From Yahoo boards ...... 50 stars ........
WM SHAREHOLDERS - WE ARE ON TO SOMETHING
I spoke with Larry Weinman of "Barron's" and was advised a story is being written about Washington Mutual. He said, "there are many things about the seizure that have left unanswered questions like."
(1) Seizures are usually not discussed with bidders 3 weeks before, why was JP Morgan advised 3 weeks before? Wouldn't that pose a conflict of interest bc JP Morgan could influence the market to increase chance of seizure?
(2) What about the assets? How does JP Morgan assume $180B in assets for free? Has the government just stepped in and taken those assets from the company?
(3) The OTS chair claims that they were aware no buyers came forward because all were interested in the finalization of the government intervention bill, "bailout." How could they bid until the bill was passed? Would you buy a home on a vacant piece of land if you were told the adjacent property was either going to be a nuclear waste dump or a golf course? Wouldn't you wait to make a bid?
(4) If the OTS knew the bailout was the core of the problem, why did they seize prior to the bill being passed. They certainly were aware of the situation which led to the "bank run," including Lehman, AIG and Fannie Freddie. Fact is, the bank remained above the minimum level of well capitalized banks when they seized. What this means is, the OTS acted without the level of breach existing. Much remains to be seen regarding Washinton Mutuals legal stance on this action.
(5) If JP Morgan was awarded the deposits, wouldn't that still be worthless without branches to operate?
I had this conversation with Larry, and we both came up with news will break after the bailout is announced. There are just too many unlawful parts to this puzzle, combined with the fact that Washington Mutual has not spoke makes us believe discussion of assets is on the table, and we may see a buyout for the holding companies assets: DEALER BRANCH NETWORK + CASH ($24B).
