I don't mean to say that JPM bought the trusts. But JPM bought WMB which WMI has claims on it. Does that mean that JPM has to pay for it?
If WMI's Creditor claims are still valid the FDIC is on the hook, not JPM or WMB. That's why the FDIC may have retained the $40.2B.....
Quote: "provided, however, that such abandonment shall not constitute a withdrawal or release of any claims asserted by WMI as a creditor of WMB against the Federal Deposit Insurance Corporation (the “FDIC”), in its capacity as receiver for WMB or in its corporate capacity, on account of WMI’s status as a creditor"
Again, nothing to do with JPM or it's WMB assets.
That is my question. It has been 10 years since the BK and a lot of mortgages have been paid off or refinanced. So where does the trust get the interest from? Also, did the trust cease to draw interest in 2008 or 2012 or until it is sold?
WAMU created 100's of Trusts, not one. They range from 5, 10 or 20+ years so those that expired are closed, those with long term loans are still collecting payments on those loans or assets. The Trusts continue functioning as per normal, only the cash distributions to WAMU ceased in 2008 when bankruptcy was filed, as per the law.
Since WMILT has to liquidate the trusts to get the money, the longer it waits, the less valuable are the trusts, right? Because more loans will be paid off.
The LT does not own the Trusts to liquidate them, they own Participating Interests (PI) or Beneficial Interests (BI) in the assets held by Independent Trusts. As with any loan, fixed payments are made monthly until the loan is paid off. Any Interests owned by the LT will have a set payment % over the life of the investment eg if $1B was held with an interest rate of 15% over 5 years, each month $1.15B / 60 would be paid to holders. The same amount of cash should be credited monthly once defaults and prepays are negligible. Yes, the longer the PI or BI is held, the less it's resale value would be since the total return decreases with each monthly payment received.
You're conflating separate/different terms, hence the confusion
What are Beneficial Interests
A beneficial interest is the right to receive benefits on assets held by another party. The beneficial interest is often related to matters concerning trust assets. For example, most beneficial interest arrangements are in the form of trust accounts, where an entity, the beneficiary, has a vested interest in the trust's assets. The beneficiary receives income from the trust's holdings but does not own the asset.
The Socratic Method...is the best method!
