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  • Who really is behind the equity of Washington Mutual Inc (WMI) 0 comments
    Mar 28, 2010 1:56 PM | about stocks: WMIH

    Who really is behind the equity of Washington Mutual Inc (WMI)
    March 18TH 2010

    It’s hard to believe that it has been 18 months already, and yet here we "The WMI Equity Holders" are, still fighting against the greed and corruption of Wall Street. This case really has evolved into a David vs. Goliath story, with David being the “equity holders”, and Goliath being “J.P. Morgan and the FDIC”. Nothing has really changed much in the last18 Months. J.P. Morgan & The FDIC are still working hand in hand against the equity holders of WMI. While all we are trying to do is to get back what is rightfully ours, and what is for many, their life savings or retirement funds. The many faces of WMI equity holders can be seen in living rooms all across America and around the world. They are truly the Mom & Pops, who had invested for the future. Only now our future was stolen from us on September 25TH 2008 when the FDIC wrongfully seized the banking operations of Washington Mutual Inc.

    We are not looking to get rich, or pad our billion dollar bank accounts like many of the fat cats on Wall Street, far from that. Many of us have been here fighting the good fight for the last 18 months, and we plan on sticking this out through and through. You see this has turned into being more then just getting our money back, it has become a matter of pride, principle, and seeking justice, to ensure future investors do not have to go through the many hardships that we have had to endure since that fateful day on September 25Th 2008.

    Now fast forward to Friday, March 12TH 2010. While many of us expected that the news to come out of the courtroom that day would not put an end to our fight, we really were blindsided by the fact that together with J.P. Morgan And the FDIC, WMI seemed to come to some sort of "Global Settlement" that does not seem to include equity. Even though the UST & Judge recently approved of the formation and maintaining of the Equity Committee (E.C.) with the belief that there is enough money in the WMI estate to not only pay off its liabilities, but there could be some left over for equity as well. In fact it was even worse as Rosen (Wiel Gotshal & Manges) seemingly is giving away valuable assets of the estate of WMI to J.P. Morgan & The FDIC for seemingly nothing, all this while shutting out the Equity Committee and refusing to include us in any negotiations with J.P. Morgan and the FDIC. While the actual details are sketchy at best, the major issues are as follows. J.P. Morgan agrees that the 4 Billion belongs to WMI and will return it. WMI has agreed to split its NOL Tax refunds with both J.P. Morgan and the FDIC, even though the NOL's are a major portion of WMI assets, and Rosen offered no just reason to just hand over billions of dollars to them. When all the asset maneuvering is completed, coincidently the Assets vs. Liabilities is close, but not close enough to cover the inclusion of equity.

    It has always been expected that this offer of "Global Settlement" would not be supported from the announcement, and this was confirmed on March 17TH 2010 as the Equity Committee did issue a statement stating they would not support it. This should trigger yet further negotiations, which we the equity holders believe should be included in the formation of a new agreement, to make this truly a "Global Settlement".

    Now many media outlets seem to believe that this is it. Its over, the fat lady has sung her song. Well that can't be further from the truth. I know I, along with many others will not let this die. We will continue to fight day after day, week after week, Month after month, and year after year, until justice is served. Until we get returned to us what is rightfully ours.

    Furth more in a side note, J.P.Morgan has seemingly admitted that WMB was solvent at the time of seizure due to the following statement in court contesting the 4 Billion dollars. “Your honor, there is no deposit, the management ran the bank into the ground, if there is a deposit of that size, of 4 billion, then the bank would not have been seized.”. Now on Friday March 12TH 2010 J.P. Morgan came to an agreement that there is a near 4 Billion dollar deposit and set terms to return that money to WMI in this settlement offer.

    Jonathan Fry

    Disclosure: I hold and am long WAMUQ

    Stocks: WMIH
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