Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Why is Change in Control Summary Judgement Important?
The CIC-SJ filing informs the Court that ownership transfer of WMB is completed.
Hence; Change in Control.
Therefore, all WMB responsibilities for Tranche-5, both the Class 17 WMB Notes and Class 18 WMB Employee Claimants are remedied, closed.
No NSM Merger without CIC-SJ.
Change in Control Summary Judgement
Footnote 5;
PDF 5
http://www.kccllc.net/wamu/document/0812229180322000000000003
We Need to see Change in Control Summary Judgement,
before the NSM Merger is completed.
The signed Change in Control Summary Judgement will close Tranche 5, Classes 17 and 18 in BK Court.
Keep an eye on the Court Docket for filings.
http://www.kccllc.net/wamu/document/list/3853
with the other transactions contemplated
Pg 32:
(d) Tax Opinion. The Company shall have received a copy of a written opinion of BDO (“Parent’s Tax Advisor”), dated as of the Closing Date, in form and substance reasonably satisfactory to the Company, to the effect that (based on the most current information available prior to the Closing Date as provided by Parent to BDO and subject to customary assumptions and qualifications) (i) there should not have been an Ownership Change since March 19, 2012, and (ii) the Merger, taken together with the other transactions contemplated by this Agreement and occurring on the Closing Date, should not result in an Ownership Change (the “382 Tax Opinion”). In rendering the 382 Tax Opinion, Parent’s Tax Advisor shall be entitled to receive and rely upon tax representation letters, including from Parent."
Yep ;)
WMIH has obtained $2.75 billion in debt Commitments.
WMIH only exercised $1.7B in Senior notes.
Item 8.01
Other Events.
WMIH Corp. (the “Company” or “WMIH”) issued a press release announcing the pricing of its offering by Wand Merger Corporation, a direct wholly-owned subsidiary of the Company, of $1.7 billion aggregate principal amount of senior unsecured notes in an offering exempt from the registration requirements of the Securities Act of 1933, as amended. Upon consummation of the proposed merger with Nationstar Mortgage Holdings Inc. (“Nationstar”), the notes will be assumed by Nationstar. A copy of the press release is filed as Exhibit 99.1 to this report and incorporated herein by reference.
https://www.sec.gov/Archives/edgar/data/933136/000119312518208382/d786963d8k.htm
The offering is expected to close on or around July 13, 2018, subject to customary closing conditions. The proceeds of the offering will be deposited in escrow, with such proceeds to be released to finance the consummation of the Merger subject to the satisfaction of customary conditions. Upon consummation of the Merger, Nationstar will assume all of Merger Sub’s obligations under the Notes. The Notes will be guaranteed on a joint and several basis by WMIH and wholly-owned domestic subsidiaries of Nationstar (other than certain excluded subsidiaries).
https://www.sec.gov/Archives/edgar/data/933136/000119312518208383/d786963dex991.htm
Note 2—Financing Transaction
The aggregate amount of cash to be paid as merger consideration in the merger is approximately $1.2 billion. WMIH currently plans to fund the cash component of the merger consideration, the repayment of approximately $1.9 billion of outstanding senior unsecured notes assumed from Nationstar, and the payment of fees and expenses related to the merger through a combination of cash on hand and proceeds from the issuance of debt securities.
WMIH has obtained $2.75 billion in debt commitments from certain lenders to provide a senior unsecured term loan bridge facility (which we refer to as the “bridge facility”). The bridge facility is expected to have an initial maturity date that is the one-year anniversary of the closing date of the merger, and will be automatically converted into term loans in different tranches on the initial maturity date, with extended maturity dates ranging from 5 years to 10 years. The new debt is assumed to have an annual interest rate of 7%.
Page 196;
https://www.sec.gov/Archives/edgar/data/933136/000119312518180676/d574669d424b3.htm
The Numbers Don't Work, Yet!
Cost of Merger;
$1.2B + $1.9 = $3.1B
Funds for Merger;
$.585B from SBP + $1.7B from new Senior Notes = ~$2.285
~$.815B short.
Even Using .403B in WMIH Shares for Merger.
WMIH is still needing $.251B more.
.403B WMIH Shares to NSM * $1.40 = $.5642B
$.815 - $.5642 = $.2508B short.
The .904B in WMIH Shares Doesn't even pay;
for the NSM $1.9B in Senior Debt.
.904 * $1.4 = $1.2656B.
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=142316317
WMIH only raised $1.7B in Senior notes, not $2.75B.
I think WMIH needs more money. Where is that money coming from?
WMIH needs to announce another source of funds fast.
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=142262567
HLCE,
Ron
The .904B in WMIH Shares Doesn't even pay;
for the NSM $1.9B in Senior Debt.
.904 * $1.4 = $1.2656B.
WMIH needs more money.
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=142316317
WMIH only raised $1.7B in Senior notes, not $2.75B.
Even Using .403B in WMIH Shares for Merger.
WMIH is still needing $.251B more.
.403B WMIH Shares to NSM * $1.40 = $.5642B
$.815 - $.5642 = $.2508B short.
I think WMIH needs more money. Where is that money coming from?
See previous posts...
WMIH Needs More Money for Merger.
The issuance of 904MM new WMIH shares for the merger is pure dilution.
page 195;
https://www.sec.gov/Archives/edgar/data/933136/000119312518180676/d574669d424b3.htm
The Numbers Don't Work, Yet!
Cost of Merger;
$1.2B + $1.9 = $3.1B
Funds for Merger;
$.585B from SBP + $1.7B from new Senior Notes = ~$2.285
~$.815B short.
WMIH needs to announce another source of funds fast.
Note 2—Financing Transaction
The aggregate amount of cash to be paid as merger consideration in the merger is approximately $1.2 billion. WMIH currently plans to fund the cash component of the merger consideration, the repayment of approximately $1.9 billion of outstanding senior unsecured notes assumed from Nationstar, and the payment of fees and expenses related to the merger through a combination of cash on hand and proceeds from the issuance of debt securities.
WMIH has obtained $2.75 billion in debt commitments from certain lenders to provide a senior unsecured term loan bridge facility (which we refer to as the “bridge facility”). The bridge facility is expected to have an initial maturity date that is the one-year anniversary of the closing date of the merger, and will be automatically converted into term loans in different tranches on the initial maturity date, with extended maturity dates ranging from 5 years to 10 years. The new debt is assumed to have an annual interest rate of 7%.
Page 196;
https://www.sec.gov/Archives/edgar/data/933136/000119312518180676/d574669d424b3.htm
The "Contracts" 'ie' the Prospectus
is what gives the Preferred and the Commons the right to their prospective "Safe Harbor Estate assets".
The TPS Trusts go to the associated Preferred securities. The Cayman's.
WMIIC Participation in various Trusts goes to "Old and Cold" released Commons.
It's all about ownership and "Contracts" 'ie' the Prospectus.
Know what you own.
No, LG and hotmeat.
The "former preferred and common" tradable shares were canceled, NOT the "contracts" 'ie' the Prospectus. The "contracts" 'ie' the Prospectus are still in force.
If the "contracts" 'ie' the Prospectus were 'canceled' the there would be no Escrows markers.
But, If many of the 50MM WMIH to Old Commons sold-off,
Then the "Old and Cold" Section 382 NOL Rule would be greatly reduce the current "Old and Cold" holders.
IMO;
141 S4V to Released "Old and Cold" WMI Commons. 1.215B new WMIH shares to Released "Old and Cold" WMI Commons.
141 S4V to Released WMI TPS, P's Preferred.
Could Scenario B Result in an Ownership Change?
.207B old WMIH shares, then .403B new WMIH to NSM holders. What if many original of the .207B Reorged holders sold-off and are no longer Reorged original holders?
SBP Caveat; .444 WMIH shares to SBP if B's are converted. Many SBP holders are "Old and Cold".
Currently I'm leaning towards a Amended S-4, and an Updated Proforma in line with Scenario A supporting S4V before NSM Merger.
IMO; 1.215B new WMIH to Old Released WMI "Old and Cold" Common Escrow holders.
Thanks for the discussion.
What Happens First Regarding NSM Merger and S4V?
Prior to, or post NSM merger for S4V?
Scenario A
S4V event before NSM Merger to establish WMI/WMIIC asset values.
Close all old WMI Estate legal issues before NSM Merger.
Scenario B
S4V event after NSM Merger to establish WMI/WMIIC asset values.
Hide Old WMI values until NSM Merger is closed.
Please MB'ers, can we have a good discussion as to which Scenario has more merit, and why.
Please think facts, and not personal emotions.
Examples from past mergers...
***
WOW, this could be good. :)... this could become bad :(
I tried,
Ron
EXPENSES INCURRED BY TRUST PROFESSIONALS
NOTICE OF AMOUNTS PAID BY WMI LIQUIDATING TRUST PURSUANT TO THE LIQUIDATING TRUST AGREEMENT FOR CERTAIN COMPENSATION AND FOR SERVICES RENDERED AND EXPENSES INCURRED BY TRUST PROFESSIONALS FOR THE PERIOD ENDING JUNE 30, 2018
Alvarez & Marsal
03/01/18 - 05/31/18
$517,304.50 $308.30 $517,612.80
Please keep tabbing-up those accumulated WMIIC funds.
Good Job, Special K. nunc pro tunc
http://www.kccllc.net/wamu/document/0812229180717000000000001
I'm Expecting an Updated WMIH-NSM Proforma.
I'm Expecting an Updated WMIH-NSM Proforma reflecting the S4V event.
WMIH Shares for WMI Value is NOT dilution.
Old Proforma;
https://www.sec.gov/Archives/edgar/data/933136/000119312518180676/d574669d424b3.htm
True as of March 31, 2018.
Thanks Uncle Bo. 1.117B
I found where the "proforma company (merged) shares of 1,117,000,000" came from.
page 195-196
Footnote n;
(n) Represents the increase in the weighted average shares with the issuance of WMIH common stock in connection with the merger.
Notes to Unaudited Pro Forma Condensed Combined Financial Statements
The unaudited pro forma condensed combined financial information has been prepared to give effect to the merger involving WMIH and Nationstar and the financing transaction as if the transactions had occurred as of March 31, 2018 for the condensed combined balance sheet and as of January 1, 2017 for the condensed statements of operations.
True as of; March 31, 2018.
https://www.sec.gov/Archives/edgar/data/933136/000119312518180676/d574669d424b3.htm
The door for S4V is still open.
Merger to Close on July 31, 2018
WMIH and Nationstar have received all required regulatory approvals and expect to close the merger on July 31, 2018, subject to the satisfaction of all other closing conditions.
WMIH and Nationstar Mortgage Announce Election Deadline
WMIH and Nationstar Mortgage Announce Election Deadline for Preferred Form of Merger Consideration
the deadline for Nationstar stockholders to elect the form of merger consideration they desire to receive in the transaction has been set for 5:00 p.m., New York City time, on July 26, 2018 (the "Election Deadline").
To make an election, all Nationstar stockholders who have not previously made their cash or stock consideration elections must submit their election forms with respect to their shares so that such documents are received by the exchange agent, Computershare Trust Company, N.A., at its designated office by the Election Deadline. Nationstar stockholders holding shares through a brokerage account or other nominee arrangement may be subject to an earlier election deadline as required by their applicable broker or nominee, who will make an election on their behalf if they follow the broker's or nominee's instructions. Nationstar stockholders are encouraged to consult with their broker or nominee regarding such instructions as soon as possible.
In accordance with the previously announced merger agreement, Nationstar stockholders may elect to receive either $18.00 in cash or 12.7793 shares of common stock of WMIH, par value of $0.00001 per share, in each case subject to automatic proration and adjustment, as applicable. Nationstar stockholders whose election materials are not received in proper form by the exchange agent by the Election Deadline will be deemed to have made a stock election. Elections made by Nationstar stockholders to receive cash or stock consideration will be subject to automatic proration and adjustment, as applicable, to ensure that the total amount of cash paid (excluding cash paid in lieu of fractional shares) equals exactly $1,225,885,248.00, as described in the merger agreement and in the joint proxy statement/prospectus provided to WMIH and Nationstar stockholders in connection with the annual meeting of WMIH stockholders and the special meeting of Nationstar stockholders, each of which was held on June 29, 2018.
Beginning on or about June 11, 2018, election forms and accompanying instructions were mailed to Nationstar stockholders of record as of May 21, 2018. Nationstar stockholders, including those that acquired their shares after May 21, 2018, may request copies of these election documents from and direct any questions regarding the election materials or the Election Deadline to Georgeson LLC at (877) 278-4775 (toll-free). Nationstar stockholders holding shares through a brokerage account or other nominee arrangement should contact their broker or nominee to obtain copies of the election documents.
WMIH and Nationstar have received all required regulatory approvals and expect to close the merger on July 31, 2018, subject to the satisfaction of all other closing conditions.
https://ih.advfn.com/p.php?pid=nmona&article=77871837
A 141 S4V Will Guarantee;
1.215 billion new WMIH shares to old released WMI commons will guarantee that NO ownership change regarding the Reorganized Debtor compromising the NOLs resulting from WMB's losses satisfying IRS Rule 382.
IMO; High probability that the Series B Preferred are all, or partially cashed-out, rather that completely convert into WMIH commons.
WMIH raised $1.7B today. From S-4; WMIH to pay NSM $1.2ishB in cash.
WMIH has a high probability of receiving ABS Trust cash also due to the S4V events. Trust Dividend Distribution Date is ~July 15th. :)
P's 141 S4V and K's get funds from their performing associated TPS Trusts. Hence; the Cayman's.
141, because the dollar value is intrinsic in the share value.
And; Please Note That,
WMB Senior Notes, and other WMI Preferred normal Dividend pay-out is scheduled for July 15th.
Yes, I'm hoping for the NSM Merger next week along with the above Dividend Distributions.
Long over due;
HLCE,
Ron
I'm Your Huckleberry.
Pre-NSM Merger.
IMO;
There will be no dilution to NSM holder if the S4V takes place before the NSM Merger event.
S4V is a One for One event. Value for Shares. Equal Stuff for Equal Stuff.
Just the WMIH float changed due to S4V, with the same Shares/Book value.
141 1.215B WMIH shares to Old WMI commons.
141 WMIH preferred shares to Old WMI preferred.
Stoxjock, read #1997.
"Willful Misconduct" (RICO) .
See PDF 435 as an example.
Court Docket: #1997 Email
Document Name: Debtors' Motion for an Order Pursuant to Bankruptcy Rule 2004 and Local Bankruptcy Rule 2004-1 Directing the Examination of Witnesses and Production of Documents from Knowledgeable Parties
Date Filed: 12/14/2009
http://www.kccllc.net/wamu/document/0812229091214000000000008
Due to "Willful Misconduct" (RICO) all of JPM's BOD could see a 20 year sentence for "Willful Misconduct" (RICO).
Oltioo1, NOLs vs. NOLs
All that you posted is true until JPM/FDIC pays WMI "the Final Payment" for "WMB and it's assets". Yes, WMI abandoned the one share of WMB stock to the FDIC so the FDIC could process and close the WMB seizure as in #5885.
"The Final Payment" price tag for "WMB and it's assets" is $299 Billion, minus the pre-seizure losses of WMB. When JPM/FDIC make the payment for "WMB and it's assets" to WMI, that NOL goes away. No loss, No NOL.
The pre-seizure losses of WMB as litigated in "The D.C. Dual Tracking Litigation" are the current going forward NOLs that NSM will participate in with the Merger. Using numbers from NSM Merger, the pre-seizure losses of WMB must be around $17B using the numbers you site.
$299B - 17B = $282B, 3X for "Willful Misconduct" (RICO) is $846B for "the Final Payment" for "WMB and it's assets", plus interest (1.95% FJR).
Hint; 141-S4V. First the WMIIC(New-WaMu1031-Wand) Acquisition, then the NSM Merger.
HLCE,
Ron
NOLs vs. NOLs
Then;
Docket #5885
The losses were generated from the loss of the WMB Bank.
When JPM/FDIC pay WMI for WMB and it's assets, this NOL goes away.
Now;
The D.C. Dual Tracking Litigation.
The NOLs are generated from the losses of the WMB Bank before the seizure.
HLCE,
Ron
First the Acquisition of WMIIC, then the NSM Merger.
IMO
Keep reading
HLCE,
Ron
Sorry, I don't believe this is you...
https://spirityachts.com/spirit-yachts/007-yacht/
"Know What You own"
Olti100, Have a Great Day.
"Know what you own."
It's all about ownership, and what assets are aligned with which Trusts.
TPS-P-K are aligned with the TPS Securities. The Cayman's.
All other Trusts investments of WMIIC belong to old UQ's. The True Owners of WMI/WMIIC.
HLCE,
Ron
NO ! 400 Million WMIH shares to NSM for the Merger.
1.215 Billion WMIH shares to old UQ 'escrow' holders for the WMIIC acquisition.
HLCE,
Ron
First the Acquisition of WMIIC, then the NSM Merger.
"An acquisition is commonly mistaken with a merger – which occurs when the purchaser and the target both cease to exist and instead form a new, combined company. When a target company is acquired by another company, the target company ceases to exist in a legal sense and becomes part of the purchasing company. Acquisitions are commonly made by using cash or debt to purchase outstanding stock , but companies can also use their own stock by exchanging it for the target firm 's stock."
https://www.bing.com/search?q=accucision&FORM=O1HV
There was two WM BK filings, WMI and WMIIC.
We have only been compensated for WMI's BK which resolved at 75/25 for Preferred/Commons in WMIH new shares.
Now, Dollar for Dollar Scenario for WMIIC value in WMIH shares to be compensated for WMIIC.
The WMIIC value is in intrinsic into the new WMIH shares at One for One to old UQ's.
Same One for One for P"s and TPS, as the K's will be redeemed.
What Happened to the Other 3/4ths?
"Pg. 116 –
From 2000 to 2007, Washington Mutual and Long Beach securitized at least $77 billion in subprime and home equity loans. WaMu also sold or securitized at least $115 billion in Option ARM loans. Between 2000 and 2008, Washington Mutual sold over $500 billion in loans to Fannie Mae and Freddie Mac, accounting for more than a quarter of every dollar in loans WaMu originated."
$500 billion in loans sold to Fannie Mae and Freddie Mac is more than 1/4th of loans WaMu originated.
What happened to the Other 3/4th of loans WaMu originated?
~ $1,500-ish Billion?
~ $1.5T
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=141057822
***
More;
FED, QE-Unwind
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=141925206
FED to Windown $4.5 Trillion Balance Sheet.
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=141927541
BNY Mellon/A&M
HLCE,
Ron
Departure of Directors or Certain Officers;
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On June 29, 2018, as permitted by the terms of the Agreement and Plan of Merger, dated as of February 12, 2018, by and among the Company, Nationstar Mortgage Holdings Inc., a Delaware corporation (“ Nationstar ”), and Wand Merger Corporation, the terms of which permit the Company to award cash compensation, not to exceed $4.25 million (the “ Cash Pool ”) to certain officers and employees, which may be paid as bonuses, severance payments or other forms of retention or incentive payments, the Board of Directors (the “ Board ”) of WMIH Corp. (the “ Company ”) approved the following cash bonuses for each of the executive officers of the Company payable in connection with the consummation of the proposed merger, subject to the terms and conditions provided for below:
Name and Position
Amount
Thomas L. Fairfield
President and Chief Operating Officer
$ 500,000.00
William C. Gallagher
Chief Executive Officer
$ 500,000.00
Timothy F. Jaeger
Senior Vice President, Interim Chief Financial Officer and Interim Chief Accounting Officer
$ 250,000.00
Charles Edward Smith
Executive Vice President, Chief Legal Officer and Secretary
$ 2,400,000.00
The receipt of each such bonus is subject to the continued service of each such person to the Company until immediately prior to the effective time of the consummation of such proposed merger and such bonuses are payable on the date of the consummation of the proposed merger.
The remaining $600,000 of the Cash Pool will be paid to certain employees and other service providers of the Company, subject to the same terms and conditions described above for the Company’s executive officers.
https://ih.advfn.com/p.php?pid=nmona&article=77820709
141 S4V
One WMIH for each UQ as a Shares for Value. When WMIH gives UQ new shares, WMIH gets WMIIC value that UQ's own.
IMO, 141-S4V must take place before the NSM Merger.
IMO, the resultant PPS after the S4V will be much greater than $0.86 :)
Quick guess;
NSM: $1.772 B
WMIH: $1.215B * $1.41-ish = $1.713 + other book value...
$3.485B/2.37B shares = $1.47 PPS Minimum just for starters.
Then the WMIH business model can really start using WMIIC's value.
2.377ish in final WMIH float.
More Form-4 coming out
Willingham Michael;
https://ih.advfn.com/p.php?pid=nmona&article=77789611
Glossman Diane Beth
https://ih.advfn.com/p.php?pid=nmona&article=77789633
Renoff Michael J
https://ih.advfn.com/p.php?pid=nmona&article=77789647
We should see more...
The Series A Convertible Preferred Stock is immediately convertible.
The holder of the 5.00% Series B Convertible Preferred Stock ("5% Series B Preferred Stock") has no optional right to convert the 5% Series B Preferred Stock into common stock of the Issuer ("Common Stock"). All or a portion of the 5% Series B Preferred Stock automatically converts into Common Stock on each date that the Issuer closes certain acquisitions described in the amendment to the Issuer's Amended and Restated Certificate of Incorporation, which established the terms of the 5% Series B Preferred Stock. In the event of an automatic conversion, the 5% Series B Preferred Stock shall convert into a number of shares of Common Stock equal to the $1,000 liquidation preference amount divided by the fixed conversion price of $1.35 per share. The 5% Series B Preferred Stock may be converted automatically until October 5, 2019, except in certain circumstances, such period may be extended pursuant to the terms thereof.
Date filed; 7/1/2018
New Form-3, and Form-4 out.
Dated; 7/1/2018.
Conversion?
https://ih.advfn.com/p.php?pid=nmona&article=77789452
Series A Convertible Preferred Stock
(1) (1) Common Stock 10065629 $1.1 I
See Footnotes (2) (3) (7) (8)
Series B Convertible Preferred Stock
(4) (4) Common Stock 148148148 $1.35 I
See Footnotes (2) (5) (7) (8)
Warrants
(6) 1/30/2019 Common Stock 30700000 $1.32 I
See Footnotes (2) (3) (7) (8)
Warrants
(6) 1/30/2019 Common Stock 30700000 $1.43 I
See Footnotes
***
Form-4
https://ih.advfn.com/p.php?pid=nmona&article=77789495
FED to Windown $4.5 Trillion Balance Sheet.
Fed sets process to wind down $4.5 trillion balance sheet
Federal Reserve officials appear to be in synch on how they plan to unravel the mammoth stimulus implemented during the financial crisis.
The central bank is holding a $4.5 trillion portfolio, known as its "balance sheet," of mostly government debt it accumulated in the years after the crisis.
Federal Reserve officials appear to be in sync on how they plan to unravel the mammoth stimulus implemented during the financial crisis.
The Fed is holding a $4.5 trillion portfolio, known as its "balance sheet," of mostly government debt it accumulated in the years after the crisis. Until now, the central bank has been taking the proceeds it receives from maturing debt and reinvesting them in more bonds.
In recent days, officials have been indicating that the balance sheet will be unwound, likely starting later in the year, raising questions from investors about how the process will work and what impact it will have.
According to minutes released Wednesday from the Federal Open Market Committee meeting earlier this month, the central bank sees a system where it will announce cap limits on how much it will allow to roll off each month without reinvesting. Any amount it receives in repayments that exceeds the cap limit will be reinvested.
The process is similar to the tapering it did of the monthly bond-buying program known as quantitative easing. In that case, the Fed announced a gradual reduction in the amount of bonds it would be buying each month. In this case, it will be announcing the level of those bonds it will allow to roll off.
Caps will be set at low levels initially then gradually raised every three months, according to the meeting summary. The cap level would reach a limit that would be designed to take the balance sheet down to a certain level — perhaps around $2.5 trillion, according to some reports.
"Nearly all policymakers expressed a favorable view of this general approach," the minutes stated.
The Fed has used its balance sheet to keep interest rates low and the economy moving higher since the crisis. By buying up bonds, the Fed provided demand that held government yields back. In keeping the balance sheet large, it helped prevent a flood of bonds into the market that might have driven yields higher and pushed up borrowing costs. In addition, stocks surged after the crisis almost in lockstep with the Fed's balance sheet growth.
The schedule will be pre-announced, a measure that FOMC members agreed "was consistent with the Committee's intention to reduce the (balance sheet) in a gradual and predictable manner."
Fed watchers have worried that the process, if not done correctly, could be disruptive and drive up rates unexpectedly.
Central bank officials indeed have equated the roll-off process with rate increases, but believe that the plan set forth this month "could help mitigate the risk of adverse effects on market functioning or outsized effects on interest rates," the minutes said. "The approach would also likely be fairly straightforward to communicate."
Once set in motion, the process will not be altered unless there is a "material deterioration" in economic conditions, the document added.
The process comes as the Fed is on a gradual path toward normalizing interest rates. The central bank set its benchmark target to near zero during the crisis but has enacted three rate hikes since then, the most recent being in March.
Though the committee chose not to hike this month, it indicated strongly that another increase is coming in June, a move already priced into financial markets.
Fed officials at this month's meeting discussed the first-quarter slowness that saw GDP grow less than 1 percent, but they saw the contributing factors, including a slowdown in inflation, as "transitory" and thus unlikely to slow progress through the year.
In fact, members said the risks to their economic forecasts are tilted higher.
"Most participants judged that if economic information came in about in line with their expectations, it would soon be appropriate for the committee to take another step in removing some policy accommodation," the minutes said in a statement that is Fed vernacular for a rate hike ahead.
"The unwind in the Federal Reserve's balance sheet holds Chair Yellen's signature gradual approach," said Quincy Krosby, chief market strategist at Prudential Financial, in an email. "She will not allow a quick unwind, nor anything that surprises markets."
@JeffCoxCNBCcom
Published 2:01 PM ET Wed, 24 May 2017 Updated 2:55 PM ET Wed, 24 May 2017
Hint:
WMIIC ABS accounts supervised by A&M are at BNY Mellon Bank.
IMO, 141-S4V Next Week.
All of this process below must be completed before the NSM merger.
Reasons;
* WMB Notes are due to be paid next month, and "the Final Payment" for "WMB and it's assets" must be received before the WMB Noteholders grant JPM Releases.
"The Final Payment" for "WMB and it's assets" is considered a Dividend Distribution.
* Preferred need to be a "Share Holder of Record" of new WMIH WMHHP for P's, TPS new shares, and Redemption for K's, before the end of the Month for the normal scheduled Dividend Distribution date of July 15th. IMO, Preferred accumulated funds should come with the shares distribution for the other past quarters.
Preferred need to receive a Dividend Distribution before the Old commons can receive their Dividend Distribution.
* Shares for Value for the old "WM" common's for WMIIC assets accumulation from ABS Trusts.
Order of events;
* Preferred accumulated funds for other past quarters as a "Share Holder of Record". Hence: Shares and Cash from their associated Trusts.
* Old commons receive WMIH Shares, and Cash for other WMIIC Trust assets.
* Old commons receive "the Final Payment" for "WMB and it's assets".
* WMB Notes are paid in full.
HLCE,
Ron