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Posted on 12/01/2010 5:12:15 AM PST by seton89
Many of the shareholders with stock in Washington Mutual lost everything when the FDIC closed down the bank and quickly sold it to JP Morgan Chase & Co for a small fraction of the bank’s worth. Delaware bankruptcy court is preparing a settlement that pay off WaMu creditors, though since shareholders are last on the list they will only receive a small fraction of their original investment.
In an effort to recoup losses, many Washington Mutual shareholders are claiming that problems with the bank’s sale and subsequent bankruptcy proceedings amount to fraud. These shareholders claim that the bank was shut down and sold by the FDIC so quickly that no transparency took place, leaving them with confusion about why the bank was shut down and how the price ended up so low.
During bankruptcy proceedings, WaMu shareholders have been especially troubled by the lack of an asset list to adequately gauge the bank’s worth and problems getting questions about the bankruptcy proceedings answered in time to be useful. The bank’s shareholders claim they have no list of assets originally purchased by JP Morgan since the list was never provided in bankruptcy court. Since the bank’s worth is supposed to be determined by assets, it is difficult for shareholders to get an adequate idea of how they should be compensated when compared to how the court is attempting to pay them. [more]
(Excerpt) Read more at annuitynewsjournal.com ...
WaMu was sacrificed to shore up JPMChase.
WaMu shareholders and the American taxpayers are the goats.
Time for Fed to show who crisis loans benefited
http://www.reuters.com/article/idUSTRE6B014S20101201
These shareholders owned shares in a company whose motto was ‘Whoo-hoo’. They would loan any amount of money to anyone, without checking to see if the house they said they were buying even existed. No income? No job? Just got out of jail? No problem, here’s $500k!
If you own a company like this, maybe bad things might happen?
WaMu was solvent at the time of seizure.
Compare the capital ratios.
What’s missing is the “who and why”? I was in the middle of buying my house with wamu at the time in August 08. All of the sudden offices wouldn’t return calls or follow thru on anything. Requests would arrive asking you to provide this or that one day and then contradict themselves the next. Then you’d be told to ignore it all. This went on for about three weeks. Wamu had always been great. Now I have a Chase mess that really sucks.
Wamu had been far more dilligent than chase. They were far more “by the rules” than chase.
“solvent” presumes you can A. value the assets, and B. obtain funding, neither of which was the case at the time WaMu failed.
Do you think a prominent Democrat like Jamie Dimon worked with the White House on this? Nah. Couldn’t happen.
We received our first home loan back in 91 from WAMU, it was very difficult to obtain, while I am sure that the loans were easier in these last decade. I am not sure I buy into WAMU just handing out loans, unless forced by Federal Gov, as we know encouraged bad loans practices.
That’s for sure....
With the financial crisis, Jamie Dimon, the head of JPMorgan Chase, ... has emerged as President Obama’s favorite banker,
http://www.nytimes.com/2009/07/19/business/19dimon.html
More On the Gifting of WaMu to “Obama’s Favorite Banker”
http://www.economicpolicyjournal.com/2009/12/more-on-gifting-of-wamu-to-obamas.html
JPMorgan CEO Jamie Dimon Donates Serious Cash to Democrats
http://www.opensecrets.org/news/2009/07/jpmorgan-ceo-jamie-dimon-donat.html
Which would be fine if they ate their own losses but instead those banks socialized their losses but kept their profits, bonus’s while the American public lost Billions both on the bail outs and then again as individuals who had money in Bonds/Pension Plans, etc., Capitalist Communism!
Problem with that theory about the banks being forced to make these mortgages by the American government is they did the same thing in Ireland, Iceland, the UK, etc. were they forced all over the world? No the Banks were greedy! The Irish people the reason they are collapsing is the banks debt they are being forced to pay for it isn’t regular debt.
Kudos to the Icelanders they told them to stuff it
>>sold by the FDIC so quickly that no transparency took place<<
LOL Just because he promised transparency during his campaign. That’s not a justifiable reason as to why he needs to produce transparency during his term in office, is it? Lying and false promises during campaigns has been allowed for decades.
>>those banks socialized their losses but kept their profits, bonus’s while the American public lost Billions<<
You say this as if it is unacceptable. Unacceptable to whom? The administration, the elected legislators or the Courts. Not a chance. Perhaps it is unacceptable to the people but who cares what they think.
If the traveling public are willing to permit pornographic images of their bodies to be taken and allow government employees to molest their genitals in airports so they can board commercial aircraft, who would think that what a few people think about this financial issue concerns anyone. Not me.
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