Wamu WKN 893906 News !

dem ihub board gelesen habe..........(excl bopfan)

"They crafted it so JPM (mainly) and FDIC would get the cash that should go to Equity ... without any pursuit of litigation for the rightful compensation"

The "they" is Tepper. With the refund $ going to JPM and the FDIC Tepper got his firewall -- the Hs -- to prevent the waterfall from reaching equity. Keeping assets below liabilities was always the salient point.

Though a financial windfall is always nice to get, I don't think either JPM or the FDIC really cared that much about the tax $: I think right from the beginning they expressed their need for the releases and all parties knew the question of the third party releases for no consideration would appear at confirmation. They were prescient and the FDIC took pains to say it needed the 3rd party releases, to what was certainly Rosen's consternation.

JPM's master plan was to take over WaMu. That was fulfilled on 9/25/08. The FDIC's master plan was to avert a run on the nation's sixth largest bank which it could not cover given its resources and which might have a domino effect of bringing down the whole financial system. It's master plan was also achieved by the seizure.

For both of these parties the aftermath was about details. They knew there was a very good chance they'd both have to pay $ to WMI, but, again, that was already factored in.