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FDIC sues 3 former top executives of failed WaMu
http://www.forbes.com/feeds/ap/2011/03/17/business-financials-us-fdic-wamu-executives-sued_8361896.html
Don't know if anyone saw this yet, been a while since I posted, catching up on some reading. Happy St. Patties Day!
im out. good luck all.
All I know is that $1.9 Billion does not = $310 Billion, far from a fair valuation.
NICE LETTER! Im gonna print and mail it when I get home. Thanks.
Here we go...glta
Im back in. :)
Can someone please point to the solid evidence that TPG is actually involved in the EC.
So let me get this straight, the measly 400k shares I bought on the bounce are worth $4k?
WaMu deal resolves fallout from record bank failure
http://finance.yahoo.com/news/WaMu-deal-resolves-fallout-rb-1878119386.html?x=0&.v=1
By Tom Hals
WILMINGTON, Delaware (Reuters) - Washington Mutual Inc (Other OTC:WAMUQ.PK - News) said on Friday that it reached a deal that will bring it roughly $6 billion and help resolve its bankruptcy, but it could leave shareholders in the cold.
The company, which is tied to the biggest bank failure in U.S. history, will gain ownership of a bank deposit that is worth about $4 billion. JPMorgan Chase & Co (NYSE:JPM - News) also had claimed the deposit.
It also agreed to split two potential tax refunds worth a combined $5.6 billion with JPMorgan and the Federal Deposit Insurance Corp.
While the transaction brings the three parties into agreement for the first time after 18 months of legal battles, it sets up the next likely fight: the deal depends on the disallowance of billions of dollars in claims by holders of bonds issued by Washington Mutual Bank.
The company recognizes $7 billion in general unsecured claims stemming from Washington Mutual notes, although more than $100 billion of claims have been lodged. The money brought into the estate will go to paying off creditors.
Shareholders also are likely to fight the agreement. An attorney for the official committee of equity holders told the court that nobody told him about the settlement.
Shares of Washington Mutual common stock fell as much as 70 percent after the deal was announced. Preferred shares, which have a higher-priority claim on the company's assets, rose 9 percent.
Shares of JPMorgan were little changed at $43.37 in afternoon trade.
The Seattle-based Washington Mutual filed for bankruptcy in September 2008, during the same financial crisis that felled Lehman Brothers Holding Inc, Merrill Lynch and banks across Europe. Washington Mutual's jittery depositors yanked nearly 10 percent of the bank's $188 billion in deposits in a matter of days, prompting regulators to seize the operation.
After it was seized, the FDIC sold the bank to JPMorgan (NYSE:JPM - News) for $1.9 billion.
Friday's deal will return a bank deposit worth about $4 billion to Washington Mutual, minus $172 million.
The deposit was also claimed by JPMorgan which had described Washington Mutual's bookkeeping as a "shell game" and said money might have been a capital contribution that allowed the bank to meet regulatory requirements.
The deal also splits the company's two expected tax refunds. Washington Mutual agreed to receive $900 million of a $2.6 billion expected return, with the rest going to JPMorgan. A second $2.6 billion return will be bring in $1.04 billion for Washington Mutual with the rest going to the FDIC.
The company's reorganization plan is really a plan for distributing assets to creditors. Little will remain of the company that was founded in 1889 to help fund the rebuilding of central Seattle after a devastating fire.
Most of what was once 2,200 branches and 40,000 staff as well as books and records are now in the hands of JPMorgan.
The company's seizure and bankruptcy have been steeped in controversy and become fodder for conspiracy theories, particularly among shareholders.
The bank said in court documents that JPMorgan may have leaked information to regulators that led to its collapse. It cited records from other court cases that suggested JPMorgan had planted "mole" employees at Washington Mutual to glean information.
As part of the agreement, Washington Mutual will not pursue litigation over its collapse against JPMorgan or the FDIC.
The case has also realigned what passes for the natural order of things in bankruptcy, with JPMorgan fighting against hedge funds that hold the company's bonds.
In most other large bankruptcies such as Readers Digest (RPPLER.UL) and Tribune Co (Other OTC:TRBCQ.PK - News), JPMorgan has been a tough negotiator on behalf of hedge funds, who it depends on to buy the securitized loans it generates.
The company said it will finalize the agreement and include it in a plan of reorganization it expects to file with the Delaware bankruptcy court by the end of March.
The case is In re Washington Mutual Inc, U.S. Bankruptcy Court, District of Delaware (Wilmington), No. 08-12229.
(Reporting by Tom Hals. Editing by Robert MacMillan)
I threw up after i sold my shares...really i did. So pissed.
My god what a violent run...eom
.12's printing
Wow I was lucky to get out at .16
Back on hold? Did you catch that?
Shes here!
No problem man lol! Good luck to you tomorrow! Im out for the night.
yep thats why i posted that just a few post down lol
Fish-
No one has mentioned the implications behind the shareholders meeting. To me this means that commons are going to remain intact after the reorg. plan, what do you think?
What you need to first grasp is that WAMU is not WMI. Chase absorbed the banking entity of WAMU. The Holding Company - WMI (Washington Mutual Inc) is still alive and in ch. 11 bankruptcy protection.
Is a WaMu-JPMorgan Settlement Possible?? (remember this?)
http://www.thestreet.com/story/10647840/1/is-a-wamu-jpmorgan-settlement-possible.html
NEW YORK (TheStreet) -- Washington Mutual looks increasingly likely to extract a settlement from JPMorgan Chase(JPM) as the companies battle in court over a disputed $4 billion in cash deposits and several billions in other assets, according to a close observer of the complex case.
Washington Mutual and JPMorgan attorneys have both laid claim to the disputed assets following JPMorgan's acquisition of the failed thrift's assets last year. Senior bonds of Washington Mutual's holding company have rallied from a low of 20 cents on the dollar to the high 90s on the belief that Washington Mutual will recover at least some of that amount.
In their latest motion, however, Washington Mutual's attorneys have upped the ante, pointing to documents they say highlight a need to "expand to third parties" an investigation they say the bankruptcy court has authorized into JPMorgan's "alleged malfeasance prior to the seizure and sale of [Washington Mutual]."
And quite a list of third parties it is. Washington Mutual's lawyers want to interview regulators at the FDIC, the Office of Thrift Supervision, the Office of the Comptroller of the Currency, the Federal Reserve, the Treasury Department, the Securities and Exchange Commission, former Treasury Secretary Henry Paulson, ratings agencies Moody's Investors Service (MCO), McGraw Hill Companies' (MHP) unit Standard and Poor's, and companies they say considered buying Washington Mutual, including Banco Santander (STD), Toronto-Dominion Bank (TD), and Wells Fargo (WFC). Among other parties, they also want to interview executives at Goldman Sachs (GS), which advised Washington Mutual on its sale.
The motion says the interviews are necessary in light of claims made in a separate case, American National Insurance Co. vs. FDIC, in which attorneys for American National argue that JPMorgan "engaged in sham negotiations," among other tactics "to gain an unfair advantage in obtaining [Washington Mutual] assets at a 'fire sale' price." JPMorgan spokesmen did not respond to an email message seeking comment on the litigation.
Kevin Starke, a bond analyst at CRT Capital who has been following the JPMorgan-WaMu case closely, thinks the judge will grant Washington Mutual's attorneys' request, as the rule the attorneys use to justify it "permits discovery quite broadly, including on 'any...matter relevant to the case,'" Starke wrote in a research note published Wednesday, citing federal bankruptcy rules.
However, Starke also believes JPMorgan will be strongly incentivized to settle the case, rather than allow Washington Mutual's attorneys to go on such a broad and lengthy "fishing expedition," he told TheStreet.com.
"You go on that broad a hunt, there's a good chance you're going to find something," Starke says.
Whatever the outcome of the case, Starke does not believe owners of Washington Mutual's common stock have any hope of recovery, nor does he believe it will have much if any effect on JPMorgan's stock, as the amounts in dispute are relatively minor for the banking giant. Washington Mutual shares have swung wildly on heavy volumes at different periods in recent months, on hopes a favorable court ruling will help them recover some value.
-- Written by Dan Freed in New York.
All I know is that tomorrow is a day that many, many longs here have been waiting a very, very long time for. All of the time and due diligence that members of this board have contributed is absolutely amazing. I challenge you to find another board of this caliber.
Regardless of what happens tomorrow or in the near future, you can not ignore the pain that people have endured to arrive at this moment in time. People lost their life savings, 401k's, and large chunks of their mutual funds through the seizure. Tomorrow there could be fortunes won and lost. Tomorrow we will see the true condition of our Financial, Regulatory and Justice system. Tomorrow is the day that is going to define the future of WMI.
Corruption runs deep in the heart of our country, but there are the rare few who know good and will make the right decisions to bleed out those who have caused so much pain.
I wish all of you the best of luck. God Bless.
Yep we found the bloomberg article :) thanks!
http://www.bloomberg.com/apps/news?pid=20601127&sid=aDqzYBIyrZSA
The post was in reference to WMI adjourning the omnibus hearing last week on behalf of JPM and the FDIC
Well either way she rules, I have enjoyed this stock immensely. I have learned a lot in regards to the way that high end litigations and MM's operate, Ive been in since .045 and have flipped a couple times. Looking forward to tomorrow.
Remember she is the one that said the argument was 'Frivolous'.
I know! I don't know if I'll be able to sleep tonight! I mean really if you think about it the implications that we have found through the delay of this Omnibus court hearing in regards to the summary judgment puts WMI in a much better position for a MAJOR move forward in regards to all global claims across the litigation spectrum (and definitely a higher chance of a settlement).
I am honestly shocked that the pps has fell to this level in that regard, but both you and I know very well that it is the doing of the mm's.
Link??
Good post from the yahoo board:
http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_W/threadview?m=tm&bn=86316&tid=379655&mid=379655&tof=9&frt=2
Okay, if there's going to be an announcement of a 'global understanding', it will be before the hearing at 11am tommorrow. WMI agreed to a 1 week delay at the request of JPM and the FDIC with the court concurrence with the undoubted assurance of all parties that fruitful discussions already had occurred that would lead to a resolution. If there is no such resolution, the court is going to be extremely unhappy as it would have been both a misrepresentation of the status and a waste of the court's time and both are things that the overcrowded bankruptcy courts do not take lightly.
The handful of media account suggested that the 'global understanding' was for the $4 billion SJ but not for the larger case. That seems unlikely as there would have been no good reason for WMI to have agreed to a 1 week delay over just the SJ motion decision. Also, the delay was allegedly to allow JPM and the FDIC to do due diligence which would be pointless for the SJ decision by itself as there would certainly be a procedure after such a decision (assuming it's in WMI's favor) for JPM and WMI to work out the details of the transfer of the funds. No, the 'global understanding' was for the whole shooting match and if it does not happen before the hearing tommorrow, counsel for JPM and the FDIC are likely to have lost an enormous amount of credibility with the bankruptcy court which will seriously hurt their ability to prevail in future action.
In the absence of a settlement, the most interesting things coming up (post-SJ ruling) are the EC motions to intervene and to hold a shareholder's meeting, followed by the reorganization plan.
Ahh ok, makes sense I was thinking for a second...omg jpm controls youtube as well! lol
Don't know why the video was removed! Really weird!
Heres the old link:
So much noise on this board today, I remember when it was just a group of around 20 active posters lol.
As do I! Halt tomorrow IMO.
I can't believe that this is trading like this when there is an extremely high possibility of a Summary Judgment tomorrow on the ~$3.7 billion in deposits along with a moderate to high possibility of a solid hint towards a global understanding between the parties.
Imo we should still be around the .50-70 level.
Yes its a very 'hypnosis' - "stay away from this stock" type of heading.
Heh yes tomorrow after hours would be just fine for a nice big announcement!
You'll find out after the (hopeful) settlement, some are speculating that it may be up to the judge, but others are saying a share is a share.
IMO a share is a share.
Lol that was the worst reporting ever. That report didn't even scratch the surface. They didn't even give a reason why there was litigation going on. No one knows still. Just a shell game of a news report...but hey I think that is the first time this has made it to a cable station in a REALLY long time lol.
The truth would be too dangerous if actually reported.
Gaps are filled! lol
lunchtime selloff/herding effect imo
Date |Symbol|ShortVolume |TotalVolume |Market
20100308|WAMUQ |19,558,226 |65,662,000 |O
Great day everyone! Congrats! eom