...and in local news-
http://seekingalpha.com/user/415296-truth-and-transparency/instablog
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By all accounts, JP Morgan Chase (JPM) purchased the whole bank assets of Washington Mutual for 1.88 billion in September of 2008. Anyone would agree that 1.88B for a 110 year old organization that had 270 billion on deposit, 29 billion in liquid cash, 2700 banks, 8000 ATM’s, and a credit card company is an unjust deal that deserves scrutiny.
The deal becomes even more unjust when one considers the impact it has to JP Morgan - - the deal creates the nation’s second-largest branch network. A combined network reaching 42% of the U.S. population, with strong positions in attractive markets such as California, Florida, New York, Texas, Arizona, Illinois and Washington. With the assumption of WaMu’s assets, JP Morgan will have $900 billion in deposits, 5,400 branches and 14,000 ATMs in 23 states.
In addition when you closely examine the proposed settlement you’ll see that JP Morgan actually receives monies in the form of 70% percent of a tax return, referred to as tax return 1. That percentage equates to 1.82 B or 2.10 B (depending of the actual returned amount). Yes, it’s shocking but that is the deal that Weil, Gotshal & Manges LLP was able to muster in 18 months - - a deal that did not benefit WMI but gives additional monies to JP Morgan Chase. In fact the JPM’s portion of the tax return basically means that JPM purchased WaMu for nothing, that the amount paid to the FDIC under the P&A and the amount to be received in tax returns is a wash, JPM gets WaMu for free.
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A lot of criminal activity going on in the financial markets, aided and abetted by politicians, mostly the democrats, like Barney Frank and Chris Dodd!!
Problem is WaMu’s rapid expansion from regional to semi national bank was based on liar home mortgages. Their mortgage departments were encouraged to to whatever necessary to make a loan, do not verify the applicants info and sell the note within six months. Profit from loan is from fees and points. Problem is housing prices busted and WaMu has a huge inventory of underwater mortgages and foreclosed properties. They are saved by the fed changes in market to market accounting rules that hide these homes from the books. JPMC is now stuck with it and the only way out is the Feds will keep rates low and inflate the US economy out of the mountains of debt.