It's JPM the one who may have accounting problems!
They have even recoginized in their own motion that it's unclear what exactly they bought.
In parallel, with the new SAFO filed by WMI, it's clear that now WMI feels free to claim that even pieces WMB assets that JPM is accounted as theirs in their last results - if not the whole WMB - were either improperly seized or not involved in the Purchase Agreement between JPM and FDIC.
The curious thing now is that since both - JPM and WMI - have formally recoginized that WMI and WMB operations were so intermingled that they are almost impossible to split... WMI could eventually claim that even part of what was considered WMI debt could be partially WMB debt (so now JPM debt) .
In summary it's totally unclear what JPM owns - assets and liabilities - and therefore there are potential contingencies on what JPM reported or was planning to report in its results.
According to Sarban Oxley regulations JPM would be forced to report to SEC and Analists these contingencies. So as soon as WMI files motions with claims about liabilities been WMB's and not WMI's and/or about assets been WMI's and not WMB's ... JPM should make this visible as contingencies in it's books.
The same impact of even worse could hit JPM if WMI sues FDIC for FC, for contract breach and/or requests a reversal given the fact that the PA between JPM and FDIC included as sold to JPM items that FDIC was not entitled to sell, therefore making the deal a fraud potentiably reversed if a court decides so.
What it seems is that JPM is counting as its own and operating a business that they, by themselves recognized to the court as very difficult to separate from WMI's state.
This at the end adds up pressure for JPM to get things sorted out or they would need to recognize all these contingences...
They tried to gain time and failed to do so with the judge overuling them.
Regarding to Mark to Market rule ... this was not related to the specific reason of the seizure. FDIC recognized in its own documents that WMI was well capiitalized the day of the seizure. Their only argument was the possiblity of WMB running into liquidity problems. Not at all about dangerous balance ratios impacted by Mark to Market valuations.
Your tries to bash and generate fear are clear. Additonally these tries are not well documented or informed. As usual with the bashers we have seen here around your posts are not arguments but ommens followed by simplistic statements without solid justification.
AI
