tag_along_truth from Y! accounting
An accounting of WMI's claims against JPM
With WMI's filing of its amended counterclaims against JPM on 9/14 I have been meaning to go through and total up the claims in dollar amounts. The significant change to the amended filing was an increase of ~$2 billion in additional constructive fraudulent transfer claims. Here's what I came up with:
JPM vs WMI: amended counterclaims of WMI, filed 9/14/09, Delaware Bankruptcy Court
A. Capital Contributions: by WMI to WMB (JPM)
-- constructive fraudulent transfers
-- value $6.5B
B. Trust Securities: WMI owns but value went to WMB (JPM)
-- constructive fraudulent transfers
-- value $4.0B
C. Other transfers: by WMI to WMB, fsb, or for benefit of WMB
-- constructive fraudulent transfers
-- value $3.4B
D. WMI received less than reasonably equivalent value for WMB when sold to JPM
-- unliquidated - no value specified
-- catch-all for total value not included in other claims?
E. Intercompany Accounts: owed by WMB to WMI (does NOT include $4B cash in DDA)
-- 177M + 22M + 490M
-- value $0.7B
F. JPM unauthorized, intentional, and infringing use of WMI intellectual property
-- trademarks/service marks, patents, copyrights
-- value of WAMU brand alone $6.0B
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TOTAL value = $20.6 billion + unliquidated claims
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These counterclaims against JPM are clearly the "mammoth lawsuit" that was predicted by bopfan. Specified claims of $20 billion plus language covering any additional value associated with WMB for which WMI has not received compensation.
I also went back through the 3/20 lawsuit against the FDIC, but there's really no reason to list because it concerns pretty much the same claims, is less specific, and comes down to the same basic issue: WMB was worth more than the compensation that WMI received for it (which, so far, is $0).
Again as bopfan has said, this all comes down to valuation.
All IMHO.
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