conti, it is now well known who orchestrated the wamu seizure, it was hanky panky paulson, bair was a puppet. the way the story is rumored to have played out is as follows.
In the early summer of 08, the chit was starting to hit the fan, primarily in the credit markets, everyone thinks it was the stock market, no, the credit markets started to freeze up. because of so much distrust between all the big banks because they all knew each other were playing the synthetic cdo ponzi game.
The banks knew but the feds did not know what was going on at the time. paulson went to blankfien at goldman in early summer and asked him directly what was going on, and blankfien played dumb. a couple of months pass and things start to get worse, again, paulson went to blankfien and asked him what the f was going on, blankfien confessed that they and all the other banks were caught in a synthetic cdo death spiral. blankfien then said goldman was insured through aig as were the others. so, as far as paulson was concerned he had to bail out aig or all of the big banks were going under.
At some point, he met with the snake oil salesman, jamie dimon. paulson told dimon you are going to get bailed out by aig, how much insurance coverage do you have, jamie boy had to tell paulson, none, they were self insured on all their synthetic cdo's. so, the aig bail out would not save jpm, but dimon had a plan, the plan was to talk paulson into seizing wamu to save jpm. so paulson went to bair and told her to immediately sell wamu to jpm........... the rest is history. I wish I was a fly on the wall when dimon sold paulson on seizing wamu, how many lies dimon told paulson about wamu financial weaknesses.
if jpm was not so well connected, and had to be saved in paulsons eyes for the benefit of the country, the exact opposite should have happened and jpm should have been seized by wamu because wamu was in stronger financial shape because they had zero, yes, zero, yes zero synthetic cdo exposure.
Rotella wrote that in a letter to the feds right before the seizure but it fell on deaf ears. the feds didn't care and I truly believe that the TO CLUBISH TO FAIL WAS PART OF THE REASON THAT WAMU WAS TAKEN OUT TO SAVE JPM, WAMU HAD NO ONE TALKING WITH PAULSON TELLING PAULSON THE TRUTH. that's where wamu execs went wrong, they were not strong enough or connected enough to get to paulson and tell him jpm should be seized and sold to wamu.
What makes me sick is not one wamu exec has spilled the true facts after the seizure, they were way to cowardly and of course wanted to cover their azz. killinger did make the statement 'to clubish to fail' but that was it. none of them had the balz to tell the true story.
here is my speculation, all the wamu big shots were either trying to save their reputations, or silenced because of fed threats of lawsuits or they needed jobs so they knew they had to keep quiet. YOU GUYS DO KNOW IMMEDIATELY AFTER THE SEIZURE THE WAMU EXEC RESPONSIBLE FOR COMMERCIAL PAPER WAS HIRED BY JPM. Are any of you surprised that the first pr that cave out is the 30 billion in the wamu ruble pr. The commercial paper guy from wamu who then went to work for jpm must have done a heck of a job finding all those commercial paper wamu holding company assets and commingling them to turn them into jpm's. I wonder what kind of bonus that dude made.
wamu execs are the biggest cowards around, killinger, rotella and many others could have gone against jpm and told the truth and could now be fighting for wamu holding company assets but they went a runnin from big bad jpm.
is all of this true, i can't be sure but what I have pieced together from reading all the financial crisis spin over the years, this makes a heck of a lot of sense.
ps, I wonder if this post gets deleted like many of my others that call jpm out. if so, one of the moderators is a jpm mole deleting messages, lol.
all imo
AI
