From bop:
There is a presumption that on or before the final release date in March 2012 JPM knew assets belonging to WMI were among those the FDIC seized, and therefore that JPM would have to pay for them, and $ would go to WMI.
Accordingly, if Jamie Dimon or his minions beneficially own any WMI legacy benefit even if he/they can't be prosecuted for insider trading (I believe the 10-year statute of limitations expired in 2022) the DOJ can and should ask Judge Walrath for the equitable remedies of disgorgement/civil forfeiture. Quote from: epo78741 - So what in your honest opinion is holding things up? Quote from: CSNY/Alice Griffin bankruptcy Attorney - As a preliminary matter, I think the WMI assets have been bifurcated into the JPM portion and the private equity (i.e., MBS portion) and that these portions have different timelines.
JPM will pay for WMI assets when it settles with the FDIC, and that settlement must come when the receivership is pretty far advanced (virtually closed), which means LIBOR. (Again, JPM owes no payment to WMI; it owes money for WMI assets to the FDIC, which I believe JPM will pay to WMI at the FDIC's direction.)
As to why JPM hasn't paid already, one reason is obvious: why part with money before you have to? There's another reason, in my opinion. As background, about three years ago the statute of limitations on insider trading was extended from five to 10 years. We discussed this at the time. This was a surprise to Wall Street and I understand the Trump administration opposed the extension. This means that any JPM person who bought and released in 2012 were vulnerable, and I cannot believe this was not a concern for any JPM person who owns WMI legacy assets or WMB bonds. As long as the assets were valued at $0 there would be no prosecutorial interest in whether there was an insider trading case and the wise thing to do would be to wait out the statute.
LIBOR means there will be payment on both the WMB bonds and the WMI legacy assets, and essentially will resolve all the major outstanding issues in the receivership, in my opinion. That means JPM will have to pay up. I don't know that the estimated $800B in MBS will also be disclosed at that time; I think that depends on whether the players have the right opportunities for deployment of those assets.
Back to JPM, once LIBOR is resolved the FDIC can and will compel payment from JPM for an omnibus settlement and that will include WMI giving a release to the FDIC.
