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Outstanding WaMu POR Objection: "A multibillion dollar transaction without a list...

Tags: Enron, Weil Gotshal, FDIC, Wamu, bankrupy fraud, white collar, Fraud, Reorganistion, Amended POR, Rozenfeld, Fitzgerald, Wamu POR, JPMC, Rosen, Washington Mutual, Kmart
geschrieben von zetatauri am 29. Juni 2010 08:05 Uhr


of what is changing hand is the embodiment of the word "corrupt" and at minimum the words "completely incompetent". (Page 10, last paragraph)

Full paragraph:

Shareholders:
The disclosure statement is missing: "... an itemized list with the original book & revised value of assets that WMI believes it owns;"" e) Documentation from the FDIC as to what assets they seized and conveyed to JP Morgan."


Deptors Response to Objection:
"Prior to the Petition Date, WMI publicly filed its audited financial statements with the Securities and Exchange Commision. Such public filings are available at www.sec.gov. Sebsequent to the Petition Data, WMI has filed quarterly monthly operating reports, which are publicly available on this Court`s docket." "The Debtors, JPMC and the FDIC Receiver dispute which assets were owned by WMB at the time of the seizure and sale. These disputes are discussed in Sections I.B and IV.D of the Fourth Amended Disclosure Statement".


Shareholders:
"With respect to the debtors latest response they acknowledge that the estate does not know what it owns. Therefore, the debtor acknowledges that the MOR is incorrect as stated by the Shareholders.

Futher still, the debtor acknowledges, that the FDIC did not follow proper procedure when seizing and selling the bank. Therefore, the Shareholders comments about potential corruption and theft committed by the FDIC and JPM are valid.

Moreover, how can a reasonable investor trust the FDIC, JPM and anyone who aggrees to a settlement with them given that the FDIC sold hundreds of billions of dollars of accunts and billions more in assets to JPM, who has already made enormous profits and negative goodwill off the transaction, for a mere $1,8 billion, and did so without providing a list of assets that they sold.

A multibillion dollar transaction without a list of what is changing hands is the embodiment of the word "corrupt" and at minimum the words "completely incompetent". The FDIC should be forced to tell WMI what the sold to JPM for $1,8 billion dated on September 26, 2008 (which was when the transaction was consummated). Anythig less than this is completely unacceptable and would not be accepted by any investor."



[...] the deptors are stating, that that they believe it is in the best interest of the estate to give JPM and the FDIC the largest civil suit payout in history rather than proceed with litigation. Further, the debtor belives that reasonable investors do not need to know why.

No reasonable investor would ever agree to the largest civil suit payout in history without an extremly detailed explanation. Once again the only investors who would agree to this are those driven by greed, because they know there are hidden assets and a great deal of goodwill to be gained from agreeing to this windfall for JPM and the FDIC. [...]



Source:
Shareholder Sean Fitzgerald and Michael Rozenfeld objection to the Third Amended Washington Mutual Plan of Reorganistation

It looks like someone is crafting a Kmart 2...

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