is making moves.
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Thanks man, I thought I was going to get flamed there for posting the article with no link, lol.
I found it on the Yahoo! forums...looking for a valid link to post.
June 24 (Bloomberg) -- Washington Mutual Inc., the former parent of the biggest U.S. bank to fail, should battle JPMorgan Chase & Co. for control of $4 billion in bankruptcy court, a judge ruled, potentially speeding up payments to creditors.
The ruling benefits Washington Mutual creditors, who say they will get paid much faster if U.S. Bankruptcy Judge Mary Walrath in Wilmington, Delaware, decides who owns the
$4 billion, currently on deposit with JPMorgan. Walrath denied a request today from U.S. regulators and JPMorgan that she put off any decision on the cash until a federal court in Washington rules on a related lawsuit.
I haven't read the decision papers or the order, but I presume the FDIC has been allowed to intervene in the Delaware Bankruptcy Action. If so, I imagine it will render JPM's motion for withdrawal as moot (which, btw, I think will be dismissed because it was untimely) because now all relevant parties will be in the position to argue the merits of JPM's claim and WAMU's counterclaims and protect their own interests, accordingly.
I actually think this is a good thing.
Now we need to see whats up with Judge Walrath's decisions on the other matters scheduled in the agenda -- namely, JPM's Motion to Dismiss (the decision on the $4.4B).
Very much agreed.
Now wouldn't that be peachy?!
No, it's not delayed. See my previous post.
It falls within Section IV "Adversary Proceeding No. 09-50934" under Subsection 8 "Motion to Dismiss Adversary Proceeding Filed by JPMorgan Chase Bank, N.A." in the agenda.
You're right - as we all realized yesterday, there are no absolutes.
There will be a hearing and oral argument tomorrow, have no doubt about that. If a decision and order (probably an opinion too) are not entered with the clerk tomorrow, they will be soon thereafter.
I disagree because, (1.) pursuant to the Amended Agenda of Matters filed today, the hearing on JPM's Motion to Dismiss the Adversary Complaint - of which the $4B is at issue - is "going forward;" and (2.) the motion was filed by JPM on 05/13, answer was filed by WMI on 05/27 and reply was filed by JPM on 06/03 - giving Judge Walrath more than enough time to deliberate.
There's no reason why she would/should prolong the decision.
An Amended Agenda for tomorrow's hearing has been posted on PACER (Document #1202) but I can't link the PDF.
JPM's Motion to Dismiss the Adversary Proceeding (Index No. 09-50934) is on the itinerary and noted as "going forward." It appears they are going to be deciding on the $4.4B tomorrow afterall.
This is where it gets VERY exciting.
It's almost as though there is some correlation between these Equity Committee PR Releases and the massive MM activity that follows. Less informed or ST investors are quick to bail and the MMs get the movement they want.
I think the court is aware of something that investors aren't.
JPM would be foolish to risk discovery and it has already acknowledged that the $4.4B is ours. I still believe we will see an end to this before Wednesday. If I'm wrong, I'm wrong...but logic and instinct tell me otherwise.
I would REALLY love to see the latest billing statements NOW. Redaction shouldn't take this long -- why the holdup?
They're seeking to settle/dismiss issues regarding treatment of the WAMU Savings Plan. This doesn't affect us.
I'm monitoring PACER today and will post an update if/when something else gets filed.
Wait a minute, yes, its referencing the treatment of the WaMu Savings Plan. I don't think this settles the whole matter.
Sorry for the false alarm. I'll keep monitoring PACER.
I just downloaded the main document from PACER...I haven't read it yet, but the caption states, "Motion of Debtors Pursuant to Section 105(a) of the Bankruptcy Code and Bankruptcy Rule 9019(a) for Approval of Settlement with JPMorgan Chase Bank, N.A."
I'm pulling the document now....I can't believe it...I was RIGHT!!!!!!!!
See PACER (Docket #1183) in the Delaware Bankruptcy Case (Index No. 08-12229)
Motion to Approve Compromise under Rule 9019 Motion of Debtors Pursuant to Section 105(a) of the Bankruptcy Code and Bankruptcy Rule 9019(a) for Approval of Settlement with JPMorgan Chase Bank, N.A. Filed by Washington Mutual, Inc.. Hearing scheduled for 7/27/2009 at 02:00 PM at US Bankruptcy Court, 824 Market St., 5th Fl., Courtroom #4, Wilmington, Delaware. Objections due by 7/14/2009. (Attachments: # 1 Notice # 2 Exhibit A# 3 Exhibit B# 4 Exhibit C) (Riffin, Timothy) (Entered: 06/19/2009)
Well said.
Excellent post. I couldn't agree with you more. It seems as though this is going to put added pressure on JPM to work out some kind of deal to settle this matter with WMI quickly.
Everything appears to be on schedule for next week and Denke might be right on. I stand by my prediction of a settlement over the weekend - latest on Monday morning. Hold onto your shares, everyone!!
Person mark for you - fsshon.
I agree with you. However, I have no idea who this "Z" fellow is or what his connection is to the litigation.
From a policy perspective, I don't think there is any reason to worry about our positions. I'm investing a bit into the Equity Committee for added insurance and peace of mind, but seriously, the driving force behind WAMU is the very educated and aggressive shareholder population. If Judge Walrath is seeking an equitable resolution (as bankruptcy courts tend to do) of the JPM/WAMU matter, I don't think common shareholders will be left in the dust. It happened once when the FDIC seized WAMU -- I doubt she will allow it to happen again.
He was quoting him based on a post made on the yahoo forums.
Very much agreed. It's amazing.
Lets hope for the best.
JPMorgan Chase & Co. Buys Rest of Highbridge
Reuters - 8:36am EDT
Reuters reported that JPMorgan Chase & Co. said that it would acquire the remainder of hedge fund unit Highbridge Capital Management on July 1, completing a takeover that began with a small stake in 2004.
**Looks like JPM is back in the business of acquisition.
I'm not. I'm simply saying if it could blow through $1.88B overnight, it should be able to spend $30-50B after more than two months of deliberation, preparation, stock offerings, TARP loan payoff and various ways of raising capital.
That's all.
You stated, "The FDIC is not going to fork over $30-$50 billion dollars in 2 weeks, and JPM is not going to buy WMI in 2 weeks."
Keep in mind that JPM bought WMB for $1.88B overnight.
As you said, either we are right and you're wrong -- or vice versa.
It's very easy to get excited and allow for the impulses of wishful thinking to take over. However, in this case there is alot of good reasoning to support the likelihood that a settlement will take place on or before the 06/24 hearing.
I couldn't disagree with you more.
Only time will tell. We'll see what happens in two weeks.
No one on this board knows what kinds of skeletons are hiding in Dimon/JPM's closet.
IMO, if the R.2004 motion is granted and the skeletons come out, it could result in much more than a mere tarnished reputation for JPM - it could result in further litigation and criminal action. I think Dimon and JPM might give a little more than "2 $hits" to ensure that such information stays behind closed doors. From an economic perspective, it might be more cost effective for them to settle than to risk the filing of additional claims, more liability and potential criminal action.
Again, we don't know what kinds of skeletons they're hiding, but based on the circumstantial evidence available to us now I'm sure they're not pretty.
P.S. I'm looking forward to collecting that dollar in a few weeks.
Sounds like a fair bet, my friend.
I don't think we're going to see much fluctuation in PPS until the week of June 22. Although Judge Walrath can/may rule on the $4B before then, I imagine she will address this at the omnibus hearing on the 24th along with the R.2004 Discovery Motion.
JPM would be silly to not settle before then.
I realize that and I wasn't referring the acquiring the bank. I was referring to converting WMI accounts over to the Chase system.
I think JPM is positioning itself to keep WMB. All WMB accounts will be fully converted in July and JPM has already gone through extraordinary means in converting most, if not all, branches from WMB to Chase. Moreover, as the article I posted states -- JPM is already exercising control over WMB accounts and subsequent terms.
Based on that, I would think its safe to assume JPM is confident that some kind of settlement will be reached in the forseeable future. Although I feel very sorry for WMB accountholders, I hope we see resolution in the form of an advantageous (for WMI, of course) settlement by the end of the month.
Chase and WAMU Illegally Froze, Reduced Home Equity Credit Lines, Lawsuit Claims
Escondido, Calif., Jun 10, 2009 (PRNewsChannel.com via COMTEX) -- JPM | Quote | Chart | News | PowerRating -- Despite recent assurances by CEOs that banks are using the $700 billion in taxpayer TARP funds to lend money to cash-strapped home and business owners, Washington Mutual Bank (WAMU) and its new parent, JPMorgan Chase (Chase) (NYSE:JPM), are not only failing to live to their promises, they are squeezing consumers by freezing or reducing their home equity lines of credit, according to a federal class action lawsuit filed today. The suit alleges that WAMU, which is now operated as a division of Chase, has been systematically reducing and freezing customers home equity credit lines. According to the suit, filed in the Southern District of California, the banks used flawed automated valuation models (AVMs) to intentionally understate home values so they could create a pretext for freezing its customers HELOC accounts. The lawsuit is brought on behalf of Michell Kimball, a small businesswoman in Escondido, California. Kimball first learned that Chase had frozen her WAMU credit line when a check she had drawn on the account was dishonored. Chases actions threatened her home and the viability of her business. According to Kimball: Because I didnt have access to my credit line, I was unable to pay my suppliers. I was able to negotiate extensions from them, but if not, Im not sure what would have happened. The lawsuit alleges that when Kimball contacted customer service, Chase claimed that an AVM showed Ms. Kimballs home had lost a significant amount of its available equity. The bank refused to provide information to support that assessment. A later appraisal told a different story: It showed that the home was actually worth more than 1.5 times Chases AVM estimate. After Kimballs lawyers intervened, Chase restored her credit line, but did not reimburse her for her losses. The lawsuit seeks class action treatment for Chase and WAMUs actions in the reductions, alleging that Chase and WAMU have intentionally used inaccurate formulas to produce low-ball home valuations as a false justification for freezing thousands of such credit lines. Although federal law mandates that a significant drop in value must first occur and requires that banks act with a sound factual basis in each case, the lawsuit claims that these banks are doing whatever they can to reduce HELOC credit limits or suspend the lines altogether even if it means, in some instances, ignoring the law. The message to former WAMU customers and others is clear: Chase is coming after your home equity credit line, said attorney Jay Edelson, whose firm, KamberEdelson, LLC, previously filed a similar lawsuit against CitiBank. When banks take billions of dollars in taxpayer money, they have an extra duty to follow both the letter and the spirit of the law. We believe that congressional hearings should commence immediately, Edelson explained. Edelson is joined on the suit by KamberEdelson attorneys Michael McMorrow, Steven Lezell and Alan Himmelfarb.
http://www.tradingmarkets.com/.site/news/Stock%20News/2369324/
I imagine that a buyout/settlement would be place JPM's acquisition price higher than market value - especially with the potential for punitive damages being as high as it is in this case. My instincts tell me we're looking at $8.00/share minimum for commons.
Excellent news!
Now JPM can move ahead and settle this matter with us once and for all.
Agreed. I think a few people are going to make alot of money at some point in the next two weeks. My guess is that a settlement will be announced on June 22nd or at the very latest, the 23rd - with the Stipulation of Dismissal being "So Ordered" by Judge Walrath on the 24th.
The events have culminated in a grand, well-played game of chess. All of the pieces conjured up by Weil & Co. are in motion and a mere move or two away from checkmate. There are many WAMU shareholders who deserve to be compensated for there losses AND/OR for taking on the risk of investing against the tide in hopes that justice will trump all.
There isn't enough hubris in the world to blind JPM from seeing the inevitable. For the sake of shareholders (and the U.S. economy), I really hope JPM exercises good business judgment and swiftly settles this matter with us once and for all. Otherwise, it will be risking monumental losses resulting from civil/financial and criminal liability.
Does anyone know whether JPM will be repaying it's TARP loans today for sure?
Great post Fsshon. You nailed every single point. I hope Dimon has enough common sense to see whats coming to him. He's a sharp cookie -- I'm sure he does and I'm sure settlement negotiations have been underway.
Things are really going to get exciting after JPM pays off TARP loans on Monday. Have a wonderful weekend everyone!!