Dimon confessed in his annual report to shareholders that he was the only bank prepared to act immediately (within a couple of hours because Bair only informed him 3 weeks in advance. He pretended to be a buyer of WaMu in public, while getting information from Bair everyday behind the curtain).
Dimon confessed that he acquired WaMu’s 2,200 branches, 5,000 ATMs and 12.6 million checking accounts, as well as savings, mortgage and credit card accounts for merely $1.9 billion. Importantly, Bair did not give Dimon the liabilities or debts of WaMu. Dimon confessed for $1.9 billion, he got $240 billion of mortgage and assets, $160 billion in deposits and $38 billion in equity. The deal was immediately accretive to earnings $2 billion and later claimed $29 billion tax credit from U.S. government and American taxpayers. Dimon confessed that even if home prices go down another 20%, he thinks the transaction will remain a great deal, at a great price for his shareholders. (a penny on the dollar).
With Bair heading the FDIC, it now becomes a corruptive profit institution. They took over WaMu, sold off and pocketed the money while it was still healthy, like putting and burying a healthy person into a coffin while he is still able to jog and run. JP Morgan got the assets and deposits at a bargain at the expense of WaMu shareholders. What the FDIC did to WaMu was exactly the same as what the Japanese did to the Americans during World War II. On Saturday, Japanese Foreign Minister signed the peace treaty with the USA in Washington D.C. Next morning, Japanese bombed Pearl Harbor and seized all the assets of American banks in Hong Kong. President Franklin Roosevelt was totally in the dark. Like FDIC seizing WaMu and giving it to JP Morgan, only planners Sheila Bair and Jamie Dimon knew when to pull the trigger, because it was totally a conspiracy.
It is believed that the misconduct of Ms. Bair of FDIC helped JP Morgan steal WaMu from investors. JP Morgan had been making phantom negotiation with WaMu in the front, while getting inside information from Ms. Bair behind the curtain. It is a theft and a criminal act on the part of JP Morgan to exploit the chairwoman of the FDIC and benefiting to take WaMu’s assets plus thousands of very profitable branches at an exorbitant discount. Dimon, who has a salary of 15.5 millions plus option 40 millions per year can proudly take credit for corrupting huge WaMu assets for free through a collusion with Bair.
Unfortunately, the person to blame for this debacle is still in charge and threatening future American prosperity. Forbes stated that the FDIC’s Sheila Bair is the second most powerful woman in the world next to the German Chancellor. She can make any big bank disappear and wipe out its shareholders at any time she wants. When AIG collapsed and Lehman Brothers bankrupted, the stock market was still stable. It wasn’t until WaMu was unlawfully seized by the FDIC that the stock market started to collapse. It was Bair who destroyed the American people’s confidence by this unlawful seizure of well-funded WaMu and wiping out all shareholders. The American people were totally astonished and panicked. Who would be the next victim? They worried that their lifetime savings and retirement investment could be plundered by Bair without any justification and given away for free. It was Bair’s illegal abuse of power by plundering WaMu from the shareholders while it was still healthy that scared American people and caused the cascade of worldwide financial crisis.