sound...it is a trial balance...
...that is all.
In context, Deutsche Bank and the FDIC have now aligned to make JPMorgan the responsible party for the losses in the Mortgage Backed Securities that WMB (and subsidiaries) sold 'prior to seizure and sale. It is simply why, the FDIC cannot be sued for such over any amount 'in the estate by law. But, as they have obligations to the WMB bonholders (Senior), they align with Deutsche Bank and unload the most documents that they have.
Why?
Because JPM argues that it did not purchase the liabilities associated with the "repurchase obligations" of WMB re: underperforming loans that were packaged and securitized and sold. This is in regard primarily loans that JPM purchased under the "servicing rights" that were separately delineated in the P&AA.
This document is what is called a detailed, consolidated trial balance of Washington Mutual Bank. It includes all of the assets and liabilities of WMB and all of its subsidiaries; reflected by the "investment in subsidiaries" accounts at zero. It has nothing to do with the bankruptcy, it has to do with the FDIC assisting Deutsche Bank in arguing that JPMorgan bought "the repurchase obligations of WMB's MBS SOLD prior to the seizure and sale." By exhibiting the detailed consolidated trial balance, one can see the 'contra asset reserve/loss accounts against different series of loans and serviced loans. That is the argument of Deutsche Bank, now assisted by the FDIC; that such were "on the books." That ties back to the P&AA language.
The detailed consolidated trial balance is as of August 31, 2008, not the seizure date. However, the amounts are very similar to the amounts the FDIC reported on the first receivership balance sheet that (I believe iPrelude) posted recently.
It is conclusive that JPM bought the loans and servicing rights, much to the disdain of those who theorize otherwise. Actually, such "ownership" is the foundation of the Deutsche Bank case and the FDIC support. This is just one exhibit; all should read the entire case docket of Deutsche Bank, FDIC and JPMorgan filings and attachments. Not only nothing to do with former WMI, but even the WMB bondholders were rebuked for 'standing in the matter.
The $26B net equity of WMB is irrelevant. The bank was seized for lack of solvency, not capital. It is what it is. Personally, I believe it was wrong. Also, $26B isn't even close to what JPMorgan got; the $14B of WMB bondholders were tossed aside, that moves the amount up to $40B, at book value and adding the rights to the WMB portion of the NOL carryback tax refunds makes it rise further.
NONE of this has anything to do with WMILT or, quite clearly, WMIH. Noise. There is NO EQUITY claim against the FDIC (all you have to do is call or appear and ask or FOIA requests; not rocket science), or any other party. The FDIC argues that 'everything was sold, including 'obligations associated with servicing loans. The theories that WMB loans were not sold, that the FDIC has securitized MBS off the books, etc., are all dust.
As you know, creditor investors have no escrows - no hope. I don't deal with hope (or faith and trust) in such matters. I don't find that can be monetized.
Alternately it is much more important to pay attention to WMIH and look for the insiders to tip (again).
IMO.
