cowpatty

When WaMu Failed

"I wonder how much cash was being delivered to ATMs and bank branches nationwide last September and October…"

www.infowars.com/rep-k.../

Rep. Kanjorski already answered that question...alot! The United States lost roughly 8% of all deposits (550 billion / 7 trillion) in an electronic run on the bank in mid-September 2008. So in that regard WaMu's 8.5% run on the bank (16 billon/ 188 billion) was representative of part of a system-wide run and not an isolated run. If indeed there was a system-wide run on the banks, the question becomes why was WaMu singled out for failure and gifted to JPM? Let your mind wrap itself around that one. Was JPMChase, with their immense exposure to worldwide deposits, overrepresented in their exposure to this system-wide bank run?

Too Big to Fail - Everyone but Washington Knows What Needs to be Done

Declaration of Thomas M. Blake, JPM expert testimony:
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.

Project Fillmore:
"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."

Beware the 'Analyst Consensus'

"Capital and reserves appear to be stable," wrote analyst Brian Foran.

Declaration of Thomas M. Blake, JPM expert testimony:
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.

Project Fillmore:
"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."

Brian Foran was RIGHT!

Was WaMu Worth It?

seekingalpha.com/artic...

You might want to edit your article again...

Look at JPM's recent 10-K and read the above article...that should settle the question "Was WAMU worth it?"

WaMu Defrauded by JPMorgan?

www.kccllc.net/documen...

Read pdf Page 28 starting with section 37.

J. Dimon and S. Bair are not getting near the witness stand on this one...it gets settled soon.