Normally I would agree with you, and if it were not for the players involved on the other side of the fence you might be right. But...does the government really want to piss off the Chinese at this point? Not a chance. Add another big corporation, one of the richest people in the world, and another international bank that got screwed by JPM and the government and I don't think this gets swept under the rug. If it was just the corporate heads from WAMU and regular shareholders then they could get away with it but IMHO there are just too many power players involved here.
Normally I would agree with you, and if it were not for the players involved on the other side of the fence you might be right. But...does the government really want to piss off the Chinese at this point? Not a chance. Add another big corporation, one of the richest people in the world, and another international bank that got screwed by JPM and the government and I don't think this gets swept under the rug. If it was just the corporate heads from WAMU and regular shareholders then they could get away with it but IMHO there are just too many power players involved here.
being the contrarian that i am...the boat just seems way to heavy on this one
like on that barron's article every single comment is people bashing the author saying he didn't do his DD and such....just seems like everybody is convinced the settlement will be in WaMu's favor and the common's will get paid a hefty price.....
anyway GL y'all hope i'm wrong and u guys get paid
like on that barron's article every single comment is people bashing the author saying he didn't do his DD and such....just seems like everybody is convinced the settlement will be in WaMu's favor and the common's will get paid a hefty price.....
anyway GL y'all hope i'm wrong and u guys get paid
yes you can buy pinks on Ameritrade.
This happen during the intitial run up from .10/.12 to .20
Kuwless said it was mm playing a set up game where they get prople ready to dump during other serious run ups. who knows?
COuld be a large number of factors. There is a lot of volume the last couple days. i am curious to see what teh volume and price will do over the next couple days. I am not selling anything. You would be crushed if the stock got halted after you sold. Your attempt to make a quick couple thousand ended up losing you a boatful of cash.. Just JMO
Good luck too all the longs.. keep everyone updated with any good or bad news.
This happen during the intitial run up from .10/.12 to .20
Kuwless said it was mm playing a set up game where they get prople ready to dump during other serious run ups. who knows?
COuld be a large number of factors. There is a lot of volume the last couple days. i am curious to see what teh volume and price will do over the next couple days. I am not selling anything. You would be crushed if the stock got halted after you sold. Your attempt to make a quick couple thousand ended up losing you a boatful of cash.. Just JMO
Good luck too all the longs.. keep everyone updated with any good or bad news.
Up and down week but what we are really waiting for is some info.
Apparently their will be a live link to listen into the hearings. I'm sure Kuwl can hook us up with that, as I'm getting most of my info from ihub.
Are these facts leading up to something:
>>FDIC could seek bailout from banks
>>FDIC considers borrowing from banks to replenish dwindling insurance fund
>>Chinese in town
>>the last 8 TRADING days over "$125,000,000" DOLLARS have been flying in/out/around/covering and so on....
Maybe its leading to A PERFECT STORM...respect to nursejeff from ihub for this one.
Apparently their will be a live link to listen into the hearings. I'm sure Kuwl can hook us up with that, as I'm getting most of my info from ihub.
Are these facts leading up to something:
>>FDIC could seek bailout from banks
>>FDIC considers borrowing from banks to replenish dwindling insurance fund
>>Chinese in town
>>the last 8 TRADING days over "$125,000,000" DOLLARS have been flying in/out/around/covering and so on....
Maybe its leading to A PERFECT STORM...respect to nursejeff from ihub for this one.
From Fsshon on Ihub:
"Sept 25th Omnibus Hearing. We are currently have a positive decision by THJMW on DIscovery Rule 2004 BK ruling (most believe this will fuel settlement talks). The discovery is unlimited and pertains to JPM causing the "death of corporation" through willful and unlawful means. Discovery was delayed by both parties mutual decision until Sept 25th omnibus hearing.
We also hope to have the turnover action on the docket. The turnover action is a request from the parent that JPM turnover the deposited funds amounting to 4.4billion that was in 6 deposit accounts at WMBfsb pre-seizure. JPM has through the FDIC disputed the validity of the deposits. WMI has produced the tresurer that was responsible for the depositing of the money. Her name is Doreen Logan and she was retained by JPMC as an employee after the takeover of the banks. Her testimony in the parents favor was very good and damning to JPMC. JPMC has never disputed the accounts nor their contents. They dispute that actual money was exchanged. We should hear oral arguments and get a positive decision from THJMW at this hearing.
Also on the docket should be the order from the court to account for and record all assets of the Parent before the seizuure and the list of assets, that were conveyed through the receivership process to JPMC illegally. FDIC does not have the right to seize a bank holding company and breached their own corporate policy and statement when they received less than liquidation value for the banks. They also conveyed to JPMC the subsidiary bank WMBfsb. WMBfsb was not a legal conveyance to JPM and it wil be THJMW's decision to determine [as she has said n court] the assets that should have been conveyed to JPMC as part of the FDIC's P&A agreement [she has the power to unwind the P&A because of docs legality]. THJMW's job is to decide using the court's power what JPMC should have recieved for their purchase of 1.888billion or make them pay much more.
We should hear frieworks from each side when these discussions get underway. "Especially discovery and depositions"
If you want to know more just download the briefs and read the counter-claims and answers for each. They are long-winded, but very well-written by our attorneys and kind of strung together by S&C's attorneys. Of course I am biased in my assumptions."
And:
"Gmen: I am not sure, but I think it is not a coincidence that we happen to have a hearing on the 1 year anniversary date of the seizure. It is really interesting in my book! I think THJMW will put the gavel down on S&C's delays and bullshit briefings and order them to submit to discovery. If she feels they have been delaying on purpose and not legal confurring i.e settlement talks, she will make it known in open court.
JPMC has instructed theie attorneys to delay delay delay. You can read the briefings and see this, I believe and I hope THJMW shows them that her courtroom is not a place for lunch, it is a place of justice and transparency. JPMC is working the system and THJMW knows it. I am sure she has consulted her clerks and other justices to come up with a "game plan" to a kink in JPM's armor. Remember now JPMC is protected in many ways by their vast resources and the Obama Administration.
In a legal sense, a judge has to retain complete and utter control of their domain or it will be known within the circles. I have a strnage feeling Friday we will see fireworks from our Judge. The time for action has arrived, the time for delays has passed, discovery is looming and the FDIC is pumping out more bull as we speak.
~Fish~ "
"Sept 25th Omnibus Hearing. We are currently have a positive decision by THJMW on DIscovery Rule 2004 BK ruling (most believe this will fuel settlement talks). The discovery is unlimited and pertains to JPM causing the "death of corporation" through willful and unlawful means. Discovery was delayed by both parties mutual decision until Sept 25th omnibus hearing.
We also hope to have the turnover action on the docket. The turnover action is a request from the parent that JPM turnover the deposited funds amounting to 4.4billion that was in 6 deposit accounts at WMBfsb pre-seizure. JPM has through the FDIC disputed the validity of the deposits. WMI has produced the tresurer that was responsible for the depositing of the money. Her name is Doreen Logan and she was retained by JPMC as an employee after the takeover of the banks. Her testimony in the parents favor was very good and damning to JPMC. JPMC has never disputed the accounts nor their contents. They dispute that actual money was exchanged. We should hear oral arguments and get a positive decision from THJMW at this hearing.
Also on the docket should be the order from the court to account for and record all assets of the Parent before the seizuure and the list of assets, that were conveyed through the receivership process to JPMC illegally. FDIC does not have the right to seize a bank holding company and breached their own corporate policy and statement when they received less than liquidation value for the banks. They also conveyed to JPMC the subsidiary bank WMBfsb. WMBfsb was not a legal conveyance to JPM and it wil be THJMW's decision to determine [as she has said n court] the assets that should have been conveyed to JPMC as part of the FDIC's P&A agreement [she has the power to unwind the P&A because of docs legality]. THJMW's job is to decide using the court's power what JPMC should have recieved for their purchase of 1.888billion or make them pay much more.
We should hear frieworks from each side when these discussions get underway. "Especially discovery and depositions"
If you want to know more just download the briefs and read the counter-claims and answers for each. They are long-winded, but very well-written by our attorneys and kind of strung together by S&C's attorneys. Of course I am biased in my assumptions."
And:
"Gmen: I am not sure, but I think it is not a coincidence that we happen to have a hearing on the 1 year anniversary date of the seizure. It is really interesting in my book! I think THJMW will put the gavel down on S&C's delays and bullshit briefings and order them to submit to discovery. If she feels they have been delaying on purpose and not legal confurring i.e settlement talks, she will make it known in open court.
JPMC has instructed theie attorneys to delay delay delay. You can read the briefings and see this, I believe and I hope THJMW shows them that her courtroom is not a place for lunch, it is a place of justice and transparency. JPMC is working the system and THJMW knows it. I am sure she has consulted her clerks and other justices to come up with a "game plan" to a kink in JPM's armor. Remember now JPMC is protected in many ways by their vast resources and the Obama Administration.
In a legal sense, a judge has to retain complete and utter control of their domain or it will be known within the circles. I have a strnage feeling Friday we will see fireworks from our Judge. The time for action has arrived, the time for delays has passed, discovery is looming and the FDIC is pumping out more bull as we speak.
~Fish~ "
so what is a swing trader to do? something tells me to hop on in the morning, as that 2 minute tug of war between .27 and .28 to close out the day has me thinking she'll run a little bit to start the day, i'm thinking to around .37, but after that....
i've scoured through all the message boards and the speculation is still running wild heading into friday, plus all the "buy on the dip" folks're gonna be jumping back in, so another 30-60% day in the next day or 2 is certainly ascertainable.....
i've scoured through all the message boards and the speculation is still running wild heading into friday, plus all the "buy on the dip" folks're gonna be jumping back in, so another 30-60% day in the next day or 2 is certainly ascertainable.....
Spoken like a true genius. The MMs did this last time when we went from .10 - .20, then crashed back to .14 shortly thereafter. What happened the 2nd time it ran to .20? It ran to .44 in the matter of a few days, lol. They are trying to convince people to take profits the next time it runs to .40. If you guys aren't able to see thru the MM manipulation, you're likely blind : )
Just kidding, but on a more serious note, this is the exact same thing that happened last time. In all honesty, we're over three cents above where we closed on Friday, and to me that's the type of movement we should be seeing in this, nothing extremely violent like the last two days. So, regardless which way people want to try and paint the picture, we're still in the green for the week. Today was a classic day-trader profit taking day paired with two other significant factors including: newbie panic sellers who didn't know what they were buying to begin with, and MM/shorts taking advantage of the above factors in order to cover at a cheaper price. Who shorts pinksheets? Not many retail investors, in fact, no one I know has the ability to short Pinksheets/penny stocks besides MMs. Why? Because they're the only ones that can stay up to the second on all the prices so they have time to create panic selling or hold back buying in order to cover their short positions.
And everyone, please keep one thing in mind when I hear reference to "everyone is in the same boat assuming settlement will occur" etc etc ... this is BS IMO. Seriously, did any of you ever consider investing in WaMu before I showed up and enlightened you? Did anyone here know about the lawsuit & potential settlement in the works?? Probably not, because it's not reported by main-stream media, so you cant assume everyone knows what's really going on here other than those with close ties to those involved or those fortunate enough to be internet-savvy investors.
With that said, I'm not going to rant and rave about why settlement is going to occur, nor am I going to try to analyze the PPS fluctuations unless I feel it's necessary to say something; otherwise, you all know where I stand and I wont change my position until I see dollars or my shares are worthless paper. But, I will leave you with the simple admission of guilt when JPM specifically stated in a recent court filing that "WaMu was a solvent bank." 'Nuff said, FDIC facked up, and JPM and the FDIC are going to have to compensate shareholders for their phuck-up.
regardless of what happens i highly doubt the story as far as the court battles go will end on friday
WMI what u own with wamuq is in chapter 11 bankruptcy...after they figure out what money if any they get from this court stuff i'm assuming they go back to that figure out how much assets and debts they have....pay the creditors and such....and will attempt to emerge from bankruptcy if they can?.....
i don't think this will turn out as simple as we won this money shareholders get this cut...WMI is no more here's some cash...end of story...
WMI what u own with wamuq is in chapter 11 bankruptcy...after they figure out what money if any they get from this court stuff i'm assuming they go back to that figure out how much assets and debts they have....pay the creditors and such....and will attempt to emerge from bankruptcy if they can?.....
i don't think this will turn out as simple as we won this money shareholders get this cut...WMI is no more here's some cash...end of story...
Trading will be halted and an estimated value will be calculated, then trading will resume at the new value. You sell your shares, and you get compensated. It's instantaneous.
tiznow said:
Agreed, I doubt a conclusion will come on/by Friday; however, further developments in the case that are in favor of WaMu, and the likelihood of WaMu winning the case, will continue to push the PPS higher. I dont expect a full conclusion of the case until mid-October, possibly into December. The full resolution might even take quite some time beyond that, you might even end up with shares of a new WaMu bank that has come out of bankruptcy, but that is highly unlikely considering how badly JPM wanted WaMu. That's irrelevant to me, though, I'm in it for one thing and I dont care if it takes several more months to settle. There are people that have been holding since WaMu traded as WMI and there are others that have been holding since it was .02. So, I think I can manage to hold for a few more months considering some have been holding through all the mayhem for over a year now.
when i was in iraq, our only source of gambling was the stock market. a private lost 50 bucks in a poker game, the commander found out about it, and shut us down. the only thing you could do to relieve the pressure was play the market.
anyways, somehow this stock tip came out about a garbage company that traded otc. a couple guys got into it. luckily, i never got in it (although i pretended i did, for conversation's sake). one guy sunk his whole wad in it, almost tripled his money, but when he tried to sell it took forever. by the time he was able to get out of it he had actually lost more than half the money he put into it. he went through the chain of command, but there wasn't nothing they could do for him.
anyway, this is the first otc stock i have dared dabble in, and only because kewl has proven knowledgeable and been respectful in his posts, and i don't want my skepticism to....deter me from nice gains. at the same time, if it's going up, i'll ride it, but no way in hell i'd hold into the close. i just can't bring myself to trust it.
anyways, somehow this stock tip came out about a garbage company that traded otc. a couple guys got into it. luckily, i never got in it (although i pretended i did, for conversation's sake). one guy sunk his whole wad in it, almost tripled his money, but when he tried to sell it took forever. by the time he was able to get out of it he had actually lost more than half the money he put into it. he went through the chain of command, but there wasn't nothing they could do for him.
anyway, this is the first otc stock i have dared dabble in, and only because kewl has proven knowledgeable and been respectful in his posts, and i don't want my skepticism to....deter me from nice gains. at the same time, if it's going up, i'll ride it, but no way in hell i'd hold into the close. i just can't bring myself to trust it.
this seems like a good recap of what's going on
---------------------------
By next month, zombie bank holding company Washington Mutual Inc. could know the outcome of its lawsuit against J.P. Morgan Chase & Co. (NYSE:JPM). The holding company of the failed thrift sued J.P. Morgan to try to recover $4 billion in cash deposits.
U.S. Bankruptcy Judge Mary Walrath said she may decide on Washington Mutual's request before a June 24 scheduled court hearing, according to The Guardian.
WaMu claims the $4 billion was in its subsidiary, Washington Mutual Bank, at the time J.P. Morgan acquired the thrift for $1.9 billion in a Federal Deposit Insurance Corp.-brokered deal. J.P. Morgan has declined to return the money, claiming those funds are part of its acquisition. The debtor could use that cash to come up with its Chapter 11 reorganization plan.
WaMu has been trying to recover the money since its thrift was seized by the FDIC, which the bankrupt holding company has also sued. WaMu is seeking over $13 billion for the loss of its banking operations with a total of $40 billion in damages for allegedly denying claims against the firm's former banking unit, according to The WaMu Story, a site produced by a group of 500 former shareholders of Washington Mutual called the The Washington Mutual Equity Group. The suit also claims federal regulators should have conducted a "straight liquidation" instead of seizing the bank and selling it to J.P. Morgan. Meanwhile, J.P. Morgan sued the bankrupt holding company and is urging a U.S. bankruptcy court not to interfere with its FDIC-brokered purchase of the thrift's banking operations, according to Reuters. - Maria Woehr
--------------------------------------------
after the dust settles on the JPM/FDIC stuff....if they get any money/assets or whatever
than it reverts back to chapter 11 bankruptcy stuff...and they come up with some sort of plan to attempt to emerge from that if they can i would assume
---------------------------
By next month, zombie bank holding company Washington Mutual Inc. could know the outcome of its lawsuit against J.P. Morgan Chase & Co. (NYSE:JPM). The holding company of the failed thrift sued J.P. Morgan to try to recover $4 billion in cash deposits.
U.S. Bankruptcy Judge Mary Walrath said she may decide on Washington Mutual's request before a June 24 scheduled court hearing, according to The Guardian.
WaMu claims the $4 billion was in its subsidiary, Washington Mutual Bank, at the time J.P. Morgan acquired the thrift for $1.9 billion in a Federal Deposit Insurance Corp.-brokered deal. J.P. Morgan has declined to return the money, claiming those funds are part of its acquisition. The debtor could use that cash to come up with its Chapter 11 reorganization plan.
WaMu has been trying to recover the money since its thrift was seized by the FDIC, which the bankrupt holding company has also sued. WaMu is seeking over $13 billion for the loss of its banking operations with a total of $40 billion in damages for allegedly denying claims against the firm's former banking unit, according to The WaMu Story, a site produced by a group of 500 former shareholders of Washington Mutual called the The Washington Mutual Equity Group. The suit also claims federal regulators should have conducted a "straight liquidation" instead of seizing the bank and selling it to J.P. Morgan. Meanwhile, J.P. Morgan sued the bankrupt holding company and is urging a U.S. bankruptcy court not to interfere with its FDIC-brokered purchase of the thrift's banking operations, according to Reuters. - Maria Woehr
--------------------------------------------
after the dust settles on the JPM/FDIC stuff....if they get any money/assets or whatever
than it reverts back to chapter 11 bankruptcy stuff...and they come up with some sort of plan to attempt to emerge from that if they can i would assume
JPM wants to transfer the case to a Federal court:
Here is the defendants’ problem with removing this to Federal court. The defendant joined the bankruptcy of WMI. They claim to protect their interest but they joined and accepted the jurisdiction of the court. The bankruptcy case belongs to WMI and Delaware is where they decided would be the place with the jurisdiction to handle the case. Now JPM wants to drop their proceedings and take them to a federal court. It does not work that way ... once they accepted the jurisdiction of one court, they cannot jump to the next almost a year later.
JPM is screwed and they know it, their motion for appeal being dismissed IS HIGHLY LIKELY because not only did they make a fool of the judge in her own court room, they accepted the trial to begin with. By law, this case cannot be dismissed. The debtors have been waiting for over a year to get compensated. This won't be delayed much longer IMO, this is bankruptcy court afterall.
Also, remember this from JPMs most recent 10Q:
Purchase price may be modified through September 25, 2009. And a hearing right on the date of seizure, not a coincidence, something revealing will be discussed and decided.
Acquisition of the banking operations of Washington Mutual Bank
Refer to Note 2 on pages 123–124 and 127 of JPMorgan Chase’s 2008 Annual Report for a discussion of JPMorgan Chase’s acquisition of the banking operations of Washington Mutual Bank (“Washington Mutual”) on September 25, 2008, including its purchase price and the allocation of the purchase price to net assets acquired and the resulting extraordinary gain. The acquisition is being accounted for under the purchase method of accounting in accordance with SFAS 141. The total purchase price to complete the acquisition was $1.9 billion, which was allocated to the Washington Mutual assets acquired and liabilities assumed using their fair values as of September 25, 2008. The allocation of the purchase price may be modified through September 25, 2009, as more information is obtained about the fair value of assets acquired and liabilities assumed.
Here is the defendants’ problem with removing this to Federal court. The defendant joined the bankruptcy of WMI. They claim to protect their interest but they joined and accepted the jurisdiction of the court. The bankruptcy case belongs to WMI and Delaware is where they decided would be the place with the jurisdiction to handle the case. Now JPM wants to drop their proceedings and take them to a federal court. It does not work that way ... once they accepted the jurisdiction of one court, they cannot jump to the next almost a year later.
JPM is screwed and they know it, their motion for appeal being dismissed IS HIGHLY LIKELY because not only did they make a fool of the judge in her own court room, they accepted the trial to begin with. By law, this case cannot be dismissed. The debtors have been waiting for over a year to get compensated. This won't be delayed much longer IMO, this is bankruptcy court afterall.
Also, remember this from JPMs most recent 10Q:
Purchase price may be modified through September 25, 2009. And a hearing right on the date of seizure, not a coincidence, something revealing will be discussed and decided.
Acquisition of the banking operations of Washington Mutual Bank
Refer to Note 2 on pages 123–124 and 127 of JPMorgan Chase’s 2008 Annual Report for a discussion of JPMorgan Chase’s acquisition of the banking operations of Washington Mutual Bank (“Washington Mutual”) on September 25, 2008, including its purchase price and the allocation of the purchase price to net assets acquired and the resulting extraordinary gain. The acquisition is being accounted for under the purchase method of accounting in accordance with SFAS 141. The total purchase price to complete the acquisition was $1.9 billion, which was allocated to the Washington Mutual assets acquired and liabilities assumed using their fair values as of September 25, 2008. The allocation of the purchase price may be modified through September 25, 2009, as more information is obtained about the fair value of assets acquired and liabilities assumed.
i had a friend of mine that bought shares in a company called thornburg mortgage (tma). anyway, he bought at like $17 a share. don't wanna go into details, but when i got back the stock was trading at .25. they are no longer with us, but they did gap up from a quarter to over a $1 right before they passed away. in may, i had the misfortune of buying stock in a georgia bank that was about to go under. i got in at the high end on a day that it doubled and ended up losing 30%. anyways, out of respect for kewlness am i even giving this thing a look. he seems very educated in what he's doing, but at the same time i am very timid. if this thing starts climbing in the morning i'll hop in, but i'm out at the first sign of trouble. you never know when the next will be the last.
all right, who had the over in the SF game? that was the night's easy winner. i had to take the giants on the fucking run line to have some late action...
all right, who had the over in the SF game? that was the night's easy winner. i had to take the giants on the fucking run line to have some late action...
here's some interesting historical precedent....
and i agree it was definitely shady the way the shit went down with WaMu
granted this one is a bit more complicated since this is a 3 way battle with JPM in the mix.....
that said....starting to think i might roll the die and chuck a 500 bill at this puppy for the hell of it....
---------------------------
First City Bancorp in Plan To Settle Suit With F.D.I.C.
By KATHRYN JONES,
Published: Saturday, December 18, 1993
The First City Bancorporation of Texas and the Federal Deposit Insurance Corporation reached a tentative settlement of a $3 billion lawsuit today that could return $145 million to creditors and depositors and pave the way for First City to emerge from Chapter 11 bankruptcy protection next year.
First City had sued the F.D.I.C. in September, arguing that the agency had acted arbitrarily by declaring the banking company insolvent in October 1992 and seizing its assets, and that the agency would reap a windfall from the sale of those assets.
The board of the F.D.I.C. said today that it had agreed in principle to the arrangement, which would repay in full all unsecured creditors, including uninsured depositors. In addition, the F.D.I.C. said it would eventually return to First City all surpluses from the liquidation of the 20 First City banks. The banks were closed in January and sold to Texas Commerce Bank, a unit of the Chemical Banking Corporation, and others.
Neither side would put a dollar value on the proposed settlement, but First City officials, in testimony at bankruptcy hearings in Dallas, had estimated that it would take $125 million to pay creditors and $20 million to cover uninsured depositors.
Shareholders could receive further benefits as the F.D.I.C. finishes liquidating the $8 billion in assets it seized when it declared First City insolvent.
Analysts said the settlement was an embarrassment for the F.D.I.C., which was criticized by First City officials when it closed the bank as they were putting the final touches on a $400 million recapitalization plan.
"In hindsight, it looks like the F.D.I.C. acted too hastily," said Frank W. Anderson, an analyst with Stephens Inc. "It's unusual for them to settle so quickly."
But Andrew Porterfield, a spokesman for the F.D.I.C., said the question "is not whether we should have closed the bank or not."
Rather, he said, the First City case was unusual because the F.D.I.C. had sold the First City banks at a $430 million premium above the value of the deposits. "That helped cut our costs a great deal," Mr. Porterfield said. "We think there will not only be no loss to the bank fund, but there will be a surplus."
The proposed settlement, which is subject to a definitive agreement that must be approved by the Federal Bankruptcy Court, would be paid in two stages. After it filed a reorganization plan, First City would receive cash and other assets to bring it out of bankruptcy. And over time, additional cash and assets would be returned to First City after the F.D.I.C. and the company established the size of the surplus from the receivership and liquidation of the 20 First City banks.
First City, which sued the Office of the Comptroller of the Currency and the Texas Banking Commissioner as well as the F.D.I.C., would drop its lawsuits under the settlement.
The ultimate value of the settlement will depend on the prices the F.D.I.C. receives for the First City assets and negotiations between the two sides over the amount of the surpluses in the receiverships. Working Out Disparities
Bob Brown, the president and chief operating officer of First City, said the agreement would allow for a settlement while the two sides worked out their disparities of estimates on the surplus. The settlement will be the "cornerstone" of First City's attempt to emerge from bankruptcy protection, he said.
On Monday, the company will ask the bankruptcy court for an extension for filing a bankruptcy plan. First City said it could emerge from Chapter 11 by the summer.
"It's pretty good news," Mr. Brown said. "Instead of fighting all the time, it will be nice to get on to something positive."
Mr. Brown said he believed that First City might eventually get back into banking or a banking-related business.
and i agree it was definitely shady the way the shit went down with WaMu
granted this one is a bit more complicated since this is a 3 way battle with JPM in the mix.....
that said....starting to think i might roll the die and chuck a 500 bill at this puppy for the hell of it....
---------------------------
First City Bancorp in Plan To Settle Suit With F.D.I.C.
By KATHRYN JONES,
Published: Saturday, December 18, 1993
The First City Bancorporation of Texas and the Federal Deposit Insurance Corporation reached a tentative settlement of a $3 billion lawsuit today that could return $145 million to creditors and depositors and pave the way for First City to emerge from Chapter 11 bankruptcy protection next year.
First City had sued the F.D.I.C. in September, arguing that the agency had acted arbitrarily by declaring the banking company insolvent in October 1992 and seizing its assets, and that the agency would reap a windfall from the sale of those assets.
The board of the F.D.I.C. said today that it had agreed in principle to the arrangement, which would repay in full all unsecured creditors, including uninsured depositors. In addition, the F.D.I.C. said it would eventually return to First City all surpluses from the liquidation of the 20 First City banks. The banks were closed in January and sold to Texas Commerce Bank, a unit of the Chemical Banking Corporation, and others.
Neither side would put a dollar value on the proposed settlement, but First City officials, in testimony at bankruptcy hearings in Dallas, had estimated that it would take $125 million to pay creditors and $20 million to cover uninsured depositors.
Shareholders could receive further benefits as the F.D.I.C. finishes liquidating the $8 billion in assets it seized when it declared First City insolvent.
Analysts said the settlement was an embarrassment for the F.D.I.C., which was criticized by First City officials when it closed the bank as they were putting the final touches on a $400 million recapitalization plan.
"In hindsight, it looks like the F.D.I.C. acted too hastily," said Frank W. Anderson, an analyst with Stephens Inc. "It's unusual for them to settle so quickly."
But Andrew Porterfield, a spokesman for the F.D.I.C., said the question "is not whether we should have closed the bank or not."
Rather, he said, the First City case was unusual because the F.D.I.C. had sold the First City banks at a $430 million premium above the value of the deposits. "That helped cut our costs a great deal," Mr. Porterfield said. "We think there will not only be no loss to the bank fund, but there will be a surplus."
The proposed settlement, which is subject to a definitive agreement that must be approved by the Federal Bankruptcy Court, would be paid in two stages. After it filed a reorganization plan, First City would receive cash and other assets to bring it out of bankruptcy. And over time, additional cash and assets would be returned to First City after the F.D.I.C. and the company established the size of the surplus from the receivership and liquidation of the 20 First City banks.
First City, which sued the Office of the Comptroller of the Currency and the Texas Banking Commissioner as well as the F.D.I.C., would drop its lawsuits under the settlement.
The ultimate value of the settlement will depend on the prices the F.D.I.C. receives for the First City assets and negotiations between the two sides over the amount of the surpluses in the receiverships. Working Out Disparities
Bob Brown, the president and chief operating officer of First City, said the agreement would allow for a settlement while the two sides worked out their disparities of estimates on the surplus. The settlement will be the "cornerstone" of First City's attempt to emerge from bankruptcy protection, he said.
On Monday, the company will ask the bankruptcy court for an extension for filing a bankruptcy plan. First City said it could emerge from Chapter 11 by the summer.
"It's pretty good news," Mr. Brown said. "Instead of fighting all the time, it will be nice to get on to something positive."
Mr. Brown said he believed that First City might eventually get back into banking or a banking-related business.
