FROM Dmdmd1 Commenting on Alice's Post (CSNY) Below:
Quote from: CSNY on Today at 03:25:28 PM
The assets of the protective trusts WMB set up were never in the custody of the FDIC, in my opinion, although I believe the FDIC told the trustee not to disburse anything in those trusts (including income) until the FDIC said otherwise. (I think the FDIC threatened its avoidance powers and the trustee blinked, whatever its counsel said.)
I think that happened in 2021 when Mnuchin was headed out the door.
IMO...My conclusions as of April 29, 2022 @ 1725 EST:
Let's put this all into a simple big picture perspective.
1) If WMI old legacy holders (that released in March 2012) owned beneficial interests in loans securitized into MBS Trusts ($101.9 billion)
2) assets of WMI were not conveyed by the FDIC (specifically MBS Trusts were bankruptcy remote assets that were not under the jurisdiction of the FDIC) to any entities. So by simple deductive reasoning, the WMI assets (i.e. beneficial interests in bankruptcy remote MBS Trusts) were not conveyed by the FDIC to JPMC or any other entity. This means that the SPVs/DSTs owned the securitized loans in the MBS Trusts and not WMI, but WMI owned the beneficial interests to the MBS Trusts.
3) Per the "source" the value of WMI assets are valued at $625 billion ($25 billion in cash + $600 billion potentially in COOP stock).
If we assume:
Total in WMI assets in September 25, 2008 (seizure date) = $102 billion
What is the compounded annual interest rate if the total in WMI assets is currently worth $625 billion in 2021 (13 years)
IMO...my answer: approximately 15% annual interest x 13 years
Calculations: (use the simple compounded daily interest calculator from compouddaily.org) Make sure you mentally equate days into years on the calculator
$102 billion x 13 years x annual interest rate = $625 billion
annual interest rate = approximately 15%
4) IMO...ultimately, the WMI assets have grown 15% compounded annually for 13 years.
5) If all the Hedge Funds/big players like Bonderman et al and the underwriters can wait more than 13 years for the WMI recoveries, so can we (retail).
IMO...I concede that the Hedge Funds/Bonderman et al/the underwriters do not have control of the timing of the WMI recoveries. So all of the interested parties have to ask, who does control the timing of the WMI recoveries?
MY answer, it isn't them, and it certainly isn't retail. So who is in control? The public will never know exactly, but we now know who isn't in control.
There is nothing for us retail to do other than to wait along with the "smart money".
IMO...For those who claim nothing is coming back, I just say that's your opinion, and I think that opinion is incongruent with the opinions of the Hedge Funds/Bonderman et al/the underwriters.
« Last Edit: Today at 05:31:29 PM by Dmdmd1 »
