Hello LG.
I don't think there is a 'Plan B'.
JPM, FDIC and Debtors are in the same boat and IMHO there is nothing the EC can offer them that would make JPM or FDIC change their plans.
In the current GSA, all of them get what they want (except the releases). JPM gets more money than what they deserve, FDIC also gets more money, and the Debtors get access to an undervalued WMI-2 company that they could later on sale for a profit.
Currently EC gets nothing. Also, SNH are probably going to be punished if insider trading alegations are proven to be true, but they are out of the JPM-FDIC-debtors trio.
There is a 54 billion (bogus) claim that they are using to make this POR look fair.
JPM is saying:
- hey, we have a claim of XX billions that we would give up if you give us some assets, NOLs, and so on.
FDIC is saying:
- hey, we have a claim of XX billions that we would give up if you give us some of your tax returns, NOLs, and so on.
And finally the debtors are saying:
- Hey, look, there are 54 billion $ in claims against the state. There is no way we can get absolutely anything better that ZERO for the equity. Even if FJR is applied, even if more assets are found...
With this scenario (they all win-win) I really doubt they would like to involve the EC at any level. Also, I am very sure JPM or some of their sheanigans, has shorted Wamu to death, so they would have to cover shorts if Commons get anything above zero.
What I expect is that this case starts moving in the EC direction by the following points:
1.- SNH found guilty of insider trading. FJR applied.
2.- JPM and FDIC claims disallowed (in this or in other court). FDIC already lost a similar case last year, I don't think they are entitled to any recovery from WMI, and JPM, with all the billions they admit making on Wamus assets I don't think they will have a case neither. Not a 54 billion case.
3.- NOLs correctly valued, at 30% and not at 1.5% as debtors are doing right now.
