Hi eagle 2975, Thanks for asking my opinion.See fbrutus (6543) for good summation.
I am as confused as anyone. So let me review what i think happened and will happen.
The FDIC and JPM were working on the WAMU sneak attack for a long time. The FDIC never intended to pay out the Anchor litigation, JPM wanted WAMU on the cheap. "conveniently" WAMU was taken over when, in early Sept. 2008, a run on WAMU was started by rumors. JPM held $30B of WAMU funds that were needed in the WAMU accounts to keep tier 1 ratios. JPM held on to these funds long enough for the FDIC to take over the bank. It immediately sold the LTW litigation to JPM with a stip. that it keep all the proceeds. THIS IS AN ILLEGAL CONFISCATION OF PROPERTY>
The holding company filed BK the next day. Our litigation was to retrieve our claim. JPM sold our claim to the bankrupt WMI and Walrath dissolved our claim under section 363(strip all assets away from anyone who walks near by - including LTW). Can she do it? Yes. Bankruptcy judges have enormous powers.
Did Judge Walrath work with FDIC and JPM. Emphatically, YES.
We were robbed.
To overturn her decision is not an option, really. It might be tried, but it has little chance.
To take this to Judge Block's court is a better idea.
He may well disregard the 363 provision as a theft.
Where will the front money come to continue this case? Just when all hope was lost TPG (wealthy Texas LBO entity) filed a 700page rebuttle to Walrath. Tpg is involved because it lent WAMU $7B just days before the takeover and is not getting it back (363).
One thing I learned from my visit to Delaware, is that the lawyers always get paid, so there is little risk in TPG's legal fees having to be paid by them. If they win, we will be beneficiaries and legal fees will come out of our hide. If they lose,the legal fees will come out of our hide (Ha!).
Bottom line. we'll be riding on TPG coat-tails for the BK appeal and, we're in good hands at Block's Court. So all in all, we have a 3% chance of getting a better deal.
I will not tender my LTW to the POR7. It's worth pennies and you give up $400++m pay-out if we win.
Corrections cheerfully accepted.
Phil
