Replies to post #2899 on Rocket Companies Inc (RKT)

[etzetrade]

Agreed 1000%

[PickStocks]

You mentioned again…”Administrative Hold for WMI”

Did WMI file Chapter 11?
Yes.
September 26, 2008 – Washington Mutual, Inc. (WMI) and WMI Investment Corp. filed Chapter 11 in the Delaware Bankruptcy Court.
Plan 7 was confirmed in 2012 and created the WMI Liquidating Trust (WMILT) to finish all remaining tasks.

Is WMI’s bankruptcy in administrative hold?
No.
In bankruptcy, “administrative hold” is used only when:
A case is pending,
And the court pauses activity until a specific condition is met.
WMI is not a pending case.
It is fully closed.
The court approved:

WMILT’s final application to close the estates,
Final distribution (Jan 10, 2020),
Case closure (Final Decree, Dec 20, 2019).
Once a Chapter 11 estate is fully administered and a Final Decree is entered, there is no administrative hold—the estate no longer exists.

[BBANBOB]

IN reference to WMI buying RKT(eventually), even if WMI only has the 299 mill outside the FDICK pie chart ( ME THINKS MUCH MUCH MORE), it would be CHUMP CHANGE for them to end up buying RKT.
ALL IMHO

Let's see how this all turn out

[SamuraiProgrammer]

BBANBOB, I think we are tripping on words.

I think you and I agree on the following:

1) The seizure of WMB was more about saving JPM than protecting the FDIC fund from a WMB collapse.
2) There are remote bankruptcy assets somewhere that need to be distributed to the appropriate former shareholders.
3) FDIC tried (and may have succeeded in part) to seize assets that were not part of WMB.
4) JPM has not paid in full for all of the assets of WMB.
5) Either JPM will have to pay FDIC or the assets will revert to FDIC (or a combination of both) and this will affect the FDIC balance sheet in a positive manner.
6) The RKT empire is a reasonable continuation of the former goals of WMI (innovative banking by non bank entities - remember WMB was a S&L, not a bank)

Here is what I think (I'm not saying you agree to the rest of this ;) )

So, I believe (right or wrong) there are at least paths by which value could come to the appropriate former shareholders
1) Through the FDIC (i.e. JPM to FDIC to the balance sheet which may turn positive)
2) Independent of the FDIC (i.e. BK Remote assets that are somewhere (trusts, JPM inappropriate seizure, etc.)

Thinking about the "Independent of the FDIC" portion, I think there are ultimately only two ways this can be distributed:
1) Cash
2) Financial Instruments (stocks or bonds)

If it is cash, this may require liquidation of non cash assets which could be difficult to accomplish in bulk and thus may erode value.

I think it is much more likely that Financial instruments will be used for the bulk (if not all) of the distribution (if it happens - again 'right or wrong')

If I understand your remark:

Once WMI is out of it's ADMINISTRATIVE HOLD it will rise from the ASHES and go on a buying spree well, not really but will buy imho one co and it's subs and that co is RKT

then what I said in the post you replied to is actually the same thing.

IF that 'merger' or 'acquisition' were to take place, I believe it would look like this (using your terminology)

WMI from the ASHES 'will acquire' or 'will be acquired' by RKT. In either case, appropriate former shareholders will receive stocks, bonds, or both as an appropriate representation of their value.

To avoid questions that might shed light into shadowy places and reveal illicit acts from over 15 years ago, it is (IMO) more likely that IF there is an acquisition, RKT will 'acquire' the assets of WMI from the ASHES rather than WMI from the ASHES being recognized as a new company and acquiring RKT.

Of these things, I think the only thing we disagree about is what the name of the company will be.

I was about to say something else and checked my facts...thankfully.

I was going to say WMI (as a symbol) was already taken. I thought it was the symbol for Waste Management, Inc. However, I see that their symbol is WM.

Does anyone else remember it being WMI after the WMI (WAMU) shares were cancelled? Or am I just dreaming?

The main thing is that I sure hope we get our money while I am still healthy enough to enjoy some of it and still lucid enough to intelligently choose charitable organizations to benefit from it.

Have a great day!