So.. as we have all been told over and over again "Washington Mutual's toxic mortgages were the reason it had liquidity problems"
Okay.. so we may not agree with the statement above..however lets run with it and say for one second that we want to believe its true. Imagine (without getting sick that you are a JPM lawyer and that is your strongest defense). How do you explain the following:
In the link above (2nd one) he actually completely diverts the question about what brought down WAMU.
"Asked about his role in the mortgage problems that brought WaMu down, Schneider said, "There will be never-ending discussion around home lending, and what I'm focused on now is the retail side and making sure we do the integration well."
So we (JPMC) were able to acquire WMB for the low 1.89 Billion the FDIC sold it to us for. Now we are aware that we will have to write off huge loses becuase of the toxic mortgages... and we have a chance to clear house (dismiss all WMB employees) yet lets bring on David Schneider.
Wait... did you notice Steve Rotella signed his offer letter. Isn't Rotella under the scrutiny of the Texas Action for serving as a mole????
So... I find it interesting that Rotella COO for WMB was the person who signed David's offer letter. Does anyone else find this interesting. Also keep in mind that Rotella left JPM in 2004 for WAMU.Last I can find on Rotella is his name in the Texas Action.
Rotella was closely linked to Schneider's hiring... Here’s what the Chief Operating Officer said about David Schneider when he was hired:
“David Schneider has a proven track record of success in leading and growing a national home lending business, as well as solid experience with cross selling home loans across a retail banking network and other distribution channels.”
Ummm Rotella... you want to reword that? It's alright I guess Killinger said the same... so your not alone.
"Ironically, Mr. Rotella had run J.P. Morgan's mortgage business before he joined WaMu at the end of 2004."
Also, here's another (old -- ~2004) article that details what a few significant others (helping to tie them all together?).
Remember: in the most recent filing, five ex-JPM people were named: Stephen Rotella, Taj Bindra, John Berens, Youyi Chen, and Bill Murray. Add to that David Schneider. All six of these people were part of the Home Loans Group. And all are mentioned in this article. http://www.allbusiness.com/finance/3596568-1.html
To follow up on that point.. for those of you who are not aware... all of them came from JPM!
Taj Bindra: Bindra was executive vice president for home loans finance and servicing operations at WaMu. He joined the company in late 2004 from JP Morgan Chase, where WaMu also recruited president and chief operating officer Stephen Rotella. (Notice the 2004 time frame again)
Youyi Chen: Youyi Chen, Ph.D., leaded the Mortgage Portfolio Management and Research Group. Under his strong leadership, this group was be responsible for consumer behavioral research into pricing sensitivity; prepayment modeling and analysis; and portfolio management including the management of pricing, risk analytics and funding strategies. Most recently, he served as a senior vice president responsible for managing the interest rate risks of JP Morgan Chase's mortgage servicing rights (MSR) portfolio.
Bill Murray: Bill Murray, a mortgage business veteran, will become division finance officer of Mortgage Servicing on March 1. In this role, Murray will be responsible for forecasting, planning, reporting, risk analytics, communication, and performance management for MSR and Service Delivery. He will be located in the company's New York City office. At his former company,JPM; Murray led the MSR valuation, pricing and reporting functions for the Capital Markets group.
"We're very pleased to have recruited such fine talent to our Home Loans team, and we're confident we'll soon find a seasoned mortgage executive to lead this group going forward. In the meantime, I look forward to working with this team, whom I know very well, to ensure we sustain the excellent progress that Craig Chapman has made in transforming our mortgage business," said Rotella."
You don't say Rotella is speaking on the hires. And he knows them very well...great!
They had a five year plan in place.... seems like they accomplished their goal early... it only took about 4.5 years to tarnish WAMU's reputation with mortgages enough for the OTS/FDIC to step in.
Another name to keep in mind is Dale L. George. "Dale George, a former WaMu senior risk manager who spoke exclusively to ABC News, explained that risk managers are like the brakes on a car. WaMu executives "took the brakes off and drove over a cliff," he said."
George was fired..... "WaMu denied any wrongdoing and said the firing wasn't retaliatory."
Interesting... I wonder if he was fired by an ex-JPM employee!
David Schneider was aware that there were concerns regarding the mortgages that were going through. If sent in to destroy WAMU then he probably would have been quoted saying something like:
"These mortgages have been considered more safe and sound for portfolio lenders than many fixed rate mortgages"
SAFE AND SOUND.... huh?
So anyway I found this as well(not sure of date but seems to be around 2004/2005):
"Most recently, two more CitiMortgage veterans joined Washington Mutual in September: Cheryl Feltgen, chief credit officer for home loans; and Steve Stein, senior vice president of retail mortgage lending."
So if the above statement is correct; then it would be safe to assume Stein and Schneider worked together in mortgage lending. Oh...thats given I'm sure one being the President of Home Loans and one being Vice President of Retail Mortgage Lending.(1a)
Hmm.. how about this link from 3/30/2009?
"A news conference is planned Tuesday morning at the Phoenix office. Arizona Attorney General Terry Goddard, Phoenix Mayor Phil Gordon, Chase home loan executives David Schneider and Steve Stein, and JPMorgan Chase Arizona Chairman and CEO Joe Stewart are scheduled to participate. http://phoenix.bizjournals.com/phoenix/stories/2009/03/30/daily10.html
Wait a second???
You mean not only did they take Schneider on board despite the 'job' he did while with WAMU but they also took on WAMU's VP of Retail Mortgage Lending? This is confusing to me... why keep the players that were responsible for mortgages if that was the reason WAMU failed? And why put them together. Oh well.....
David Schneider, hired by "MOLE" Rotella; Ex-JPMer. Schneider works with Steve Stein while at WAMU; specifically handling mortgages. Schneider shares in 2006 that things with mortgages are going well and that his approach is safe (see above). Two years later, WaMu became the largest bank failure in U.S. history and both Stein and Schneider are hired by JPM to head up mortgages.
(I can only imagine what WMI's legal team has uncovered and how hard they are laughing.)
"Along with Rotella, other JP Morgan executives who have come over to Washington Mutual in recent months include Taj Bindra, executive vice president of mortgage servicing; John Berens, senior vice president, loan servicing; Youyi Chen, senior vice president, mortgage portfolio management and research; and Doug Potolsky, senior vice president, capital markets." http://seattle.bizjournals.com/seattle/stories/2005/05/02/focus1.html?jst=cn_cn_lk
SEATTLE--(BUSINESS WIRE)--Feb. 28, 2005
"The company also said it recently added three new senior leaders to the mortgage unit. They are: John Berens, senior vice president, Service Delivery; Youyi Chen, senior vice president, Mortgage Portfolio Management and Research; and Bill Murray, senior vice president and division finance officer, Mortgage Servicing. All three came to the company from JP Morgan Chase and report to Taj Bindra, executive vice president, Home Loans Finance and Servicing Operations."
It looks like to me that Bindra was the "Ranger", and the other three were the "rest troops" being recruited from JPM. All these were planned and organized.
Expanding Home Loans Team
John Berens will join WaMu on March 7 to manage the service delivery team for the company's Home Loans division. Berens has 22 years of experience in mortgage servicing, including the prime, non-prime and home equity business, as well as significant expertise in managing default and collections groups. In his previous position, he served as senior vice president of default servicing for a $550 billion portfolio in mortgage products and managed a staff of more than 2,000 employees.
Youyi Chen, Ph.D., leads the newly created Mortgage Portfolio Management and Research Group. Under his strong leadership, this group will be responsible for consumer behavioral research into pricing sensitivity; prepayment modeling and analysis; and portfolio management including the management of pricing, risk analytics and funding strategies. Most recently, he served as a senior vice president responsible for managing the interest rate risks of JP Morgan Chase's mortgage servicing rights (MSR) portfolio.
Bill Murray, a mortgage business veteran, will become division finance officer of Mortgage Servicing on March 1. In this role, Murray will be responsible for forecasting, planning, reporting, risk analytics, communication, and performance management for MSR and Service Delivery. He will be located in the company's New York City office. At his former company, Murray led the MSR valuation, pricing and reporting functions for the Capital Markets group.
Rotella was the 2nd high-power person in WaMu back in few years, he could support hiring his "home loan expansion team" by claiming that the new team could offer important expertise learned in JPMC.
Interesting TWO MORE WAMUers that BECAME JPMers Donna Miller joined JPM from WAMU (AUGUST 28,2009) Making the link again, one month before JPM acquires WMB... a month in which "Toxic Mortgages Plagued" WAMU... JPM brings on another 'loans person' to head up its "Home Lending business’ Emerging Markets and Affordable Lending (EMA) group" AMAZING!
So the plant is dying because of the gardner...and JPM goes and hires the gardner to care for its plants?
-------------------------------------------------- "Donna Miller Joins Chase as National Director for its Emerging Markets and Affordable Lending Group
RISMEDIA, August 28, 2008-Chase, one of the nation’s leading home lenders, announced that Donna Miller joined the company to lead its Home Lending business’ Emerging Markets and Affordable Lending (EMA) group.
According to the company, Miller is responsible for developing strategies and programs that increase homeownership among minorities, new immigrants, affordable lending consumers and first-time home buyers for all of Chase’s home lending channels.
“At Chase, we’re committed to helping people achieve and sustain their dream of homeownership,” said Pablo Sanchez, home lending senior executive at Chase. “Donna’s experience, energy and commitment will help take our efforts to the next level within this valued customer segment.”
From the Istockanalyst website... the following quote was taken from old WAMU (new JPM) employee; Gary:
""Since there are so many(in reference to branches), they can't make signs fast enough," Chase spokesman Gary Kishner said. Some branches, for the short term, will make do with temporary banners, he added."
Ha... "since there are so many, they cant make signs fast enough". I dont know where to start with this comment.
1. Thank you for pointing out that there are so many branches... 1.9 Billion worth?
2. "can't make signs fast enough"? 6 months and billions of dollars... and you cant figure out a way to get signs made? sigh...
"According to yet another longtime executive, Rotella became involved more than most top bank executives when the mortgage sales staff complained about applications that were declined.
More than once, Rotella pressured credit officers to reverse their decisions, this executive said. "Steve Rotella created a culture of fear.....WaMu had five chief credit officers during the less than four years Rotella was at the bank"
5 Cheif Credit Officers.... in less than 4 years? Why is that? Is it becuase Rotella had a plan to destroy WAMU and the ethical officers couldn't work there?
-One that resigned was Ron Cathcart -Replaced by John McMurray (no longer with JPM/WMB)
"We're in favor of what the government is doing, but we're not relying on what the government is doing. We would've done it anyway," JPMorgan's Chief Executive Jamie Dimon said in a conference call Thursday night, referring to the acquisition. Dimon said he does not know if JPMorgan will take advantage of the bailout."
Did Dimon really say "we would've done it anyway" in regards to buying out WMI?
If the answer is "YES", then the next question is "for how much"?
I'm sure it wouldn't have been 1.9Bil!
Sounds logical "we are in favor of what the FDIC is doing.....because it saves us alot of money"
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