The FDIC Takes on JP Morgan

Did JP Morgan really think WaMu was going to go down without a fight?

If you believe what some of us believe, WaMu was a murder. In broad daylight. Now it’s starting to look like JP Morgan should have considered its potential prey more carefully.

Now wait a second, not that long ago Washington Mutual, JP Morgan, and the FDIC had reached this cozy little settlement whereupon JPM would give up the $4 billion in WaMu deposits it was holding hostage (easy) and in return would receive $6 billion in "other" assets which could probably be your crap mortgages and other risky bullsh*t. WaMu’s bankrupt parent was supposed to get $2 billion in tax breaks, with $1.5 billion in refunds (on top of that) due to the FDIC. This satiated WaMu’s thirst for JP Morgan’s ass[ets] but apparently the FDIC isn’t happy with the deal. Run, WaMu, run! It’s JP Morgan’s problem now!

WSJ:

The Federal Deposit Insurance Corp. backed away from its support for a $1.4 billion tax break benefiting J.P. Morgan Chase & Co., setting up a battle between the regulator and the nation’s second-largest bank.

The tax benefit stems from J.P. Morgan’s acquisition of Washington Mutual and is part of the bankruptcy proceedings of the failed Seattle thrift’s parent company. Washington Mutual is eligible for $2.7 billion to $2.8 billion in refunds based on a 2009 economic stimulus bill that allowed companies to apply losses from 2008 and 2009 against taxes paid in the previous five years…

[Holders of Washington Mutual Bank bonds have been arguing J.P. Morgan should be denied any refunds because of the government aid it received. Renee Dailey, a lawyer for one group of bank bondholders, said the FDIC’s refusal to sign off on the reorganization plan filed Friday "is a chance for the FDIC board to actually look at the terms of the proposed settlement and decide it’s not in the best interests of the receivership and not an appropriate exercise of their fiduciary duties." She said it is unlikely the bankruptcy judge will sign off on a plan without FDIC approval. Continue reading "FDIC Stands Between J.P. Morgan and a WaMu Payoff" here.>> – Ilene ]

Back to JDA: Is this what you wanted, JPM? Because now you have a**hole customers in California like myself and don’t doubt for a second that I’m not taking notes every time I call customer service and get some a**hat in India pretending his name is Steve.

Hope it was worth it.

Full report on Chase at a later date. After I have withdrawn all of my deposits at the end of this experiment. Naturally.