Oh my, been out of the country for a week and the WaMu world turns upside down, an interesting muse so to speak. Won't really be back into the swing for another week, but couldn't let this go.
Oh how we forget what can be done, whether right or wrong, or wrong for all of the right reasons.
From the end of March the UST was outflanked by shareholder A team, and so was the EC Chair; we seated a 3 for 3 sweep from shareholder B team, to add to the 1 just seated prior to. At the same time, shareholder A team canvassed top bankruptcy tax bank holding company firms adversarial to the FDIC across the country and found some. This outflank was defeated on its face by the believed retention of another firm under the umbrella of PJS to avoid court notice the night before the new EC members were seated.
The shareholder teams learn from these events and prepare for anything, first the debtor, JPM and the FDIC, but also the noteholders; and due to deserved behavior, the EC Chair. No disrespect, we will just not watch their historic best efforts result in the same failure again. We are much more prepared this time, and time has only been provided at first by Nate {not by one single success of the EC at confirmation} and by Ben {via the WMB tax refunds impact on the WMI loss on worthless stock, with some help} We said it would always be through the EC first, always. It has and continues to be. Again, based upon performance however, we are prepared to conduct a higher level of participation this time around if "we don't see the objections first, and the performance second from our EC professionals." And we have vetted our approach with our retentions.
The debtor, JPM and the FDIC are the focus. Regardless of what bankruptcy attorney or attorneys say or post otherwise. This is not about just bankruptcy, it is about money.
So, muse this. One says the NOLs aren't worth anything to equity without the ability to make money in future years.
First, so what' the problem. We'll take the reorganized debtor.
Second, here is the real world money factor, the reorganized debtor will have $15B in WMI NOLs {unrelated to WMB}; I won't list out the components that make this happen from the $5.5B the debtor discloses. It will be $15B WMI NOL when all is said and done.
- - $15B NOLs to the hedge fund noteholders - - is almost $5B of net tax benefits; hedge funds will not need to worry about finding income to offset. They have the $5B "counted."
Back to "first," bop, we're going to take the reorganized debtor "so that they can't have it." It's a dirt dog move, by subtraction. We will take their counted $5B in early year tax cash savings away from them.
So, maybe they might want to talk. We might be able to find some middle ground.
A different perspective, the real world. Money. They have all underestimated what shareholders will do. And this is just one cookie.
