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How about a Pre-WikiLeaks Leak? Perhaps our Honorable Judge will know about the upcoming Wikileaks on a major bank and make the right call in her courtroom all of a sudden, Gosh why did she rule that way, I thought it was in da bag, Eh Rosen?
No leaks about the leaks. eom.
I'd say from this laymans' perspective they stated this very well, and now we all know why lawyers do what they do. TPS attorney's great job, especially the sentence preceeding the "Conclusion" Great stuff.
So you say we are now issuing PR's from 2004 nowadays, is that an improvement?
Interesting thought here rockie is we all seemed to be smart enough to invest here no matter our educational background or English composition skills. GLTA here.
This is in part one of the reasons I stated earlier today the only way out for these folks to save face and further embarrassing public opinion on themselves is to undue it all totally and admit wrong doing and punish a few underlings here. Although I valued Fish's reply to me stranger things in the last two years have occurred especially in the financial world. So to undue a deal where everyone gets put back to square one with shareholders in tact is one of the only ways FDIC and JPM come out pot right with little egg on their faces instead of the entire chicken with it's entrails attached.
To me think letters are a fine way to express one's opinion in this case whatever you're perspective may be with it. I think that in this day and age when people protest they become the mark, they become the trouble makers not the intial trouble maker. We really do not want to be deeemd on same level as the JPM and FDIC folks in my mind. Will it make you all feel better, perhaps briefly. A succinct letter to the Judge or to Mr. Susman are a good valid idea and put's comments in front of them in writing or type written, remember "Brevity is the soul of wit". Not a voice hollering in front of a courthouse which I think is a bad idea and put's you in JPM's yard. Write a letter and yes check the grammar too as suggested by Catz here.
Thank you sir. GLTA here, fish hope you're doing better now. eom.
The way this will work is Susman will drop all charges for any collusion or Fraudulent Conveyance that took place saving JPM and Rosen and FDIC from total embarrassment here in public court. We also can pay for one half of lawyers fees to date as long as we recoup all the interest monies JPM made on our assets that don't exist. Basically undue the deal totally and make everyone whole again as now we know the economy was "saved" and I use that term lightly here by TARP, never thought I'd say that one. Make WMI hold a shareholderes meeeting within 30 days of the date of this decision so all can have a voice in the new enterprise and how the shareholders will maintain their shares held pre and post September 25, 2008. Start the new bank with the current shareholders of record in place and begin anew.
In this scenario JPM saves face from not going through a long dragged out public shellacking and Sheila Bair and her cronies save face and can make public the fact that there was a deficiency or inappropriate method used in the quickened bidding process that made for unfair advantage by JPM so this deal does become null and void. The outcome si JPM gives back what it took by WMI paying back the value of the $1.9 billlion and also half of the JPM lawyer and court costs. Part of the deal can also include JPM retaining some of the real estate and art they took over as part of the overall value.
Otherwise it's a full court press by Susman and collusion, and fraudulent conveyance and shareholders being witheld their rights to a shareholder annual meeting where their voices in a democratic society could be heard but was never done. I think this is the shortest route to a settlement and makes us all whole again.
Seein as how JPM nor the FDIC knows what assets were purchased for the $1.9 billon then we do have a way out here. Susman come up with $1.9 Billion in assets for instance take it out of the assets WAMU held in it's accounts I believe it was $188 Billion in cash. Pay JPM the $1.9 billion in cash and dissolve the whole deal, or give them $1.9 billion in Art and real estate to JPM and be done with it. That way JPM gets their $1.9 billion back with an actual asset list of what they paid for, then the rest WAMU keeps. FDIC off the hook, JPM gets its money back we go into reorganization next with our new found wealth.
I think it is taking so long as JPM and FDIC need a scapegoat here and they have not found one yet. Perhaps the ex CEO of WAMU would do nicely here. JD or SB will not take any blame for misdoing's here so some underling will fall.
What if anything was Goldman Sachs's take on this takeover just after they were set up to broker the WAMU sale? What did they lose by not being the broker in the sale deal? What has Goldman stated publically about what occurred here? Seems like they may have made some commment here. Why was the sale not allowed to continue with Goldman? Fear of economic collapse cannot be the answer as the $700 Billion was out there for other banks to participate in, so only reason is they wanted WAMU in JPM hands, only answer again as I have stated here before, they wanted WAMU to become JPM period.
http://www.fdic.gov/about/freedom/popular.html
Sorry, Pages 9 and 10 assets.
Washington Mutual Bank Purchase and Assumption Agreement - PDF
The reason I posted the listings last evening of what banks received TARP funds is this. We were all told that the reason for the TARP funds is so the banks could stay solvent. Especially the large ones, "Too big to fail" is what I seem to recall here. But somehow WAMU 100 years in business unlike many on the list I posted did not fall into the "Too Big to Fail" list?
C'mon they did this right out in the open, they wanted JPM to own WAMU it's that blatantly simple. JPM gets what WAMU would have gotten for TARP monies, should it have needed it. Look at the list of small banks on this TARP list. Plain as the nose on my face anyway.
“Under the Freedom of Information Act, the Business Journal has received several hundred pages of government emails about WaMu, written during its final months, in which almost all of information is blacked out.”
“I’m enclosing a few more documents filed through the BK court in regards to a declaration of Thomas M. Blake (http://www.crai.com/ProfessionalStaff/listingdetails.aspx?id=1276 ).
The declaration can be found in 103-4.pdf at http://www.mediafire.com/?sharekey=3b830df9f3d0e6fce7c82ed4b8f0c380aff12395630f22f3ce018c8114394287
“Quoting:
12. Based on my review to date, there is no indication that the OTS performed a solvency analysis consistent with the test for insolvency specified in the Bankruptcy Code. There is no indication that the OTS assessed the fair sale-able value of the assets of WMB (or WMI). Nor is there an indication that OTS compared the fair sale-able value of the assets of WMB (or WMI) to the total amount of either company’s respective liabilities. There is no indication that the OTS performed a comprehensive cash flow analysis of WMB (or WMI). Instead, the OTS found that “WMB met the well-capitalized standards through the date of receivership.”8 Thus, without a thorough analysis of the assets, liabilities and capital of WMI and WMB, it is not possible to come to a reliable conclusion concerning the financial solvency of either entity, whether on a consolidated or stand-alone basis.”"
http://seattle.bizjournals.com/seattle/blog/2009/12/the_fight_for_wamu_documents.html
http://www.nytimes.com/packages/html/national/200904_CREDITCRISIS/recipients.html
Amounts received are in millions so if JPM got 25,000 that is 25 Billion Dollars.
RAW DATA: List of Banks Receiving Funds From $700B TARP
Published February 05, 2009
The following is a list of TARP recipients as of January 31, 2009:
Bank of America Corporation
Bank of New York Mellon Corporation
Citigroup Inc.
The Goldman Sachs Group
JPMorgan Chase & Co.
Morgan Stanley
State Street Corporation
Wells Fargo & Company
Bank of Commerce Holdings
1st FS Corporation
UCBH Holdings, Inc.
Northern Trust Corporation
SunTrust Banks, Inc.
Broadway Financial Corporation
Washington Federal Inc.
BB&T Corp.
Provident Bancshares Corp.
Umpqua Holdings Corp.
Comerica Inc.
Regions Financial Corp.
Capital One Financial Corporation
First Horizon National Corporation
Huntington Bancshares
KeyCorp
Valley National Bancorp
Zions Bancorporation
Marshall & Ilsley
U.S. Bancorp
TCF Financial Corporation
First Niagara Financial Group
HF Financial Corp.
Centerstate Banks of Florida Inc.
City National Corporation
First Community Bankshares Inc.
Western Alliance Bancorporation
Webster Financial Corporation
Pacific Capital Bancorp
Heritage Commerce Corp.
Ameris Bancorp
Porter Bancorp Inc.
Banner Corporation
Cascade Financial Corporation
Columbia Banking System, Inc.
Heritage Financial Corporation
First PacTrust Bancorp, Inc.
Severn Bancorp, Inc.
Boston Private Financial Holdings, Inc.
Associated Banc-Corp
Trustmark Corporation
First Community Corporation
Taylor Capital Group
Nara Bancorp, Inc.
Midwest Banc Holdings, Inc.
MB Financial Inc.
First Midwest Bancorp, Inc.
United Community Banks, Inc.
Wesbanco Bank Inc.
Encore Bancshares Inc.
Manhattan Bancorp
Iberiabank Corporation
Eagle Bancorp, Inc.
Sandy Spring Bancorp, Inc.
Coastal Banking Company, Inc.
East West Bancorp
South Financial Group, Inc.
Great Southern Bancorp
Cathay General Bancorp
Southern Community Financial Corp.
CVB Financial Corp
First Defiance Financial Corp.
First Financial Holdings Inc.
Superior Bancorp Inc.
Southwest Bancorp, Inc.
Popular, Inc.
Blue Valley Ban Corp
Central Federal Corporation
Bank of Marin Bancorp
Bank of North Carolina
Central Bancorp, Inc.
Southern Missouri Bancorp, Inc.
State Bancorp, Inc.
TIB Financial Corp
Unity Bancorp, Inc.
Old Line Bancshares, Inc.
FPB Bancorp, Inc.
Sterling Financial Corporation
Oak Valley Bancorp
Old National Bancorp
Capital Bank Corporation
Pacific International Bancorp
SVB Financial Group
LNB Bancorp Inc.
Wilmington Trust Corporation
Susquehanna Bancshares, Inc
Signature Bank
HopFed Bancorp
Citizens Republic Bancorp, Inc.
Indiana Community Bancorp
Bank of the Ozarks, Inc.
Center Financial Corporation
NewBridge Bancorp
Sterling Bancshares, Inc.
The Bancorp, Inc.
TowneBank
Wilshire Bancorp, Inc.
Valley Financial Corporation
Independent Bank Corporation
Pinnacle Financial Partners, Inc.
First Litchfield Financial Corporation
National Penn Bancshares, Inc.
Northeast Bancorp
Citizens South Banking Corporation
Virginia Commerce Bancorp
Fidelity Bancorp, Inc.
LSB Corporation
Intermountain Community Bancorp
Community West Bancshares
Synovus Financial Corp.
Tennessee Commerce Bancorp, Inc.
Community Bankers Trust Corporation
BancTrust Financial Group, Inc.
Enterprise Financial Services Corp.
Mid Penn Bancorp, Inc.
Summit State Bank
VIST Financial Corp.
Wainwright Bank & Trust Company
Whitney Holding Corporation
The Connecticut Bank and Trust Company
CoBiz Financial Inc.
Santa Lucia Bancorp
Seacoast Banking Corporation of Florida
Horizon Bancorp
Fidelity Southern Corporation
Community Financial Corporation
Berkshire Hills Bancorp, Inc.
First California Financial Group, Inc
AmeriServ Financial, Inc
Security Federal Corporation
Wintrust Financial Corporation
Flushing Financial Corporation
Monarch Financial Holdings, Inc.
StellarOne Corporation
Union Bankshares Corporation
Tidelands Bancshares, Inc
Bancorp Rhode Island, Inc.
Hawthorn Bancshares, Inc.
The Elmira Savings Bank, FSB
Alliance Financial Corporation
Heartland Financial USA, Inc.
Citizens First Corporation
FFW Corporation
Plains Capital Corporation
Tri-County Financial Corporation
OneUnited Bank
Patriot Bancshares, Inc.
Pacific City Financial Corporation
Marquette National Corporation
Exchange Bank
Monadnock Bancorp, Inc.
Bridgeview Bancorp, Inc.
Fidelity Financial Corporation
Patapsco Bancorp, Inc.
NCAL Bancorp
FCB Bancorp, Inc.
First Financial Bancorp
Bridge Capital Holdings
International Bancshares Corporation
First Sound Bank
M&T Bank Corporation
Emclaire Financial Corp.
Park National Corporation
Green Bankshares, Inc.
Cecil Bancorp, Inc.
Financial Institutions, Inc.
Fulton Financial Corporation
United Bancorporation of Alabama, Inc.
MutualFirst Financial, Inc.
BCSB Bancorp, Inc.
HMN Financial, Inc.
First Community Bank Corporation of America
Sterling Bancorp
Intervest Bancshares Corporation
Peoples Bancorp of North Carolina, Inc.
Parkvale Financial Corporation
Timberland Bancorp, Inc.
1st Constitution Bancorp
Central Jersey Bancorp
Western Illinois Bancshares Inc.
Saigon National Bank
Capital Pacific Bancorp
Uwharrie Capital Corp
Mission Valley Bancorp
The Little Bank, Incorporated
Pacific Commerce Bank
Citizens Community Bank
Seacoast Commerce Bank
TCNB Financial Corp.
Leader Bancorp, Inc.
Nicolet Bankshares, Inc.
Magna Bank
Western Community Bancshares, Inc.
Community Investors Bancorp, Inc.
Capital Bancorp, Inc.
Cache Valley Banking Company
Citizens Bancorp
Tennessee Valley Financial Holdings, Inc.
Pacific Coast Bankers' Bancshares
SunTrust Banks, Inc.
The PNC Financial Services Group Inc.
Fifth Third Bancorp
Hampton Roads Bankshares, Inc.
CIT Group Inc.
West Bancorporation, Inc.
First Banks, Inc.
FirstMerit Corporation
Farmers Capital Bank Corporation
Peapack-Gladstone Financial Corporation
Commerce National Bank
The First Bancorp, Inc.
Sun Bancorp, Inc.
Crescent Financial Corporation
American Express Company
Central Pacific Financial Corp.
Centrue Financial Corporation
Eastern Virginia Bankshares, Inc.
Colony Bankcorp, Inc.
Independent Bank Corp.
Cadence Financial Corporation
LCNB Corp.
Center Bancorp, Inc.
F.N.B. Corporation
C&F Financial Corporation
North Central Bancshares, Inc.
Carolina Bank Holdings, Inc.
First Bancorp
First Financial Service Corporation
Codorus Valley Bancorp, Inc.
MidSouth Bancorp, Inc.
First Security Group, Inc.
Shore Bancshares, Inc.
The Queensborough Company
American State Bancshares, Inc.
Security California Bancorp
Security Business Bancorp
Sound Banking Company
Mission Community Bancorp
Redwood Financial Inc.
Surrey Bancorp
Independence Bank
Valley Community Bank
Rising Sun Bancorp
Community Trust Financial Corporation
GrandSouth Bancorporation
Texas National Bancorporation
Congaree Bancshares, Inc.
New York Private Bank & Trust Corporation
Home Bancshares, Inc.
Washington Banking Company/ Whidbey Island Bank
New Hampshire Thrift Bancshares, Inc.
Bar Harbor Bankshares/Bar Harbor Bank & Trust
Somerset Hills Bancorp
SCBT Financial Corporation
S&T Bancorp
ECB Bancorp, Inc./East Carolina Bank
First BanCorp
Texas Capital Bancshares, Inc.
Yadkin Valley Financial Corporation
Carver Bancorp, Inc
Citizens & Northern Corporation
MainSource Financial Group, Inc.
MetroCorp Bancshares, Inc.
United Bancorp, Inc.
Old Second Bancorp, Inc.
Pulaski Financial Corp
OceanFirst Financial Corp.
Community 1st Bank
TCB Holding Company
Centra Financial Holdings, Inc./Centra Bank, Inc.
First Bankers Trustshares, Inc.
Pacific Coast National Bancorp
Community Bank of the Bay
Redwood Capital Bancorp
Syringa Bancorp
Idaho Bancorp
Puget Sound Bank
United Financial Banking Companies, Inc.
Dickinson Financial Corporation
The Baraboo Bancorporation
Bank of Commerce
State Bankshares, Inc.
BNCCORP, Inc.
First Manitowoc Bancorp, Inc.
Southern Bancorp, Inc.
Morrill Bancshares, Inc.
Treaty Oak Bancorp, Inc.
1st Source Corporation
Princeton National Bancorp, Inc.
AB&T Financial Corporation
First Citizens Banc Corp
WSFS Financial Corporation
Commonwealth Business Bank
Seaside National Bank & Trust
CalWest Bancorp
Fresno First Bank
First ULB Corp.
Alarion Financial Services, Inc.
Midland States Bancorp, Inc.
Moscow Bancshares, Inc.
Farmers Bank
California Oaks State Bank
Pierce County Bancorp
Calvert Financial Corporation
Liberty Bancshares, Inc.
Crosstown Holding Company
BankFirst Capital Corporation
Southern Illinois Bancorp, Inc.
FPB Financial Corp.
Stonebridge Financial Corp.
Peoples Bancorp Inc.
Anchor BanCorp
Parke Bancorp, Inc.
Central Virginia Bankshares, Inc.
Flagstar Bancorp, Inc.
Middleburg Financial Corporation
Peninsula Bank Holding Co.
PrivateBancorp, Inc.
Central Valley Community Bancorp
Plumas Bancorp
Stewardship Financial Corporation
Oak Ridge Financial Services, Inc.
First United Corporation
Community Partners Bancorp
Guaranty Federal Bancshares, Inc.
Annapolis Bancorp, Inc.
DNB Financial Corporation
Firstbank Corporation
Valley Commerce Bancorp
Greer Bancshares Incorporated
Ojai Community Bank
Adbanc, Inc
Beach Business Bank
Legacy Bancorp, Inc.
First Southern Bancorp, Inc.
Country Bank Shares, Inc.
Katahdin Bankshares Corp.
Rogers Bancshares, Inc.
UBT Bancshares, Inc.
Bankers' Bank of the West Bancorp, Inc.
W.T.B. Financial Corporation
AMB Financial Corp.
Goldwater Bank, N.A.
Equity Bancshares, Inc.
WashingtonFirst Bank
Central Bancshares, Inc.
Hilltop Community Bancorp, Inc.
Northway Financial, Inc.
Monument Bank
Metro City Bank
F & M Bancshares, Inc.
First Resource Bank
Oct. 3 2008(Bloomberg) -- JPMorgan Chase & Co., which bought Washington Mutual Inc.'s branches and deposits last week, said WaMu's Chief Executive Officer Alan Fishman and other executives will leave following the biggest U.S. bank failure in history.
Decisions about the remaining staff will be made by Dec. 1, according to a memo sent from JPMorgan's retail bank CEO Charles Scharf to WaMu employees, which was obtained by Bloomberg News. JPMorgan spokesman Thomas Kelly confirmed the contents of the memo.
Fishman, 62, is out of a job less than a month after he was hired to replace Kerry Killinger, who was fired on Sept. 8 after WaMu's credit rating was slashed to junk and its stock price tumbled. The Seattle-based savings and loan became one more casualty of the global financial turmoil after it was seized by government regulators last week and its assets sold to JPMorgan.
``We strongly believe that it is important to move quickly to name the key leaders who will help take our combined organization forward in the most effective way,'' Scharf said in the memo.
The credit crisis, which has forced the world's largest banks to record $588 billion in losses, writedowns and provisions, pushed Lehman Brothers Holdings Inc. to file for bankruptcy and led to hastily arranged rescues of Merrill Lynch & Co. and Wachovia Corp. JPMorgan paid the Federal Deposit Insurance Corp. $1.9 billion for WaMu's assets after customers pulled $16.7 billion from the bank.
Fishman was paid a bonus of $7.5 million to take the top job at WaMu on Sept. 8.
Other Executives
Others who will leave following JPMorgan's purchase include Steve Rotella, chief operating officer; Todd Baker, head of corporate strategy and development; Daryl David, human resources chief; Michael Solender, chief legal officer; and Frank Baier, a special assistant hired by Fishman, according to the document.
Tom Casey, WaMu's chief financial officer, will stay through the end of the year, the memo said.
Other executives asked to remain include Al Brooks, president of the commercial bank; Deb Horvath, chief information officer; John McMurray, head of enterprise risk; David Schneider, president of home loans, and Tony Vuoto, president of credit cards. The executives will report to JPMorgan's current business leaders.
The largest U.S. bank by assets expects to make final staffing decisions for the entire merged retail unit by Dec. 1.
Most staff will continue in their roles under JPMorgan, while others will stay through the transition. No specific numbers are available at this time, JPMorgan's Kelly said.
JPMorgan will honor Washington Mutual's deferred compensation plan and will maintain salaries and benefits at the same level for now, a separate memo to employees said.
Stock compensation lost in the bankruptcy won't be replaced. Top executives won't be paid change-in-control bonuses, the memo said.
To contact the reporter on this story: Elizabeth Hester in New York at ehester@bloomberg.net.
To contact the editor responsible for this story: Otis Bilodeau at obilodeau@bloomberg.net.
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Press Releases Sept. 25, 2008
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JPMorgan Chase Acquires Banking Operations of Washington Mutual
FDIC Facilitates Transaction that Protects All Depositors and Comes at No Cost to the Deposit Insurance Fund
FOR IMMEDIATE RELEASE
September 25, 2008 Media Contact:
Andrew Gray (202) 898-7192
angray@fdic.gov
JPMorgan Chase acquired the banking operations of Washington Mutual Bank in a transaction facilitated by the Federal Deposit Insurance Corporation. All depositors are fully protected and there will be no cost to the Deposit Insurance Fund.
"For all depositors and other customers of Washington Mutual Bank, this is simply a combination of two banks," said FDIC Chairman Sheila C. Bair. "For bank customers, it will be a seamless transition. There will be no interruption in services and bank customers should expect business as usual come Friday morning."
JPMorgan Chase acquired the assets, assumed the qualified financial contracts and made a payment of $1.9 billion. Claims by equity, subordinated and senior debt holders were not acquired.
"WaMu's balance sheet and the payment paid by JPMorgan Chase allowed a transaction in which neither the uninsured depositors nor the insurance fund absorbed any losses," Bair said.
Washington Mutual Bank also has a subsidiary, Washington Mutual FSB, Park City, Utah. They have combined assets of $307 billion and total deposits of $188 billion.Thursday evening, Washington Mutual was closed by the Office of Thrift Supervision and the FDIC named receiver. WaMu customers with questions should call their normal banking representative, service center, 1-800-788-7000 or visit www.WaMU.com. The FDIC's consumer hotline is 1-877-ASK-FDIC (1-877-275-3342) or visit www.fdic.gov.
Additional Notices
•JP Morgan Acquires All Qualified Financial Contracts as Part of Washington Mutual Acquisition
•Washington Mutual Bank Investors – Additional Information
•Continuation of Contracts Transferred From Washington Mutual Bank
# # #
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 8,451 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars – insured financial institutions fund its operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically (go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information Center (877-275-3342 or 703-562-2200). PR-85-2008
Did Inside Info Drive WaMu into Morgan's Arms?
by Kirsten Grind Dec 15 2009
An explosive filing in bankruptcy court alleges JPMorgan used inside information to drive down troubled rival WaMu's stock price before federal regulators forced the sale of the thrift.
Why Did They Close WaMu?
Washington Mutual had enough money to survive. So why did regulators shut the thrift down in one of the biggest bank takeovers in history?
A Giant Downfall
Inside the frenzied effort to prevent the collapse of Washington Mutual, the largest bank failure in U.S. history. Read More
New allegations have surfaced in Washington Mutual's bankruptcy case that JP Morgan used inside information to drive down the price of the thrift.
A filing in the Washington Mutual bankruptcy case says that new evidence supports allegations that JPMorgan Chase used access to inside information about WaMu to drive down the bank’s credit rating and share price, scare away other suitors, and arrange to buy the ailing Seattle bank from regulators at a bargain price.
The evidence is contained in a motion filed Monday in U.S. Bankruptcy Court in Delaware by WaMu’s bankrupt holding company, known as WMI, which is seeking to recover billions of dollars lost when regulators seized Washington Mutual and sold it to New York-based JPMorgan Chase & Co. in September 2008.
The 20-page motion cites hundreds of internal documents received from JPMorgan through discovery in the bankruptcy case, including emails between JPMorgan executives and other banks interested in bidding on WaMu and as slide-show presentations discussing the viability of a WaMu purchase.
The motion also cites as evidence a recent Puget Sound Business Journal article that said Washington Mutual had sufficient capital and liquidity to meet regulatory requirements when it was seized and sold.
The motion repeatedly cited allegations made in an earlier federal lawsuit, but that case did not turn up a similar volume of emails and other supporting evidence. The documents only became available when JPMorgan disclosed them in response to a subpoena that the bankruptcy trustees filed in June.
The latest motion now seeks to expand the subpoena to include regulators such as the Federal Deposit Insurance Corp., the Office of Thrift Supervision (OTS), the U.S. Treasury Department, the Federal Reserve, other banks that considered buying Washington Mutual, Goldman Sachs in its capacity as an adviser to WaMu, credit-rating agencies, and other banks involved in lending to WaMu.
The Business Journal also had requested documents from regulators regarding their decision to seize WaMu. Regulators either denied those requests or blacked out most of the documents they released.
JPMorgan and OTS declined to comment. Lawyers who filed the motion on behalf of WMI also declined to comment, citing pending litigation. The FDIC couldn’t immediately be reached for comment.
According to the motion, information obtained through the JPMorgan subpoena suggests JPMorgan held meetings with WaMu’s regulators in 2008 about WaMu and “made presentations regarding Washington Mutual that included sensitive Washington Mutual information.”
JPMorgan also sought and received government assistance in the deal, the motion contends. It says JPMorgan received unusually favorable terms for its acquisition, access to confidential information about WaMu that the bank itself was reluctant to disclose, and regulators’ agreement “to override certain state banking laws that would otherwise prohibit” JPMorgan from acquiring WaMu.
The motion repeatedly cites the federal lawsuit filed earlier this year by WaMu bondholders, which alleges that JPMorgan misused its “insider” status and access to regulators to leak confidential information about the bank and “wrongfully influence government policy and actions,” according to the motion.
According to the motion, it appears that JPMorgan knew as early as September 12, 2008, that WaMu would be offered up as a distressed-asset sale. At the time, WaMu was only one day into its final bank run, according to previous reports in the Business Journal. WaMu’s main regulator, the OTS, has cited that bank run and insufficient liquidity as the reason for closing the bank.
“In early September, three weeks before (WaMu) was seized, FDIC officials informed (JPMorgan) that “the FDIC was carefully monitoring (WaMu) and that a seizure of its assets was likely,” the motion said.
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Kirsten Grind is a staff writer for the Puget Sound Business Journal. Loading comments... Problems loading Disqus?
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Read more: http://www.portfolio.com/industry-news/banking-finance/2009/12/15/inside-info-drove-wamu-into-jp-morgan-deal/#ixzz16Lfuzz1p
This is very intriguing… Check out the the excerpts from the report below…
Game Changer?
WaMu sale hasn’t closed, document suggests
Next month will mark two years since federal regulators seized Washington Mutual and sold it to JPMorgan Chase for $1.9 billion. Now a document that appears to be from the Federal Deposit Insurance Corporation suggests the deal still hasn’t closed.
“Everyone is saying the sale is finalized,” said the shareholder, Farokh Lam, of Woburn, Mass. “It is not.”
Lam noticed that on pages 7 and 9, the original WaMu purchase and sale agreement allows the FDIC to extend the settlement date. He says he asked about it, and the FDIC confirmed in phone calls and emails that the settlement date was set for Aug. 30, 2010, and could be extended further.
“Settlement Date” means the first Business Day immediately prior to the day which is one hundred eighty (180) days after Ban Closing, or such other date prior thereto as may be agreed upon by the Receiver and the Assuming Bank. The Receiver, in its discretion, may extend the Settlement Date.
It says: “The purpose of this amendment is to extend the time period for Final Settlement to August. 30, 2010.”
WaMu’s final days were chronicled in depth by Puget Sound Business Journal Staff Writer Kirsten Grind in an award-winning series.
Read more: WaMu sale hasn’t closed, document suggests – Puget Sound Business Journal (Seattle)
Does this mean that all the WAMU foreclosures being pushed through the courts by JPMorgan Chase using the FDIC Purchase and Sale Agreement are invalid?
Does it mean if they haven’t closed the deal THEY DO NOT OWN THE LOANS OR THEIR SERVICING RIGHTS?
Where are the windfall profits going after the foreclosure sale?
What if the agreement changes before it is finalized?
So many questions…
The way I see it is, if they haven’t finalized the deal, how can they foreclose on the homes?
JPMorgan Wamu FDIC Settlement Date Extension
Filed under bankruptcy, cdo, cds, Corruption, Fannie Mae, foreclosure, Foreclosure Fraud, freddie mac, Front Page, MERS, mortgage electronic registration system, Mortgage Fraud, securities fraud · Tagged with 4closurefraud, bank fraud, bankruptcy, cdo, cds, clouded title, conspiracy, criminal, FDIC, fight the banks, foreclosure, Foreclosure Defense, Foreclosure Fraud, fraud, JPMorgan Chase, purchase and sale agreement, securities fraud, theft, WAMU
Almost like they all wanted it to go down this way, strange, anyone chased those tails here yet to see if WAMU director colluded with the take over parties here knowingly so?
I truly believe as in the WAMU robbery that smoke and mirrors continue today in that the FDIC and JPM want us all to think they are at a small war with each other over this so called deal of the century. I think it is all being done for our viewing pleasure to take our eye off the ball. Don't fall for it, as they seem to battle each other the ploy could be to show this fake argument publically and pay each other off publically and leave WAMU deals and robbery off to the sidelines. Don't be fooled twice folks here. GLTA.
Yes Judge we are filing for Chapter 11 Bankrupcy and have no assets after 100 years in business. Oh wait a second we do have these assets over here, and over there, oh my gosh I guess we do have assets. Sorry Judge we actually do not need to file Chapter 11 Bankrupcy we are solvent. Whoda thought it. Sorry for the jest.
Share Structure anyone? eom.
Been here a long time but do not post here. As I understand it currently in the world China is about to unleash vehicles that do nothing but run on Natural Gas the world will follow here. Will this new design for motor vehicles change the face of our little UVSE, don't we have Natural Gas resources here? If I recall correctly they do.
"(i) To the extent that the Debtors’ valuation of assets to be transferred pursuant to the Glabal Settlement Agreement is not disclosed in the Sixth Amended Disclosure Statement, the Debtors submit that any additional disclosure poses risks that could undermine and adversely affect the Debtors’ litigation strategy (to the detriment of the Debtors’ estates) if the Global Settlement Agreement and Sixth Amended Plan are not approved by the Court.”
Now this statement in to itself proves there are assets that have not yet been disclosed here, thank you Rosen for pointing out that there have been hidden assets all along here. Your argument awhile ago that there were no assets at all falls apart here don't it a tad? Thank you Rosen.
It is so obvious that the Fed wanted certain banking institutions to receive the hand outs here and what better way to justify it than give them WAMU and Lehman, and Bear Stearns debts to justify it all. Why knowing in one weeks time that WAMU could have received TARP funds to keep it a going concern did they allow it to be taken over, even when admittedly was a solvent bank, wait one silly week after 100 years in business to receive TARP funds if it ended up needing any in the first place. Why, because JPM needed a presence on the West Coast and to make JPM the largest concern in the U.S. that is the why here. It is so obvious to me and I am a simple person using common sense here. The Honorable Judge should be as open minded to see this fact.
Happy Turkey Day all. Thanks for all your continued DD and support.
Does it not also pose a detriment to the EC and their stance in this should these details not come out? Whom has more equal footing here for this request to be listened to? Debtors or Shareholders of record allah the EC? To me this is a ploy to avoid knowledge to the public of known assets that would blow the absolute lid off this whole story and case. This is the reason can't give us any ammo to show up with like your enemy putting bullets in your gun to shoot them with.
"(i) To the extent that the Debtors’ valuation of assets to be transferred pursuant to the Glabal Settlement Agreement is not disclosed in the Sixth Amended Disclosure Statement, the Debtors submit that any additional disclosure poses risks that could undermine and adversely affect the Debtors’ litigation strategy (to the detriment of the Debtors’ estates) if the Global Settlement Agreement and Sixth Amended Plan are not approved by the Court.”
How can anyone buy assets that they do not know what they purchased? So in my mind OK JPM you just bought all the liabilities no assets, no cash, no holdings, no property. If you did then show me where you did simple.
10-4 I heard that. eom.
Interesting volume today I sold 500K shares today .0017 most of them then .0016 the other shares so the amount of trading overall should have moved the pps downward. Oh well never know, profits taken off the table today.
Better grab you shares before Monday's explosion, long weekend to not be in this monster. Better get in NOW or pay more later.
I can't quite understand here that no one has been speaking about this company at all yet it is jumping, no news at all. So much the great Hot Stock Boards folks. Must be everyone just decided to buy this today. Funny.
Best Wishes, fish, be safe now.
Obligations, we certainly have no obligations here, we also have no assets to show for it either. WTF did we buy again here? Losses, no we did not buy any losses only gains here folks, why would we buy losses? The FDIC bought all the losses, we only want the gains to show our shareholders we are smartie pants. Where did we put those dang assets again, can't seem to locate them, they move so quickly, HMMMM.
Perhaps they should also walk away from the gains and give them back, they only really want to keep the good stuff anyway. The rest is the FDIC's didn't you all know that. Why do you think the $1.9 billion price tag on an entity worth over 40 times that much. Yeah guys we only wanted the profit making stuff in this deal not the whole thing. Errr, Oh What did we sign for??? Exactly, now where did I place those assets again?? I can never seem to find them pesky things.
Does not mean they will purchase all $3million but they could if they find it the rigtht thing to do, fiscally speaking of course.
Getting close to news here yet? December coming very soon folks hold onto your shares and horses. Don't hold your breath. Keep those sales and profit numbers coming management so we are fully informed shareholders. Thank you so much for your continued support with those reported numbers. GLTA here, we need it.