Replies to post #94705 on Mr Cooper Group Inc fka COOP

[Ace45]

I dont believe anyone on this board can answer your question and back it up with facts but, from what i know of the situation, it may very well be true. JPMC needed big $$$$$
bad!!!! The FDIC Needed big $$$$ bad It,s a match made in heaven!!! Their are no coincidences in business.

[dougs2]

[WithCatz]

www.wamustory.com

[dougs2]

http://rawstory.com/news/2008/Washington_Mutual_seeks_over_13_billion_0321.html

[jcJet12]

jhd51,

This is pretty much it in a nutshell, although the links may not work. Happy reading.

> SEPTEMBER 2008 WAMU TAKEDOWN CHRONOLOGY

> Early Sept:
> Earlier this month, Treasury Secretary Henry Paulson made it clear to
> WaMu that the company should have accepted the takeover deal J.P.
> Morgan had offered earlier this year, according to a person close to
> WaMu.http://online.wsj.com/article/SB122238415586576687.html?mod=special_p

> Sept. 4:
> Three weeks before J.P. Morgan bought WaMu’s deposits for $1.9
> billion, officials at the Federal Deposit Insurance Corporation had
> called J.P. Morgan to say that the FDIC was carefully monitoring WaMu
> and that a seizure of its assets was likely.http://blogs.wsj.com/deals/2008/09/29/how-jp-morgan-raised-115-billio...

> Sept. 8:
> Alan H. Fishman becomes CEOhttp://newsroom.wamu.com/phoenix.zhtml?c=189529&p=irol-newsArticle&ID...

> Sept. 8:
> WaMu also announced that it has entered into a Memorandum of
> Understanding (MOU) with the Office of Thrift Supervision (OTS)
> concerning aspects of the bank’s operations, principally in several
> areas of its risk management and compliance functions, including its
> Bank Secrecy Act compliance program. In addition, WaMu has committed
> to provide the OTS an updated, multi-year business plan and forecast
> for its earnings, asset quality, capital and business segment
> performance. The business plan will not require the company to raise
> capital, increase liquidity or make changes to the products and
> services it provides to customers.

> Sept. 11:
> WaMu Provides Update on Expectations for Third Quarter Performance
> -- Provision expected to be approximately $1.4 billion less than
> second quarter while company continues to build reserves
> -- Long-term credit outlook unchanged
> -- Liquidity stable at approximately $50 billion
> -- Capital significantly above "well-capitalized" levelshttp://newsroom.wamu.com/phoenix.zhtml?c=189529&p=irol-newsArticle&ID...

> Sept. 11:
> "We're aware of it and we're monitoring it," said William Ruberry, a
> spokesman for the Office of Thrift Supervision, WaMu's primary
> regulatory, on Thursday.http://www.azcentral.com/business/news/articles/2008/09/12/20080912bi...

> Sept. 12:
> Goldman Sachs analyst Brian Foran upgraded the stock to "Neutral" from
> "Sell," saying the company may have enough cash to avoid having to
> raise capital, possibly by selling shares. However, that would dilute
> the value of existing shares.
> "Capital and reserves seem to be stable in the quarter, thus, even
> though losses continue to deliver body blows to the bank, the equity
> base is absorbing the pain and another capital raise might be
> avoidable," Foran wrote in a note to investors.http://209.85.173.104/search?q=cache:H89nx1_6SF0J:www.forbes.com/feed...

> Sept. 12:
> Shares spiked in midafternoon trading following reports from American
> Banker and Reuters that the Seattle bank was in advanced talks with
> JPMorgan Chase & Co. about a possible buyout deal. According to a
> person close to JPMorgan chief executive Jamie Dimon, however, the
> bank is not in talks with WaMu. The person spoke on condition of
> anonymity given the sensitivity of the matter. Dimon would not be
> interested in acquiring WaMu without a clearer picture of the risk in
> the bank's loan portfolio, the source said.http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/09/12/BUQ512T57...

> Sept. 12:
> But by Friday morning sources were saying the Seattle thrift company
> was in detailed talks to sell itself to JPMorgan Chase & Co.

A deal
> might never be struck, but sources said Alan Fishman, Wamu's new chief
> executive, has held discussions this week with James Dimon, the
> chairman and CEO of JPMorgan Chase.http://www.onwallstreet.com/asset/article/699391/wamus-weekmdashbalan...

> Sept. 12:
> Standard & Poor's Ratings Services on Friday confirmed the investment-
> grade ratings on WaMuhttp://209.85.173.104/search?q=cache:H89nx1_6SF0J:www.forbes.com/feed...

> Sep 15:
> SEATTLE--(BUSINESS WIRE)--Sept. 15, 2008--In response to today's
> ratings action by Standard & Poor's, Washington Mutual, Inc. (NYSE:WM)
> issued the following statement:
> "The change in Standard & Poor's ratings for Washington Mutual
> announced today brings S&P's ratings in line with those announced last
> week by Moody's. However, it's important to note that S&P attributed
> its action to worsening market conditions, and not to any material
> change in the evaluation of Washington Mutual's financial condition.
> S&P's ratings for Washington Mutual Bank remain investment grade.
> None of Washington Mutual, Inc.'s or Washington Mutual Bank's
> unsecured debt is subject to ratings-based financial covenants that
> would result in acceleration or early maturity events or defaults. The
> company does not expect the impact of S&P's actions on borrowings,
> collateral or margin requirements to be material."
> WaMu's capital levels at quarter end are expected to remain
> significantly above the levels required of "well capitalized"
> institutions. The company's outlook for expected credit losses is
> unchanged.http://newsroom.wamu.com/phoenix.zhtml?c=189529&p=irol-newsArticle&ID...

> Week of Sept 15:
> As pressure mounted on WaMu over the past two and a half weeks,
> regulators sparred over how to handle the situation, according to
> people familiar with the matter. Last week WaMu met in Washington,
> D.C., with the FDIC and OTS, WaMu's chief regulator. WaMu, according
> to a person familiar with the situation, asked for the meeting because
> it had received conflicting information from the two agencies. The
> tension between the two groups was palpable, this person said. The
> FDIC, this person said, was more aggressive in describing the
> information it wanted from the thrift.http://online.wsj.com/article/SB122238415586576687.html?mod=special_p

> Sept. 16:
> Per the OTS -- WaMu became ``unsound'' after customers withdrew $16.7
> billion since Sept. 16.http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a0vATDE_peNk

> Sept. 17
> Washington Mutual repeats it has enough capital to operate
> Associated Press - September 17, 2008 3:35 PM ET
> SEATTLE (AP) - A spokeswoman for Washington Mutual says the company is
> standing by last week's statement that it has enough capital to
> operate while it returns to profitability. Spokeswoman Olivia Riley
> says the company has been pretty transparent. Washington Mutual said
> it expects provisions for bad loans in the third quarter to be $4.5
> billion. It lost $3 billion in the second quarter and set aside $8
> billion for bad loans.http://www.montanasnewsstation.com/Global/story.asp?S=9027150&nav=men...

> Sept. 17:
> TPG, the Texas-based private equity group that led a $7.2 billion
> investment in Washington Mutual Inc. (NYSE: WM) in April, said it is
> willing to accept a dilution of its stake in the company in the event
> of outside investment or sale.
> In a statement, TPG said the move was in the best interests of
> Washington Mutual. “Our goal is to maximize the bank’s flexibility in
> this difficult market environment.”http://www.bizjournals.com/dayton/stories/2008/09/15/daily33.html

> Sept. 18:
> The OTS waited until Sept. 18 to designate WaMu as a problem
> institution, a week before the savings-and-loan giant became the
> largest federally insured bank to topple in U.S. history. Banks and
> thrifts identified with problems are put under tighter government
> scrutiny. The OTS's reluctance to downgrade WaMu came despite heavy
> pressure from the FDIC, which was charged with backing a huge portion
> of the bank's $188 billion in deposits. Tensions between the two
> regulators dragged on for weeks.http://online.wsj.com/article/SB122247247562180981.html?mod=googlenew...

> Sept. 18:
> OTS – Issued overall composite ratings downgradehttp://files.ots.treas.gov/730021.pdf

> Sept 18:
> Washington Mutual Inc's (NYSE:WM - News) books are being examined by
> five banks during the auction process, the Financial Times reported on
> Thursday.http://biz.yahoo.com/rb/080918/wamu_books.html?.v=1

> Sept. 18:
> Fishman letter to customers—
> When I was recently approached about the opportunity to lead this
> great company, I did my homework to satisfy myself that WaMu has the
> capital, the liquidity, and the business plan to serve your needs and
> protect your money through these challenging times.
> Let me explain why I felt good about joining WaMu.
> All financial institutions have been affected by the turmoil in the
> mortgage and financial markets, but WaMu is very different from the
> investment banks, such as Bear Stearns, Lehman Brothers and
> Merrill Lynch, that you may have read about. Those firms have very
> different and less stable sources of funding than we do. WaMu’s
> business is funded largely through the deposits that customers like
> you put with us. We also borrow billions of dollars from the Federal
> Home Loan Banks system. Most importantly, your deposits are insured to
> the limits established by the Federal Deposit Insurance Corporation
> (FDIC). (WaMu partners at your local WaMu store are happy to work with
> you to maximize your FDIC insurance coverage.)
> Capital ratios describe the financial strength of a bank. Our ratios
> continue to be well in excess of the levels that government regulators
> require of “well capitalized” institutions. We also have an ample
> supply of funds on hand to meet your needs and the needs of our other
> customers and our day-to-day operations.http://www.kirotv.com/download/2008/0919/17516636.pdf

> Sept. 18:
> WaMu declined to comment on Wednesday’s developments, but issued a
> letter to be passed out to customers at its 2,200 branches saying it
> remains financially sound, and had gained 250,000 new customers in the
> second quarter alone.
> “The entire leadership team wants to make sure you know that WaMu has
> the liquidity and capital strength it needs to manage through this
> period,” President Steve Rotella said in the letter.http://www.bizjournals.com/dayton/stories/2008/09/15/daily33.html

> Sept. 19:
> Washington Mutual issued a statement Friday, saying the troubled
> Seattle-based thrift is encouraged by the government's bailout plan
> announced Friday.
> "We're encouraged by the direction of the plan proposed by the
> President, Treasury and the Federal Reserve to support the troubled
> financial markets. We look forward to seeing the details as the plan
> is further developed by Congress. This plan should assist in providing
> stability to our financial markets and should provide a mechanism for
> an orderly transition of troubled illiquid assets," the statement
> said.http://www.kirotv.com/money/17512560/detail.html

> Sept. 22:
> Earlier this week, a source close to theFDICsuggested to HW that
> regulators at the OTS were putting pressure on WaMu to find a deal
> before Friday of this week. “Either a deal gets done this week in the
> private market, or a deal will get done via theFDIC,” our source
> said.http://www.housingwire.com/2008/09/25/speculation-of-private-equity-b...

> Sept. 22:
> But a very serious new wrinkle emerged on Monday, with reports
> suggesting that the Office of Thrift Supervision is pressuring WaMu
> executives to sell, and sell quickly. According to the Financial
> Times, if one buyer doesn't emerge, the federal regulatory agency may
> split up WaMu between all the interested buyers, forcing each to take
> a share of its assets (the branch network and deposits) and
> liabilities (all those bad mortgages).http://www.washingtonceo.com/home/blogs/post/article/313/investor-ang...

> Sept 23:
> J.P. Morgan was well-prepared, then, when theFDICasked for bids on
> Tuesday, Sept. 23.http://www.marketwatch.com/News/Story/Story.aspx?guid=%7b53427860-801...

> Sept. 23:
> The Office of Thrift Supervision is pushing Washington Mutual to find
> a buyer and is considering brokering a deal to break it up between
> several banks, the Financial Times reported, citing people familiar
> with the talks.

> Sept. 23:
> Friday's proposed federal mortgage bailout increases WaMu's chances of
> surviving independently, but it also increases its attractiveness to
> potential buyers.http://www.washingtonceo.com/home/blogs/post/article/313/investor-ang...

> Sept. 24:
> In WaMu's case, theFDICset a Wednesday evening deadline for
> interested parties to submit their offers for various parts of WaMu…
> On Wednesday night, the regulators told J.P. Morgan that the bank had
> won the bidding, one person close to the situation said.http://online.wsj.com/article/SB122238415586576687.html?mod=special_p

> Sept. 24:
> S&P Cuts WaMu, Cites Breakup Concerns
> Woes are clearly mounting for troubled thrift Washington Mutual (WM:
> 0.1604 0.00%), which saw Standard and Poor’s Ratings Services cut its
> ratings on the Seattle-based thrift further into junk territory on
> Wednesday, following an earlier ratings cut by rival agency Moody’s
> Investors Service earlier this week.
> For its part, S&P said that it was concerned that a breakup of the
> bank holding company would adversely affect creditors.http://www.housingwire.com/2008/09/24/sp-cuts-wamu-cites-breakup-conc...

> Sept. 25:
> The Office of Thrift Supervision, which regulated the thrift, said on
> Sept 25 that Washington Mutual did not have enough liquidity to pay
> its debts, and was in an "unsafe and unsound condition to transact
> business."http://eresearch.fidelity.com/eresearch/evaluate/news/basicNewsStory....

> Sept. 25:
> During the consummation conference call, Jamie Dimon disclosed that
> JPM had unprecedented access to WaMu’s mortgage detail. JPM received
> computer tapes with the most granular mortgage detail (FICO scores,
> LTVs, and MSAs) to compare with their own data and develop loss
> projections. JPM had the time to do a true bottom up analysis.http://seekingalpha.com/article/97717-did-the-fdic-sabotage-wamu-s-ma...

> Sept. 25:
> Maintaining Capital - In late 2006 and 2007, WMB began to build its
> capital level through asset shrinkage and the sale of lower-yielding
> assets. In April 2008,WMIreceived $7.0 billion of new capital from
> the issuance of common stock. Since
> December 2007,WMIinfused $6.5 billion into WMB. WMB met the well-
> capitalized standards through the date of receivership.http://files.ots.treas.gov/730021.pdf

> Sept. 26:
> (Director of OTS John) Reich speculated there would have been more
> bidders for WaMu had potential buyers not been so distracted by a
> contested $700 billion government plan aimed at stabilizing the
> financial sector by purchasing bad mortgage assets from financial
> institutions.http://www.marketwatch.com/news/story/withdrawals-customers-ultimatel...

> Sept. 27:
> Without a seamless sale of WaMu to J.P. Morgan Chase & Co. on
> Thursday, the costs to the Federal Deposit Insurance Corp. could have
> been significant. "It was very fortunate that we had time to bid it
> out and we had a high bid," Ms. Bair said.http://online.wsj.com/article/SB122247247562180981.html?mod=googlenew...

> Sept. 28:
> In the process the OTS and theFDIChave effectively removed the main
> low-cost source of funds of pretty well all banks in America. They
> will have put the fear-of-Government into such people globally. This
> is the opposite of moral hazard. In the Moral hazard case people take
> too many risks because they believe the government will reimburse
> their losses. But in this case people are going to take too few risks
> because they know that government might unilaterally remove their
> rights and property.
> This was – by far – the least justified government action of this
> credit cycle. And it spells doom for any bank in America that is
> ultimately reliant senior (and hence well protected) but unsecured
> financing because it is so capricious.http://brontecapital.blogspot.com/2008/09/reckless-irresponsible-seiz...

> Oct. 8:
> Sen. Maria Cantwell wants federal regulators to explain the timing and
> sequence of decisions and actions that led to the seizure and sale of
> Washington Mutual's banking operations.
> The Washington Democrat said the answers she gets will determine
> whether to pursue an inquiry into the Sept. 25 takeover of the bank,
> such as formal hearings.
> In raising the issue, Cantwell is echoing the complaints of many WaMu
> shareholders who were left with virtually worthless stock in the
> parent holding company once the Office of Thrift Supervision took over
> the subsidiary bank and the Federal Deposit Insurance Corp. sold most
> of the operations to JPMorgan Chase.http://seattlepi.nwsource.com/business/382407_cantwellwamu09.html?sou...

[dmceng]

jhdf51

Saving JPMC? Give me a break! This JD character had WAMU in his sights for years. As JPMC was acquiring banks from the east coast thru the midwest including Bank One out of Cleveland, JPMC was colluding with others to steal WAMU, no doubt in my mind, after months of DD. As they moved westward thru the plains of Kansas, they could start sniffing the likes of a WAMU they wanted badly. As you can appreciate WAMU had a presence in the Western States as well as down thru Texas and the Deep South. What a gem the taking of WAMU would be! When the opportunity presented itself and WAMU had been somewhat internally weakened in certain areas by JPMC moles the trap was sprung with the aid of various entities(we know who they were and are) and you had the takedown of the largest thrift in the United States. Let's see if we can participate in the spoils of this tragedy.

I look forward to the outcome. It is somewhat like a lottery game. You have to be in to win. I have been excited about this event since 9/08. This type of opportunity will only occur once in an investor's lifetime.

Take Care
David

Take Care
David

[Wamook]

It' a conspiracy theory, and it's my very own

It has elements of plausability. It's dark. It's unprovable.

But it goes like this... WAMU offered a very relaxed and friendly face to the banking consumer with a very low fee structure. They gave a lot of service for free. They forgave fees and let people bounce a check here or there.. They were "nice guy bankers" And they grew and grew and grew..

This is called rate busting in most industries. And WAMU actually advertised themselves as rate busters who had all the old school bankers hemmed into a pen and taking sensitivity training classes.

Other more old school bankers operated for many many years with a lot less flexibility and no particular warm fuzzy perks to the consumer. WAMU made a good profit, but nothing like what one of those old school hard ball bankers could have made with that kind of money.

And entering the crisis, the FDIC had too many old school banks on the books that were about to go broke, and could not adjust fees for fear of losing too many customers to WAMU and other banks that opperated like it. And these other banks would have fallen on the FDIC at a time when the FDIC would have "failed" to do what it was supposed to do. It would have been a great catastrophy with a lot of runs on a lot of banks. It could have snow balled around the world... It could have taken EVERYTHING down EVERYWHERE.

So they had this big meeting at a very secluded estate. It was a big done up affair with a lot of ritual sodomy. A big Gang Bank! And it was decided that WAMU was to take the fist. It was a big message to all money lenders and bankers that the system shouldn't have to change because a few genuinly nice guys wanted their customers to like doing business with them. Banking shouldn't have to be a popularity contest.

Banking is about safety and security. Fear is a necessary component of the equation.