... WMI, (the parent) had substancial assets ...
including at the time of seizure, some, .. 24.375 billion dollars worth of Certificates still waiting to be sold (product on the shelf) when the September seizure occured ... Placed under the procedural guidance and protection of the FDIC - R' ...
(please' see my previous post, the link is provided)
WMI, (the parent) had been issuing Mortgage Pass-Through Certificates, as income generating vehicles, for many years, I only went back as far as 2002, and saw more than enough to satisfy my own curiosity ...
.... JPM did not get everything given' to it at seizure Sept 2008 .... due to the fact that it was simply, not the FDIC's to give' ....
.... During the court ordered mediation, the (snh's) gave up on their potential gamble' .... Had the "Litigation Morass" .... moved forward (which isn't what anyone wanted at the time) .... equity had requested of the court, ... "an equitable subordination" ... HOWEVER' ... the Court stated that they, (snh's) were gambling with the possibility of "equitable disallowance" .... if they lost? ... they were out' ... clean & simple
... Kind of a huge difference' ...
So, the Court wanted everyone to either figure out a way to settle up? (mediation) or for everyone to .. "take your best shot'" ....
In my opinion .... it made more sense for the snh's to share the cake' with equity via the ordered mediation than to .... gamble on the future result? ... and or drag this dog out for many years to come' .... (when ever you go to battle in the court system .... irrelevant of whether someone is right or wrong .... there is always a chance that you loose') ....
I don't believe the snh's wanted to take the chance of .... being disallowed' ...
_______________________________________
WMI (the parent) stipulates to its procedures ... (posted)
The FDIC explains, .. Its' procedures, within its own website, regarding all seized financial institutions ... (posted)
The examiners report, Footnote 39; states the Loan Portfolio was not able to be accessed ... (posted)
WMI, also stipulates to its Off-Balance Sheet Procedures' ... (posted)
Proof that JPMorgan was NOT given ownership' to WMI's Loan Portfolio, interest income Pass-Through Certs ... (posted)
_____________________________
Initially, we were all distracted by the Bankruptcy for a while' .... Had the case moved into "litigation?" and had Susman been successful at proving insider trading? .... there's not a court in the land that would have allowed the snh's to continue to participate' .... ("equitable disallowance")
.... It was just too much of a gamble, the financial stakes too high', for them (snh's) to continue to fight and NOT settle with equity' ....
Now? ... everyone gets a FDIC procedural return .... us? ... them? .... its all good'
AZ
(I separated the information into two posts, and surely hope this all made sense' ... )
AI
