Because of TPG and the fact that the JPM Team had 14 Bil in the documents as an offer to equity, when they went into the FDIC presentation on July 18th. They called a "worse case" scenario and cancellation of equity their "best case" scenario. The TPG investment was an injection of private equity into the balance sheet of WMI. What WMI gave up in the deal, was command and control of the company, TPG grabbed 50.4% control on June 28th. They then fired klillinger as Chairman, leaving him as CEO, but took away his chairmanship rights.
A Chairman does not let the company they run, make so this amount of risk-associated loans that will weigh down their balance sheet and put the company in a perilous situation that requires "private equity injection" just to keep the SHARKS from taking advantage of the blood in the water. What is understandable is the economic situations caused by the downturn in the economy caused a loss of wealth in this country. What is not understandable, is that it may have all been a concentrated efforts by a group of indivduals and banks/hedgies that caused it.
TPG is the catalyst. They have cooperated with the Discovery requests and did not need to be told by the court to hand over docs. What I think Quinn is looking for, is the corepsondence between JD and Bonderman that occured in July. I think JPM offered to either buyout Bonderman for $9-$10 PPS (For Control) then that would have been a full 15-20% increase in a couple of months. JD was not happy with TPG coming in "under the radar" and made sure to let Bolin of Banco Santander know that TPG was not privy to the same info as he was when JPM posed as a suitor for the bank. What Dimon does not understand, is the law is the law and he could be sued for breach of the confidentiality agreement, especially if he did the same thing with TPG. He also uses and wants to use more "confidentiality agreements" and wants the parties he is associated with in regards to them to adhere to the rules of the contract, yet he breaches them when it benefits him. I hope THJMW puts him in his place and calls him out on this.
TPG is still here and most likely fighting along the way. We will find out someday what role they played during these trying times, but for now we can only speculate.
Two quotes that will help you understand why we feel the TPG investment will benefit equity. JPM Associates July 17th."We can get more color with the FDIC tomorrow.. We can just make something up!" Tim Main Cahse "I like the scenario where equity gets nothing!" I think the FDIC "who was scared of damaging their deposit fund, that was already drained, because they had not collected any insurance premiums since 1996" let JPM dictate and make the terms of the seizure and sale. This shows FDIC corporate (Bair) was in charge the whole way and fell for the trap of JPM. I urge you to read the 825 page discovery doc, Uzual has all the links. It lays it out in detail and when the lawyer from Quinn, inadequately presented the evidence to the Judge when asking for additional discovery, she failed to bring these issues up. I think THJMW will allow additonal discovery "if needed" if Quinn uses a seasoned professional to present the case and slims down the request to include only the FDIC, Moody's and SEC. I feel they can get that subpoena request approved, their is ample evidence that can prove additional discovery on them is warranted.
TPG comes in at $7.62.. Their investment is guaranteed $8.78? by WMI, they get railroaded immediately after taking control, working hard to avoid the FDIC, by cooperating with the OTS "their regulator" they in turn put forth a plan of operation, which is approved by the OTS. No solvency investigation or appraisal was performed by the FDIC in seizing and therefore the FDIC overstepped their jurisdictional powers and therefore are responsible. JPM, FDIC and WMI should come to at an agreement for somewhere in the $12 range. It is rumored that JPM has made 2.4Bil per month off WMB assets. You do the math!
If we go to court for trial (the number for PPS payout, substantially is going to increase)
Please do not invest in this stock because of what I say, you must do your own DD and make decisions based on your knowledge, NOT MINE!
AI
