Hestheman - Settlement? What settlement???
What settlement is JPMC negotiating? With whom are they negotiating?
The only disagreement with JPM and FDIC in the BK court is the questionable ownership of the NOLs and tax refunds listed in the draft POR. In order for JPM or FDIC to offer a settlement, someone or some group must charge them with something. An example might be WMI versus FDIC in the Washington DC court. If the valuation by Solomon identifies other assets that belong to WMI that are in the possession of others, such as JPM or FDIC, there will be either recovery or disagreement. The WMB and all of the assets of WMB are the property of JPM until someone files against their purchase of WMB in court and wins in court. It will not be in BK court because BK is about the reorganization of WMI as an entity that does not include WMB.
Most of us would like to see JPM and FDIC brought to task for what we see as the illegal seizure of a solvent bank. Assuming that this is what happened, there must be a reason that no one has yet made this charge. The most logical entity to make the charge is WMI. They have not filed in court for one of two reasons. Either there is no valid charge to be made (OTS and FDIC were in their legal rights), or WMI does not want WMB to be returned, as is blatantly obvious in the draft POR. Similarly, JPM does not want WMI. What possible use would JPM have for WMI? Even if they owned it, they would simply dissolve it into their existing company.
The only reason JPM or FDIC will ever offer a settlement for their conduct in seizing and selling the WMB will be when someone brings them to trial, and they are at risk of losing the case. It will not happen in a bankruptcy courtroom.
The only hope shareholders have is that Solomon will find WMI assets that are worth much more than its debt, and the market trades the stock up to its true value. This is where the EC team and all of its attorneys are heading. When Solomon files the valuation and the value of WMI is what we hope, get ready to sell when the stock zooms upward. IMO EOM
