"To satisfy the legal isolation condition, the transferred financial asset must have been presumptively placed beyond the reach of the transferor, its creditors, a bankruptcy trustee, or in the case of an IDI insured depository institution, the FDIC as conservator or receiver."
This is the part of the FDIC memo mordicai focused on to base his theory. He is saying that those assets in "legal isolation" are non bankruptcy assets. Hence ownership would revert to WMIH.
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