Replies to post #429194 on Mr Cooper Group Inc (COOP)

[investorhub123]

That's a helluva post......

[W3Research]

SE, That's an Outstanding Post! ...

scrivenerserror Friday, 07/17/15 02:16:50 PM
Re: None
Post # of 429261


found a gem :

Wamu TRUTH:

Written Statement of Kerry K. Killinger Submitted to the United States Senate
Permanent Subcommittee on Investigations-April 13, 2010

assets.bizjournals.com/cms_media/seattle/Kerry%20Killinger%20Written%20Statement%204-12-10.pdf


Dochow(OTS) to Ivie (FDIC) July 08:

http://c0181567.cdn1.cloudfiles.rackspacecloud.com/2008-07-22%20OTS%20letter%20to%20FDIC%20re%20Examination%20of%20WaMu.pdf


Sept 8, 2008 Plan set in motion:

http://c0181567.cdn1.cloudfiles.rackspacecloud.com/2008-09-00%20FDIC%20Problem%20Bank%20Memo%20on%20WaMu.pdf


Sept 11, 2008 (although stamped 17th), Dochow OTS Regional Director blows them out of the water with detailed analysis:

http://c0181567.cdn1.cloudfiles.rackspacecloud.com/2008-09-11%20OTS%20letter%20to%20FDIC%20re%20WaMu%20ratings.pdf



Objection to Confirmation of Plan of Reorganization Filed by Nate Thom - 11/19/2010

http://www.kccllc.net/documents/0812229/0812229101123000000000010.pdf



Letters to the court:

http://wmish.com/various/letter_ocr.pdf

http://www.kccllc.net/documents/0812229/0812229100603000000000011.pdf

http://www.kccllc.net/documents/0812229/0812229100615000000000011.pdf

http://www.kccllc.net/documents/0812229/0812229100414000000000027.pdf


Contested Property:

http://www.finmire.com/WMI/Contested_Property


AMERICAN NATIONAL INSURANCE COMPANY MOTION TO ALTER OR AMEND JUDGMENT
AND REQUEST FOR LEAVE TO FILE AMENDED COMPLAINT (DC Court)

http://www.ghostofwamu.com/documents/09-01743/09-01743-0119.pdf




EC Objection To The POR 5/26

http://www.kccllc.net/documents/0812229/0812229100513000000000023.pdf


WaMu Delinquency Rates vs Industry, 2004 to 2007


http://www.kccllc.net/documents/0812229/0812229091214000000000008.pdf



Motion By The EC To Examine JPM/Chase

http://www.kccllc.net/documents/0812229/0812229100525000000000026.pdf


The Untold Story: How WaMu Execs Fought Government Seizure
http://blogs.wsj.com/deals/2010/09/28/the-untold-story-how-wamu-execs-fought-government-seizure/?mod=yahoo_hs

CEO Alan Fishman letter to Chairman Bair:


http://www.ghostofwamu.com/documents/WSJ-WAMU-Responsive-e-mails092810.pdf


How the Canadians almost took over WaMu in NY:
http://mycrains.crainsnewyork.com/in_the_markets/2010/11/how-the-canadians-almost-took-over-wamu-in-ny.php

WaMu's Four Bidders Have $110 Billion More to Spend After Rally
By Ari Levy - September 20, 2008 12:14 EDT

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aQWTFn2rfY50



PLEASE READ THESE COURT DOCUMENTS.....

JPMorgan admits that the FDIC took over a solvent bank in one of the latest court documents...

I'm enclosing a few more documents filed through the BK court in regards to a declaration of Thomas M. Blake ( http://www.crai.com/ProfessionalStaff/listingdetails.aspx?id=1276 ).

The declaration can be found in 103-4.pdf at http://www.mediafire.com/?sharekey=3b830df9f3d0e6fce7c82ed4b8f0c380aff12395630f22f3ce018c8114394287
Quoting:
12. Based on my review to date, there is no indication that the OTS performed a solvency analysis consistent with the test for insolvency specified in the Bankruptcy Code. There is no indication that the OTS assessed the fair sale-able value of the assets of WMB (or WMI). Nor is there an indication that OTS compared the fair sale-able value of the assets of WMB (or WMI) to the total amount of either company’s respective liabilities. There is no indication that the OTS performed a comprehensive cash flow analysis of WMB (or WMI). Instead, the OTS found that “WMB met the well-capitalized standards through the date of receivership.”8 Thus, without a thorough analysis of the assets, liabilities and capital of WMI and WMB, it is not possible to come to a reliable conclusion concerning the financial solvency of either entity, whether on a consolidated or stand-alone basis.


Here is another document that says as of August 14, 2008:
"We propose to decapitalize WMBfsb by returning $20 billion of capital to its parent. The $20 billion will include the master note of approximately $7 billion, proceeds from $3.5 billion of Discount Notes and cash generated through additional wholesale deposits and advances from FHLB Seattle. We propose the payment of at least $10 billion by September 30, 2008 and the remaining $10 billion through December 2009."

"The net balance sheet of WMBfsb will be approximately $34 billion to $36 billion after Project Fillmore. The leverage ratio will decrease to 25% from 62%. A well-capitalized institution requires an 8% or higher leverage ratio."

Read reference page 45 of DOCUMENT 103-1.pdf from here:
http://www.mediafire.com/?sharekey=3b830df9f3d0e6fce7c82ed4b8f0c380aff12395630f22f3ce018c8114394287

Included, is the form to the OTS requesting a decapitalization of WMBfsb. Pg. 117

http://www.kccllc.net/documents/0812229/0812229100208000000000003.pdf


Enclosed is a link to the affidavit of Doreen Logan who is the Controller/ Assistant Treasurer of Wamu who states that there was no liquidity problems;

http://www.google.com/search?hl=en&ie=ISO-8859-1&q=%20Ex.%20D%20to%20Affidavit%20of%20Doreen%20Logan%20%28%201%20/07-3/08%20Account%20Statements%29%20A-46%20...&btnG=Search


Remember, WMBfsb was also taken from the holding company and sold to JPMorgan/Chase with all of the other assets for only $1.88bil.....

Please, take some time and read these documents. Here is a link to all documents filed through the BK Court;

http://www.kccllc.net/wamu



Jamie Dimon planted "moles" in Wamu??? JPMorgan committed corporate fraud???

http://www.kccllc.net/documents/0812229/0812229090501000000000002.pdf


Wamu's claims against JPMorgan/Chase;

http://wmish.com/doc/gov/0603/JPM_V_WMI_-_ANSWER.PDF


Debtors seek the Rule 2004 examination of the following Knowledgeable Parties: (Pg. 443 onward shows internal emails of JPM talking about wiping out Wamu shareholders many months before the seizure)

http://www.kccllc.net/documents/0812229/0812229091214000000000008.pdf

"The Regulators"
FDIC - The Federal Deposit Insurance Corporation, in its capacity as receiver for WMB and in its corporate
capacity,
OTS - Office of Thrift Supervision
OCC - Office of the Comptroller of the Currency
Federal Reserve - Board of Governors of the Federal Reserve System
Treasury Department - U.S. Department of the Treasury
SEC - U.S. Securities and Exchange Commission
Paulson - former U.S. Treasury Secretary Henry M. Paulson, Jr

"The Rating Agencies"
Moody's - Moody's Investors Service
S&P - Standard and Poor's Corporation ("S&P")

"The WaMu Suitors"
Banco Santander - Banco Santander, S.A.
Toronto-Dominion - Toronto-Dominion Bank
TD Bank - TD Bank, N.A.
Wells Fargo - Wells Fargo, N.A.

"The Banks"
FHLB-SF - Federal Home Loan Bank-San Francisco
FHLB- Seattle - Federal Home Loan Bank-Seattle
Goldman Sachs - The Goldman Sachs Group, Inc.

"The JPMC Professionals"
PWC - PricewaterhouseCoopers
Equale - Equale & Associates
Holt - Richard F. Holt
Horne - David Horne, LLC


Please read these articles;

http://www.portfolio.com/industry-news/banking-finance/2009/12/07/why-federal-regulators-closed-washington-mutual/index.html

http://seattle.bizjournals.com/seattle/stories/2009/12/14/daily18.html

http://seattle.bizjournals.com/seattle/stories/2010/04/12/story2.html?jst=pn_pn_lk


The Biggest Banking Heist in World History: Washington Mutual

http://www.marketoracle.co.uk/index.php?name=News&file=article&sid=13894

Please read this descriptive complaint that was submitted to the SEC from Apex Venture Advisors Mike Stathis Managing Principal on October 7, 2008 in regards to the manipulation that occurred on Wamu's stock;

http://www.avaresearch.com/files/20090930175434.pdf



I'm also enclosing another link that quotes Judge Hughes from a case against the FDIC that was wrapped up on August 24, 2005; http://blog.kir.com/archives/2005/08/judge_hughes_ha.asp

"The record shows that the swap was the only reason for this suit. It also shows that the FDIC knew that it had no factual or legal basis for its claims, and that its cases here and in Washington were shams."

As usual, Judge Hughes is acerbic in his opinion regarding the FDIC's conduct, noting in particular that FDIC officials "lied about it all under oath" and they "discarded the mantle of the American Republic for the cloak of a secret society of extortionists."

"It's hard to find a word that captures the essence of the FDIC's bringing this action. Irresponsible is close. Arbitrary, dishonest, exploitative, extortionate, and abusive all fit."

Judge Hughes concluded that Hurwitz and Maxxam "will recover their costs because the record reveals corrupt individuals within a corrupt agency with corrupt influences on it, bringing this litigation."



And now the connection between JPM and the FDIC........


3/26/09 Joe’s hired (from JPM) by the FDIC 3/26/09 as “Senior Advisor” to Sheila…to provide “policy and legal advice relating to complex financial transactions, bid structures, and capital markets.” I'm sure it was out of the goodness of his heart, service before self, duty to country? ummmmmmm, yeah~

8/05/09 Meets with TPG/Sullivan and Cromwell/and others (as FDIC rep) “to discuss the “Proposed Policy Statement of Policy on Qualifications for Failed BankAcquisitions”
http://www.fdic.gov/regulations/laws/federal/2009/09c63AD47.PDF

10/06/09 Winning Bidder Announced….drum roll please~~~~TPG http://www.fdic.gov/news/news/press/2009/pr09183.html

8/04/10 By now, Joe’s getting tired, Job Done…."Joe has given the FDIC invaluable service during a challenging time in the FDIC's history. His input on marketing and resolution strategies and substantive expertise on capital markets has contributed to the FDIC's ability to address many complex and difficult failed bank resolutions," http://www.fdic.gov/news/news/press/2010/pr10177.html

He left his multi-million dollar salary behind at JPM to take a $250,000 position with the FDIC (FOR ONE YEAR) to clean up that "banking mess", and help them unload some banks to the likes of TPG/BONDERMAN?

Mr Examiner/EC members…I always wondered, why was TPG so eager/willing to convert their Preferreds to Commons? Perhaps make it easier and smoother to transition this big old ugly WAMU thing into the hands of the JPM?





http://wamuequityrights.org
http://www.wamu-shareholders-resources.com/wamued.html
http://www.wamucoup.com
http://wamustory.com
http://madblab.com/post/tag/wmbfsb



Extraordinary gain



http://files.shareholder.com/downloads/ONE/903873776x0x362443/93537d78-8a66-4a1e-8493-ff73932b65ea/2009AR_Management_Discussion_Analysis.pdf


Extraordinary gain

page 11

On September 25, 2008, JPMorgan Chase acquired the banking
operations of Washington Mutual. This transaction was accounted for
under the purchase method of accounting for business combinations.
The adjusted net asset value of the banking operations after purchase
accounting adjustments was higher than the consideration paid by
JPMorgan Chase, resulting in an extraordinary gain. The preliminary
gain recognized in 2008 was $1.9 billion. In the third quarter of
2009, the Firm recognized a $76 million increase in the extraordinary
gain associated with the final purchase accounting adjustments for
the acquisition. For a further discussion of the Washington Mutual
transaction, see Note 2 on pages 151–156 of this Annual Report

NET INCOME
page16
Net income included an extraordinary gain of $76 million and $1.9 billion related to the Washington Mutual transaction for 2009 and 2008, respectively

Page 20
Net revenue was $32.7 billion, an increase of $9.2 billion, or 39%,
from the prior year. Net interest income was $20.5 billion, up by
$6.3 billion, or 45%, reflecting the impact of the Washington
Mutual transaction, and wider loan and deposit spreads. Noninterest
revenue was $12.2 billion, up by $2.8 billion, or 30%, driven by
the impact of the Washington Mutual transaction

Page 21
Total net revenue was $23.5 billion, an increase of $6.2 billion, or
36%, from the prior year. Net interest income was $14.2 billion, up
$3.6 billion, or 35%, benefiting from the Washington Mutual transaction,
wider loan and deposit spreads, and higher loan and deposit
balances. Noninterest revenue was $9.4 billion, up $2.6 billion, or
38%, as positive MSR risk management results, the impact of the
Washington Mutual transaction, higher mortgage origination volume
and higher deposit-related fees were partially offset by an increase in
losses related to the repurchase of previously sold loans and markdowns
on the mortgage warehouse.

Page22
Retail Banking reported net income of $3.9 billion, up by $921
million, or 31%, from the prior year. Total net revenue was $18.0
billion, up by $5.3 billion, or 42%, from the prior year. The increase
reflected the impact of the Washington Mutual transaction, wider
deposit spreads, higher average deposit balances and higher debit
card income. The provision for credit losses was $1.1 billion, compared
with $449 million in the prior year, reflecting higher estimated
losses in the Business Banking portfolio. Noninterest
expense was $10.4 billion, up by $3.1 billion, or 43%. The increase
reflected the impact of the Washington Mutual transaction, higher
FDIC insurance premiums and higher headcount-related expense.

page26
End-of-period managed loans were $163.4 billion, a decrease of
$26.9 billion, or 14%, from the prior year, reflecting lower charge
volume and a higher level of charge-offs. Average managed loans
were $172.4 billion, an increase of $9.5 billion, or 6%, from the
prior year, primarily due to the impact of the Washington Mutual
transaction. Excluding the impact of the Washington Mutual transaction,
end-of-period and average managed loans for 2009 were
$143.8 billion and $148.8 billion, respectively.


John Reich's 8/6/08 Mail to Sheila Bair?
http://hsgac.senate.gov/public/_files/Financial_Crisis/041610Exhibits.pdf

—– Original Message —–
From: Bair, Sheila C.
To: Reich, John M Cc: Murton, Arthur J. ; Polakoff, Scott M
Sent: Wed Aug
Subject: W

Dear John,

I’d like to further discuss contingency planning for W during the calion Friday. Art talked with Scott about making some discrete inquiries to determine whether there are institutions which would be willing to acquire it on a whole bank basis if we had to do an emergency closing, and on what terms. I understand you have strong objections to our doing so, so I’d like to talk this through. My interest is in assuring that IF we have to market it on an emergency basis, there is multiple bidder interest.
In any event, both the FDIC and the FRB agree that there needs to be a contingency plan in place, so let’s talk this through on Friday. I’d really like to develop a plan everyone is comfortable with.

Sheila

—–Original Message—–
From: Reich, John M
To: Bair, Sheila C.
Sent: Wed Aug 06 17:32:482008
Subject: Re: W

Dear Sheila, You really know how to stir up a colleague’s vacation.

I do not under any circumstances want to discuss this on Friday’s conference call, in which I mayor may not be able to participate, depending on cell phone service availability on the cruise ship location.

Instead, I want to have a one on one meeting with Ben Bernanke prior to any such discussion – as early next week as possible following my return to the office. Also, I mayor may not choose to have a similar meeting with Secretary Paulson.

I should not have to remind you the FDIC has no role until the PFR (i.e. the OTS) rules on solvency and the PFR utilizes PCA.

You personally, and the FDIC as an agency, would likely create added instability if you pursue what I strongly believe would be a precipitous and unprecedented action. And ifit occurs without my consent, I will not sit quietly by and observe – there would be a public reaction. Put yourself in the PFR’s shoes in this situation. We have our responsibilities, including the right of primary supervisory determination of this institution’s condition, and until Congress changes the statutes under which we operate, our responsibilities as the PFR are not to be simply tendered to the FDIC in a down economic cycle.

It seems as though the FDIC is behaving as some sort of super-regulator – which you
and it are not. I also believe there could be a high potential for FDIC actions of the type you are contemplating to calIse irreparable harm to Wamu if, at any point in the near future, Wamu wishes to actualy seek a buyer. The potential harm could stem from the fact that any such potential buyer may have been allready been contacted by the FDIC.
If in fact any meetings or discussions have already taken place by the FDIC with either JPMC, Wells Fargo, or any other entity, in any capacity in which WaMu was even mentioned, I would like to see a copy of the signed confidentiality agreement signed by the bank – required in any resolution scenario before an institution is told the name of the failing bank.

This is an OTS regulated institution, not an FDIC regulated institution. We make any decision on solvency, not the FDIC, and I have staff equally as competent as staff at the FDIC, whom I know well.

The FDIC can do whatever internal contingency planning it wishes, but should in no way go outside the FDIC. This is a 3-rated institution. Are you also trying to find buyers for Citi, Wachovia, Nat City and others?

Finally, ifWamu were to learn ofthe FDIC’s actions, there may well be a question as to whether these actions may constitute a disclosable event. That, in and of itself, is a reason not to proceed with this approach for a publicly traded institution. The government should not be in the business of arranging mergers – particularly before they are necessary, and we are not at that point in WaMu’s situation.

I will attempt to be on the Friday conference call, and I am going to assume this notion is not going to be raised.

John

This excerpt is from John Reich's (OTS) email to Sheila Bair (FDIC) on 8/6/2008 (p264-265) says it all
"The government should not be in the business of arranging mergers - particularly before they are necessary, and we are not at that point in WaMu's situation.”

This excerpt from John Reich's (OTS) email to Sheila Bair (FDIC) on 8/8/2008 (p260).
"In my view rating WaMu a 4 would be a big error in judging the facts in this situation. It would appear to be a rating resulting from fear and not a rating based on the condition of the institution. WaMu has both the capital and the liquidity to justify a 3 rating."

This excerpt is from John Reich's (OTS) email to Sheila Bair (FDIC) Sent: Wed Aug 06 17:32:482008

"If in fact any meetings or discussions have already taken place by the FDIC with either JPMC, Wells Fargo, or any other entity, in any capacity in which WaMu was even mentioned, I would like to see a copy of the signed confidentiality agreement signed by the bank – required in any resolution scenario before an institution is told the name of the failing bank."

[EXDIMER]

Scrivener please check your second,third and fourth links. They don't appear to be linking to anything.

[Large Green]

scrivenerserror, this is truly one outstanding post that includes facts, links plus all one needs know except when the MASSIVE RETURNS start for our beloved Escrow Shares/Markers. Thank you for your continued support. Keep this post as it will come in very handy as we go forward. Take care and keep up the GREAT work!

Some great links follow.

http://s.wsj.net/public/resources/documents/WSJ-WAMU-Responsive-e-mails092810.pdf
___________________________________________________
Dr. A.

http://www.pro-prosperity.com/UnconstitutionalityOfShortsellingAndPrivateMarketClearing.html


http://www.kccllc.net/documents/0812229/0812229100615000000000011.pdf


http://www.kccllc.net/documents/0812229/0812229100603000000000011.pdf

http://www.kccllc.net/documents/0812229/0812229100415000000000132.pdf



__________________________________________________
Doreen Logan

http://www.scribd.com/doc/66287502/Washington-Mutual-WMI-Appendix-to-the-Brief-in-Support-of-the-Motion-of-Plaintiffs-for-Summary-Judgment-Affidavit-of-Doreen-Logan


__________________________________________________
Bonderman Resigns WaMu Board

https://www.pehub.com/2008/12/26328/
__________________________________________________

Email from JPM Executive Tim Main

http://www.ariva.de/tim_morgan_jpmorgan_a283928

___________________________________________________
The Work

December 16, 2009 1:57 PM
Remember WaMu?
Posted by Zach Lowe

We had almost forgotten about Washington Mutual, other than remembering it as one of the casualties of those crazy days of last fall, when JPMorgan Chase acquired $1.9 billion in WaMu assets in a Sept. 2008 auction supervised by the Federal Deposit Insurance Corporation.

Shame on us. Washington Mutual's Chapter 11 case in Delaware is providing a ton of work for a pile of Am Law 100 firms, and that work promises to get more interesting after WaMu filed a motion Monday asking a federal court to compel wide-ranging discovery related to the JPMorgan acquisition, according to Reuters (via The New York Times).

In the filing, the attorneys for WaMu's estate (a Quinn, Emanuel, Urquhart, Oliver & Hedges team led by Peter Calamari) asked a federal judge to order JPMorgan, the FDIC, and nearly a dozen other parties, including Goldman Sachs and various rating agencies, to turn over internal e-mails and other documents linked to JPMorgan's long dance with WaMu. Washington Mutual and its attorneys argue that JPMorgan essentially used inside information to rig the bidding process for WaMu in its favor and lower the sales price. In one June 2008 e-mail exchange cited in the filing, JPMorgan CEO Jamie Dimon allegedly discouraged a rival bidder (Banco Santader) by claiming WaMu's potential losses were higher than known estimates, the filing states. The filing claims JPMorgan "engaged in sham negotiations" with WaMu to gain confidential information about the bank; "misused and publicly leaked" that information to various parties--including the FDIC and ratings agencies--to secure WaMu's assets "at a 'fire sale' price"; and "misused access to government regulators to acquire confidential information" about the FDIC's plan to place WaMu in receivership before the asset sale, the filing states.

A team from Sullivan & Cromwell (headed by firm chair H. Rodgin Cohen, a man with well-known access to top federal regulators) advised JPMorgan during the deal negotiations. The filing says that JPMorgan's connections to regulators may have given the firm "advance notice" of the FDIC's plans to seize the bank, knowledge JPMorgan allegedly used to "obstruct Washington Mutual's efforts to sell itself in a fair bidding process," the filing says. The filing also includes a late September e-mail exchange--which occurred a few days before the FDIC's move to seize the bank--in which JP Morgan's general counsel, Dan Cooney, informed FDIC deputy director James Wigand that WaMu officials were reluctant to turn over internal bank data to JPMorgan higher-ups. In his reply, Wigand indicates the FDIC may be able to smooth the process.

Lawyers from S&C, which is also representing JPMorgan in the WaMu bankruptcy litigation, either didn't return calls or declined to comment. (Partners Bruce Clark and Robert Sacks are leading the S&C litigation team.) A source close to the bank tells us JPMorgan did nothing wrong in the deal talks, and that Quinn and WaMu are cherry-picking communications to try and make their case.

Interestingly, those internal JPMorgan emails do not mention or include Cohen or anyone at S&C, making it difficult to tell how much Cohen and the firm were involved in the negotiations throughout the early and middle of 2008.

DLA Piper is advising the FDIC in the matter. John Clarke, Jr., one of the lead partners on the matter for DLA, did not immediately respond to a request seeking comment. Pepper Hamilton is representing the creditors committee in the Chapter 11 case, and Wilmer Cutler Pickering Hale and Dorr is advising a separate committee of WaMu bondholders, court records show.
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[Fletch-42]

You may be new here, but I think you have been around the block several times with this stock.
Would we recognize you by another name? (Don't answer)

[dragoon76]

Quite possibly, the best post of 2015!! Incredible DD!! Thank you!!

[phinhead1972]

If the links in this post get fixed, it should be stickied.

[fredmiller1999]

"This is an OTS regulated institution, not an FDIC regulated institution. We make any decision on solvency, not the FDIC, and I have staff equally as competent as staff at the FDIC, whom I know well."

quote:

letter to sheila bair (FDIC), from Reich, John M (OTS)




i remember Susman using the ots letter of solvency to assist in the "Mexican stand off" with the d&o suit.

FDIC went out of there jurisdiction. the ots gave wamu a AAA rating along with high reguards to meeting operation requirements after the seizure.

i hope i get to shake Susman's hand one day if this plays out like i see it.

he had them by the balls from day one and let rosie tie his own noose

that my friend is one MAIN reason why the FDIC is not released

[hotmeat]

Yet with all this evidence that the FDIC erred in seizing and literally handing WAMU over to JPM, "our" representatives (EC and B.Rosen et al) still acceded to this deal. A deal that has seen JPM and AAOC rake in billions upon billions in profits, while equity still languishes at the mercy of WMIHC management, feeding on the scraps.

[stoxjock]

Great Post with the Links showing the Greatest Bank Heist in World History!

All these posters here who want to "sweep these facts under the Rug" are Moles on the Pay-roll of JPM / Hedge Funds.

[Boris the Spider]

Thanks scrivener. What a snake pit!! OMG. How do these people sleep at night knowing they ruined the lives of thousands of people who lost their jobs and their life savings, not to mention the shareholders and depositors who lost it all.

Our government has no scruples. We've turned into Russia.


—– Original Message —–
From: Bair, Sheila C.
To: Reich, John M Cc: Murton, Arthur J. ; Polakoff, Scott M
Sent: Wed Aug
Subject: W

Dear John,

I’d like to further discuss contingency planning for W during the call on Friday. Art talked with Scott about making some discrete inquiries to determine whether there are institutions which would be willing to acquire it on a whole bank basis if we had to do an emergency closing, and on what terms. I understand you have strong objections to our doing so, so I’d like to talk this through. My interest is in assuring that IF we have to market it on an emergency basis, there is multiple bidder interest.
In any event, both the FDIC and the FRB agree that there needs to be a contingency plan in place, so let’s talk this through on Friday. I’d really like to develop a plan everyone is comfortable with.

Sheila

—–Original Message—–
From: Reich, John M
To: Bair, Sheila C.
Sent: Wed Aug 06 17:32:482008
Subject: Re: W

Dear Sheila, You really know how to stir up a colleague’s vacation.

I do not under any circumstances want to discuss this on Friday’s conference call, in which I mayor may not be able to participate, depending on cell phone service availability on the cruise ship location.

Instead, I want to have a one on one meeting with Ben Bernanke prior to any such discussion – as early next week as possible following my return to the office. Also, I may or may not choose to have a similar meeting with Secretary Paulson.

I should not have to remind you the FDIC has no role until the PFR (i.e. the OTS) rules on solvency and the PFR utilizes PCA.

You personally, and the FDIC as an agency, would likely create added instability if you pursue what I strongly believe would be a precipitous and unprecedented action. And if it occurs without my consent, I will not sit quietly by and observe – there would be a public reaction. Put yourself in the PFR’s shoes in this situation. We have our responsibilities, including the right of primary supervisory determination of this institution’s condition, and until Congress changes the statutes under which we operate, our responsibilities as the PFR are not to be simply tendered to the FDIC in a down economic cycle.

It seems as though the FDIC is behaving as some sort of super-regulator – which you
and it are not. I also believe there could be a high potential for FDIC actions of the type you are contemplating to cause irreparable harm to Wamu if, at any point in the near future, Wamu wishes to actually seek a buyer. The potential harm could stem from the fact that any such potential buyer may have been allready been contacted by the FDIC.
If in fact any meetings or discussions have already taken place by the FDIC with either JPMC, Wells Fargo, or any other entity, in any capacity in which WaMu was even mentioned, I would like to see a copy of the signed confidentiality agreement signed by the bank – required in any resolution scenario before an institution is told the name of the failing bank.

This is an OTS regulated institution, not an FDIC regulated institution. We make any decision on solvency, not the FDIC, and I have staff equally as competent as staff at the FDIC, whom I know well.

The FDIC can do whatever internal contingency planning it wishes, but should in no way go outside the FDIC. This is a 3-rated institution. Are you also trying to find buyers for Citi, Wachovia, Nat City and others?

Finally, ifWamu were to learn ofthe FDIC’s actions, there may well be a question as to whether these actions may constitute a disclosable event. That, in and of itself, is a reason not to proceed with this approach for a publicly traded institution. The government should not be in the business of arranging mergers – particularly before they are necessary, and we are not at that point in WaMu’s situation.

I will attempt to be on the Friday conference call, and I am going to assume this notion is not going to be raised.

John

This excerpt is from John Reich's (OTS) email to Sheila Bair (FDIC) on 8/6/2008 (p264-265) says it all
"The government should not be in the business of arranging mergers - particularly before they are necessary, and we are not at that point in WaMu's situation.”

This excerpt from John Reich's (OTS) email to Sheila Bair (FDIC) on 8/8/2008 (p260).
"In my view rating WaMu a 4 would be a big error in judging the facts in this situation. It would appear to be a rating resulting from fear and not a rating based on the condition of the institution. WaMu has both the capital and the liquidity to justify a 3 rating."

This excerpt is from John Reich's (OTS) email to Sheila Bair (FDIC) Sent: Wed Aug 06 17:32:482008

"If in fact any meetings or discussions have already taken place by the FDIC with either JPMC, Wells Fargo, or any other entity, in any capacity in which WaMu was even mentioned, I would like to see a copy of the signed confidentiality agreement signed by the bank – required in any resolution scenario before an institution is told the name of the failing bank."

[BBANBOB]

GREAT POST and compilation OF FACTS!!!!!!!!!!!!!!!!!!!

[dmceng]

scr

Whew!!! Wow! You are the man!! Great overall DD for the Board! What a terrible fiasco this was. I was fortunate to be part of it and made a goodly sum. Not bragging just fact.

GLTY and GLTA!

Take Care
David

[intuitive3]

Great post! Shou!d be stickied.:)

[mad4]

Amazing how the OTS openly warned Sheila and she still whent with it. Tells me of stronger motives and disregard females r consequences

Great job on this info Scrivenererror

[JB3136]

This is all fantastically wonderful, completely agree that it should be a sticky.

At the same time still left wondering how any of this helps us now. Are there any suits against the FDIC or JPM on our behalf? Is there anything in the GSA that provides concrete proof any of this comes back to us to make any of these wrongs right?

Great recap and history for those that want the truth, tell us how it helps us all now though that it's all already been taken, gifted to the house of Morgan then signed sealed F&R'd away?

[PickStocks]

SCRIVENERSERROR: GREAT FIND and READ..

found a gem :

Wamu TRUTH:

Written Statement of Kerry K. Killinger Submitted to the United States Senate
Permanent Subcommittee on Investigations-April 13, 2010

http://assets.bizjournals.com/cms_media/seattle/Kerry%20Killinger%20Written%20Statement%204-12-10.pdf


Dochow(OTS) to Ivie (FDIC) July 08:

http://c0181567.cdn1.cloudfiles.rackspacecloud.com/2008-07-22%20OTS%20letter%20to%20FDIC%20re%20Examination%20of%20WaMu.pdf


Sept 8, 2008 Plan set in motion:

http://c0181567.cdn1.cloudfiles.rackspacecloud.com/2008-09-00%20FDIC%20Problem%20Bank%20Memo%20on%20WaMu.pdf


Sept 11, 2008 (although stamped 17th), Dochow OTS Regional Director blows them out of the water with detailed analysis:

http://c0181567.cdn1.cloudfiles.rackspacecloud.com/2008-09-11%20OTS%20letter%20to%20FDIC%20re%20WaMu%20ratings.pdf



Objection to Confirmation of Plan of Reorganization Filed by Nate Thom - 11/19/2010

http://www.kccllc.net/documents/0812229/0812229101123000000000010.pdf



Letters to the court:

http://wmish.com/various/letter_ocr.pdf

http://www.kccllc.net/documents/0812229/0812229100603000000000011.pdf

http://www.kccllc.net/documents/0812229/0812229100615000000000011.pdf

http://www.kccllc.net/documents/0812229/0812229100414000000000027.pdf


Contested Property:

http://www.finmire.com/WMI/Contested_Property


AMERICAN NATIONAL INSURANCE COMPANY MOTION TO ALTER OR AMEND JUDGMENT
AND REQUEST FOR LEAVE TO FILE AMENDED COMPLAINT (DC Court)

http://www.ghostofwamu.com/documents/09-01743/09-01743-0119.pdf




EC Objection To The POR 5/26

http://www.kccllc.net/documents/0812229/0812229100513000000000023.pdf


WaMu Delinquency Rates vs Industry, 2004 to 2007


http://www.kccllc.net/documents/0812229/0812229091214000000000008.pdf



Motion By The EC To Examine JPM/Chase

http://www.kccllc.net/documents/0812229/0812229100525000000000026.pdf


The Untold Story: How WaMu Execs Fought Government Seizure
http://blogs.wsj.com/deals/2010/09/28/the-untold-story-how-wamu-execs-fought-government-seizure/?mod=yahoo_hs

CEO Alan Fishman letter to Chairman Bair:


http://www.ghostofwamu.com/documents/WSJ-WAMU-Responsive-e-mails092810.pdf


How the Canadians almost took over WaMu in NY:
http://mycrains.crainsnewyork.com/in_the_markets/2010/11/how-the-canadians-almost-took-over-wamu-in-ny.php

WaMu's Four Bidders Have $110 Billion More to Spend After Rally
By Ari Levy - September 20, 2008 12:14 EDT

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aQWTFn2rfY50



PLEASE READ THESE COURT DOCUMENTS.....

JPMorgan admits that the FDIC took over a solvent bank in one of the latest court documents...

I'm enclosing a few more documents filed through the BK court in regards to a declaration of Thomas M. Blake ( http://www.crai.com/ProfessionalStaff/listingdetails.aspx?id=1276 ).

The declaration can be found in 103-4.pdf at http://www.mediafire.com/?sharekey=3b830df9f3d0e6fce7c82ed4b8f0c380aff12395630f22f3ce018c8114394287
Quoting:
12. Based on my review to date, there is no indication that the OTS performed a solvency analysis consistent with the test for insolvency specified in the Bankruptcy Code. There is no indication that the OTS assessed the fair sale-able value of the assets of WMB (or WMI). Nor is there an indication that OTS compared the fair sale-able value of the assets of WMB (or WMI) to the total amount of either company’s respective liabilities. There is no indication that the OTS performed a comprehensive cash flow analysis of WMB (or WMI). Instead, the OTS found that “WMB met the well-capitalized standards through the date of receivership.”8 Thus, without a thorough analysis of the assets, liabilities and capital of WMI and WMB, it is not possible to come to a reliable conclusion concerning the financial solvency of either entity, whether on a consolidated or stand-alone basis.


Here is another document that says as of August 14, 2008:
"We propose to decapitalize WMBfsb by returning $20 billion of capital to its parent. The $20 billion will include the master note of approximately $7 billion, proceeds from $3.5 billion of Discount Notes and cash generated through additional wholesale deposits and advances from FHLB Seattle. We propose the payment of at least $10 billion by September 30, 2008 and the remaining $10 billion through December 2009."

"The net balance sheet of WMBfsb will be approximately $34 billion to $36 billion after Project Fillmore. The leverage ratio will decrease to 25% from 62%. A well-capitalized institution requires an 8% or higher leverage ratio."

Read reference page 45 of DOCUMENT 103-1.pdf from here:
http://www.mediafire.com/?sharekey=3b830df9f3d0e6fce7c82ed4b8f0c380aff12395630f22f3ce018c8114394287

Included, is the form to the OTS requesting a decapitalization of WMBfsb. Pg. 117

http://www.kccllc.net/documents/0812229/0812229100208000000000003.pdf


Enclosed is a link to the affidavit of Doreen Logan who is the Controller/ Assistant Treasurer of Wamu who states that there was no liquidity problems;

http://www.google.com/search?hl=en&ie=ISO-8859-1&q=%20Ex.%20D%20to%20Affidavit%20of%20Doreen%20Logan%20%28%201%20/07-3/08%20Account%20Statements%29%20A-46%20...&btnG=Search


Remember, WMBfsb was also taken from the holding company and sold to JPMorgan/Chase with all of the other assets for only $1.88bil.....

Please, take some time and read these documents. Here is a link to all documents filed through the BK Court;

http://www.kccllc.net/wamu



Jamie Dimon planted "moles" in Wamu??? JPMorgan committed corporate fraud???

http://www.kccllc.net/documents/0812229/0812229090501000000000002.pdf


Wamu's claims against JPMorgan/Chase;

http://wmish.com/doc/gov/0603/JPM_V_WMI_-_ANSWER.PDF


Debtors seek the Rule 2004 examination of the following Knowledgeable Parties: (Pg. 443 onward shows internal emails of JPM talking about wiping out Wamu shareholders many months before the seizure)

http://www.kccllc.net/documents/0812229/0812229091214000000000008.pdf

"The Regulators"
FDIC - The Federal Deposit Insurance Corporation, in its capacity as receiver for WMB and in its corporate
capacity,
OTS - Office of Thrift Supervision
OCC - Office of the Comptroller of the Currency
Federal Reserve - Board of Governors of the Federal Reserve System
Treasury Department - U.S. Department of the Treasury
SEC - U.S. Securities and Exchange Commission
Paulson - former U.S. Treasury Secretary Henry M. Paulson, Jr

"The Rating Agencies"
Moody's - Moody's Investors Service
S&P - Standard and Poor's Corporation ("S&P")

"The WaMu Suitors"
Banco Santander - Banco Santander, S.A.
Toronto-Dominion - Toronto-Dominion Bank
TD Bank - TD Bank, N.A.
Wells Fargo - Wells Fargo, N.A.

"The Banks"
FHLB-SF - Federal Home Loan Bank-San Francisco
FHLB- Seattle - Federal Home Loan Bank-Seattle
Goldman Sachs - The Goldman Sachs Group, Inc.

"The JPMC Professionals"
PWC - PricewaterhouseCoopers
Equale - Equale & Associates
Holt - Richard F. Holt
Horne - David Horne, LLC


Please read these articles;

http://www.portfolio.com/industry-news/banking-finance/2009/12/07/why-federal-regulators-closed-washington-mutual/index.html

http://seattle.bizjournals.com/seattle/stories/2009/12/14/daily18.html

http://seattle.bizjournals.com/seattle/stories/2010/04/12/story2.html?jst=pn_pn_lk


The Biggest Banking Heist in World History: Washington Mutual

http://www.marketoracle.co.uk/index.php?name=News&file=article&sid=13894

Please read this descriptive complaint that was submitted to the SEC from Apex Venture Advisors Mike Stathis Managing Principal on October 7, 2008 in regards to the manipulation that occurred on Wamu's stock;

http://www.avaresearch.com/files/20090930175434.pdf



I'm also enclosing another link that quotes Judge Hughes from a case against the FDIC that was wrapped up on August 24, 2005; http://blog.kir.com/archives/2005/08/judge_hughes_ha.asp

"The record shows that the swap was the only reason for this suit. It also shows that the FDIC knew that it had no factual or legal basis for its claims, and that its cases here and in Washington were shams."

As usual, Judge Hughes is acerbic in his opinion regarding the FDIC's conduct, noting in particular that FDIC officials "lied about it all under oath" and they "discarded the mantle of the American Republic for the cloak of a secret society of extortionists."

"It's hard to find a word that captures the essence of the FDIC's bringing this action. Irresponsible is close. Arbitrary, dishonest, exploitative, extortionate, and abusive all fit."

Judge Hughes concluded that Hurwitz and Maxxam "will recover their costs because the record reveals corrupt individuals within a corrupt agency with corrupt influences on it, bringing this litigation."



And now the connection between JPM and the FDIC........


3/26/09 Joe’s hired (from JPM) by the FDIC 3/26/09 as “Senior Advisor” to Sheila…to provide “policy and legal advice relating to complex financial transactions, bid structures, and capital markets.” I'm sure it was out of the goodness of his heart, service before self, duty to country? ummmmmmm, yeah~

8/05/09 Meets with TPG/Sullivan and Cromwell/and others (as FDIC rep) “to discuss the “Proposed Policy Statement of Policy on Qualifications for Failed BankAcquisitions”
http://www.fdic.gov/regulations/laws/federal/2009/09c63AD47.PDF

10/06/09 Winning Bidder Announced….drum roll please~~~~TPG http://www.fdic.gov/news/news/press/2009/pr09183.html

8/04/10 By now, Joe’s getting tired, Job Done…."Joe has given the FDIC invaluable service during a challenging time in the FDIC's history. His input on marketing and resolution strategies and substantive expertise on capital markets has contributed to the FDIC's ability to address many complex and difficult failed bank resolutions," http://www.fdic.gov/news/news/press/2010/pr10177.html

He left his multi-million dollar salary behind at JPM to take a $250,000 position with the FDIC (FOR ONE YEAR) to clean up that "banking mess", and help them unload some banks to the likes of TPG/BONDERMAN?

Mr Examiner/EC members…I always wondered, why was TPG so eager/willing to convert their Preferreds to Commons? Perhaps make it easier and smoother to transition this big old ugly WAMU thing into the hands of the JPM?





http://wamuequityrights.org
http://www.wamu-shareholders-resources.com/wamued.html
http://www.wamucoup.com
http://wamustory.com
http://madblab.com/post/tag/wmbfsb



Extraordinary gain



http://files.shareholder.com/downloads/ONE/903873776x0x362443/93537d78-8a66-4a1e-8493-ff73932b65ea/2009AR_Management_Discussion_Analysis.pdf


Extraordinary gain

page 11

On September 25, 2008, JPMorgan Chase acquired the banking
operations of Washington Mutual. This transaction was accounted for
under the purchase method of accounting for business combinations.
The adjusted net asset value of the banking operations after purchase
accounting adjustments was higher than the consideration paid by
JPMorgan Chase, resulting in an extraordinary gain. The preliminary
gain recognized in 2008 was $1.9 billion. In the third quarter of
2009, the Firm recognized a $76 million increase in the extraordinary
gain associated with the final purchase accounting adjustments for
the acquisition. For a further discussion of the Washington Mutual
transaction, see Note 2 on pages 151–156 of this Annual Report

NET INCOME
page16
Net income included an extraordinary gain of $76 million and $1.9 billion related to the Washington Mutual transaction for 2009 and 2008, respectively

Page 20
Net revenue was $32.7 billion, an increase of $9.2 billion, or 39%,
from the prior year. Net interest income was $20.5 billion, up by
$6.3 billion, or 45%, reflecting the impact of the Washington
Mutual transaction, and wider loan and deposit spreads. Noninterest
revenue was $12.2 billion, up by $2.8 billion, or 30%, driven by
the impact of the Washington Mutual transaction

Page 21
Total net revenue was $23.5 billion, an increase of $6.2 billion, or
36%, from the prior year. Net interest income was $14.2 billion, up
$3.6 billion, or 35%, benefiting from the Washington Mutual transaction,
wider loan and deposit spreads, and higher loan and deposit
balances. Noninterest revenue was $9.4 billion, up $2.6 billion, or
38%, as positive MSR risk management results, the impact of the
Washington Mutual transaction, higher mortgage origination volume
and higher deposit-related fees were partially offset by an increase in
losses related to the repurchase of previously sold loans and markdowns
on the mortgage warehouse.

Page22
Retail Banking reported net income of $3.9 billion, up by $921
million, or 31%, from the prior year. Total net revenue was $18.0
billion, up by $5.3 billion, or 42%, from the prior year. The increase
reflected the impact of the Washington Mutual transaction, wider
deposit spreads, higher average deposit balances and higher debit
card income. The provision for credit losses was $1.1 billion, compared
with $449 million in the prior year, reflecting higher estimated
losses in the Business Banking portfolio. Noninterest
expense was $10.4 billion, up by $3.1 billion, or 43%. The increase
reflected the impact of the Washington Mutual transaction, higher
FDIC insurance premiums and higher headcount-related expense.

page26
End-of-period managed loans were $163.4 billion, a decrease of
$26.9 billion, or 14%, from the prior year, reflecting lower charge
volume and a higher level of charge-offs. Average managed loans
were $172.4 billion, an increase of $9.5 billion, or 6%, from the
prior year, primarily due to the impact of the Washington Mutual
transaction. Excluding the impact of the Washington Mutual transaction,
end-of-period and average managed loans for 2009 were
$143.8 billion and $148.8 billion, respectively.


John Reich's 8/6/08 Mail to Sheila Bair?
http://hsgac.senate.gov/public/_files/Financial_Crisis/041610Exhibits.pdf

—– Original Message —–
From: Bair, Sheila C.
To: Reich, John M Cc: Murton, Arthur J. ; Polakoff, Scott M
Sent: Wed Aug
Subject: W

Dear John,

I’d like to further discuss contingency planning for W during the calion Friday. Art talked with Scott about making some discrete inquiries to determine whether there are institutions which would be willing to acquire it on a whole bank basis if we had to do an emergency closing, and on what terms. I understand you have strong objections to our doing so, so I’d like to talk this through. My interest is in assuring that IF we have to market it on an emergency basis, there is multiple bidder interest.
In any event, both the FDIC and the FRB agree that there needs to be a contingency plan in place, so let’s talk this through on Friday. I’d really like to develop a plan everyone is comfortable with.

Sheila

—–Original Message—–
From: Reich, John M
To: Bair, Sheila C.
Sent: Wed Aug 06 17:32:482008
Subject: Re: W

Dear Sheila, You really know how to stir up a colleague’s vacation.

I do not under any circumstances want to discuss this on Friday’s conference call, in which I mayor may not be able to participate, depending on cell phone service availability on the cruise ship location.

Instead, I want to have a one on one meeting with Ben Bernanke prior to any such discussion – as early next week as possible following my return to the office. Also, I mayor may not choose to have a similar meeting with Secretary Paulson.

I should not have to remind you the FDIC has no role until the PFR (i.e. the OTS) rules on solvency and the PFR utilizes PCA.

You personally, and the FDIC as an agency, would likely create added instability if you pursue what I strongly believe would be a precipitous and unprecedented action. And ifit occurs without my consent, I will not sit quietly by and observe – there would be a public reaction. Put yourself in the PFR’s shoes in this situation. We have our responsibilities, including the right of primary supervisory determination of this institution’s condition, and until Congress changes the statutes under which we operate, our responsibilities as the PFR are not to be simply tendered to the FDIC in a down economic cycle.

It seems as though the FDIC is behaving as some sort of super-regulator – which you
and it are not. I also believe there could be a high potential for FDIC actions of the type you are contemplating to calIse irreparable harm to Wamu if, at any point in the near future, Wamu wishes to actualy seek a buyer. The potential harm could stem from the fact that any such potential buyer may have been allready been contacted by the FDIC.
If in fact any meetings or discussions have already taken place by the FDIC with either JPMC, Wells Fargo, or any other entity, in any capacity in which WaMu was even mentioned, I would like to see a copy of the signed confidentiality agreement signed by the bank – required in any resolution scenario before an institution is told the name of the failing bank.

This is an OTS regulated institution, not an FDIC regulated institution. We make any decision on solvency, not the FDIC, and I have staff equally as competent as staff at the FDIC, whom I know well.

The FDIC can do whatever internal contingency planning it wishes, but should in no way go outside the FDIC. This is a 3-rated institution. Are you also trying to find buyers for Citi, Wachovia, Nat City and others?

Finally, ifWamu were to learn ofthe FDIC’s actions, there may well be a question as to whether these actions may constitute a disclosable event. That, in and of itself, is a reason not to proceed with this approach for a publicly traded institution. The government should not be in the business of arranging mergers – particularly before they are necessary, and we are not at that point in WaMu’s situation.

I will attempt to be on the Friday conference call, and I am going to assume this notion is not going to be raised.

John

This excerpt is from John Reich's (OTS) email to Sheila Bair (FDIC) on 8/6/2008 (p264-265) says it all
"The government should not be in the business of arranging mergers - particularly before they are necessary, and we are not at that point in WaMu's situation.”

This excerpt from John Reich's (OTS) email to Sheila Bair (FDIC) on 8/8/2008 (p260).
"In my view rating WaMu a 4 would be a big error in judging the facts in this situation. It would appear to be a rating resulting from fear and not a rating based on the condition of the institution. WaMu has both the capital and the liquidity to justify a 3 rating."

This excerpt is from John Reich's (OTS) email to Sheila Bair (FDIC) Sent: Wed Aug 06 17:32:482008

"If in fact any meetings or discussions have already taken place by the FDIC with either JPMC, Wells Fargo, or any other entity, in any capacity in which WaMu was even mentioned, I would like to see a copy of the signed confidentiality agreement signed by the bank – required in any resolution scenario before an institution is told the name of the failing bank."

[deekshant]

Wow! Great post Scrivenerserror. Thank you.

Some of your links are not working