That simply is not true that I was worried about WMB being undercapitalized. The OTS fact sheet on WMB released on Sept 25 2008 says clearly that WMB was well capitalized up to the date of receivership.
"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, WMI
received $7.0 billion of new capital from the issuance of common stock. Since
December 2007, WMI infused $6.5 billion into WMB. WMB met the well-
capitalized standards through the date of receivership."
It is the net liquidity that I was concerned about since that is the reason the OTS placed WMB into receivership in the first place and that will be the crux of the FDIC's defense in the DC lawsuit.
"Receivership - With insufficient liquidity to meet its obligations, WMB was in an
unsafe and unsound condition to transact business. OTS placed WMB into
receivership on September 25, 2008. WMB was acquired today by JPMorgan Chase.
The change will have no impact on the bank’s depositors or other customers.
Business will proceed uninterrupted and bank branches will open on Friday morning
as usual."
I simply pointed out a discrepancy in the net liquidity between a blogger and a radio interview and I was bombarded with overreactive posts which just wasted a lot of time and space.
LIQUIDITY - THE ABILITY TO CONVERT AN ASSET TO CASH QUICKLY
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