Washington Mutual Bank shareholders are uniting to challenge the actions of the FDIC and JPM prior to the seizure of Washington Mutual bank. Shareholders contend these actions were unjustified and ultimately unethical. Indeed, shareholders insist that Washington Mutual Bank never did fail, and by most accounts, had enough funds to cover the withdrawals by depositors. Reports now surfacing indicate the liquidity of the bank was much better than the public was led to believe. Washington Mutual executives knew that, and their claims that the bank was in good health days before the seizure, were ignored. We contend the FDIC was not right in doing so and have caused irreparable harm not only to the WAMU stockholders, but to the markets in general, and the banking community. This is the shot that has been heard around the world, and the world markets have reacted adversely. Shareholders of thousands of companies throughout the world have lost trillions of dollars since.
The FDIC seized Washington Mutual Bank saying there had been a bank run amounting to 16.7 billion dollars in 10 days. The reason this money was withdrawn from the bank is only guessed. The FDIC saw money moving out of larger accounts and assumed a run was in progress.WAMU had worked out a solid business plan with the OTC just 2 weeks before the FDIC seized the bank. WAMU had access to $50 billion in assets at the time of seizure. They had sufficient liquidity to handle their obligations. After not collecting insurance premiums from 1996-2006, and the failures in the previous weeks, FDIC reserves were low. Appointed officials at the FDIC were concerned the FDIC could not handle the failure of Washington Mutual if it was followed by other bank failures as well. The FDIC had the ability to borrow $30 billion from the Federal Reserve, but it did not. The move was about protecting the federal deposit insurance company and not about protecting the insured with the confidence the FDIC is supposed to show in a crisis.
The FDIC acted prematurely, anticipating failure, and behind closed doors. The Washington Mutual Executives had no knowledge of the plan--the FDIC gave them no prior indication. WAMU was in the midst of sale negotiations with several other banks, and had been given no deadline to find a buyer by the FDIC. Banks who were contemplating buying Washington Mutual had been notified by the FDIC that the FDIC was to auction off the bank, unbeknownst to WAMU, who was involved in trying to sell the bank. The FDIC action, behind WAMU’s back, prevented a sale from being made. Behind closed doors, the FDIC was offering them a much sweeter deal. The FDIC arranged for JPMorgan to purchase the $300 billion dollar corporation for 1.9 billion dollars after notifying them privately, well in advance of the seizure.
The FDIC needs to be held accountable for its short sighted action which has caused havoc throughout world markets. The FDIC had a lot of options if WAMU faltered -- seizing the bank and selling it overnight in a clandestine deal with JPMorgan, for a miniscule fraction of its value, was the worst of any options they had. Did the FDIC act appropriately? Most shareholders don’t think so and they want the FDIC to answer for that.
The result of their hasty and secretive action was that hundreds of billions of dollars were lost by the shareholders of Washington Mutual Bank. Shareholder portfolios were emptied overnight-- because of collusion between the FDIC and JPM in weeks leading up to the seizure. Now, shareholders seek redress.
Never has the law been applied with such disregard for its intention. At the moment the eyes of the country were on the markets, it was as if somebody climbed up to the top of a building in New York City and screamed BANKFAILURE!! Government regulators were the ones responsible for protecting us. But they circulated insider information about the bank to its competitors and put the blood in the water amongst the sharks.
Coincidentally, JPMorgan has been the institution who has profited handsomely from these failures. Coincidentally, the former head of the SEC works at JPMorgan, and this week was accused of private conversation causing difficulties that may have resulted in the first bank failure, Bear Stearns. JPMorgan has also been accused of interfering in Lehman Brothers access to $5 billion dollars which helped catapult their demise. They have been accused of denying WAMU access to $5 billion dollars they had on deposit with JPMorgan.
Is this coincidence? We think not. We demand the FBI and the legislature thoroughly investigate the relationships and actions of the OTS, the FDIC, the SEC and JPMorgan management. We do understand the government is currently investigating Washington Mutual, but we contend these other institutions need to be investigated.
One of our goals is that the assets or at least the asset value of Washington Mutual be returned to them just as they were in the lawsuit filed by First City Bancorporation in 1992. The FDIC was forced by the courts (1993) to return 145 million dollars to creditors and depositors, after they hastily seized that bank and its assets. The same situation happened here. WAMURAPE.ORG members feel the FDIC can be held accountable for their actions and there seems to be legal precedent for that. Holding the FDIC accountable is exactly what the members of WAMURAPE.ORG intend to do.
For further information about events surrounding the seizure or to join the effort for justice, Click on the link www.wamurape.org .
Members of the group are currently seeking exceptional legal representation--the members of congress themselves! We ask for special legislation. We ask for special dispensation. We ask for congressional support. We want our bank back—the FDIC should not have given it away to start with. We beseech our government to right this wrong. Hit Counter by Digits
To get Fibonacci Retracement Support and Resistance for a stock click here and enter symbol. http://www.ddmachine.com/default.asp This Is only my opinion posted here please due not buy or sale a stock base on my opinion. For practice or educational purp
Investors Demand Hearing, Investigation & Reversal of Washington Mutual Seizure
Houston, TX (MMD Newswire) October 27, 2008 -- Shareholders of Washington Mutual are demanding an investigation of the Office of Thrift Supervision's (OTS) confiscation of the Washington Mutual bank and their aiding and abetting of JP Morgan's fraud in wiping out its shareholders last month. After losing their lifetime savings and retirement investments, they have banded together to request an investigation into the possibility of wrongdoing, misconduct, conspiracy, and corruption by government regulators, namely the OTS and FDIC, who unlawfully helped JP Morgan steal Washington Mutual from its shareholders. The seizing of a solvent and well-capitalized bank is unheard of in American history and probably will be spoken of for generations to come unless this outrage is immediately addressed and remediated.
Founded in 1889, Washington Mutual was the largest savings bank in the U.S. until the OTS intentionally killed it last month. The shareholders of Washington Mutual are innocent victims of this unheard of unconscionable action. The reason shareholders continued to invest in WaMu during one of the most difficult financial crises in U.S. history is because they believed that the bank would get through this difficult time and become strong again on the basis of repeated assurances by WaMu and the fact that federal actions were going to take place to strengthen banks.
On September 8th, 2008 the new CEO of WaMu signed a memorandum of understanding with the OTS, agreeing to provide a multiyear business plan to the regulator, including a forecast for earnings, asset quality and capital. The media said the plan would not require it to raise capital, boost liquidity or cut products and services, indicating Washington Mutual had enough capital and liquidity to operate as a well-capitalized institution
On Sep 9th, 2008 Standard & Poor's (S&P) downgraded WaMu to negative from stable, signaling that a rating downgrade to junk status was more likely over the next two years. Two days later, Moody’s also downgraded Washington Mutual. WaMu responded immediately with a statement that Moody's downgrade was inaccurate and biased. Washington Mutual had enough capital and liquidity, significantly above the requirements for a well- capitalized bank. Having been scrutinized by regulators everyday inside the bank, WaMu dared not and did not lie.
Even though WaMu had its capital levels significantly above well- capitalized levels, a few days later, WaMu was downgraded again by S&P to "junk" status. Several days later, WaMu was downgraded again by Moody’s. The OTS also downgraded WaMu.
In the meantime, no other banks received such treatment. There is speculation that it was the OTS that directed, arranged or instructed Moody’s and S&P to downgrade WaMu over and over again within two weeks in order to collapse WaMu. It was these downgrades, potentially arranged by the OTS, that induced a panic withdrawal of supposedly $16.7 billion in deposits between Sept. 15 and 24, 2008. Additionally, these withdrawals were mostly in funds that were not FDIC insured, hence this “bank run” was just a flight to safety. The fact of the matter, however, was that the majority of Washington Mutual funds were held in accounts that were FDIC insured and were at no risk of being “run on” in the future. The OTS, then having seen an opportunity, had the excuse to claim that WaMu did not have enough capital and liquidity and should be seized immediately (even though WaMu had 4.4 billion dollars in cash on deposit). For these reasons, communications between Moody’s, S&P, and the OTS should be immediately investigated by Congress.
As advised by OTS, WaMu was actively seeking to raise capital and discuss terms with potential suitors, including Citi-Group, J.P. Morgan, Wells Fargo, TD Bank from Canada, Banco Santander from Spain and HSBC from Hong Kong through investment bank Goldman Sachs.
While this was happening, WaMu’s CEO, Mr. Fishman, never knew that the OTS, and FDIC went behind his back to forge a dirty deal with JP Morgan. Unbeknownst to WaMu, the OTS had talks with all the potential buyers, exaggerated WaMu’s problems, and threatened that the FDIC was going to seize Washington Mutual soon, so that nobody would dare to make an offer. The FDIC then seized WaMu and gave it to JP Morgan. A decent, well-funded (and the country's largest) U.S. savings bank that had served the American people for over 100 years was suddenly killed by the OTS and FDIC’s premeditated conspiracy.
The OTS and FDIC seized WaMu and gave it to JP Morgan for next-to-nothing destroying bondholders and shareholders in the process. JP Morgan had long wanted to buy Washington Mutual, but their low offer had been rejected by WaMu earlier. This time, for a mere 1.9 billion dollars, JP Morgan got WaMu’s 310 billion dollars in assets, plus 2239 WaMu branches nationwide, including those in California, where JP Morgan did not have a foothold, but had long dreamed to have one. Washington Mutual is not the first victim JPM has claimed. Insider information, Senator Chuck Grassley recently disclosed, was used by JPM to aid in the collapse of Bear Stearns. Lehman Brothers has also accused JP Morgan of freezing its assets precipitating in their bankruptcy. Although there currently is an investigation into the collapse of Washington Mutual, some of the entities who need to be investigated are actually the ones leading the investigation.
It is believed that the fraud, wrongdoing, and misconduct of the OTS and FDIC helped JP Morgan steal WaMu from investors. It is theft and criminal like on the part of JP Morgan to exploit high ranking officials at government agencies and benefiting to take WaMu’s $310 billion dollars in assets plus 2239 very profitable branches at an exorbitant discount.
Unfortunately, the person to blame for this debacle is still in charge and threatening future American prosperity. It was Ms. Sheila Bair of the FDIC who destroyed the American people’s confidence in the stock market by this illegal seizure of a well-funded bank and wiping out all shareholders. According to Wachovia, after Sheila Bair threatened them with either being seized by the FDIC or accepting Citigroup’s $2.1 billion, a value arbitrarily set by Sheila Bair, Wachovia chose the less lethal option.
The American people were totally astonished and panicked. Who would be the next victim? They worried that their lifetime savings and retirement investment could be plundered by the government without any justification and given away for free. Even though Congress passed the $700 billion bailout bill, American investors, scared by Sheila Bair, still pulled their money out of the stock market to avoid having the same fate as the Washington Mutual shareholders.
It was Sheila Bair’s wrongdoing and illegal abuse of power that helped cause the cascade of America’s stock market meltdown and worldwide credit crisis. Since her attempt to wipe out WaMu shareholders, the market has plunged more than 2500 points. A Congressional Hearing must be held immediately to investigate Sheila Bair’s wrongdoing and correct it.
The American people have a lot of questions and doubts regarding this untimely killing of WaMu (a much loved bank and brand), and they deserve answers. They believe that the OTS acted in a premeditated fashion to kill WaMu from the very beginning, no matter how hard Washington Mutual was working in order to stay alive.
*Why did the OTS want to kill WaMu, and why did they do it just before the bailout vote?
*How did the OTS orchestrate downgrades by Moody’s, and S&P? The communications between them should be immediately investigated and made public by Congress.
*While WaMu was advised by the OTS to find buyers and was actively discussing with potential buyers, was it justified for the OTS and FDIC to secretly talk with buyers behind WaMu’s back, exaggerating WaMu’s problems, and threatening them away so that JP Morgan could have WaMu for free?
*Does the OTS and FDIC have legal rights to play these tricks to kill WaMu when it was still a well-capitalized bank?
*What motivated the OTS to publicly claim that WaMu had a “run on the bank's deposits”? Was it real or was it an orchestrated event? What caused the bank run? It was caused by potentially orchestrated downgrades by Moody’s, OTS, and S&P. Even if the OTS’ claim that the run on the bank are real, 90% of WaMu deposits were still left intact during that period.
*Who gave FDIC Sheila Bair the power to plunder WaMu from its righteous owner shareholders? What made her decide that WaMu‘s $310 billion asset and 2,239 profitable branches were only worth o$1.9 billion without open competition? How could she pocket that $1.9 billion and wipe out WaMu shareholders? How did the FDIC gain the right to seize without compensation valuable parts of WaMu that have nothing to do with secured deposits, such as the 6th largest credit card issuer, a headquarters building and valuable real estate, and other divisions such as insurance and investments?
Wachovia, another troubled bank, was given to CitiGroup by Sheila Bair for $2.1 billion without open competition. Later on, Wells Fargo offered significantly more, in an open, fair way. In the end, Wachovia shareholders received $11 billion. WaMu shareholders received nothing for a substantially similarly valued property.
A hundred years from now, people will still remember that in the year 2008, the government agencies abused their power to kill the biggest U.S. savings bank, WaMu. Washington Mutual shareholders and American taxpayers demand that the OTS and FDIC be investigated for abusing their power and that the seizure of Washington Mutual be reversed.
For additional information on the news that is the subject of this release, please contact Michael Rozenfeld or visit http://www.wamurape.org , an organization devoted to defending shareholder’s interests and American justice.
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