Well Claw, if there is $40BB and it belongs to WMB and not WMI, then the 3 creditors (WMB Sr's, Jr's & DB) that we know of have to be paid first. $13.8BB in WMB bonds (Sr's and Jr's) and now the $3BB DB claim. So let's call it $17BB. So $40BB - $17BB = $23BB to flow down to LT.
Well, there's what? less than $15B in receivership claims?
$42B - 15 = nearly $30B reasons for DB to accept an unsecured $3B claim, and enough ($22Billion-ish) to trickle back to released equity as 1 of 2 avenues for legacy returning assets.
Clearly the reduction of 42.2b reduces the available assets from the FDIC water fall. Trustee of FDIC now has less potential liquidation funds for WMB Creditors.
FDIC must comply with GAAP and in doing so removed / derecognized what contractually WMB did not legally own or have control over. WMB no longer having a legal ownership would not be entitled to any future cash flow and or over collateralization of true sales transaction.
??? To whom transferred. Since 42.2B were earmarked Mortgage Real Estate Loans most likely to bankruptcy remote SPE's. ??? what $$ amount of revenue might this 42.2B generate?? And more importantly what lies within all the SPE's that WMI had a contractual retained interest. Since each SPE has it's own banking account respectively they could be a boat load of $$ generated and parked just waiting for a trigger event. Also what other real estate owned that collateralized true sale securitzed pools remain to be liquidated. It is with all of these that LT can go after.
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