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30B was not part of servicing it was part of the loan book (assets) of WMB which JP acquired.
Purchase price was largely through assumption of 265B of liabilities (mostly deposits) plus 1.9B payment to FDIC, details are on p 16 of the investor presentation from 2008
https://jpmorganchaseco.gcs-web.com/node/79286/html
The 30B was part of the actual loan book (not just serviced portfolio), which JPM acquired.
It was part of the WaMu assets / loan book for which JP paid about 250B and because it was multi family homes it performed better in the down turn.
There is a massive difference between media statements without disclosure of sources and the misguided attempt to win a multi billion lawsuit without a shred of demonstrable evidence.
The first is SOP but the second is BS.
WMI had no participation in any ABS / MBS trust.
There was a chrystal clear statement in the FAQ to address this theory:
Contrary to assertions by various parties on message boards and other media platforms, Washington Mutual, Inc. did not have any role in connection with securitization transactions consummated by Washington Mutual Bank and its affiliates. Specifically, Washington Mutual, Inc. did not sponsor, guarantee or otherwise participate in such securitization transactions. Relatedly, Washington Mutual, Inc. did not hold any certificates issued in connection with such transactions, including any “R” or “residual” certificates issued in connection with such transactions.
JPM assumed the debt and repaid it it over the years, 160B to the WMB depositors, the rest to bondholders, Fannie Mae etc
They paid about 260B through assumption of deposits and other liabilities, see p136 plus the 1.9B to FDIC
https://www.jpmorganchase.com/content/dam/jpmc/jpmorgan-chase-and-co/investor-relations/documents/2008-AR-Complete-AR.pdf
“Retained Assets” were claims which were retained by the Debtors = LT:
Moving on, the next step is part (b), and that would be "such other claims and causes of action which shall be retained by the Debtors, and the proceeds thereof, if any, distributed to creditors and equity interest holders pursuant to the Plan, and the claims and defenses of third parties thereto," and we've defined that as the "Retained Asset Component"
The LT didnt pursue any claims and no longer exists.
No, the dumbest people must have been the ones who provided most of 600B to WaMu pre 2008, so that WaMu could lend it to their clients, then hide the loans as MBS for 15 years and now give the money to Escrow holders.
All without repaying the people who actually provided the vast majority of the capital - who have also not raised any concerns over their missing billions since 2008.
If 600B comes to Escrows, it would have meant that
- WaMu made 600B worth of mortgage loans to real estate buyers pre 2008, financed largely by debt (depositors’ money and other liabilities)
- Only pretended to sell these loans to investors but actually just moved them “off balance sheet” without getting a purchase price in return
- Managed to hide the subsequent 600B hole in its balance sheet from depositors, auditors, SEC etc
- Never repaid the deposits / liabilities used to finance the original loans
- Managed to hide 600B worth of assets from its own shareholders before and after bankruptcy
- Kept these assets hidden for 15 years, including billions of earning annually
Only to reveal them now and pay them out to former Escrow holders.
Escrows have already been deleted - so there is literally nothing to be deleted from anyone’s account any more
So, pre 2008 WaMu made 150 B worth of mortgage loans, structured them in the form of MBS and proceeded to hide them from its balance sheet for the benefit of its shareholders without telling them.
This would have made pre 2008 shareholders and management much poorer (because the hidden loans would have no longer contributed to WaMu’s balance sheet and P&L and therefore lowered its valuation and share price) AND it would have meant defrauding the post-insolvency shareholders, who would have never sold their WMI shares for pennies if they had known about the hidden assets worth 150 B.
So WaMu’s management decided in 2006 or 2007 to hide assets and screw current shareholders in order for some other investors to benefit from this in 2022? Really?
We know that no MBS was retained by WMI, because they would have needed to disclose that in the Ch 11 Disclosure Statement.
There was also always an explicit statement in the FAQ, that the holding WMI had no involvement whatsoever in the whole MBS process, it also didnt hold any.
The vast majority were sold to investors, WMB did retain 15 or 16B on its balance sheet, which went to JPM.
Ron talks abour revenue generation on the deposit base.
There is no revenue generation from the deposits (because they are liabilities), revenue is generated on assets (mainly loans).
Deposits are NOT assets of a bank, they are liabilities.
SMH
The loan to acquire NSM came from four banks (credit s, jefferies, hsbc and deutsche).
The loan agreement was actually filed with the SEC (easy to look up)
But I guess you’re now saying that the loan was ‘secretly’ secured by the hidden assets?
Same argument applies - to ‘hide’ 90 B worth of mortgages for the benefit of Escrow holders, someone would have needed to fund these loans before 2008 (as shareholders didnt provide 90 B of loan funding without knowing it)
Anyone who like Bops source claims that 600 B of mortgage loans (in the form of MBS) have been hidden for the benefit Escrow holders should at least try to explain where the 600 B of capital came from before 2008 - and why the providers of this capital would not want their money back.
No such attempt to explain has been made AFAIK.
Also, how would WMI ever have financed 600 B worth of loans to be structured as MBS and hidden from tits balance sheet pre 2008 in order to be paid out to Escrow holders in 2022?
Who would have provided the capital to make these loans?
FDIC seized WMB, they did not seize any other WMI assets.
(Even if they had, don’t you think that since then the many lawyers involved in the WMI bankruptcy on all sides would have chased these WMI assets?)
Simple verifiable 14 year old facts.
Nope, just stating simple verifiable 14 year old facts.
Which you have obviously chosen to ignore - because they dont fit your narrative.
The FDIC didn’t need an authority to seize the holding company WMI, because it didnt seize it.
WMI went bankrupt after the FDIC seized the bank WMB.
That all happened 14 years ago….
JPM has paid in full for WMBs assets in 2008, largely through assumption of 260 B worth of liabilities - there is no further payment outstanding.
Nope, you didn‘t reveal anything.
You made plenty of v confident predictions (like escrows couldn‘t be deleted by the LT) - none of which came to pass.
Its simply not true to say that COOP has to distribute shares to old shareholders in order to use the NOLs.
They are already using the NOLs, as has been shown multiple times.
Yet still these horror stories of upcoming dilution get repeated - and will surely get repeated again and again.
On September 26, 2008, Washington Mutual, Inc. (the “Company”), together with its wholly-owned subsidiary, WMI Investment Corp., commenced voluntary cases under chapter 11 of title 11 of the United States Code in the United States Bankruptcy Court for the District of Delaware. The chapter 11 filings were a result of the appointment, by the Office of Thrift Supervision, of the Federal Deposit Insurance Corporation (“FDIC”) as receiver of Washington Mutual Bank, Washington Mutual, Inc.’s banking subsidiary, on September 25, 2008.
In its chapter 11 petition, the Company reported that the amount of assets reflected on its books and records was $32,896,605,516. However, this amount includes the Company’s common stock interest in Washington Mutual Bank, which is currently in receivership and the assets of which have reportedly been transferred to JPMorgan Chase & Co. or an affiliate. The FDIC, which was appointed the receiver for the bank, indicates on its website that it does not anticipate that there will be any recovery to the Company for that common stock interest. In addition, the Company and its non-bank subsidiaries had approximately $5 billion of cash on deposit with Washington Mutual Bank and its bank subsidiary, Washington Mutual Bank fsb, immediately prior to the time the FDIC was appointed as receiver. The Company is in the process of confirming the status of those deposits and of its other assets.
https://www.sec.gov/Archives/edgar/data/0000933136/000089375008000495/form8k.htm
WMI chapter 11 process has long been terminated.
WMB receivership by the FDIC is still ongoing but they have stated multiple times that there will not be any payments to equity, because there are bns of bonds which have prior claims to any assets.
simple fact that the Ch 11 process has been terminated for the holdco.
Underwriters did NOT want a claim in the lower class.
They made a claim in both classes and their Class 18 claim was disallowed - while their Class 19 was allowed.
The Ch 11 process for the holding company has long been terminated - there are no values left.
yep, they didnt manage any money - but made plenty of money for themselves
Not sure
A&Ms contract got terminated last year I think as all they did was to provide personnel to the Lt which was no longer needed.
Escrows have been deleted weeks ago - so how could anyone make an offer to anyone to sell non-existent Escrows?
No, he hasn’t shown anything to be false.
He just made another unsubstantiated claim, like he did the day when Escrows got cancelled, although he had made another claim before that they couldn’t be cancelled.
Etc.
The holding company WMI never had 299 B in bank accounts or anywhere else.
WMB had assets of 299 b and liabilities of 250 or 260 b - which both went to jpm
Awesome - this should be stickied
‘the liquidating trust can go ahead and pursue them’
But the LT has not pursued these claims and cannot pursue them going forward because it will no longer exist.
of course this has nothing to do with COOP whatsoever- but it creates a nice Q3 2022 deadline
Its just the LT‘s old former website, which was taken offline a few weeks ago - as had been stated well in advance by the LT.
Thanks, I had exactly the same thought.
Response from TD simply confirmed that the LT asked for Escrows to be deleted and that there was no connection to COOP - both are facts which had been stated many times before.