IMO: The FDIC should not value a bank on the share price. The market did not value WAMU on CASH available. WMI had over 25 Bil in CASH, yet they were seized, They had an additional 8 Bil avaialbe at the window. yet they never tapped it.They never knew the FDIC was coming, CEO was on a Plane on the way back from DC, the BOD never had any idea, the bank was on the FDIC's block for seizure. They had a MOU with the OTS. They had plenty of CASH! They were seized after the bank run was over, TARP was around the corner and it was Thursday. They don't seize banks on Thursday!
WAMU stock had over 1 Bil FTD's there is and was a large NSS position on WAMU stock in Sept 08. The SEC came out with a report on the stock that stated there was over 1 Bil NSS (FTD's)on WAMU stock. There is still a 41 Mil Short shares as of today. The stock has an average of 35% of all shares sold shorted daily (today). Hottie has the daily's, Drrugby has the short reports.
If share price mattered for the a basis of seizure, then how come CITI was never seized? They went below $1.. FDIC tried to seize and sale Wachovia to Citi for 2 Bil, Wells who got screwed in the WAMU deal went to the court to stop that...It worked, Judge Collyer in DC brought that up at the FDIC stay hearing for the lawsuit against the FDIC on behalf of WMI. She knows the Wachovia deal was similar to the WAMU deal and basically told the FDIC to settle it instead of bringing it back to her courtroom.
Welcome to the WAMUQ Ihub forum, you will find there are more well-informed posters/investors here than on any board on ihub, if you want to spar, that is what we are here for. Suggest you click on show IBOX AND DO SOME READING!
GLTY
~Fish~
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!
