posted on Apr, 18 2009 @ 08:35 PM
I found this on the international wires. It will be interesting to see if any of the media here picks it up. I doubt it. I think there was
something VERY fishy with the whole WAMU deal!
How a Stolen Bank Costs You Money
*** Violet Day, UPI, 17 April, 2009 ***
With foreclosures at an all time high, unemployment at records levels, and the dollar competing with the "loonie" of all things, it's no wonder
more and more people are questioning not only the stability but the sanity of the US government. The casualness with which the government is spending
trillions (yes trillions) of tax payer dollars certainly isn't helping the situation. If you are tired of your tax money going to frivolous waste
and out of control spending, bad news is on the horizon: you may be cutting another very large check in the near future!
On September 25, 2008 Washington Mutual Bank was seized by the FDIC for reasons of "instability." Within hours, the bank was sold to JP Morgan
Chase for the sum of $1.9 billion. At the time of the sale, not only was Washington Mutual among the largest banks in the country, but it enjoyed
tremendous name recognition and a banking network estimated at over 2,000 branches and close to 5,000 ATMs. Most analysts agree that $1.9B is not
even close to fair compensation for a banking network so well entrenched and almost 120 years in the making. If those figures weren't troubling
enough, proponents of Washington Mutual assert the bank had close to $307B in assets at the time of the seizure, was considered "adequately
capitalized" by the FDIC's own standards, had access to a $50B credit line with the FDIC, and had around $4B in cash assets! In fact, Washington
Mutual is so adamant that an injustice has been performed that they have sued the FDIC seeking damages in the neighborhood of $40B. If in fact
Washington Mutual is awarded damages for the FDIC's "communistic actions" and "gross negligence," you can guess who is picking up the tab . . .
Only time will tell if Washington Mutual's lawsuit will stand up in court, but the preliminary evidence looks strongly in Washington Mutual's favor.
Even the greatest spin doctor attorneys will have difficulty explaining to a jury the selling of $4B for $1.9B; and yes, WAMU has requested a jury
trial. In addition to WAMU's other (disputable) assets, the law firm representing Washington Mutual (Weil/Gotshal) is surely to bring up the fact
the JP Morgan offered $8 per share in April to acquire Washington Mutual, a deal which WAMU rejected. Thousands lost jobs, tens of thousands lost
life savings and retirements; it seems almost tailor made for a jury trial. The TARP program being released only 4 days after the seizure was purely
a coincidence . . . wasn't it? Has it been mentioned that the media and the federal government have been eerily silent on this entire topic?
Confidence boosters for financial stability? Definitely not.
Regardless of the outcome of the case, the end result of the suit is the continued deterioration of confidence in the US banking system, the Office of
Thrift Supervision, the FDIC, and the Obama administration and their inability to provide any of the real "change" US citizens were promised. If
Washington Mutual gets the "change" they are seeking, and most probably deserve, get ready to take out your checkbook.
At time of publication neither the FDIC nor Weil/Gotshal had returned a call for comment. Representatives for Washington Mutual shareholders can be
found at www.wamurape.org.
[edit on 18-4-2009 by asala]