Ramirez nice post! You hit the nail on the head with all 3 points.
1. JPM does not want not need any one under a court order poking around in their books, because if something is written differently than when WMI had the banks ledgers, then JPM could also get in different trouble. If we get the Judge's ruling in our favor for the Rule 2004, then we are gonna drive this puppy up! JPM is nuts if they think they cleaned everything up, because WMI used Iron Mountain and will produce the originals. All they need is court order to introduce evidence and they will introduce it by the "boat load!"
2. For a bank to acquire, settle, pay bonuses, or dividends, they must pay off TARP. JPM has to pay off TARP [which they said they will do next Monday] to settle or buyout WMI. They have to do this, it is the law!
3. If JPM can get TARP paid off and the WMI lawsuit settled before Judge Walrath rules on the 4Bil, then they get to keep it. I mean the 4Bil will basically payoff the P series with back interest. All they need to do is
a. Payoff the P, K, H series
b. Negotiate the bonds and pay them off.
c. Convert the commons
d. assume WMI debts
JPM should get WMI for in the neighborhood of 20 Bil (minus the 4Bil). The lawsuits are potentially worth 60Bil. JPM will cancel the FDIC lawsuit [letting them off the hook] and move on with life in the banking world or they will litigate this thing until they lose and everyone finds out what they did to the WAMU and new phrase will be coined "YOU GOT WAMU'ed" that will mean F@#Ked!
They have to do it all by June 24th or they are going to hear the BK Judge rule on their fate in this litigation. I know they are very arrogant and sure of themselves, but so was NIXON! Look what happened to him. There is a chance that WMI could reopen the closed bank branches and start a new bank, kind of like what GMAC has done with Ally and move forward back into the banking business. That would entirely be up to them and their investors. I would if I was them and I would concentrate on certain markets [like Seattle] so I could steal some market share from JPM (using public sentiment)and make them feel the pain. JPM got a sweet deal with California when they got WAMU, it shows it in their 10Q they just released..
If Dimon and his Board are smart, they will put this thing to bed by June 24th. If they feel the ruling will go their way, we are on to litigating well into next year! IMHO
