"There is no evidence, only pure speculation, supporting the theory that the variance was agreed to because the parties who negotiated it were aware that there would be a very large future cash payoff to equity."
What kind pf evidence could there be, as reconciliation closure is future to the time when these documents were written? The FDIC already discovered 100B dollars of JPM that was unreported. The schedule 3.2a, at the time of the seizure, surely shows many more WAMU billions of what was a 1/3 trillion dollar bank. The FDIC can do something like fine JPM for holding WAMU money unreported and a 10% fine in this instance could pay off the P's. And who knows how much 'misplaced' money will be discovered before reconciliation ends. Speculation yes, but it seems like a good way to clean up this illegally carried out mess and not cost the government a dime. And it's pennies to JPM, who got a 350B dollar bank for 1.9B.
Now, IMO a boilerplate document or even POR 7 wouldn't say funds the FDIC illegal seized and gave to JPM may find their way back to the WMILT. These documents cold be worded only to speak of funds that existed at the time they were written, when discussing the known potential sources for escrow funding. The funds the FDIC may return to WMILT is future knowledge. But we do know the FDIC fines JPM billions regularly and as part of the cleanup of this fiasco they could be fined again - and still profit very handsomely, of course.
The reconciliation has not yet closed, nobody but the FDIC possesses the true 3.2a - yet some here have saved them the trouble of finishing their extensive audits by already concluding escrow will only get the few billions that the PR was aware of and mentioned. Would these documents really want to also say uncovered illegally gotten JPM billions will be part of the potential escrow distribution? Would they really want to say that these JPM billions are the fruits of an illegal (at the time) seizure by the FDIC?
Why do some posters cling so strongly to documents that only reveal what was known at the time they were written or omit what their creator wanted omitted? These documents seem to merely provide a mechanism for funding escrow.
My rant and IMO of course.
A merger already - please!
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