Monica, here is another post that I put up a day or so ago,
Here is what we know-Thus what is the ultimate play?
The problem with these chapter 11 cases is that WaMu was clearly solvent and the huge problem for the CRIMINALS was/is hiding all of the gold that has really been glimmering lately. The plan so far has failed miserably for the Rosie and his criminal accomplices. This is because in original thought process was for this mess to be over VERY quietly within eight to fifteen months and now we are over double that with Equity getting noticed at every corner. With that said, the court has kept Equity barely alive while making sure in both POR opinions released by the court that Equity is muted. Why, well I will not get into this totally other than to say IMHO, that SCOTUS was very upset with the Kmart decision many years ago. When SCOTUS had the opportunity through an opinion they seized upon it with the Stern decision to somewhat mute the bankruptcy court’s authority since abuse was/is totally rampant. The decision was very close with SCOTUS winning with Stern’s at 5-4 outcome but the law is suppose to be the law that Walrath is trying to circumvent even though most major decisions recently and all around support Stern/SCOTUS. There is no doubt, as I have said many times this court will bust the Horsies severely due to SCOTUS watching and trying to get Delaware returned to a more favorable light from Delaware’s past history, hence Kmart. It just so happens since this court has an agenda to bust the Horsies due to Kmart and it is somewhat in Equity’s favor and there is no way Thoma would have been acknowledged with his very weak (hearsay) evidence. So to think this court is doing Equity any favors is akin to being very naïve. These actions would prove to align with Equity always being TIMELY muted in these very careful decisions that appear to be in Equity’s favor.
Unfortunately, with the actions of this court, it is very clear that the only items this court MAY want to give Equity are the NOL’s (huge) and MAYBE the reorganized WMI and notice; I did NOT say NEWCO, because there is ABSOLUTELY no reason to have a new company period. We can work within WMI’s current base, if the right motives are at the heart of this. Where do we go from here? With the following bullet points, we should be VERY ripe for something HUGELY positive for Equity even though this court has almost kept Equity totally muted at the same time this court has kept us alive.IMHO, this has been well thought out and timely. At every turn where Equity should have really increased in value, at the same time there was a decision that has muted it.
? MOR totally wrong and not current with known assets.
? Assets larger than liabilities, even with known hidden assets-hampered by unjust claims (MARTA).
? NOLS’s-Due diligence says around ten to twelve billion with merger or large purchase.
? Third party claims worth billions which I believe will end up with Equity due to the court not being concerned as long as JPM/FDIC is protected.
? Everything that is the current Global Settlement in WMI’s with very little legitimate claims.
? Without any doubt insider trading – proven by Susman with further discovery already approved.
? Disgorgements up to 3-4 billion-Horsies pay the cost of increased litigation.
? Further Officer and Director Claims of anywhere from 100 to 300 million.
? There are still WMI’s year 2008 tax returns in question to the estate-I believe still hidden.
? There has to be multibillion in malpractice claims-more against Weasel/Gotcha/Mangle.
I still have no doubts the Horsies are on the verge of self imploding and will not be going down alone with more discoveries starting immediately if mediation fails. With that said, this is not mere mediation as much as this is or could be the Horsies finally chapter outside of being formally charged, judged and sentenced. The first people that the Horsies will go after are Rosie and accomplices due to them being the easiest. There will be and I am sure Susman already has many of the totally, self incriminating emails that will connect all of the CRIMINALS, both directly and indirectly. I would love to be behind those closed doors as this will be explosive, destructive, incriminating and WILL DRIVE some sort of results. Remember, this is it for the Horsies and they KNOW it.
If there are no positive results (this is what Susman does best) and due to what Susman has, there may not be anything positive because the Horsies are only limited in what they can offer, thus no where even remotely what the CRIMINALS stole. This is where Rosie maybe be forced to push the EJECTION button, taking WMI out of the Global Settlement which could also be the trigger for JPM. I believe we are going to know something between now and sixty days in terms of where Equity will ULTIMATELY live or die. I say we LIVE to see MUCH greener pastures, but CERTAINLY not for the Horsies!
