Looks like Rosen foreshadowed Friday's events well in advance...
The drama, confusion, and mystery still unfolds. Nothing is set in stone yet and I will continue to hold.
EVERYONE needs to listen to this:
Rosen expects the EC to get involved NOW.
Some of you may have already listened to this hearing, but I think what Rosen said then is very relevant to what just happened last Friday.
In the 1-28-2010 hearing where the motion to disband the Equity Committee was denied, this is what Rosen said:
My transcription: "People are only concerned if we decide to settle this case, settle this litigation. Not that we aren't going to zealously pursue it, but if the debtors at the end of the day decide that they believe based upon whatever factors we take into account, a resolution among the FDIC, JPM and WMI, is appropriate could be resolved consensually. And at that point in time, your Honor, it's in our papers clearly set out, that's when the EC, if at all, should come into being. Because, it's that point in time, your Honor, that people would be unhappy with that resolution. Not that we're proceeding in the litigation right now, but that we've decided to settle at a number that they don't think is appropriate. And therefore they would argue, your Honor, that it falls below the lowest range in the range of reasonableness. To us, your Honor, that is the time when someone needs to rear their head. It's not now. We don't need any additional help in litigating, your Honor, because we're doing a pretty good job. And, we already have the help of the creditor's committee in those litigations. People are casting stones at the debtors, they're casting stones at the creditor's committee saying at that point in time they won't be looking out for the interest of the equity holders. Your Honor, we are doing everything we can to maximize those assets, that was the mantra that we started out with in this presentation, that's the mantra that we're going to carry through to the end of the case. And if in fact the waterfall that would be presented in this case would show that there should be distribution to flow down south to the preferred holders and the common equity holders, that will be appropriate, that will be contained in the disclosure statement. That will be something that will be put forth in a chapter 11 plan. But, at this juncture in these cases, we believe that there is adequate representation of the equity holders."
"We think the role of this equity committee should not be to get involved in any litigation, but rather to have the opportunity to review any settlements, if in fact one is ever brought before this court." http://www.viewip.net/WMI/Hearing/2010-01-28/20100128_03.mp3
Additionally, in the hearing: Cross(EC counsel) said: "It is laughable that EC could come in at the 12th hour and review a settlement and make any educated judgement."
Akin Gump counsel(secured creditor committee) said: There are 9 members of the WMI board of directors, still active in the case
AI
