from dr rugby
Page 126 or PDF page 178
Page 143 or PDF Page 202
REPUTATION AND FUDICARY RISK MANAGEMENT
First Sentence..
Firm Success .... of a reputation for business practices of the highest quality.
Last sentence..
the Fiduciary Risk Management function, provide
oversight of the Firm’s efforts to monitor, measure and control
the risks that may arise in the delivery of products or services
to clients that give rise to such fiduciary duties, as well as
those stemming from any of the Firm’s fiduciary responsibilities
to employees under the Firm’s various employee benefit plans
1. Based upon this statement. JPM employee fudiciary responsibility:
IMO: WAMU Employee stock plan forced stock sales by 22 March 2010 is notice that when the WMI settlement with JPM/FDIC will occur for the WMB/WMB.fsb banks and other P&A 3.1 assets.
2. How many lawsuits does it take to get to become the largest finicial services company in the US and a big player world wide?
IMO: Ok. I think JPM wants to improve its reputation they may want to rethink the way they do business. And take the idea to their board. Lawsuits are not a good thing and if I have more than one lawsuit. And my take is: JPM is a company that will tie another company is court till it yeilds or runs out of cash then settles. And that is not a comany that I want to do business with unless absoultely required.
Follow the Money:
JPM pays 39b$ for WMB and WMB.fsb. gets assets and assumes liabilities.
Assest 263.9b$ - Liab. (260b$) = 3.9B$ Gain
Notes to consolidated financial statements
The final summary computation of the purchase price and the allocation of the final total purchase price of $1.9 billion to the net assets acquired of Washington Mutual – based on their respective fair values as of September 25, 2008, and the resulting final negative goodwill of $2.0 billion are presented below.
Condensed statement of net assets acquired
The following condensed statement of net assets acquired reflects the final value assigned to the Washington Mutual net assets as
of September 25, 2008.
(in millions)
Purchase price.................Purchase price $ 1,938
Direct acquisition costs 3.Total purchase price 1,941
Net assets acquired
Washington Mutual’s net assets before fair value adjustments
...................................................$ 39,186
Washington Mutual’s goodwill and other intangible assets ...........................................(7,566 )
Subtotal 31,620
Adjustments to reflect assets acquired at fair value:
..................................................Securities (16 )
.............................................Trading assets (591 )
...................................................Loans (30,998 )
.................................Allowance for loan losses 8,216
......................................Premises and equipment 680
..................Accrued interest and accounts receivable (243 )
...............................................Other assets 4,010
Adjustments to reflect liabilities assumed at fair value:
..................................................Deposits (686 )
........................................Other borrowed funds 68
Accounts payable, accrued expense and other liabilities (1,124 )
............................................Long-term debt 1,063
Fair value of net assets acquired ............11,999
Negative goodwill before allocation to nonfinancial assets ..................................................(10,058 )
Negative goodwill allocated to nonfinancial assets (a)
...................................................8,076
Negative goodwill resulting from the acquisition (b) $ (1,982 )
(a) The acquisition was accounted for as a purchase business combination, which requires the assets (including identifiable intangible assets) and liabilities (including executory contracts and other commitments) of an acquired business to be recorded at their respective fair values as of the effective date of the
acquisition and consolidated with those of JPMorgan Chase.
The fair value of the net assets of Washington Mutual’s banking operations exceeded the $1.9 billion purchase price, resulting in negative goodwill.
Noncurrent, nonfinancial assets not held-for-sale, such as premises and equipment and other intangibles, were written down against the negative goodwill. The negative goodwill that remained after writing down transaction-related core deposit
intangibles of approximately $4.9 billion and premises and equipment of approximately $3.2 billion was recognized as an extraordinary gain of $2.0 billion.
(b) The extraordinary gain was recorded net of tax expense in Corporate/Private Equity.(in millions)
September 25, 2008
Assets Cash and due from banks .............$ 3,680
Deposits with banks ........................$ 3,517
Federal funds sold and securities purchased under resale agreements
............................................1,700
Trading assets ................................5,691
Securities ...................................17,224
Loans (net of allowance for loan losses) ....206,456
Accrued interest and accounts receivable ......3,253
Mortgage servicing rights .....................5,874
All other assets .............................16,596
Total assets ............................$ 263,991
Liabilities
Deposits ..................................$ 159,872
Federal funds purchased and securities loaned or sold under repurchase agreements
.......................................................$4,549
Other borrowed funds .................................$81,636
Trading liabilities .....................................$585
Accounts payable, accrued expense and other liabilities $6,708
Long-term debt .........................................$6,718
Total liabilities .................................$260,068
Washington Mutual net assets acquired ..............$ 3,923
Lastly,
1. How many lawsuits does it take to get to become the largest finicial services company in the US and a big player world wide?
Follow the money..
GO WAMU..
DrR.. Washington Mutual Inc. (WAMUQ) Stock Trading Info:
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