Wamu WKN 893906 News !

With Section 554 preventing Judge Walrath from authorizing WMI  to abandon the FDIC claims, WMI will be forced to go back to Judge  Collyer to have them adjudicated.   The examiner's report, fyi, will be  inadmissible hearsay, and as WMI demanded a jury trial, that's what it  will get.   The FDIC will file a motion to dismiss under FRCP 12(b)(6)  of course (nearly everybody does), but that won't fly because Judge  Collyer must take the allegations in WMI's complaint as true, and if  they give rise to a cause of action the motion must be denied.    Moreover, there are genuine issues of material fact (i.e., valuation)  that will deep six any effort to get the action thrown out of court.

The move to D.C. District Court will nullify the examiner's report, too.    Of course, Judge Collyer will receive it, but she's neither the  finder of fact nor the one to draw the legal conclusions, as both are  the sole province of the jury.    As I said, she won't dismiss the  claims under 12(b)(6) as the standard is far lower than the standards  the examiner applied.  

Hopefully by the time all this happens WMI's board and management will be changed and Weil fired.