"Highly unlikely" says it all doesn't it? They couldn't say "They'd have been unable to" anything. The key will be the 20 billion in FSB they were in the process of moving to WMB. It didn't just negate a 16 billion dollar run but it also added 4 billion in cash.
On top of that a week later the bailout was passed.
This was on top of the fact that the bank had been targeted by naked short sellers and was left off the "No short list" despite requesting and practically begging to be added.
We've all seen reports of the FDIC strong arming the OTS into seizing the bank, despite its solvency. The fact that it eas solvent and pushed into insolvency by the seizure is the reason we're all here.
It was the actions of the OTS in seizing the bank and the FDIC in selling for peanuts that caused this crisis to begin with.
"Highly unlikely" just showcases the fact that the OTS didn't know what to make of the situation. When it's revealed that they ignored the impending move of transferring excess funds from FSB to WMB so as to justify the seizure the whole thing will be viewed as a major scandal.
A settlement will be reached or this will all come to a head in court. It's all up to the FDIC and JPM at this point. Lets see how stupid they really are.
Oh OK... so there was 20 billion and you want 4 billion more and you can write those loans up for no more than a 2 billion loss anytime you feel like it...
Hehe... what a joke.
It's only a matter of time. The OTS and FDIC will be punished for this, even if it means handing their authority over to the Federal Reserve... which I might add is the WORST thing that can possibly happen. But if that's the plan, and it looks very much like Dimon as the next Treasury Sec and the Fed overseeing this sort of affair is in the works, then WMI will simply be used as an example as to why the OTS and FDIC can't be trusted and JPM will look like the victim, unaware and on the hook to rectify the whole mess.
JPM then gets a Goldman Sachs like hookup in the TS position who in turn rewards them for their willingness to cover his butt by settling with WMI.
Lets see how this all plays out.
Regardless, the OTS' own words "highly likely" showcases their inability to justify their actions beyond that of speculation. An overseer surely needs to be able to do more than guess as to what's coming in order to justify their own jobs, let alone persecuting those whom they are supposedly watching over.
"Given the Bank’s limited sources of funds and significant deposit
outflows, it was highly likely to be unable to pay its obligations and meet its operating liquidity needs."
AI
