This has been forwarded to the EC's counsel and the UST (about the UST's powers
If the legal arguments presented here are valid the UST and EC must take action. A valid claim of lack of jurisdiction can stop the confirmation process in its tracks, and Rosen has said over and over again that unless all aspects of the GSA are approved, the plan will collapse. Well, unless Congress changes the law to give Judge Walrath jurisdiction over the FDIC claims, the plan can't be confirmed. As the foremost bankruptcy law group in the world, Weil Gotshal would certainly be familiar with Section 554's requirement that a lawsuit slated for abandonment be valued and only abandoned if found to be worthless to the estate, but just failed to point out Section 554 to the court (i.e., that to "value" the property under Section 554 WMI will have to resolve the suit before Judge Collyer) that she has no authority to authorize the actions required under the plan. The only way the FDIC lawsuits can be valued is by litigation (in Judge Collyer's court -- be sure to read her order) or settlement under Section 1123 of the bankruptcy code, but that would entail giving WMI consideration (i.e., something of value that WMI doesn't already own!). If WMI gets nothing in return for the end of the suit, Section 554's requirements apply.
And fyi, the UST can seek the unsealing and use the Hoffman letter as an exhibit.