What a fking twist on what really happened... jesus christ. She didn't deny discovery, she ruled that expanded discovery wasn't necessary AT THIS TIME! These media outlets really need to be sued for improper reporting and distorting the rulings. Notice also, nothing at ALL was mentioned about the looming SJ and acknowledgement of non-banking assets which were fraudulently transfered.... pretty sure all that was addressed in the last hearing as well. I'd really like to see everyone in mainstream media gutted and dragged through the streets.
The Nasty JPMorgan-Wamu Fight
February 9, 2010 10:19 AM EST
by Elizabeth MacDonald
It was the largest bank failure in U.S. history. It was also the most quiet, when it comes to media attention. And now it’s triggered one of the nastiest legal fights ever seen in the banking industry.
Seattle-based Washington Mutual Bank was closed by the U.S. government in September, 2008, during those fateful early autumn days when Fannie Mae (FNM) and Freddie Mac (FRE) were seized by the government, when Lehman Bros. and AIG (AIG) were failing, when Wachovia was on the ropes, and Merrill Lynch veered toward collapse, as well.
WaMu failed amid mounting mortgage losses and after a 10-day bank run which saw panicked customers yank out $16.7 billion of deposits.
WaMu’s $307 billion in banking assets were seized by the Federal Deposit Insurance Corp. and sold to JPMorgan (JPM) for $1.9 billion; a day later, WaMu’s parent holding company filed for bankruptcy protection.
WaMu’s parent company has sued, saying that $1.9 billion sale price was drastically, recklessly low. More than a year later, the merger has sunk into a tangled rat’s nest of law suits, fingerpointing and recrimination, and reports indicate the number of parties investigating the seizure is growing.
WaMu's parent and JPMorgan are now fighting over tens of billions of dollars in deposits, with both claiming ownership. WaMu’s parent has also sued the FDIC for more than $13 billion in connection with the loss of its banking operations, a case that is still pending in federal court in Washington, D.C.
And WaMu's bank regulators, the FDIC’s Inspector General and the Office of Thrift Supervision, are reportedly probing the sale. So is the Senate Permanent Subcommittee on Investigations; the seizure and sale is apparently part of a broader task force probe headed by Federal Bureau of Investigation that’s looking into the bailouts. Sen. Maria Cantwell, D-Wash., is also reportedly looking into the allegations.
In its complaint filed with the U.S. District Court for D.C., WaMu’s parent, which was not purchased by JPMorgan, alleges the FDIC, WaMu’s receiver, spearheaded a merger that saw the bank sold to JPMorgan at an unreasonably lowball price, and that the FDIC made a nontransparent "cryptic disallowance" of its claims, prompting the lawsuit.
WaMu’s parent also demands up to $6.5 billion of capital contributions it said it made to its banking unit from December 2007 through the time the FDIC seized it, reports indicate.
And WaMu’s parent also wants the return of $4 billion of trust preferred securities it said were wrongfully transferred to the banking unit, and believes it may be entitled to as much as $3 billion of tax refunds, reports indicate. It also wants damages of $177.1 million related to unpaid loans made to the banking unit.
However, WaMu's parent just hit a roadblock. A Delaware bankruptcy judge recently denied the parent’s request to force government regulators and others to turn over documents, the Associated Press reports.
AP says WaMu’s parent sought the records as part of an effort to investigate potential business tort claims based on alleged misconduct by JPMorgan Chase. Washington Mutual stakeholders allege in a Texas lawsuit that JPMorgan engineered a plan to damage Washington Mutual’s banking subsidiaries so it could buy them on the cheap, the AP reports.
"However, WaMu's parent just hit a roadblock. A Delaware bankruptcy judge recently denied the parent’s request to force government regulators and others to turn over documents, the Associated Press reports."
DONT NEED ANOTHER DISCOVERY.
Absolutely correct. They don't understand all of the nuances behind the discovery, but the truth is that this is in fact a potential road block. In fairness, the article itself does objectively bring to the fore many of the key points of contention, and I'm glad to see it getting a little press coverage. An added bonus is that this was on FOX, which buys us some political capital given the way Washington works.
Did you see which posts they linked to? Very intresting isn't if if you saw the posts they linked.
Things that make you go hmm...
Very happy to see we're getting some national press coverage, especially from Fox. The WaMu vs. JPM et al is just the kind of story a guy Like Glen Beck salivates over. To wit, the government screwing up, or worse, being deceitful.
Let's hope more outlets pick up the story and delve into the shady dealings by JPM.
The Fox story was nice, but it was plain vanilla, except for the "roadblock" part.
The judge didn't throw a death-knell roadblock at us. She merely said we can't travel down all the discovery roads we wanted. She didn't say we can't travel down any road.
that'll get corrected when we submit a new, and more concise map.
cant ya tell...the story is just starting w/ the public.you guys know the story already.they will all find out but its gonna take awhile.nice to read though about all the billions being tossed around.thats pretty much all it said.oh of WAMU's money by the way!
Roadblock, huh? As I understand it based on THJMW's ruling, she only said it wasn't necessary to expand the 2004 AT THIS TIME. She would revisit the topic if necessay at a later time.
I would not worry so much about the expanded discovery issue.... There is more than enough details to show by a peponderance of the evidence that JPM and FDIC initiated wrongful acts and misdeeds in their transaction..... If later a further request to expand discovery is not granted....WMI will be able to obtain those documents requested through the discovery process of the DC case IF IT SHOULD BE ALLOWED TO GO THAT FAR !!!!....
All in all I did not find to much to fault with the article... and I also have to comment as bop did that this is a first to see an article from the media that provided a link to the msg board..... Definitely parties involved are reading our conversations....
Can anyone pull Elizabeth MacDonalds email address up and post it? I can't get it to come up. I'd really like to email her Q'd's video and set her straight on that "road block" comment. It's obvious that she's not aware of the 2004 Discover already in progress and the mountain of information piling up against the FDIC and JPM.