Just a small thought on the Tax Gross-up.
I am quite confused by the delay and contorted reasoning in the calculations that were offered by JPMC. It was my understanding (I have owned these LTW since inception in 2000), that the Anchor litigators requested the Court to award them an additional sum, above the actual losses, that reflected the fact that, in prior periods to the FDIC decision to disallow Goodwill as Tier I Assets, Anchor reported taxable income and paid Income Tax on those earnings. Since the earning were later declared as phantom income, ANCHOR had to reverse the income and incurred a huge loss, resulting in the bank's ultimate failure.
Anchor wanted the Judge to calculate the losses that it suffered as a result of having made TAX payments prior to the reversal and thus, it not only suffered immediate losses, but also was deprived of the use of those funds in the interim.
What in HELL does JPMC calculation have to do with the LTW value on 9/25/2008? And how does it come to calculate ITS loss based on a 35% Federal + 9% NY State tax on its presumed income tax rate for 2016/7? FACT: JPM has not paid INCOME TAX since 2008. It paid Billions in Legal and Billions in sanctions, but not one cent in income tax. But all that is pure BS.
The convoluted calculation escapes my understanding.
Here is what the calculation should have been IMHO. The Court determined that the assessed damages were $419M, Anchor's tax rate at the time was 35% Fed + 9% NYS, so, $419 x 35%= $146.7 and 9%x $419 = $37.7. the Tax Gross-up should be ... Total losses = $419M + $184.4 = $603.4. A number, coincidentally, equaling the original claim made at this Court.
