The $25 Billion dollar question is…Where did $25 Billion go? Germanuser2 posted in an earlier thread, the link for the filing of the Voluntary Bankruptcy Petition on Sept 26th 2008. If you click on the link on page 4, it shows the following:
Total Assets: $32,896,605,516
Total Liabilities: $8,167,022,695
http://www.kccllc.net/documents/0812229/...
Now, if you look at the Sept 26 - Oct 31 2008 NOL it shows the following on page 6 and has been similar since then:
Total Assets: $7,711,791,036
Total Liabilities: $8,287,643,630
http://www.kccllc.net/documents/0812229/...
So where did the additional almost $25 billion in assets go? The Voluntary Petition gives us a clue again on p. 4 in the footnote marked by the assets where it states the following:
“A significant portion of the debtor’s assets are held on account at Washington Mutual Bank and Washington Mutual Bank fsb.”
Since they were "on account", they were most likely, liquid funds - Cash. We know 4 billion of this was on account at FSB and is tied to the pending Summary Judgment and is already on the MOR. So what accounts were these other funds in and why have they not been addressed yet?
It looks like these funds were associated with the FSB bank as it was clearly well capitalized when “gifted” to JPM. WMI was in the process of moving about $20 Billion from FSB to the big bank and FSB would still be one of the best capitalized banks in the country.
http://www.kccllc.net/documents/0812229/... (large download)
Page 119-120 shows the application for capital distribution to the OTS on August 15, 2008. On p 121, the Leverage Capital Ratio was projected to be at 41.34% on 9/30/08 and 25.64% on 12/31/08. A “well capitalized” bank is 5% so FSB had a ton of cash.
It appears from the initial Voluntary Petition that WMI, at the time, expected this cash to remain on their balance sheets. Since the FSB bank was not seized but given to JPM since WMB held FSB’s stock, this massive amount of cash was probably transferred to JPM as well. Not a bad deal for the $1.9 Billion purchase price from the FDIC.
If we have claim to this money and get it back in our hands, it would put A>L by almost $24 Billion dollars before the tax refunds.
So when will these funds finally be addressed? That is the $25 Billion dollar question.