Weekend bump for MWD’s logical post, as Judge Naomi is very close to signing off on LIBOR. GLTA FWIW
The FDIC , as receiver for the bank, became responsible for the bank's debt. Therefore, they couldn't close the sale before the debt was paid. In other words, the debt holder has a lien on the bank. That's the reason why JPMC only made a "down payment" of $1.89B. According to the Purchase and Assumption Agreement, which the FDIC can't enforce at this time, JPMC must pay book value for the assets. As I see it, the FDIC can't officially close the sale of WMB to JPMC prior to LIBOR coming to a close. Their hope is to receive enough money from LIBOR to pay the debt. This will enable the FDIC to close the books on WAMU
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