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.
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