JPMorgan Reportedly Pushing FDIC To Cover Some WaMu Expenses

Wall Street Journal:

J.P. Morgan Chase & Co. is putting federal regulators on notice that it may go after the very funds it used to buy Washington Mutual Inc.'s banking assets--and then some.

In a series of previously undisclosed letters sent to the Federal Deposit Insurance Corp., the nation's second-largest bank by assets warned it could seek billions in legal protection from the FDIC receivership that liquidated the Seattle-based thrift two years ago, people familiar with the situation said.

Read the whole story: Wall Street Journal

Comments

[Flyboy31956]

07:45 PM on 10/23/2010

More than two years have elapsed since the seizure and sale of Wamu to JPM, and shareholders of the parent company, WMI. are now eagerly awaiting the findings of a court-appointed Examiner.
WMI filed chapter 11 Bankruptcy on September 26, 2008, one day after the FDIC sold its $300B banking subsidiaries to JPM for under $2B. The proceedings are taking place in the Delaware court of Judge Mary Walrath who ordered the US Trustee to appoint an Examiner to test the Debtor’s proposed Plan of Reorganization.
Such an appointment is rare in bankruptcy cases and was requested by the Equity Committee represented by the firm of Susman Godfrey after it was revealed that the Debtor’s proposed POR left shareholders with nothing. Debtor’s attorneys, Weil Gotshal and Quinn Emanuel, are advocating the plan which relinquishes claims against the FDIC and JPM which are potentially worth upward of $100B. The plan would also cancel existing shares in WMI, make shares in the reorganized co. available only to Noteholders with over $2M invested and release all parties to the plan of any liability.
Shareholders maintain that the proposed POR represents a failure of Debtor’s attorneys to maximize the value of the estate for the benefit of all parties in interest and that a windfall of tens of billions of dollars would go to Noteholders at the expense of Equity. The Examiner, Joshua R. Hochberg of McKenna Long & Aldridge LLP is due to submit his findings to the court on November 1st.

[Tiggy]

11:56 PM on 09/28/2010

I would like the Government to take care of my debt and losses but that isn't going to happen and neither should this!

[KyleKrol]

01:55 PM on 09/28/2010

Wamu TRUTH....

Ticker Symbols: WAMPQ.pk - WAMKQ.pk - WAMUQ.pk - WAHUQ.pk

[KyleKrol]

01:50 PM on 09/28/2010

Wamu TRUTH....

Contested Property:

http://www.finmire.com/WMI/Contested_Property

Examiner’s Preliminary Report and Motion for Additional Relief

http://www.kccllc.net/documents/0812229/0812229100907000000000002.pdf

[KyleKrol]

01:50 PM on 09/28/2010

Wamu TRUTH....

JPMorgan committed corporate fraud???

http://www.kccllc.net/documents/0812229/0812229090501000000000002.pdf

Wamu's claims against JPMorgan/Chase;

http://wmish.com/doc/gov/0603/JPM_V_WMI_-_ANSWER.PDF

Debtors seek the Rule 2004 examination of the following Knowledgeable Parties: (Pg. 443 onward shows internal emails of JPM talking about wiping out Wamu shareholders many months before the seizure. "Project West")

http://www.kccllc.net/documents/0812229/0812229091214000000000008.pdf

[KyleKrol]

01:48 PM on 09/28/2010

Wamu TRUTH....

Please read these articles;

http://www.portfolio.com/industry-news/banking-finance/2009/12/07/why-federal-regulators-closed-washington-mutual/index.html

http://seattle.bizjournals.com/seattle/stories/2009/12/14/daily18.html

http://seattle.bizjournals.com/seattle/stories/2010/04/12/story2.html?jst=pn_pn_lk

The Biggest Banking Heist in World History: Washington Mutual

http://www.marketoracle.co.uk/index.php?name=News&file=article&sid=13894

Please read this descriptive complaint that was submitted to the SEC from Apex Venture Advisors Mike Stathis Managing Principal on October 7, 2008 in regards to the manipulation that occurred on Wamu's stock;

http://www.avaresearch.com/files/20090930175434.pdf

[KyleKrol]

01:46 PM on 09/28/2010

Wamu TRUTH....

John Reich's Email to Sheila Bair‏:
http://hsgac.senate.gov/public/_files/Financial_Crisis/041610Exhibits.pdf

This excerpt is from John Reich's (OTS) email to Sheila Bair (FDIC) on 8/6/2008 (p264-265) says it all
"The government should not be in the business of arranging mergers - particularly before they are necessary, and we are not at that point in WaMu's situation.”

This excerpt from John Reich's (OTS) email to Sheila Bair (FDIC) on 8/8/2008 (p260).
"In my view rating WaMu a 4 would be a big error in judging the facts in this situation. It would appear to be a rating resulting from fear and not a rating based on the condition of the institution. WaMu has both the capital and the liquidity to justify a 3 rating."

This excerpt is from John Reich's (OTS) email to Sheila Bair (FDIC) Sent: Wed Aug 06 17:32:482008

"If in fact any meetings or discussions have already taken place by the FDIC with either JPMC, Wells Fargo, or any other entity, in any capacity in which WaMu was even mentioned, I would like to see a copy of the signed confidentiality agreement signed by the bank – required in any resolution scenario before an institution is told the name of the failing bank."

[KyleKrol]

01:45 PM on 09/28/2010

Wamu TRUTH....

http://files.shareholder.com/downloads/ONE/903873776x0x362443/93537d78-8a66-4a1e-8493-ff73932b65ea/2009AR_Man­agement_Di­scussion_A­nalysis.pdf

Page22
Retail Banking reported net income of $3.9 billion, up by $921
million, or 31%, from the prior year. Total net revenue was $18.0
billion, up by $5.3 billion, or 42%, from the prior year. The increase
reflected the impact of the Washington Mutual transaction, wider
deposit spreads, higher average deposit balances and higher debit
card income. The provision for credit losses was $1.1 billion, compared
with $449 million in the prior year, reflecting higher estimated
losses in the Business Banking portfolio. Noninterest
expense was $10.4 billion, up by $3.1 billion, or 43%. The increase
reflected the impact of the Washington Mutual transaction, higher
FDIC insurance premiums and higher headcount-related expense.

page26
End-of-period managed loans were $163.4 billion, a decrease of
$26.9 billion, or 14%, from the prior year, reflecting lower charge
volume and a higher level of charge-offs. Average managed loans
were $172.4 billion, an increase of $9.5 billion, or 6%, from the
prior year, primarily due to the impact of the Washington Mutual
transaction. Excluding the impact of the Washington Mutual transaction,
end-of-period and average managed loans for 2009 were
$143.8 billion and $148.8 billion, respectively.

[KyleKrol]

01:44 PM on 09/28/2010

Wamu TRUTH....

http://files.shareholder.com/downloads/ONE/903873776x0x362443/93537d78-8a66-4a1e-8493-ff73932b65ea/2009AR_Man­agement_Di­scussion_A­nalysis.pdf

Page 20
Net revenue was $32.7 billion, an increase of $9.2 billion, or 39%,
from the prior year. Net interest income was $20.5 billion, up by
$6.3 billion, or 45%, reflecting the impact of the Washington
Mutual transaction, and wider loan and deposit spreads. Noninterest
revenue was $12.2 billion, up by $2.8 billion, or 30%, driven by
the impact of the Washington Mutual transaction

Page 21
Total net revenue was $23.5 billion, an increase of $6.2 billion, or
36%, from the prior year. Net interest income was $14.2 billion, up
$3.6 billion, or 35%, benefiting from the Washington Mutual transaction,
wider loan and deposit spreads, and higher loan and deposit
balances. Noninterest revenue was $9.4 billion, up $2.6 billion, or
38%, as positive MSR risk management results, the impact of the
Washington Mutual transaction, higher mortgage origination volume
and higher deposit-related fees were partially offset by an increase in
losses related to the repurchase of previously sold loans and markdowns
on the mortgage warehouse.

[KyleKrol]

01:43 PM on 09/28/2010

Wamu TRUTH....

http://files.shareholder.com/downloads/ONE/903873776x0x362443/93537d78-8a66-4a1e-8493-ff73932b65ea/2009AR_Management_Discussion_Analysis.pdf

Extraordinary gain

page 11

On September 25, 2008, JPMorgan Chase acquired the banking
operations of Washington Mutual. This transaction was accounted for
under the purchase method of accounting for business combinations.
The adjusted net asset value of the banking operations after purchase
accounting adjustments was higher than the consideration paid by
JPMorgan Chase, resulting in an extraordinary gain. The preliminary
gain recognized in 2008 was $1.9 billion. In the third quarter of
2009, the Firm recognized a $76 million increase in the extraordinary
gain associated with the final purchase accounting adjustments for
the acquisition. For a further discussion of the Washington Mutual
transaction, see Note 2 on pages 151–156 of this Annual Report

NET INCOME
page16
Net income included an extraordinary gain of $76 million and $1.9 billion related to the Washington Mutual transaction for 2009 and 2008, respectively

[KyleKrol]

01:42 PM on 09/28/2010

Wamu TRUTH....

WaMu Delinquency Rates vs Industry, 2004 to 2007

http://www.kccllc.net/documents/0812229/0812229091214000000000008.pdf

[KyleKrol]

01:41 PM on 09/28/2010

Wamu TRUTH....

Enclosed is a link to the affidavit of Doreen Logan who is the Controller/ Assistant Treasurer of Wamu who states that there was no liquidity problems;

http://www.google.com/search?hl=en&ie=ISO-8859-1&q=%20Ex.%20D%20to%20Affidavit%20of%20Doreen%20Logan%20%28%201%20/07-3/08%20Account%20Statements%29%20A-46%20...&btnG=Search

[KyleKrol]

01:40 PM on 09/28/2010

Wamu TRUTH....

I'm enclosing another document filed through the BK court in regards to a declaration of Thomas M. Blake ( http://www.crai.com/ProfessionalStaff/listingdetails.aspx?id=1276 ).

The declaration can be found in 103-4.pdf at http://www.mediafire.com/?sharekey=3b830df9f3d0e6fce7c82ed4b8f0c380aff12395630f22f3ce018c8114394287
Quoting:
12. Based on my review to date, there is no indication that the OTS performed a solvency analysis consistent with the test for insolvency specified in the Bankruptcy Code. There is no indication that the OTS assessed the fair sale-able value of the assets of WMB (or WMI). Nor is there an indication that OTS compared the fair sale-able value of the assets of WMB (or WMI) to the total amount of either company’s respective liabilities. There is no indication that the OTS performed a comprehensive cash flow analysis of WMB (or WMI). Instead, the OTS found that “WMB met the well-capitalized standards through the date of receivership.”8 Thus, without a thorough analysis of the assets, liabilities and capital of WMI and WMB, it is not possible to come to a reliable conclusion concerning the financial solvency of either entity, whether on a consolidated or stand-alone basis.

[KyleKrol]

01:39 PM on 09/28/2010

Here is a document that says as of August 14, 2008:
"We propose to decapitalize WMBfsb by returning $20 billion of capital to its parent. The $20 billion will include the master note of approximately $7 billion, proceeds from $3.5 billion of Discount Notes and cash generated through additional wholesale deposits and advances from FHLB Seattle. We propose the payment of at least $10 billion by September 30, 2008 and the remaining $10 billion through December 2009."

"The net balance sheet of WMBfsb will be approximately $34 billion to $36 billion after Project Fillmore. The leverage ratio will decrease to 25% from 62%. A well-capitalized institution requires an 8% or higher leverage ratio."

Read reference page 45 of DOCUMENT 103-1.pdf from here:
http://www.mediafire.com/?sharekey=3b830df9f3d0e6fce7c82ed4b8f0c380aff12395630f22f3ce018c8114394287

Included, is the form to the OTS requesting a decapitalization of WMBfsb. Pg. 117

http://www.kccllc.net/documents/0812229/0812229100208000000000003.pdf

[4Tees]

01:06 PM on 09/28/2010

More corporate handouts. Our entitlement society is really getting out of hand. Next thing we will see is Billionaires getting food stamps and robbing the disabled corner panhandler. The wealthy think they are entitled to everything. I dont know why they cant just work two or three jobs for a living like everyone else rather than sitting on their lazy butts; living off the taxpayers.