This is good stuff but it may be moot for us.
All what it said is that securitized and safe harbor assets are protected from seizure by the FDIC or taken away by the creditors. But it may be moot for WAMU since:
1) the creditors are all paid off
2) only WMB was seized but not WMI and if the securitized and SH assets were over WMI then it is moot.
While I believe that it is almost impossible for escrow to get zero, strong indications show that we are not going to get a tons of money let say more than 10B or 20B for the following reasons:
- At the effective date in 2012, the only list that was collected is the list of people who signed release. If someone owned WAMU stock but didn't sign release then his/her name is not on the list. This tells me that SH or securitized or not, it will all go through WMILT and is governed by POR 7.
- Now if tons of money exist then Absolute Priority has to be followed and TPS and preferred should be paid in full at Face Value and commons take the rest, but this is not the case. The HF do not care because if common is better then they just simply bought all common. But a 75/25 split scheme was devised and this tells me that the returned money is not much more than 10B or even less.
I love to be wrong but all indications show that it is the above.
I own another big stock and they just raised 2.5B and it is a big deal and the stock jumped. So don't get too much tangled in the billions because a few billions are a lot of money.
WMI had securitized in the past but don't expect that it is in the tens or hundreds of billions. Just take a look at COOP latest 10Q. They only securitize a fraction of their mortgage.
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