ISRAEL TRUTH TIMES: Re: YOUR BANK might be broke in the next 2 days; found more information.

Friday, January 9, 2009

Re: YOUR BANK might be broke in the next 2 days; found more information.

Dear all,

A few days ago, if you recall, I warned you about JP Morgan, based on
a report I had received from Carl, who in turn had found this
information on the blog of a notorious antisemite, Hal Turner. I got
quite a bit of flack about it, see below.

This story was bothering me, so I kept looking for clues as to why
anybody would spread this information if it is untrue.

Please see below what I just found on the Yahoo message board for JPM.
You'll admit that this is significant. The date, highlighted, is not
48 hours from now, but a few weeks from now.

Whether it means that the bank would have to close its doors, I have no idea.

Please read, and decide what it's worth. I am glad I didn't just
spread rumors for nothing. I'll say: THANK YOU CARL, for alerting us!

Mammoth Lawsuit Against JPM 27-Dec-08 09:10 pm
On 9/25/08 the FDIC/OTS seized Washington Mutual, Inc.'s (WMI) banking
subsidiaries and awarded them to JPM for $1.9 billion. The $1.9
billion is being held by the FDIC first for distribution to the
creditors of the seized subsidiaries, then any residual to WMI.

The seized assets included 2,200 branches, $265 billion in deposits,
and two credit card companies.

The next day WMI filed for protection under Chapter 11 of the Bankruptcy Code.

Section 548(a)(1)(B) of the Bankruptcy Code (see
http://www4.law.cornell.edu/uscode/uscod... allows a debtor to recover
assets that have been 'fraudulently' conveyed. All that is required is
a showing that WMI's property was seized (1) within one year of its
bankruptcy filing, (2) while WMI was insolvent or undercapitalized or
was made insolvent or undercapitalized by the seizure, and (3) that
WMI did not receive reasonably equivalent value for the seized
property. (FYI, a debtor is presumed to be insolvent for the period
immediately before its bankruptcy filing.)

WMI has $4.4 billion on deposit with JPM that was on deposit with its
former subsidiary, Washington Mutual Bank, and there has been much
speculation that WMI is allowing JPM to keep the money because the
parties are discussing a buyout/settlement of litigation claims.

There have been numerous delays on the hearing for release of this
money (four, so far), and my experience as a former bankruptcy
attorney tells me that if JPM doesn't make an acceptable offer by the
next scheduled hearing date, 1/29/09 (see
http://www.kccllc.net/documents/0812229/... WMI will institute a
fraudulent conveyance adversary proceeding. Such an action won't take
long to litigate as it will be a battle of pleadings supplemented by
financial analyses. Neither the FDIC nor JPM has a chance of winning.

WMI's equity in the seized assets has been assessed at $26 billion.
This is BOOK value and the market value would likely be around $200
billion (if you estimate it takes about $10MM per branch x 2,200
branches, plus the credit card companies). The bankruptcy court will
award WMI the market value as that is the truest assessment of the
seized assets.

Subtracting the seized subsidiaries' debts of $30 billion plus the
value of toxic mortgage debt would leave the FDIC and JPM on the hook
for about $170 billion. The losing parties would appeal but are
unlikely to find relief through higher courts.

I said earlier this week on WMI's board that JPM's long time
bankruptcy counsel was Davis Polk, and that its department head, Don
Bernstein, is an excellent bankruptcy attorney. Accordingly, all of
the foregoing has been communicated to JPM's general counsel (Stephen
M. Cutler) and to Dimon. In the long run Dimon won't be able to out
run this train and will have to settle with WMI or be on the hook for
hundreds of billions in liability which would bankrupt JPM.

I suggest anyone who doubts the foregoing solicit advice of bankruptcy
counsel regarding it.
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bopfan

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>>>
>>> Dear DS, Carl and HalTurner, Are you all spreading unsubstantiated rumors? To do harm? Because you didn't check? What's the truth of this & if you don't know it's true, don't send it out. It causes untold harm, physical, mental, psychological as well as financial.
>>>
>>> Gail
>>
>