Para los que habian olvidado los $20 Billones que faltan
Was WMB solvent or insolvent when seized?
That is the only issue left regarding the seizure. Both the OTS and FDIC now have conceded publicly that WMB was adequately capitalized at the time that is was seized. Insufficient capital (due to bad loans) is the reason that failed banks are typically seized. So was WMB insolvent? Sheila Bair has publicly said that WMB had $4.4 billion in cash at the time that OTS seized it. She characterized that amount of cash as a 'dangerously' low level for a bank the size of WMB. Did WMB have access to other cash? WMB fsb (a subsidiary of WMB) apparently had $17 billion in cash at the time of the seizure that would have been available to WMB. Also, we know that WMI had $4 billion on deposit at WMB (the infamous money that JPM has been clinging on to) that they obviously could have made available to WMB with a couple of clicks of computer keys if they had needed to. And then there was the Federal Reserve discount window that we know was available to WMB. Sheila claimed that there was 'only' $10 billion available through the discount window at the time that WMB was seized but obviously that could have (and was) increased for a financial crisis. The WMB cash position is going to move to front and center on the issue desktop if the FDIC trial in DC District Court ever cranks up and it appears that Stephen Susman is absolutely correct that the value of the DC litigation is...an enormous asset of the estate. The litigation rights could (and should) be sold with the WMI name by the estate to allow the litigation to be completed and the FDIC damage to WMI to be punished and made an example of for the future.