Her valuation is based on replacement value of the bank which was seized illeglly. WEil as I said many times , neglected to suye for illegal seizure( probably because he was conflicted) and therefore, this defense is time barred unless, we care to bring it all the way to the supreme court and have them rule that most of the Firrea protective laws are unconstitutional based on our rights to due process.
So now we have to calculate the value of a bank that was legally seized. FDIC felt WMB was close to not being able to pay its obligations and therefore seized it premptively. They are allowed to do this. NOw what is the vlue os the ban, when the nation is in a financial crisis, much less than the replacement value. The FDIC could have waited but them perhaps things could have gotten worse. They did not knowFDIC insurance would be increased and tarp woould be passed. If we can prove they knew this or should have known this , then our case is stronger and we are entitled to a higher valuation.
THe fraudulent conveyence is a good claim, but you can not collect from WMBm you need court to rule JPM as ultimate transferee of the bank assets is responsible. I do not know what the court might rule on this point. Also FDIC is claiming reverse fraudulent transfers. WMB gave dividends to WMI and want the money back. THe tax refunds, acccoring to Firrea might belong the the FDIC. THe 4 billion deposit while I believe it is ours can be challaged as a reverse fraudulent transfer as maybe it was taken from loans give to WMB.??? The trade markets beloned to WMI and FDIC has to pay for them. But JPM might says I used them for the transition and do not want to keep them. Their value might be less than we hope. Project West is interesting, but can we prove securities fraud?? I know that JP violated the non compete, but he can say once bank was seized, the damage was done and he was hte highest bidder so he helped us by violating the agreement.
May analysis, is we are making a lot of noise and threats, if we can settle for $1.00-#.00 for the common, we should takeit fast. I worry that the problem is that JPM is offiering zero for the commo and maybe a hundred dollars for the preferred. I love Bopfan as she has tried to help us since the beginning, but this case with Firrea laws is more complcated. WE have to forget about Bopfan's $80.00 valuations. let us get a settlement if we can for anything for the common shareholder.
