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Gmenfan

12/10/09 11:04 AM

#124948 RE: mordicai #124938

In your opinion how much longer would you anticipate WaMu's legal team waiting for the SJ if THJMW does not issue a decision by the 18th? Doesn't this decision affect the reorganization plan?

Thanks
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JohnnyWinter

12/10/09 11:10 AM

#124951 RE: mordicai #124938

mordicai, they are two different things, but they are very much related imo.

She isn't going to rule to hand over the money to WMI without having heard all arguments related to the request to modify the automatic stay because if there is still the possibility that someone has valid set-off rights which would prevent the actual turnover of the money, or if there are other unanswered questions/undecided upon matters that are related to the turnover.

Before any of that happens, there will be a trial with discovery related to all aspects of the money in the dda including who authorized the transfer, when they authorized the transfer, why they authorized the transfer etc.

On top of that, even if she does rule that the $4 billion is WMI's, do you really think WMI will take all of their cash and give it right to their creditors? Of course not. Well, if they aren't going to pay their creditors in cash, then how will they pay their creditors?????? Will they pay them in the form of new securities?????????
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drrugby

12/10/09 2:31 PM

#125039 RE: mordicai #124938

Mordicai, I fully agree.. Two seperate motions addressing two seperate issues. IMO SJ ruling coming soon. And The FDIC setoff rights will fall into line with all other creditors.

And if that is the case. If the FDIC did not get their claim in before the deadline. They will have the claim exponged.

Today, JPM will have had the treasury auction off the Warrants.

THey are now free to close the deal. And settle up with WMI.

I feel that the SJ ruling will be issued prior to 19 Jan 10.

If not sooner.. Get on the Omnibus..

Go WAMU..

DrR..