Look everybody, I can copy and paste too! I say, gosh, what do we have here? Well I'll be darned. Is he saying WAMU was solvent up to the date of seizure? Oh my. Sorry to ruin your part buddy.
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4. Solvency After Summer of 2008
During the summer of 2008, WMI's market capitalization ranged from a high of over $10 billion in July to under $2 billion in the days preceding its seizure on September 25, 2008. As of September 10,2008, WMI's stock price established a market capitalization of$3.9 billion, which is an indication that it was solvent on the date of the last capital contribution. On September 19 -- less than a week before OTS closed WMB -- WMI traded at a market capitalization exceeding $7.2 billion.
Applying a balance sheet test, the Examiner has not seen evidence clearly establishing that the value of WMI's assets -- principally WMB's mortgage portfolio -- was less than its liabilities as of September 10,2008. While WMI anticipated between $12 and $19 billion in losses over the life of its mortgage loan portfolio, those losses would have been realized over time, and the assets on WMB's balance sheet had not been written down to a significant extent as of September 10, 2008.
Finally, WMB's primary regulator, OTS, concluded two weeks after the September 10, 2008 capital contribution that WMB was "well-capitalized" by regulatory standards. OTS had unfettered access to the books and records of WMB and was in a better position than any outside party to assess the capital position ofWMB. While regulatory capital ratios may differ in some respects from capital analyses used in traditional solvency analyses, the regulators' view that a bank is "well-capitalized" is relevant. Indeed, OTS made clear in its discussions with the Examiner that it viewed WMB as solvent and did not close the bank because of insufficient capital.
In sum, all of the foregoing factors suggest that WMI was solvent up to the date of the bank's closure.
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