Gary I agree with the part about SHELA as well, and said it the day she approached congress 3-4 weeks after the seizure.
SHE FK'd UP LARGE and didn't get what they wanted.
It never made LEGAL sense WHY the FDICK would seize WMI's corp books, but yet made perfect financial sense.
WAMU was so large and spread out the FDICK needed to know where everything was, and when they found out everything they wanted WAS NOT IN WMB,they FREAKED OUT and PANICed.......Called a meeting with CONGRESS for FAR REACHING POWER over banks held by HOLDING CO's and like you suggest,asked for it to be retroactive,but congress refused.
I don't remember who it was that said it but it was said
"What happened at WAMU has never happened BEFORE, and what happened at WAMU WILL NEVER HAPPEN AGAIN".
Now what we don't KNOW is what really happened, were SPE's put into place and used and is there,2bill 24 bill 63bill or 159bill.
I do believe this was a set up to protect the HOLDCO's assets AND to MAKE OFF LIKE BANDITS if the OTS/FDIC seized the bank.
I honestly believe WMI/KOTURUS and Killinger were involved HEAVILY and were planning on this AND WERE PLANNING on being a part of NEWCO WITHOUT EQUITY BEING INVOLVED!!!!!!!!!!!!!!!!!!
Walking away with all the goodies,kind of a one time GOTCHA get rich thing and a very nice MIDDLE FINGER IN THE AIR to the FDIC, grinning all the way to the bank and then any ISLAND of their choice.
I feel S&G saw this understood it and so did THGMW to a great degree, enter NATE!!!!!!!!!!!!!and thus THGMW's justification and decision to let equity participate along with DA BOYZZZZZZZZZZZZ.
What could they say?????? And if they did say they would be really screwed.
They Couldn't say, your honor our overall plan here was to screw all here, the COURTS, the FDIC/OTS and equity and make of with Billions of assets outside of the banks control, and take this all private............but only with a very select few involved, not the whole darn crowd.........OOOOOOOOOOPS
