This is how I believe it works.....
-WMB originated loans and transferred (""sold"") those loans to SPE's like WMAAC and WMMSC.
-The SPE's securitized the loans and placed them into independent Trusts
-The Trusts sold Participating/Beneficial Interests in those assets to investors and returned cash generated to WMB. The SPE's also retained some PI/BI as an investment and also to improve the Credit Rating of the assets.
-WMI as parent of WMb/SPE's was entitled to ALL or part of those proceeds from the retained interests held by the SPE's.
Does the LT - if there is a BI in "some such trust" have any BI in the payments made to owners (they being one such owner unless their BI is only in some residual value) since the bankruptcy?
The LT as successor in interest to WMI has the same rights as WMI did, ie is entitled to ALL or part of the proceeds WMI may have earned from those PI/BI's.
Would some trustee be holding our share for us?
Would the FDIC be getting our share to hold?
It's possible the Trust is holding these payments or they are being deposited in a court approved bank account while the FDIC may hold WMB retained assets, not generated cash imo. The bankruptcy process does not strip ownership of property from the holder unless Creditors are owed, this is not the case with WMI. Safe Harbor is specific when it comes to being bankruptcy remote, it is NOT exempt from the entire bankruptcy process. See WAMU's 2005 letter to the FASB for context.
Is all that income - which is much of the original value - lost to us?
Why??? WMI's was not stripped of ownership of it's rightful property. Once the BK and/or Receivership are closed we should get a clearer picture.
The Socratic Method...is the best method!
