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Imagine for a moment a movie about greed, government corruption and the takedown of a 300 + Billion dollar company all in the name of greed. Then a group of Mom and Pops, and average Joes stand up to the behemoth that has become and takes them down and justice is finally restored.
Now imagine the above movie not as fiction. The 300+ Billion company is Washington Mutual, the corrupt parties are J P Morgan, and well the FDIC. Then you have the shareholders, bond holders and employees who are standing up to reclaim their bank. Now you have a story.
Now many on Wall Street and Members of the FDIC are trying to justify removing 50 Billion dollars worth of capital to save the deposits of the customers was a good move, and that it really did not matter that this bank failed. Well I am here to tell you YES it did matter. Millions of investors, who are your average citizen invested in Washington Mutual not to get rich…or richer but to make a few extra bucks to elevate their low income lifestyle. To prop up their retirement savings so they can retire with peace of mind. Now those hopes and dreams have been stolen from them by the FDIC and its excuse that they were protecting the deposits. Explain that to your parents, grandparents that their mutual funded retirement savings have just been ravaged all in the name of someone else's deposits (Which by the way were already safe and were in no danger of disappearing).
The FDIC has overstepped their bounds by interfering with Washington Mutual's chances to survive on its own, and then interfered with Washington Mutual's ability to sell itself by undermining their process. Then they jumped the gun prematurely seizing the bank business and selling it for pennies on the deposit dollar.
First, the FDIC used the media to create instability in Washington mutual's deposits by issuing press statements saying that they are watching very closely the situation and may seize the bank if it looses to much liquidity. Now of course the ensuing events lead to panic thanks to these statements which lead up to a run on the bank depleting over 16 Million worth of deposits in just over a week. What they should have said was stated that deposits are safe and Washington Mutual has liquidity to weather the storm until either a sale of Washington mutual was conducted or the government bail out bill would get passed or both. Or better yet they should not have said anything at all.
Washington Mutual was already in advanced talks to sell it self, when the run on the banks deposits started to build. Washington Mutual was moving quickly to find a suitor unaware that their efforts were being hampered by the FDIC. You see for the 3 weeks leading up to the eventual seizure the FDIC was in secret talks with the same parties that Washington Mutual was in talks with only they were auctioning off their banking assets and deposits as they were already planning on seizing the company. Imagine that for a moment. 3 weeks before they took control of the bank this is before the run on the banks deposits that depleted over 16 Billion dollars. They sold the assets to the winner J.P. Morgan on Tuesday or Wednesday, but announced it Thursday in a out of character move as usually these things happen of Fridays after the markets close. Now they claim they announced early as there was a leak. How could it get leaked out if this has been going on for 3 weeks without even Washington mutual's CEO knowing about it?
Now with the Bail Out Bill imminently about to be passed and Washington Mutual still with some liquidity to last a little while longer even with the run on the bank deposits continuing. Even if they needed a little help via a loan to hold them ride out the storm. Everyone knew this bill was going to be passed. So to take control of the bank and its operations really did not save the deposits. Come Monday or even Tuesday when the bill got passed they would still have been ok. Turns out it was passed the following Friday in the second version. 8 Days later.
Now imagine for a moment that the real reason for taking control of the bank selling its assets and deposits for almost 2 Billion (Which did not go to Washington Mutual) was not in the interest of the "deposits" as they were safe plain and simple. The real question is would the FDIC been able to take control of the bank and hand it over to J P Morgan if the Bail out bill had passed? Obviously the answer is No. So motivation to act quickly to beat the bill could have been a factor in its decision.
Now I take you to the part where the shareholders stand up to take back their bank. This story hasn't happened….yet, but is going to. We the shareholders are already organizing in numbers and are actively standing up to the governments, SEC, FDIC, J.P Morgan and all those who stand in our way in our quest to get our bank back. We represent the 50 Billion dollars that with a stroke of the FDIC's pen were wiped off the face of the planet. We are numbered in the millions and had Billions of dollars stolen from us. This, my friends of the media could be the story of the century. One day this will be a book, and possibly a movie at a Theatre near you. Can you afford to pass on this opportunity to be a part of corporate history?
There are many groups of shareholders already starting to join together from all accross the world. Standing up and fighting for what is thiers. The biggest group so far besides the Yahoo & Google boards is savewamu.com. There is a tonn of links to help shareholders file complaints, contact various media outlets, and it also appears a civil lawsuit is forming. This is not the only site, there a few more poping up too. This goes to show you that the shareholders are not going to go quietly into the night. They will stand up and fight. Justice shall prevail.
Jonathan Fry
