate income, in the Trusts listed in this filing managed by Trustee DB. Whether through safe harbor and legal isolation being triggers for blocking our Beneficiary bank accounts, or by DB's initial filing of the original lawsuit being used to trigger the blocking of beneficiary accounts by design or convenience for the FDIC and safe harbor provisioning......either way, signals to me that WMIIC's income cert interests held in legal isolation will be released after May 2017.
Filing in CA Probate court is the remedy, to jailbreak 9 years of frozen security interest income. The FDIC would never have settled DB claims in the lawsuit settlement agreement 3 ways, unless JPM indemnity claims could be known, tallied, and settled...... as well as the Receivers own WAMU reconciled accounting be virtually complete.
This also gives a window into other Trustee's like USBANK, managing WMIIC income interests, and other temporarily blocked accounts soon to be released. When I have more time, I'll look into other State Probate Courts where Managing Trustees like USBANK reside, to see what's filed.
I don't think there is a deadline to finish distributions.......for example: your percentage of releasing for residual MBS/ABS/RMBS strip cert income would continue as long as each one of hundreds of bankruptcy remote protected entities, continue to produce monthly income as homeowners pay their mortgages. Could last for 10 years....
As far as starting.....Well, the receiver does have another year.....
BUT, (thanks to AZ's research) the whole BK settlement plan is predicated on NOLS and CLs related to WMB expiring. March 17 (?), 2017 Billions in CL expire, unless WMB is separated from the WMI tax group.
If these CLs expire, the plan is in contempt. And we could use our unreleased claim against the FDIC receiver for no compensation for a 5th Amendment Taking.
So, the pressure is building, and this hot rod should hit 2nd gear by mid March.
In a very simplified nutshell (sorry I'm rushed tonight), I think there are 2 facets. 1) WMI/WMIIC BK and 2) WMB receiver
separate but intertwined. The FDIC receiver is on the hook for our unreleased claim for a Fifth Amendment Taking, etc.
For the FDIC to do its job, which they say "cost them nothing", they not only need to marshal the safe harbor assets, but they also need to reconcile the bank receivership.
FDIC cant reconcile the receivership, if any claims against WMI/WMIIC still exist in BK, that could, through one simple state judge's ruling, possibly revert back to the FDIC, and cost them something. If a judge pierces the corporate veil over WAMU ABS/MBS/RMBS, then the WMI estate could be on the hook, or the FDIC could be. To clarify, I think DB is the only claim left which could affect WMIs estate or the receiver - we are nearly done.
The WMI/WMIIC BK cant post to close, till DB claims against WaMu are finalized, and its known that JMW's court won't be needed to play referee to throw out the trash if it returns.
I think, imo, we're waiting for the May 2017 DB Probate case to close as a key turning point. Then both WMI and WMIIC BKs can close. The LT as a real ghost of WaMu, like a hubcap spinning off a wheel, will continue on without WMI and WMIIC post BK termination, using its Reserved Claims money to litigate and drag out the employee claims and PIERS compensation.
DB Probate resolves May 2017, both BKs close (WMI & WMIIC), the receiver has final number to terminate the resolution and reconciliation of the WMBank receivership, and 2) above, the WMB residuals flow to legacy who released.
As for 1) above, WMI/WMIIC........ since 2008, WMI/WMIIC MBS strip cert income has been collected, from WMI's investment in its own product. Plus any mortgage assets that JPM decides to buy at BOOK VALUE. But again I still fear these would also be dependent on BK and Receivership terminations.
I think end of May 2017 is where things start the process of moving in our direction.
AIMO
Ultimately we win whether its a complete split 75/25 to the end, or partial. I don't want to fight with either side over it. I haven't completely made up my mind, but I actually lean mostly towards 75/25% until the Preferreds reach FACE + interest, and then Commons Escrow markers take the rest.
I've been questioning that for a couple years, and cross checked with what I see in my Schwab account. And I have both Prefereds Escrow and Common Escrow. Schwab having an actual bonds trading desk, as opposed to many others who don't, has been interesting evidence for me.
There is a lot of evidence to support my beliefs, as there is the contrary. The architects of the plan were expert wordsmiths, and confusion was job 1. Who knows, but the 75/25 till the end, has never been true for me and what I've read.
The MB Pied Pipers, pushed Piers, Dimes, and lastly Prefereds. We know how Piers and Dimes ended up.....on that alone I distrusted these messengers and their interpretations, and it pushed me to look further.
Just before re-org, despite the push to switch to Preferreds, there was MASSIVE buying of Common UQs. I just felt that push to switch to preferreds was just another 2010 pump n dump, Piers dead end, and Dimes death trap. I stayed put at reorg in both P's and Uq's, and released them all as advised by our attorneys, as opposed to anonymous Message Board Pied Pipers.
The returns will be staggering either way it turns up, imo, for those who released.
Per the P&A, WMI consolidated never lost the mortgage assets pledged to the MBS pools ($240B "held in portfolio 2007 WMI 10-k, pledged to various MBS, managed by Trustee DB, USBANK, BofA, LaSALLE, etc sponsored by WAAC, WMMSC, Thackeray which JPM per DOJ $13B settlement agreement, did not become successor in interest to).
The pledged $240B pool of "WMI held in portfolio", as with every FDIC receivership, the FDIC sequesters and protects in "safe harbor and legal isolation" these bankruptcy remote assets - carefully created as "true sales" from holding co to itself - from creditors in bankruptcy. The corporate veil of each WaMu MBS/ABS/RMBS trust (hundreds) can not be pierced.
Per the P&A, if JPM wants these WMI "held in portfolio" assets pledged for temporary use by these securities, they have to pay "BOOK VALUE" for them. Per Purchase & Assumption Agreement.
So, Legacy WMI who released gets the value of these assets, through 1) JPM purchase at BOOK VALUE or 2) they return to legacy WMI estate who released.
Under ZERO circumstances did JPM get anything mortgage related from WMB/WMBfsb unless they pay book. Anything WMI, can never be sold, and belongs to the WMI holding co estate. Any residual value from WMB/WMBfsb returns back to legacy WMI.
WE have always been golden.
The BOD doesnt want KKR to know what's really up their sleeve before 1/31/17. After that the rights offerings expire. Why be diluted?
IMO, the 'Failed Acquisition' was simply KKR bait. KKR dangled one of their own subs as an M/A strategic (for them) offering, but it was a trojan horse. I think Gene Davis might've saved our ass back then. Since the failed acquisition, we gave KKR the finger and we've just been waiting till Feb 1, 2017 before any momentum starts.
Not if the $600M isnt tapped before 1/31/17.
Tic Toc, what will WMIH do? Wait till after 2/1/17 to announce a M/A and avoid your dilution?
Is that your website? lol
I think the two are different ways of approaching value.....the way I understand the point AZ is making.
Corporate Structure Valuations by the WMB note holders, would take into account WMI's income on everything, including those from certs, credit cards, commercial, etc.
AZ is just saying that the Corporate Structure Valuations are another baseline starting point that corroborates a lot of other DD, of what value does exist.
In other words, the baseline enterprise value (the floor) starts at $40B,...... and goes up, when you factor in 8 years of interest on CASH from certs and refi/liquidations, plus remaining illiquid but performing 'held in portfolio' loans, credit cards, helocs, etc.
1) Just look at income from the mortgage strips and certs income stream only..... $40B before FJR interest rate per 8 years....
"from WMI 2007 10-k...pg 5
" For other retained interests in securitization activities (such as interest-only strips and residual interests in mortgage and credit card securitizations), the discounted cash flow model used in estimating fair value utilizes projections of expected cash flows that are greatly influenced by expected prepayment speeds and, in some cases, expected net credit losses or finance charges related to the securitized assets. Key economic assumptions and the sensitivity of retained interests fair value to immediate changes in those assumptions are described in Note 7 to the Consolidated Financial Statements – "Securitizations." Changes in those and other assumptions used could have a significant effect on the valuation of these retained interests. Changes in the value of other retained interests in securitization activities are reported in the Consolidated Statements of Income under the noninterest income caption "Loss on trading assets" and in the Consolidated Statements of Financial Condition as "Trading assets."
WMI consolidated states it posts the income value from securities under Trading Assets in the Consolidated Statements of Financial Condition. So:
2007 WMI 10-K
Trading Assets:
2007 $4.5 Billion income generated
2006 $7.8 Billion income generated
2005 $7.2 Billion income generated.
Kerry Killenger testified and we know losses were not that bad in 2008. Additionally what DB settled for in damages as trustee, is minute compared to the assets they managed.
If 2008 is the bottom and a slow recovery from there......to now 2016......could one assume an average of $5B per year + interest? That's $40B + 8 years interest.....AND THIS IS JUST CERT INCOME ( 1) above).
2) But Wait there is much more.......There is still value in liquid and illiquid mortgage assets that were temporarily pledged or lent to the time-capped securitizations per each prospectus; and once that yoke is run-off over time per each prospectus (nearly done now), then the underlying mortgage assets remaining (not refi'd or foreclosed) are free to return to use for the actual holder - WMI (remember WMI 10-k $240B mortgages held in portfolio prior to BK). And eventually we should see something reflective of that.
What's interesting about run-off mode is that everything was flash frozen in safe harbor and legal isolation. A performing institution would be continuously reinvesting mortgage liquidation cash into funding new loans......but when musical chairs stops in receivership/bankruptcy. .....the CASH piles up and can't be reinvested by the parent. It just collects like a thousand raindrops in a bucket. 8 years of accumulations will be a hell of a lot more, than a snapshot in time, pre 2008 imo.
3) and Wait a bit more.....there's also credit card securitizations, commercial loans, HELOCs (2nds, 3rds), etc, etc.
WMI is a cash machine for legacy tracking marker holders who released.
Hug a piers holder!.....haha lmao. So true! They will need it!
agreed. But a couple phrases for you, 1) The Standing Order. 2) Equitable Dissallowance. MW had the AAOC over a barrel, imo. They lost big time.
imho, the FDIC eceivership interrupted the relationship between WMI and WMI INVESTMENT (WMIIC) and any current or future asset certificate income from securities, until a later point in time. . The receiver seized both 1) bank and 2) holding company/subs/assets at the same time.
The balance sheet on the FDIC website is for the bank, not including the entire holding company. Any mortgage related assets in receivership situations, whether the bank, the holding company and its wholly owned investment subsidiaries, including all ABS, MBS, RMBS, REMICs, etc., are held by FDIC mandate - through bridge bank or other temporary options, OFF-Balance sheet in safe harbor and legal isolation, within each securities 'ring-fenced' special purpose vehicle LLCs. i.e. WMI had 3 separate Thackeray LLCs during BK, which became - a still active in DE, Thackeray III Bridge LLC.
The FDIC has no legal permanent ownership of any WMI or WMIIC assets, and once the resolution and receivership of WaMu the bank is reconciled, any residue must be returned to WMI or WMIIC respectively + 8 years compounding interest.
Assets of WMI and WMI Investment reported at initial BK filings #2, and #1 respectively, would reflect the current balances after the FDIC temporarily stripped them from their holding LLCs, and placed them in safe harbor and legal isolation purgatory. WMI and WMIIC in that snapshot of time, really didn't have anything to report, it was just taken. And in our current snapshot of time, there is still nothing to report until the FDIC receiver reconciles the WHOLE estate......Bank, Holding co parent WMI, and WMIIC.
The battle became who would eventually own and inherit the legacy Washington Mutual estate. Fight and Win to own the parent WMI (equity wasn't expected to make it. but we did), and you get to own the downstream legacy residual assets. The fight wasn't largely for WMI itself, it was technically and quietly for WMI INVESTMENT.
This was Bankruptcy genius, imo.
I contend that the bulk is stashed in BK#1, WMI INVESTMENT (now WMIIC), in the form of returning security interests + 8 years compounding interest.
WMI (now WMIH) BK#2 filing, listed what assets it held in a most public battle - that we all witness and fought over for years. However, imo, The reason AAOC and equity wanted to survive to control the new WMI (WMIH), was to be in a position to inherit the legacy residue in WMIIC.
The prize wasn't in the BK distraction of WMI that everyone was supposed to watch, it was in the sideline protected, separately filed BK #2, of WMI's direct subsidiary WMI Investment. but to participate in BK#2 legacy ownership, one would have had to survive BK#1 and submit releases as required, to become the last sole survivors and inheritors of BK#1.
I believe when people say daily here, that very little is coming back, they are being truthful about WMI, BK#2. What they are not telling you, is about THE OTHER BK #1, filed first in Delaware.
Outwit, Outplay, Outlast. AIMHO.
Exactly, golden tickets either way make me smile. But I am smiling more this week!! ( 8
Great Summary!
Will we see WMI INVESTMENT (now WMIIC) in BK#1, file a 'post to close' any day now in Walrath's court, now that we know it is being 'dissolved', and its court approved APR followed.
That's what we need to watch for, IMHO, a post to close for debtor WMIIC, who filed first, before its parent WMI (WMIH) who filed 2nd.
The horsies and AAOC members were facing "The Standing Order" from Walrath, and Equitable Dissallowance.
They were faced with losing everything! Did MW, a Marine Corp vet, roll over to spite his own solo investment in Commons, when he had the AAOC over a barrel? No way!
Heck, 75/25 on any WMI BK#2 assets, could very well mean a return well above par for preferreds, and not much for commons. But this is just Bk#2 residue.
And in BK#1, filed first before WMI, with ZERO creditors or debt to control, everything residual from WMIIC goes to commons.........following traditional APR.
Bob, you've been here a long time, remember how many commons were bought in the very last trading days. Millions! And we all collectively said "What tha heck?" Now I know why.