Here are two emails I have sent today on Sep 27, 2008 to the FDIC Chairman S.Bair, President of the USA, Vice President of the USA, with copies to my MA congressmen and editors at the New York Times, Washington Post, and Seattle Times and hope they will public my comments.
I will let you know when I receive any responses.
Here are the emails sent:
Quote
From: ChefMeanyTo: editor@newyorktimes.com, editor@washingtonpost.comCC: sbair@fdic.gov, president@whitehouse.gov, vice_president@whitehouse.gov, mallison@seattletimes.comSent: 9/27/2008 12:19:11 P.M. Eastern Standard TimeSubj: Fwd: Ref: Washington Mutual Inc
From: ChefMeanyTo: sbair@fdic.gov, president@whitehouse.gov, vice_president@whitehouse.govCC: mallison@seattletimes.comSent: 9/27/2008 12:02:55 P.M. Eastern Standard TimeSubj: Ref: Washington Mutual Inc
Dear Chairman S. Bair
I am writing to you in reference to your recent action in seizure of Washington Mutual Bank and selling the majority of its' assets to JPMorgan for $1.9billion as reported.
Although I do realize your position in striving to protect the bank depositors and tax payers interest it seems the action taken is extremely lacking for a democratic society. I am specifically outraged on learning about the OTS/FDIC conducting a "secret auction" of WaMu without informing shareholders of such actions thereby not allowing executive management of WaMu to meet it's fiduciary and legal obligation of protecting and working in the best interests of shareholders as expressed in the corporate bylaws??? This action by the government agency was conducted to protect its own interest by mechanism to avoid using the FDIC insurance due to the huge size of the WaMu institution that would have depleted the FDIC insurance fund. Your action is more representative of a dictatorship and not of a democratic society. Private investors have been wiped out as a direct result of the actions of your agency thus causing severe damage to their retirement 401k pension plans and/or private investments aimed at being able to send their children to college or secure a better opportunity for their future family generations. I am still completely baffled how a government based on democracy can make such a move while aimed at helping a portion of the U.S. citizens hiding it's real agenda of protecting it's own interests, the agency's assets, all at the expense of private investors that were placed at a complete disadvantage by not being informed of hidden corporate matters affecting their ownership interest. This type of abusive martial law act did not only hurt financial institutions of Wall Street which no one has much sympathy for but also has devastated individual private investors trying to do right for their families. I was under the perception that bank robbery was a crime in this country. But I consider the move made by your agency on Sept 25, 2008 was no more than a form of this criminal act as after the FDIC/OTS seizure caused their stockholding values to be reduced to nearly zero. The fair and just action would have been to arrange in the sale to JPMorgan for a reasonable value being paid to equity holders in WaMu being that assets sold by your agency to JPMorgan did in fact have value in which shareholders are not receiving any compensation. It has been just stolen from them by your actions! !
Our government certainly needs change and in the manner in which it regulates and acts.
http://www.reuters.com/article/etfNews/idUSN2631577020080926
Thank you for your time and I would appreciate a response.
Sincerely,
Lawrence Meany
Waltham, MA 02453
ChefMeany@aol.com
cc:kennedy.senate.gov/senator/contact.cfm kerry.senate.gov/v3/contact/email.html
Subject:
Second part to FDIC Ref WaMu
Date:
9/27/2008 1:19:20 P.M. Eastern Standard Time
From:
ChefMeany
Reply To:
To:
sbair@fdic.gov, president@whitehouse.com, vice_president@whitehouse.gov
CC:
editor@newyorktimes.com, editor@washingtonpost.com, mallison@seattletimes.com
Dear Harriman S. Bair
Subsequent to my earlier EMail in regards to Washington Mutual (WM) I also wanted to further go into detail on just how corrupt and dishonest this undertaking by your agency on Sep 25, 2008.
We all are aware that Sec.Treas. Paulson's proposed Mortgage Resolution Trust (MRT) Act currently being bickered about in Congress would have been able to maintain and keep WaMu as a going concern without the damage that has been created by your illicit action which by design has taken by a scheme of theft monetary compensation duly owed to WaMu's shareholders as equity owners in this institution. And most incomprehensible is that this action by FDIC was perpetrated by the continued negative media press causing panic and fear to customers of WaMu.
If the government was so concerned about the claimed $16/$17billion of withdrawn deposits in the last week before the demise created to WaMu leading to the “secret auction”, then the government could have offered a temporary bridge loan until Congress was able to pass the MRT Act and thereby save this historical institution of over one century of service to this country and U.S. citizens. There was no need to purposely destroy this enterprise and wipe out its shareholders.
It is suspect that the OTS/FDIC took this position on this past Thursday eve Sep 25, 2008 when all other action by the FDIC on failing banks were taken after the market closed on the end of the week on a Friday evening. I allege that your action was promulgated under pressure from the current White House administration to act as a political pressuring mechanism to force Congress into rapidly take action on the MRT Act which seemed to have come to a stall on Thursday Sep 25, 2008. This will require further and intense investigation and I will be requesting same through the proper agency in the near future as legal recourse is considered for lawful remedy on behalf of all shareholders which have been deprived of their legal compensation of ownership value that was with intent taken from them through criminal theft.
Again I wish to have your response at the soonest opportunity.
Thank you in advance for your time.
Sincerely
Lawrence Meany
Waltham, MA 02453
ChefMeany@aol.com
cc:kennedy.senate.gov/senator/contact.cfm kerry.senate.gov/v3/contact/email.html
Unquote
Lets hear from everyone so that we can let Washington know that their actions are unacceptable and we demand to receive justice !!! post your comments and if willing to join an online Petition which I will create if there is enough interest in signing to present to our congressmen and the White House.....
Stand together and SPEAK UP AMERICA ! ! !
Saturday, September 27, 2008
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10 comments:
BIGGEST REWARD to SHORT SELLORS WHO WERE THE ONLY ONES BENEFITTED IN THE DEAL.
They banned the short-sales but finally rewarded and encouraged them by making the value of a stock literally ZERO.
GENUINE INVESORS WHO WANTED THE BANK TO SURVIVE THE TROUBLING TIME - ARE PUNISHED AND DISCOURAGED FOR EVER. THIS IS THE WORST POSSIBLE SIGNAL THEY SENT TO INVESTORS.
HIGH LEVEL CURRUPTION TO MAKE MONEY FOR JP MORGAN STANLEY THIS REQUIRES CRIMINAL INVESTIGATION.
BUSINESS MEDIA HAS A ROLE AND THEY SEND JUDGEMENTS BEFORE THE ENQUIRY.
THIS WILL KILL ALL THE BANKS IN THE NEAR TERM AND DISCOURAGE PUBLIC PARTICIPATION FOR EVER.
JP MORGAN SHOULD PAY THE NINE DOLLORS IT PROMISED ERALIER - THAT IS THE ONLY SIGNAL THAT CAN SAVE THE FUTURE OF BANKING SYSTEM - OTHERWISE THEY WILL NEED 7 TRILLION NOT 700 BILLION.
UNNECESSARY PANIC WAS CREATED BY THE FDIC AND JPM WHICH WILL DESTROY ALL THE EFFORTS MADE BY THE GOVERNMENT.
I BELEIVE BERNAKE, PAULSON AND PRESIDENT BUSH WERE CHEATED BY A GREEDY GROUP OF PEOPLE.
UNDER MCCAIN THIS WOULD NOT HAVE HAPPENED - HE WOULD HAVE MEDE THEM ACCOUNTABLE. BUSH RESPECTS ACADEMICIANS AND TRUST THEM - BUT THIS IS THE BIGGEST MISTAKE BY THE REGULATORS - MCCAIN IS CORRECT - FIRE THEM AND MAKE THEM ACCOUNTABLE.
You are absoluty right. The government could have taken other actions to protect the FDIC and not wipe out all equity holders of WM. With this action they are destroying the confidence of the American investor that the government is there to protect us, not rape us financially by pulling illegal stunts like this one.
You are absoluty right. The government could have taken other actions to protect the FDIC and not wipe out all equity holders of WM. With this action they are destroying the confidence of the American investor that the government is there to protect us, not rape us financially by pulling illegal stunts like this one.
While the markets were closed, and the Chairman of Washington Mutual was on a flight from New York to Seattle, the largest theft in US history took place. Although there has been negative news about the financial stocks for the past few months, including Washington Mutual, the FDIC and Washington Mutual repeated assurances that the bank was in good shape through 2010 over and over and the fact that WaMu met it's daily requirements. If that is the case, the seizure and immediate for profit sale of WAMU to JP Morgan Chase raises many questions.
This isn't so much about the failure of WAMU, as that may have happened eventually anyway, but suddenly the FDIC has become a for profit institution taking over and selling off a company for 1.9 Billion dollars. This is unprecedented in many ways, and in many ways probably illegal. The shareholders own WAMU, not the FDIC. Yes, the FDIC regulates banking, however shareholders own the company. WAMU could have literally gone bankrupt and sold off chairs, computers, land etc and shareholders would have received some portion of compensation. In this seizure, Chase gets the assets and deposits at a bargain, the FDIC gets 1.9 Billion dollars and shareholders get nothing. It is literally something you might think would happen in Nazi Germany, not the United States.
It seems as if these failures are following a pattern that we are seeing over and over. First, short sellers work to smear the bank's reputation. Major media outlets join the fray. Analysts downgrade. Ratings agencies follow with downgrades. Cost of insurance skyrockets creating self-fulfilling prophecy. The Bank forced to come up with reserve capital to please ratings agencies. Dilution of shareholder equity at sale prices. Share price falls further triggering more downgrades from above-mentioned entities. The Media really starts to salivate now and creates all kinds of instability with doom and gloom, and seem outright gleeful about it. Then institutions and high net worth individuals begin pulling deposits out of the targeted bank. Further ratings agencies downgrades. The media then creates a self fulfilling prophesy with constant reporting of doom and gloom and individuals also pull their money out of the targeted bank. Then the FDIC having all the ammunition it needs steps in and seizes the bank assets and sells them to whoever they are in bed with that week.
Basically the government decided that they liked JP Morgan Chase so much as an institution that they would gift them this company.
It's worse than that though, last week Goldman Sachs upgraded WM to hold knowing all of this was going on. Serious misrepresentation of the facts. The story told to the public was that Goldman was supposed to be brokering a sale. This at the expense of average Americans. Sure there are a lot of institutions that owned shares in WAMU, but there are an incredible amount of average Americans who had large portions of their retirements tied up in WAMU stock. Without that upgrade, many may not have kept the stock through this trouble. Some are now threatening suicide. Families are breaking up. People have lost everything. How can the American public not be safe investing in an American Bank. A bank that owns assets, that had a large deposit base and that stated it could sustain life until 2010.
That doesn't even begin to mention that by next week the whole dynamics of WM could change for the better with the government bailout coming. Stock could have increased in value once the toxic paper was taken from WM. More liquidity would have been available. The 2010 deadline would be extended to many more years once the toxic paper was removed. This was not a bank in trouble in any of the standards that have been repeated over the last eighty years.
You really want to get upset about it, take a look at the aftermarket trading volume. Before any of this was announced, there were three very large trades in the early aftermarket, in a three minute period totaling almost 13 million shares. The FDIC and the markets allowed someone to get inside and make away with some 12 million dollars. There is no way that trading should not have been suspended before this was allowed to happen, just another case of corruption and manipulation by the government and large institutions.
Possibly the most damaging could be what this could do to the American psyche as a whole. The corruption in the system has just killed the morale and spirit of many people. They have no trust in Wall Street, the financial system, politics and the future of America! Corruption, short selling, manipulation of stock, and abusive ratings downgrades are all responsible for bringing this company down to the point that this could happen, and then a corrupt government agency cherry picked a bargain for their buddies at JPMorgan who get a huge upside. The FDIC facilitated a transaction that was so corrupt and damaging words cannot properly describe it.
In the end, it is the system as a whole that will lose, as the average American can no longer trust not only it's banking industry, or Wall Street, but apparently it's government anymore.
This is what their intention was all along. This was an article on Jan 21 2008, showing their desire and subsequent bid of $8 per share for WaMu.
Market chatter about JPMorgan Chase & Co. acquiring Washington Mutual Inc. picked up over the year's first three-day weekend, given the mortgage turmoil and the industry's tradition of using long weekends to wrap up mergers.
JPMorgan (NYSE: JPM) is weathering the subprime mortgage problems better than most, sparking talk that CEO Jamie Dimon might be hunting for acquisitions.
Washington Mutual (NYSE: WM) is thought to be at the top of his shopping list, since it would bring the Chase flag to the West Coast and Southeast.
Over the weekend, one analyst issued a report titled, "Will Washington Mutual be here on Tuesday?"
"Rumors on the Street are that JPMorgan Chase is ready to make a bid. For everyone's sake let's hope this story proves to be correct," Dick Bove, an analyst with Punk Ziegel & Co. said in a report issued Jan. 19.
The issue facing WaMu and its board, Bove said, is whether the company would "aid its shareholders most by continuing to fight the good fight to return to consistent profitability or by selling.
"The acquirer would be getting one of the premier retail banking systems in the United States," he added.
WaMu has 2,200 branches, each with an average of $63 million in deposits. It's also one of the largest banking companies along the West Coast, fifth-largest in Florida and enjoys a presence in major cities in the Mountain West as well as New York.
Bove says he anticipates the dividend soon will be eliminated altogether after the company cut it substantially last year. Many investors anticipate the bank will have to take more write-offs against its portfolio of subprime and so-called option adjustable-rate mortgages that give borrowers a choice of monthly payments to make, which can result in a higher loan balance over time, or negative amortization.
The outlook for WaMu reflects how quickly the mortgage market deteriorated since last summer. In early August, WaMu CEO Kerry Killinger said that he thought the Seattle bank could benefit from opportunities arising amid the mortgage turmoil.
"We have the opportunity to take advantage of the dislocations occurring in the mortgage business," Killinger said at the time.
He also said the bank planned to remain independent, but he underscored the value of the bank's franchise.
There's a top tier of banks in California -- Bank of America, Wells Fargo and Washington Mutual -- who have substantial branch networks in the state. It's quite a drop to the next tier," he said.
Who are affected?
As of June 30, WaMu had more than 43,000 employees, more than 2,200 branch offices in 15 states and $188.3 billion in deposits.
And the innocent shareholders.
They have lost their peace, money and everything.
James Dimon, J.P. Morgan's chairman and chief executive, has long coveted Florida -- as have his customers. Although WaMu is dominated in Florida by Bank of America and Wachovia, J.P. Morgan is likely to boost WaMu's 3% market share in the state by tapping into its base of New York customers who spend the winter months in Florida.
Last year, one of those New York customers expressed frustration at J.P. Morgan's annual meeting, telling Mr. Dimon "it galls me" that the bank didn't have a presence there.
"It p- me off too," Mr. Dimon said, drawing laughter from the audience. "Believe me, we would love to be much bigger in Florida and we'll find some way to do it. You will see us there."
I agree with above posts...
The FDIC takes credit for preventing a potential payoff for $5K checking accounts but doesn't mention that's at the expense of $100K investment accounts, 401k's, etc.
What kind of an insurance entity is FDIC? It's clear, FDIC is Fed Designed Insurance Corruption.
Ahhh, Booo Hooo, did your high holy WaMu do a Doo Doo? Did the Emerald City lay sh***y? This joke of a "bank" tried to rip my wife and I off of $800 when they swallowed Great Western Financial in California in the late 90s. Wassamatta? WaMu was sooo cool with their new age style and they busted you out? SUCKER!
Please keep your unemployed in Washington and Oregon, we don't need your superior types down here sucking on our teats ANY MORE!!! SUCK IT UP PAC NORWEST!!! California is sick of your TUDE and your hatred toward the Golden State that saves you sorry ass every time the goin' gets tough!
CEO sold out the company right after CEO pay cuts were mentioned for the $700B bailout plan, definately not hired by WaMu employees.
http://www.nutzworld.com/invest/wamu-how_the_government_failed_america.htm
WAMU, JP Morgan Chase, and the FDIC - Who exactly is looking out for you?
While the markets were closed, and the Chairman of Washington Mutual was on a flight from New York to Seattle, the largest theft in US history took place. Although there has been negative news about the financial stocks for the past few months, including Washington Mutual,the FDIC and Washington Mutual repeated assurances that the bank was in good shape through 2010 over and over and the fact that WaMu met it's daily requirements. If that is the case, the seizure and immediate for profit sale of WAMU to JP Morgan Chase raises many questions.
This isn't so much about the failure of WAMU, as that may have happened eventually anyway, but suddenly the FDIC has become a for profit institution taking over and selling off a company for 1.9 Billion dollars. This is unprecedented in many ways, and in many ways probably illegal. The shareholders own WAMU, not the FDIC. Yes, the FDIC regulates banking, however shareholders own the company. WAMU could have literally gone bankrupt and sold off chairs, computers, land etc and shareholders would have received some portion of compensation. In this seizure, Chase gets the assets and deposits at a bargain, the FDIC gets 1.9 Billion dollars and shareholders get nothing. It is literally something you might think would happen in Nazi Germany, not the United States.
It seems as if these failures are following a pattern that we are seeing over and over. First, short sellers work to smear the bank's reputation. Major media outlets join the fray. Analysts downgrade. Ratings agencies follow with downgrades. Cost of insurance skyrockets creating self-fulfilling prophecy. The Bank forced to come up with reserve capital to please ratings agencies. Dilution of shareholder equity at sale prices. Share price falls further triggering more downgrades from above-mentioned entities. The Media really starts to salivate now and creates all kinds of instability with doom and gloom, and seem outright gleeful about it. Then institutions and high net worth individuals begin pulling deposits out of the targeted bank. Further ratings agencies downgrades. The media then creates a self fulfilling prophesy with constant reporting of doom and gloom and individuals also pull their money out of the targeted bank. Then the FDIC having all the ammunition it needs steps in and seizes the bank assets and sells them to whoever they are in bed with that week.
Basically the government decided that they liked JP Morgan Chase so much as an institution that they would gift them this company.
It's worse than that though, last week Goldman Sachs upgraded WM to hold knowing all of this was going on. Serious misrepresentation of the facts. The story told to the public was that Goldman was supposed to be brokering a sale. This at the expense of average Americans. Sure there are a lot of institutions that owned shares in WAMU, but there are an incredible amount of average Americans who had large portions of their retirements tied up in WAMU stock. Without that upgrade, many may not have kept the stock through this trouble. Some are now threatening suicide. Families are breaking up. People have lost everything. How can the American public not be safe investing in an American Bank. A bank that owns assets, that had a large deposit base and that stated it could sustain life until 2010.
That doesn't even begin to mention that by next week the whole dynamics of WM could change for the better with the government bailout coming. Stock could have increased in value once the toxic paper was taken from WM. More liquidity would have been available. The 2010 deadline would be extended to many more years once the toxic paper was removed. This was not a bank in trouble in any of the standards that have been repeated over the last eighty years.
You really want to get upset about it, take a look at the aftermarket trading volume. Before any of this was announced, there were three very large trades in the early aftermarket, in a three minute period totaling almost 13 million shares. The FDIC and the markets allowed someone to get inside and make away with some 12 million dollars. nasdaq screenshot There is no way that trading should not have been suspended before this was allowed to happen, just another case of corruption and manipulation by the government and large institutions.
Possibly the most damaging could be what this could do to the American psyche as a whole. The corruption in the system has just killed the morale and spirit of many people. They have no trust in Wall Street, the financial system, politics and the future of America! Corruption, short selling, manipulation of stock, and abusive ratings downgrades are all responsible for bringing this company down to the point that this could happen, and then a corrupt government agency cherry picked a bargain for their buddies at JPMorgan who get a huge upside. The FDIC facilitated a transaction that was so corrupt and damaging words cannot properly describe it.
In the end, it is the system as a whole that will lose, as the average American can no longer trust not only it's banking industry, or Wall Street, but apparently it's government anymore.
Source Articles
JP Morgan said in its Thursday evening conference call that excluded from the transaction are the senior unsecured debt, subordinated debt, and preferred stock of Washington Mutual's banks. JPMorgan Chase will not be acquiring any assets or liabilities of the banks' parent holding company or the holding company's non-bank subsidiaries. As part of this transaction, JPMorgan Chase will make a payment of approximately $1.9 billion to the FDIC
JPMorgan Buys WaMu Deposits as Regulators Seize Failed Thrift
Bloomberg
JPMorgan Chase & Co. became the biggest US bank by deposits, acquiring Washington Mutual Inc.'s branch network for $1.9 billion after the ...
Government seizes Washington Mutual, sells most to JP Morgan Chase Dallas Morning News
Government Seizes WaMu and Sells Some Assets New York Times
WaMu is seized to avert failure - Salt Lake Tribune
TD gains expertise as WaMu goes to JP Morgan
Globe and Mail, Canada
JP Morgan bought WaMu's assets for $1.9-billion (US) late Thursday, after US regulators staged the largest bank seizure ever seen in US financial markets. ...
Sale to affect other banks, real estate, economy Bizjournals.com
Investors support TD interest in WaMu Financial Post
WaMu’s Dangerous Game; Banks That Are Too … Expensive (?) Barron's Blogs
For the past few days I have been busy trying to get Congressional support to investigate the FDIC/OTS's action.....
In my state of MA...I have emailed to House Rep. Congressman Ed Markey, Senate Reps. Congressman John Kerry and Ted Kennedy...
Just received the auto response at this point...but I will give it about a week or so and if I do not get a response I will call them on the telephone...
I have also sent the following email to WaMu investor relations, CEO and Board of Directors. I have not gotten any response at this point from them. Of course I am sure they have been deluged with many investors calling them. So if I do not receive any response to my email and second request I will be calling them direct next week.
I have also searched and found the agent for service of process in my state of MA for the FDIC and after I reveiw a few more statutes of Federal Civil Code and FDIC regulations I am hoping to prepare a petition to file in the Federal Court in Boston.
EMail to WaMu:
Subject: Re: Petition Against FDIC/OTS - Behalf of Investors WaMu
Date: 9/30/2008 11:50:20 A.M. Eastern Standard Time
To: investor.relations@wamu.net, a.fishman@wamu.com, boardofdirectors@wamu.com
THIS IS SECOND REQUEST...... Please respond...
Greetings,
Could you please respond to my inquiries made on Sep 28th, 2008...I am most anxious to know if Executive Management is planning to proceed with a civil action against the FDIC/OTS that conducted their "secret auction" at the same time as WaMu's executives were striving to obtain offers through their company directed auction being conducted by Goldman Sachs thereby being sabotaged. By design the FDIC/OTS effectively caused the complete failure of the company's arranged auction which allowed the FDIC to wrongfully and prematurely seize and sell the assets of the company to JPMorgan. I would like to know the company's position so that I may consider taking civil action in federal court as a private investor against the FDIC/OTS/JPMorgan should the company not be willing to proceed on behalf of it's shareholders.
Thank you.
Sincerely,
Lawrence Meany
Waltham, MA 02453
As most are now aware WaMu is trading under the symbol
WAMUQ.PK
Closed at .08 on 9/30/08.
Company's CH11 filing listed $32billion in assets and $8billion in debt. Based on this the value of remaining shares in the company would be based on the difference or $24billion.
I am attaching a link to the SEC filing that mentions this $32billion in claimed assets is the holding company's common share interest that it holds in it's subsidy Washington Mutual Bank that was seized and sold to JPMorgan and $5billion in cash deposits in the seized/sold bank.
Kindly go to link to read but here is the point that I think WaMu will have to fight it out through it's three set of appointed legal firms against the FDIC to recover their claimed $32billion assets.
Quote
http://www.pinksheets.com/edgar/GetFilingHtml?FilingID=6172288
In its chapter 11 petition, the Company reported that the amount of assets reflected on its books and records was $32,896,605,516. However, this amount includes the Company’s common stock interest in Washington Mutual Bank, which is currently in receivership and the assets of which have reportedly been transferred to JPMorgan Chase & Co. or an affiliate. The FDIC, which was appointed the receiver for the bank, indicates on its website that it does not anticipate that there will be any recovery to the Company for that common stock interest. In addition, the Company and its non-bank subsidiaries had approximately $5 billion of cash on deposit with Washington Mutual Bank and its bank subsidiary, Washington Mutual Bank fsb, immediately prior to the time the FDIC was appointed as receiver. The Company is in the process of confirming the status of those deposits and of its other assets.
Unquote...
Will be back soon for more info..
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