The Deleware Court of the Honorable Mary Walrath is beginning to peel back the onion revealing the conspiracy by the FDIC and JP Morgan Chase to fraudiently convey Washington Mutual Bank to JP Morgan Chase in September 2008. This plot, discovery documents reveal, began two years previously with JP Morgan Chase forming "Project West" to begin planning how to aquire Washington Mutual Bank. A very talented reporter for the Peuget Sound Business Journal named Kristin Gind announced this month that she is taking a sabbatical to write a book using documents made public through the recent Senate Special Committee hearings.
These documents put the fdic in the center of this story. It seems the fdic still has a big liability on Fraudulent Conveyence since their charter requires them to maximize the value received for the estate. Even if they continue to play games about the seizure the fdic failed to sell wamu for a fair value due to what seems a defective or corrupt auction process. The fdic also has liability for it's apparent intereference and harmful actions when Wamu was trying to sell itself and on those grounds merit discovery. Now, in court, the fdic is attempting to muddy the waters regarding the wrongful seizure by claiming that the OTS, not the fdic seized the Bank.
We will find out in the next two weeks whether Jamie Dimon of JP Morgan
will capitulate and buy out WAMUQ through a fair settlement offer for the stock or continue to try to push through the deal he made with the Debtors which leaves out the shareholders and the bond holders.
Sunday, June 20, 2010
Sunday, April 18, 2010
Timothy Leary and Me
I just found a letter tucked into one of the books Timothy signed and gave me almost 25 years ago. It really got me thinking about those days in Hollywood and my neighbor Timothy Leary.
It was the in the early 1980' when we started a business in Hollywood, California and moved into a rental house high up in Laural Canyon. The house was one of those inexpensive bungalows constructed cheaply for low income people during the 1930s'and was set into the side of the Hollywood Hills.
On my left was a road that led up to a similar cottage that was lived in by the then Governor of California Jerry Brown, who was dating Linda Ronstadt at that time and always had a car parked at the foot of the driveway with two plainclosed State troopers.
On my right was another small bungalow set back a ways from mine, but close enough to see and hear whatever was going on inside, was Timothy Leary and his new wife Barbara and her 10 year old son.
I really did not know much about the Professor other than he was in the newspapers pretty often in the 60s'and famous for his "get high and drop out" declaration to young people. We were pretty busy getting the new business started and wasn't in the house much other than to sleep. It was small but had two bedrooms and a large living room kitchen area. My business partner, Bill Lawler, was a big burly guy and looked a little menacing with his dark glasses and leather jacket. He did not want to meet or know the Professor and was pretty apolitical so Jerry Brown was not of any interest to him. I did get pretty friendly with Timmy (as his wife called him) and Barbara.
I found out later that Timmy had just been released from doing hard time in the California prison system by Governor Brown. At first, he and his wife were convinced that we were FBI or CIA placed next door to watch them; and, after two years of listening to his life story, Now, I can truly understand why they would think that was true. But, more about that in another Blog.
It was the in the early 1980' when we started a business in Hollywood, California and moved into a rental house high up in Laural Canyon. The house was one of those inexpensive bungalows constructed cheaply for low income people during the 1930s'and was set into the side of the Hollywood Hills.
On my left was a road that led up to a similar cottage that was lived in by the then Governor of California Jerry Brown, who was dating Linda Ronstadt at that time and always had a car parked at the foot of the driveway with two plainclosed State troopers.
On my right was another small bungalow set back a ways from mine, but close enough to see and hear whatever was going on inside, was Timothy Leary and his new wife Barbara and her 10 year old son.
I really did not know much about the Professor other than he was in the newspapers pretty often in the 60s'and famous for his "get high and drop out" declaration to young people. We were pretty busy getting the new business started and wasn't in the house much other than to sleep. It was small but had two bedrooms and a large living room kitchen area. My business partner, Bill Lawler, was a big burly guy and looked a little menacing with his dark glasses and leather jacket. He did not want to meet or know the Professor and was pretty apolitical so Jerry Brown was not of any interest to him. I did get pretty friendly with Timmy (as his wife called him) and Barbara.
I found out later that Timmy had just been released from doing hard time in the California prison system by Governor Brown. At first, he and his wife were convinced that we were FBI or CIA placed next door to watch them; and, after two years of listening to his life story, Now, I can truly understand why they would think that was true. But, more about that in another Blog.
Monday, April 5, 2010
Chinese Made Drywalls are Poisoness
According to Reuters the Boston Globe reported today that thousand of U.S. homes tainted by Chinese drywall should be gutted, according to new guidelines release yesterday by the Consumer Product Safety Comission.
The guidelines say that electrical wiring, outlets, circut breakers, fire alarm systems, carbon monoxide alarms, fire sprinklers, gas pipes, and dry wall need to be removed.
They go on to state; "We want families to tear it all out and rebuild the interiors of their homes, and they need to start this to get their lives started all over again", said Inez Tenenbaum, Chairwoman of the Comission, the Federal agency charged with making sure that consumer products are safe.
About 3,000 homowners in Florida,Virginia,Missippi, Alabama, and Louisiana have reported problems with the drywall imported from China during the housing boomand after the string of Gulf Coast hurricanes. The drywall has been linked to corrosion of wiring, air conditiong units, computers, door knobs and jewelry along with possible health effects.
The guidelines say that electrical wiring, outlets, circut breakers, fire alarm systems, carbon monoxide alarms, fire sprinklers, gas pipes, and dry wall need to be removed.
They go on to state; "We want families to tear it all out and rebuild the interiors of their homes, and they need to start this to get their lives started all over again", said Inez Tenenbaum, Chairwoman of the Comission, the Federal agency charged with making sure that consumer products are safe.
About 3,000 homowners in Florida,Virginia,Missippi, Alabama, and Louisiana have reported problems with the drywall imported from China during the housing boomand after the string of Gulf Coast hurricanes. The drywall has been linked to corrosion of wiring, air conditiong units, computers, door knobs and jewelry along with possible health effects.
Saturday, April 3, 2010
The Continuing Saga of JP Morgan and WAMU
Jamie Dimon, the CEO of JP Morgan recently sent a letter to all shareholders of JP Morgan.
http://files.shareholder.com/downloads/ONE/871752399x0x362440/1ce6e503-25c6-4b7b-8c2e-8cb1df167411/2009AR_Letter_to_shareholders.pdf
For those of you who will read this letter I think you will agree that acquiring Washington Mutual Bank 18 months ago from the FDIC for the paltry 1.9 billion dollars was, by far, the best deal in the history of the banking industry. In fact, some would call it a steal.
He stated in his letter, "Our revenue this year was a record $100
billion, up from $67 billion in 2008. The largeincrease in revenue was due primarily to the inclusion for the full year of WashingtonMutual (WaMu) and the dramatic turnaround in revenue in our Investment Bank."
But what he doesn't tell his stockholders in this letter (but stated in the 10K filed recently) was that JP Morgan may have to give a lot of it back when the Deleware Bankrupscy Court rules on several motions filed by WMI the parent company of WAMU Bank. He agreed with the Debtors in this case to a settlement that at first claimed agreement by the FDIC but was later recanted after the legal scholars at the FDIC realized that Jamie was setting them up to be the fall guy to all the furious Bond and Shareholders that were somehow left out of this Settlement.
Stay tuned, the fat lady is just beginning to warm up.
http://files.shareholder.com/downloads/ONE/871752399x0x362440/1ce6e503-25c6-4b7b-8c2e-8cb1df167411/2009AR_Letter_to_shareholders.pdf
For those of you who will read this letter I think you will agree that acquiring Washington Mutual Bank 18 months ago from the FDIC for the paltry 1.9 billion dollars was, by far, the best deal in the history of the banking industry. In fact, some would call it a steal.
He stated in his letter, "Our revenue this year was a record $100
billion, up from $67 billion in 2008. The largeincrease in revenue was due primarily to the inclusion for the full year of WashingtonMutual (WaMu) and the dramatic turnaround in revenue in our Investment Bank."
But what he doesn't tell his stockholders in this letter (but stated in the 10K filed recently) was that JP Morgan may have to give a lot of it back when the Deleware Bankrupscy Court rules on several motions filed by WMI the parent company of WAMU Bank. He agreed with the Debtors in this case to a settlement that at first claimed agreement by the FDIC but was later recanted after the legal scholars at the FDIC realized that Jamie was setting them up to be the fall guy to all the furious Bond and Shareholders that were somehow left out of this Settlement.
Stay tuned, the fat lady is just beginning to warm up.
Tuesday, July 28, 2009
The Professor and the Cop
The Boston GLobe reported this morning that,"Sergeant James Crowley, the Cambridge police officer who ignited a national debate on racial profiling when he arrested Harvard professor Henry Louis Gates Jr. at his home, can be heard on a recording of radio transmissions to his dispatcher during the incident describing Gates as "uncooperative" and asking her to keep sending backup ."
Now that the tapes of the 911 call to the Police and the subsequent recording of the officers call for backup its clear to me that the only one in that group (including the woman who placed the 911 call) who played the "race" card was the professor. I think it must also be clear to his Harvard compatriots that the good professor, swollen with self importance, lost his cool and became belligerent to the cop. The teaching lesson to be learned in all this in my opinion, is that even Harvard professors need to cooperate with authorities when confronted.
I am sure that the country will soon witness a televised "group hug" between Gates, Obama and the Cop. I am hoping that Gates will admit he "lost it" and apologize. But
now that he is a media darling I am afraid that his view of himself will be too bloated with self importance and it wont happen.
Now that the tapes of the 911 call to the Police and the subsequent recording of the officers call for backup its clear to me that the only one in that group (including the woman who placed the 911 call) who played the "race" card was the professor. I think it must also be clear to his Harvard compatriots that the good professor, swollen with self importance, lost his cool and became belligerent to the cop. The teaching lesson to be learned in all this in my opinion, is that even Harvard professors need to cooperate with authorities when confronted.
I am sure that the country will soon witness a televised "group hug" between Gates, Obama and the Cop. I am hoping that Gates will admit he "lost it" and apologize. But
now that he is a media darling I am afraid that his view of himself will be too bloated with self importance and it wont happen.
Wednesday, July 1, 2009
Thinking about Michael Jackson
I have been thinking a lot about Michael Jackson and the hanger-ons' hovering around his estate like vultures after seeing the photo in the Boston Globe printed in Sunday, June 28th edition. The photo shows Michael's father Joe Jackson and Al Sharpton during a press interview. They were, in the absence of a documented will, claiming the estate and custody of Michael's three children.
How in the world does Al Sharpton get into these situations with black celebrities so often? He is a marvel at knowing where to be at critical moments and the interesting thing is that he has that much access to people like the Jackson's. I remember Sharpton and the black college soccer team and Imus. He is a professional black celebrity parasite; but is there anything here for him to feed on? I don't think so,
Joe Jackson's is in deep financial trouble, he is hoping that gaining his son's estate will bail him out. His wife was awarded custody of the children but he did not get what he really wants, access to his son's assets like the Sony music catalog containing Beetle, Neil Diamond and others like them. It turns out that there is a Will and although the kids are in his wife's custody, the assets will be in a trust fund run by two of Michael's business partners.
Here is an article that describes the financial problems the Trust inherits:
"Michael Jackson delighted people around the world with his music, inspired countless amateur moonwalkers with his moves and had an untold, but surely huge, effect on the sales of individual white gloves.
The pop superstar, who died unexpectedly on Thursday, also kept a lot of people in high finance very busy. His wealth, and, later in his career, his expanding debt, became fodder for deals with private equity firms like Fortress Investment Group and Colony Capital as well as big banks like Citigroup and Bank of America.
In the process, his fantastical Neverland Ranch in California was nearly put on the auction block — saved only when one investment firm swooped in to buy the related debt from another firm, with hopes of backing, and profiting from, a revival of Mr. Jackson’s career.
A lot of Mr. Jackson’s monetary dealings have been conducted in private. But several of the pivotal moments have been described in media reports over the years.
Driving many of the deals was Mr. Jackson’s increasingly unmanageable debt load — something that private equity firms can probably relate to these days.
A 2006 article in The New York Times said the principal drains on Mr. Jackson’s finances may have been “monumentally unwise investments that apparently produced equally colossal losses” — and, later, the payments to service his debt.
A financial adviser to Mr. Jackson described how he might have frittered away $50 million on things like amusement-park ideas and “bizarre, global kinds of computerized Marvel comic-book characters bigger than life.”
In 2003, Fortress Investment, a private equity and hedge fund firm that has since gone public, bought some of Mr. Jackson’s loans from Bank of America after the pop singer missed some payments. Shortly before Christmas in 2005, Fortress threatened to call the loans because of his delinquency, The Times reported.
A few months later, a new deal was reached, as part of a $300 million refinancing structured by Citigroup.
Mr. Jackson’s financial problems continued, however, and in spring of 2008, it looked as if Fortress would foreclose on the Neverland Ranch. But Colony Capital, a private equity firm led by Thomas Barrack, stepped in to buy Mr. Jackson’s loan from Fortress, averting an auction.
A few months later, the deed to Neverland was transferred to Sycamore Valley Ranch Company, a joint venture between Mr. Jackson and Colony.
Just a few weeks ago, Mr. Barrack expressed optimism about Mr. Jackson’s career and his plans for a concert series in London. “You are talking about a guy who could make $500 million a year if he puts his mind to it,” Mr. Barrack told The Los Angeles Times.
While the wrangling over Mr. Jackson’s Neverland Ranch was among the most visible signs of his financial troubles, the debt ran far deeper. Over the years, he amassed hundreds of millions of dollars in other loans to finance his lifestyle.
The collateral for those loans is not his real estate, but Mr. Jackson’s stake in Sony/ATV Music Publishing. It’s a valuable asset: It holds a portfolio of thousands of songs, including rights to 259 songs by John Lennon and Paul McCartney."
How in the world does Al Sharpton get into these situations with black celebrities so often? He is a marvel at knowing where to be at critical moments and the interesting thing is that he has that much access to people like the Jackson's. I remember Sharpton and the black college soccer team and Imus. He is a professional black celebrity parasite; but is there anything here for him to feed on? I don't think so,
Joe Jackson's is in deep financial trouble, he is hoping that gaining his son's estate will bail him out. His wife was awarded custody of the children but he did not get what he really wants, access to his son's assets like the Sony music catalog containing Beetle, Neil Diamond and others like them. It turns out that there is a Will and although the kids are in his wife's custody, the assets will be in a trust fund run by two of Michael's business partners.
Here is an article that describes the financial problems the Trust inherits:
"Michael Jackson delighted people around the world with his music, inspired countless amateur moonwalkers with his moves and had an untold, but surely huge, effect on the sales of individual white gloves.
The pop superstar, who died unexpectedly on Thursday, also kept a lot of people in high finance very busy. His wealth, and, later in his career, his expanding debt, became fodder for deals with private equity firms like Fortress Investment Group and Colony Capital as well as big banks like Citigroup and Bank of America.
In the process, his fantastical Neverland Ranch in California was nearly put on the auction block — saved only when one investment firm swooped in to buy the related debt from another firm, with hopes of backing, and profiting from, a revival of Mr. Jackson’s career.
A lot of Mr. Jackson’s monetary dealings have been conducted in private. But several of the pivotal moments have been described in media reports over the years.
Driving many of the deals was Mr. Jackson’s increasingly unmanageable debt load — something that private equity firms can probably relate to these days.
A 2006 article in The New York Times said the principal drains on Mr. Jackson’s finances may have been “monumentally unwise investments that apparently produced equally colossal losses” — and, later, the payments to service his debt.
A financial adviser to Mr. Jackson described how he might have frittered away $50 million on things like amusement-park ideas and “bizarre, global kinds of computerized Marvel comic-book characters bigger than life.”
In 2003, Fortress Investment, a private equity and hedge fund firm that has since gone public, bought some of Mr. Jackson’s loans from Bank of America after the pop singer missed some payments. Shortly before Christmas in 2005, Fortress threatened to call the loans because of his delinquency, The Times reported.
A few months later, a new deal was reached, as part of a $300 million refinancing structured by Citigroup.
Mr. Jackson’s financial problems continued, however, and in spring of 2008, it looked as if Fortress would foreclose on the Neverland Ranch. But Colony Capital, a private equity firm led by Thomas Barrack, stepped in to buy Mr. Jackson’s loan from Fortress, averting an auction.
A few months later, the deed to Neverland was transferred to Sycamore Valley Ranch Company, a joint venture between Mr. Jackson and Colony.
Just a few weeks ago, Mr. Barrack expressed optimism about Mr. Jackson’s career and his plans for a concert series in London. “You are talking about a guy who could make $500 million a year if he puts his mind to it,” Mr. Barrack told The Los Angeles Times.
While the wrangling over Mr. Jackson’s Neverland Ranch was among the most visible signs of his financial troubles, the debt ran far deeper. Over the years, he amassed hundreds of millions of dollars in other loans to finance his lifestyle.
The collateral for those loans is not his real estate, but Mr. Jackson’s stake in Sony/ATV Music Publishing. It’s a valuable asset: It holds a portfolio of thousands of songs, including rights to 259 songs by John Lennon and Paul McCartney."
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