Washington Mutual demanda a la FDIC por 17 billones US$ + daños

One of the birlliant points of Nate, I thought about it and many here may have wondered too, was a mathematical conclusion that subtly but amazingly imply the deficiency of debtor's plan and by extension its intentions.

He said basically that I can not figure this out and I do not think anyone here (in the court) has any idea to counter this mathematical fact.

It is like this- Before November hearing (Sept-oct 2010), Debtors could have presented a more global plan including equity, it could have saved (40x12=480 million) and plan had a greater chance of approval.

Since the money available (Waterfall) has not, for all practical purposes)changed in the amended plan after rejection and burn rate continued, It is easy to conclude mathematically that in Sept 2010 there were 480 million more available to include equity in the waterfall.

The man is a genius as he then underlines that WMB noteholders were being given more than 360 million dollars to settle. The subtle hint was there were about close to 800 million avaialble at that time and move to settle with WMB noteholders was an attempt to get rid of half of that available money. And rest of it was squandered on burn rate that benefited the creditors.

If you think about it is a birlliant argument- Debtor purposefully presented a plan that was unapprovable and caused delay which removed the money that could fall to equity and went to creditors, lawyers and management.

Mathematical conclusion- They had about 800 million dollars more about a year ago and could have included equity in the plan but chose to delay the plan and misappropriate the extra
money in creditors and WMB noteholders favor.

Bigger conclusion- Somehow they do not want Equity to own the reorganized entity at any cost.

http://www.viewip.net/WMI/Hearing/audio/20110824.mp3

La Juez se despidio ayer con esta frase...

"Thank you......I don't think it brings me any closer to a decision".

I took it to mean that she didn't hear anything that swayed her decision away from the direction she was leaning heading into the hearing.

It also reminded me of the opening of Folse's remarks when he said that he was leery of closing arguments because he believed that the written arguments provided a "complete picture" of the negotiations and urged the judge not to be unjustly influenced by the last ditch arguments that we witnessed in court today by the SNH's. He said something to the effect that he was concerned that we would see what we just witnessed in court this morning.

To me, this was a subconscious nod to Folse's opening statement to rely on the complete story provided in the written arguments.

It seemed that the SNH's today were trying to argue the behavior should not be punished due to technicalities.

El día de ayer fue formado en tramos.

Parte 1: Rosen y sus bandidos diciendo la sarta de mentiras que ya todos conocemos y que aprueben el POR. (Hasta casi el cierre del mercado)

Parte 2: EC con Parker Folse dando una clase magistral de como presentar argumentos unido a la presentación de TPS con una acalorada discusión con la Juez sobre si tiene o no jurisdicción.

Continuo con el que para mi fue la autentica revelación del día Art Steinberg (DIMEQ) que lo hizo de cine.

1) Steinberg Abe Lincoln line. Man being sentenced for killing parents and beg's mercy from court... i'm an orphan

2) Steinberg: Equity would puke if it heard that

3) Steinberg: Special k said " he is not in the business of valuing claims" well someone should be !!!

4) Steinberg : Burn rate complaint of SNH Look in the mirror

Para terminar Nate Thoma en su speech dio la puntilla a Rosen con el comentario que hace 1 año WMI tenia $480 Millones más que se han fundido los abogados y que si esa es su intención hasta agotar existencias para dejar la pregunta retórica para que todos lo piensen.

1) Nate Debtors best business judgement

2) Nate Debtor seeems Sychrophenic

3) Nate: Debtors purchasing senior notes above par was not for profit motive, it was for CONTROL

En resumen... estamos a merced de la Juez pero creo que hay indicios para pensar que a los 4 Hedge Funds se les va a caer el pelo pues ya ayer se hablo también de temas Criminales.

Si alguien quiere dar su opinión contraria a la mía... adelante.

Decir que Rosen y los hedge mintieron, me parece una barbaridad pumperiana. Los abogados de los hedge en general lo hicieron bien, y articularon muy bien sus presentaciones con leyes, pruebas y en algunos casos con lo más importante con jurisprudencia.

Respecto al EC yo sinceramente eche en falta la presentación en público de alguna prueba irrefutable de las tantas que "dicen" que tienen, como hicieron los hedge. El lunes queda la traca final de Rosen, pero el mercado es sabio y dice que los hedge tienen una fuerte posición con los debtors a favor y una juez de risa, débil y comprada. Si alguien ha escuchado el hearing, la que se lio con los abogados de TPS la juez chillando'', increible aunque los de tps tenían razón, le tenían que haber dicho lo corrupta que es en su cara.

Yo a las posibilidades que le doy al EC son de un 20%. Respecto a Nate como siempre un tío pragmático y no pumperiano, dijo el dato real e irrefutable y es la barbaridad de pasta que se están chupando todos incluido Susman a costa de los accionistas y del estado.

Saludos

"Para terminar Nate Thoma en su speech dio la puntilla a Rosen con el comentario que hace 1 año WMI tenia $480 Millones más que se han fundido los abogados y que si esa es su intención hasta agot"ar existencias para dejar la pregunta retórica para que todos lo piensen."

Lo cual lleva a la conclusion de que continuara este juego entre abogados vaciando las arcas de WMI, mientras tanto la FDIC y JPM sin ninguna presion para ceder algun dinero a la equidad, permanecen ajenos a la lucha entre el resto de actores. Incluso en el supuesto de rechazo del POR no garantiza que las acciones esten in the money, lo cual no impide que se especule para que suban los precios y vuelvan a bajar como de costumbre, por otra parte si a la Juez se le hinchan los ovarios y no aprecia I.T. confirmara el POR y todas las acciones quedaran en el baul de los recuerdos eliminadas de por vida.

First of all to all of the "corrupt, stupid Judge" gang, you seem to be forgetting that she was the one who allowed Nate's IT "hearsay" at the last confirmation turn into this ugly mess for the HFs and she was the one who denied confirmation last time on releases technicality and purposely delayed her opinion until 2011 for NOL clarity/purposes. She could have confirmed last time and simply told Rosen to tweak the release language. She did all of this for a reason.

The evidence of IT is overwhelming and she is going to let the EC/SG go after all 4 SNs for damages. That was clear from yesterdays exchange between Parker and THJMW and the SNs are screwed. Done.

The tainted GSA negotiation process that Parker so eloquently and clearly articulated to the court which is backed up by the record is overwhelming. The court cannot turn a blind eye or ignore this overwhelming evidence. The beauty of Parker's summation is that he never touched on her judgement that at the time she wrote her last opinion, the GSA was "reasonable". He also reminded the court and all of us that the threshold for F&R is very low and indeed her F&R finding was as low as it gets (no asset list, COI, Kosturos as lead negotiator, etc.) so with overwhelming evidence of tainted negotiations by both the SNs and Debtor she has no choice but to kill the GSA.

There is simply no way she or any Judge can ignore what has clearly occured here. Also, the JPM lawyer pleaded with the court to NOT kill the GSA and hurt two innocents (JPM/FDIC) because of the wrongdoing by the SNs which was the best JPM could muster to try to prevent the inevitable. The problem is that JPM knew what was going on with the SNs going to JPM/FDIC behind the Debtor's back to do a deal and JPM was the first to raise IT allegations back in 8/09 with their 2019 motion. The FDIC lawyer said almost nothing because the FDIC knows this whole thing is a scam that has been brought into the light.

Remember that THJMW can easily save face and will not have to protect her F&R opinion by killing the GSA for tainted negotiations because how she arrived at F&R is not in question. You also have to ask youself if she knew then what she knows now about how the negotiations went down, would she have still ruled F&R? The only logical answer is a resounding NO.

My fear for whatever is worth

After what JPM said about only punishing some but not all, and her immediate response to ask if the wording on the GSA allowed that, is my first piece of the puzzle.

Then later, her huge interest in almost pushing the EC to go after more that two hedges instead of four, hints me that she is probably looking for a way to get this all mess out of her court by PARTIALLY approving this crooked plan, but give the EC a lollypop to go home with an approval to litigate by itself against the SNH.

I think Nate brought to her the life boat she was waiting for, and she is going to hold on to that boat fiercely in order not to go against her bosses. (JPM/FDIC)

"Not a peep out of carnyboy at the end. Said it all."

This had to be one of the Biggest Slap in the face to rosie by THJMW....to date..... his proposed scheduling went to the toilet just as his GSA/pos/POR will and him to follow....and did not provide him his safe time at the end to try and further defend SNHs...I really thought yesterday he was the representing atty for SNH-HFs instead of the estate....

I was extremely happy to hear THJMW say that she wanted the SNHs to go first....as she knows their fate and would not provide an opportunity to fine tune their lies by going near the end.... I think she has finally had enough of debtors/SNHs-HFs drama that has plagued her court for the past 3 years by these lying fraud face felonious hijacking racketeers......If anyone listened to THJMW when she made comments and/or asked questions...her tone was very revealing....

I have a list of those that I will send blasting emails to once the court has issued it's ruling/opinion (I am guessing some time near after Labor Day holiday)....including the case UST and Peg Brickley for the lousy article of yesterday after all that was said during the confirmation and yesterday's hearing....

good luck WaMuers..