> All We Have to Fear

> The collapse of Washington Mutual has been labeled as the biggest
> banking failure to date.  In the wake of its collapse people have been
> asking what exactly went wrong.  This question has been deafened by
> the resounding noise of the recent stock market crash.  Perhaps at
> first glance the answer seems obvious.  Washington Mutual allegedly
> held a large portion of toxic debt such as the option ARMs and sub-
> prime loans we have come to despise.  This wraps up the Washington
> Mutual story in a nice tidy bow and we may now busy ourselves with
> larger concerns such as the impending recession.  However, if we dig a
> little deeper into the story we may find a chilling tale of federal
> corruption that begins with Washington Mutual and Lehman Brothers and
> ends with a stock market going belly up.  Unfortunately, the tale of
> woe does not end there for the American people.  We are left to pick
> up the pieces.

> You may have asked yourself why the market would crash after the
> government approved nearly a trillion dollars in bailout money for the
> financial market.  A cynic might answer that the government doesn't
> know how to fix things and that Wall street knows this.  I think
> there's a bit of a cynic in all of us when it comes to the government
> and it's easy to accept such an argument.  However, it appears
> increasingly likely that the market crash was due in no small part to
> the collapse of both financial giants Lehman Brothers and Washington
> Mutual.  The reason may seem cryptic to the average investor.
> Although, it is something that we are all familiar with and is
> fundamental to any relationship or business transaction.  Trust is the
> necessary ingredient.  Once trust is replaced with fear all bets are
> off.  We saw the power of fear amplified during the Great Depression
> and the spectacular collapse of the stock market in 1929.  President
> Roosevelt and his advisors knew the necessity of trust.  They knew
> that fear was the cause.  The administration sought to remove fear
> from the public with his fire side chats.  The government sought to
> put trust back into the system with agencies such as the FDIC.  That
> trust suffered a terrible blow when the government stood by and
> watched two giants fall as their competitors engineered their demise
> through the aid of their political connections.

> Trust also suffered a serious blow when the FDIC overstepped its
> authority and seized Washington Mutual.  The details of this seizure
> have been a matter of speculation and the subject of an FBI
> investigation.  Many shareholders believed that the FDIC acted
> prematurely given the forward looking 3rd quarter statement by CEO
> Alan Fishman.  Reportedly Washington Mutual had access to over 50
> billion dollars in capital and enough liquidity until 2010 according
> to outside analysts.  This analysis was just days before the seizure.
> The news came as shock to the CEO as well. Fishman was informed after
> the fact while in transist.  Several new pieces in the puzzle have
> come to light as a result of the bankruptcy case filed by Washington
> Mutual, Inc. It is clear that JPMorgan Chase received notification of
> the OTS's and FDIC's intent a full 3 weeks before the seizure.
> Washington Mutual never had a hope in a legitimate sale.  The
> competition could undercut any bids and wait for the seizure.
> Apparently the seizure was a forgone conclusion.  According to sworn
> statements released October 28th, 2008 to the district of Delware's
> bankruptcy court Washington Mutual was in fact well capitalized.

>     OBJECTION OF THE WMB NOTEHOLDER GROUP TO MOTION OF DEBTORS
> PURSUANT TO
>     SECTIONS 105(a), 361, 362, and 542(b) OF BANKRUPTCY CODE SEEKING
>     APPROVAL OF A STIPULATION AND AGREEMENT CONCERNING DEPOSIT
> ACCOUNTS AT
>     JPMORGAN CHASE BANK, NATIONAL ASSOCIATION.

>     "Although it has been termed the largest thrift 'failure' in
> United
>      States history, WMB had capital in excess of the regulatory
> standards
>      for 'well capitalized' institutions and was unquestionably
> solvent on
>      a fair valuation basis when the OTS pulled the plug.  Even more
>      remarkably, WMI had access to very substantial capital at the
> time ..."

> They continue to assert that the OTS was afraid (oops here we go with
> fear) that despite being well capitalized that the FDIC would have to
> cover the deposists they insure if things got worse.  This sounds a
> lot like the behavior during the Great Depression.  Fear of the future
> can be a powerful thing.  Except in this case the very institution
> that was created to alleviate fear was the biggest culprit of all.
> The FDIC seized Washington Mutual out of fear and betrayed the very
> mandate that they serve.  They are there to protect us from fear; not
> inspire it.  Sadly, the failure of Washington Mutual may have well
> been avoided.  The problem they experienced was a withdrawal in large
> deposits.  The financial bailout approved only days later may have
> reasured depositors.  Something was needed besides the FDIC cowering
> in fear over their budget.  Public statements about their budget of
> $46 Billion not being adequate to cover Washington Mutual's $300
> Billion only served to spread that fear.  It undermined the confidence
> of the uninsured and insured alike.

> The aftermath should have been expected.  People with more money than
> your or I can imagine lost their trust on that day.  The institutions
> themselves didn't just collapse.  All the infrastructure connected to
> these institutions came crashing down.  Hind sight is always 20/20.
> And despite that fact there will probably never be a conensus on what
> the government's role should be.  However, one thing is certain.
> Negligence and corruption by the OTS and FDIC are not forgiveable.
> The current FBI investigation is undoubedtly a dog and pony show.  The
> investigators involve the very organizations that should be the
> subject of investigation.  Despite all of my anger at this injustice I
> chalk it up to an expensive lesson.  Agencies like the FDIC are not
> properly regulated and will continue to abuse their power as they have
> in the past.  I have come to realize that if a giant like Washington
> Mutual can be systematically dismantled and made the patsy that my
> civil rights are like dust in the wind.  In the modern age of smart
> guided warfare a precision strike against individuals raises less
> alarm.  This type of corruption festers under our noses and all we
> have to fear is is fear from within.

> By Dale Spencer

> All We Have to Fear

> The collapse of Washington Mutual has been labeled as the biggest
> banking failure to date.  In the wake of its collapse people have been
> asking what exactly went wrong.  This question has been deafened by
> the resounding noise of the recent stock market crash.  Perhaps at
> first glance the answer seems obvious.  Washington Mutual allegedly
> held a large portion of toxic debt such as the option ARMs and sub-
> prime loans we have come to despise.  This wraps up the Washington
> Mutual story in a nice tidy bow and we may now busy ourselves with
> larger concerns such as the impending recession.  However, if we dig a
> little deeper into the story we may find a chilling tale of federal
> corruption that begins with Washington Mutual and Lehman Brothers and
> ends with a stock market going belly up.  Unfortunately, the tale of
> woe does not end there for the American people.  We are left to pick
> up the pieces.

> You may have asked yourself why the market would crash after the
> government approved nearly a trillion dollars in bailout money for the
> financial market.  A cynic might answer that the government doesn't
> know how to fix things and that Wall street knows this.  I think
> there's a bit of a cynic in all of us when it comes to the government
> and it's easy to accept such an argument.  However, it appears
> increasingly likely that the market crash was due in no small part to
> the collapse of both financial giants Lehman Brothers and Washington
> Mutual.  The reason may seem cryptic to the average investor.
> Although, it is something that we are all familiar with and is
> fundamental to any relationship or business transaction.  Trust is the
> necessary ingredient.  Once trust is replaced with fear all bets are
> off.  We saw the power of fear amplified during the Great Depression
> and the spectacular collapse of the stock market in 1929.  President
> Roosevelt and his advisors knew the necessity of trust.  They knew
> that fear was the cause.  The administration sought to remove fear
> from the public with his fire side chats.  The government sought to
> put trust back into the system with agencies such as the FDIC.  That
> trust suffered a terrible blow when the government stood by and
> watched two giants fall as their competitors engineered their demise
> through the aid of their political connections.

> Trust also suffered a serious blow when the FDIC overstepped its
> authority and seized Washington Mutual.  The details of this seizure
> have been a matter of speculation and the subject of an FBI
> investigation.  Many shareholders believed that the FDIC acted
> prematurely given the forward looking 3rd quarter statement by CEO
> Alan Fishman.  Reportedly Washington Mutual had access to over 50
> billion dollars in capital and enough liquidity until 2010 according
> to outside analysts.  This analysis was just days before the seizure.
> The news came as shock to the CEO as well. Fishman was informed after
> the fact while in transist.  Several new pieces in the puzzle have
> come to light as a result of the bankruptcy case filed by Washington
> Mutual, Inc. It is clear that JPMorgan Chase received notification of
> the OTS's and FDIC's intent a full 3 weeks before the seizure.
> Washington Mutual never had a hope in a legitimate sale.  The
> competition could undercut any bids and wait for the seizure.
> Apparently the seizure was a forgone conclusion.  According to sworn
> statements released October 28th, 2008 to the district of Delware's
> bankruptcy court Washington Mutual was in fact well capitalized.

>     OBJECTION OF THE WMB NOTEHOLDER GROUP TO MOTION OF DEBTORS
> PURSUANT TO
>     SECTIONS 105(a), 361, 362, and 542(b) OF BANKRUPTCY CODE SEEKING
>     APPROVAL OF A STIPULATION AND AGREEMENT CONCERNING DEPOSIT
> ACCOUNTS AT
>     JPMORGAN CHASE BANK, NATIONAL ASSOCIATION.

>     "Although it has been termed the largest thrift 'failure' in
> United
>      States history, WMB had capital in excess of the regulatory
> standards
>      for 'well capitalized' institutions and was unquestionably
> solvent on
>      a fair valuation basis when the OTS pulled the plug.  Even more
>      remarkably, WMI had access to very substantial capital at the
> time ..."

> They continue to assert that the OTS was afraid (oops here we go with
> fear) that despite being well capitalized that the FDIC would have to
> cover the deposists they insure if things got worse.  This sounds a
> lot like the behavior during the Great Depression.  Fear of the future
> can be a powerful thing.  Except in this case the very institution
> that was created to alleviate fear was the biggest culprit of all.
> The FDIC seized Washington Mutual out of fear and betrayed the very
> mandate that they serve.  They are there to protect us from fear; not
> inspire it.  Sadly, the failure of Washington Mutual may have well
> been avoided.  The problem they experienced was a withdrawal in large
> deposits.  The financial bailout approved only days later may have
> reasured depositors.  Something was needed besides the FDIC cowering
> in fear over their budget.  Public statements about their budget of
> $46 Billion not being adequate to cover Washington Mutual's $300
> Billion only served to spread that fear.  It undermined the confidence
> of the uninsured and insured alike.

> The aftermath should have been expected.  People with more money than
> your or I can imagine lost their trust on that day.  The institutions
> themselves didn't just collapse.  All the infrastructure connected to
> these institutions came crashing down.  Hind sight is always 20/20.
> And despite that fact there will probably never be a conensus on what
> the government's role should be.  However, one thing is certain.
> Negligence and corruption by the OTS and FDIC are not forgiveable.
> The current FBI investigation is undoubedtly a dog and pony show.  The
> investigators involve the very organizations that should be the
> subject of investigation.  Despite all of my anger at this injustice I
> chalk it up to an expensive lesson.  Agencies like the FDIC are not
> properly regulated and will continue to abuse their power as they have
> in the past.  I have come to realize that if a giant like Washington
> Mutual can be systematically dismantled and made the patsy that my
> civil rights are like dust in the wind.  In the modern age of smart
> guided warfare a precision strike against individuals raises less
> alarm.  This type of corruption festers under our noses and all we
> have to fear is is fear from within.

> By Dale Spencer

> All We Have to Fear

> The collapse of Washington Mutual has been labeled as the biggest
> banking failure to date.  In the wake of its collapse people have been
> asking what exactly went wrong.  This question has been deafened by
> the resounding noise of the recent stock market crash.  Perhaps at
> first glance the answer seems obvious.  Washington Mutual allegedly
> held a large portion of toxic debt such as the option ARMs and sub-
> prime loans we have come to despise.  This wraps up the Washington
> Mutual story in a nice tidy bow and we may now busy ourselves with
> larger concerns such as the impending recession.  However, if we dig a
> little deeper into the story we may find a chilling tale of federal
> corruption that begins with Washington Mutual and Lehman Brothers and
> ends with a stock market going belly up.  Unfortunately, the tale of
> woe does not end there for the American people.  We are left to pick
> up the pieces.

> You may have asked yourself why the market would crash after the
> government approved nearly a trillion dollars in bailout money for the
> financial market.  A cynic might answer that the government doesn't
> know how to fix things and that Wall street knows this.  I think
> there's a bit of a cynic in all of us when it comes to the government
> and it's easy to accept such an argument.  However, it appears
> increasingly likely that the market crash was due in no small part to
> the collapse of both financial giants Lehman Brothers and Washington
> Mutual.  The reason may seem cryptic to the average investor.
> Although, it is something that we are all familiar with and is
> fundamental to any relationship or business transaction.  Trust is the
> necessary ingredient.  Once trust is replaced with fear all bets are
> off.  We saw the power of fear amplified during the Great Depression
> and the spectacular collapse of the stock market in 1929.  President
> Roosevelt and his advisors knew the necessity of trust.  They knew
> that fear was the cause.  The administration sought to remove fear
> from the public with his fire side chats.  The government sought to
> put trust back into the system with agencies such as the FDIC.  That
> trust suffered a terrible blow when the government stood by and
> watched two giants fall as their competitors engineered their demise
> through the aid of their political connections.

> Trust also suffered a serious blow when the FDIC overstepped its
> authority and seized Washington Mutual.  The details of this seizure
> have been a matter of speculation and the subject of an FBI
> investigation.  Many shareholders believed that the FDIC acted
> prematurely given the forward looking 3rd quarter statement by CEO
> Alan Fishman.  Reportedly Washington Mutual had access to over 50
> billion dollars in capital and enough liquidity until 2010 according
> to outside analysts.  This analysis was just days before the seizure.
> The news came as shock to the CEO as well. Fishman was informed after
> the fact while in transist.  Several new pieces in the puzzle have
> come to light as a result of the bankruptcy case filed by Washington
> Mutual, Inc. It is clear that JPMorgan Chase received notification of
> the OTS's and FDIC's intent a full 3 weeks before the seizure.
> Washington Mutual never had a hope in a legitimate sale.  The
> competition could undercut any bids and wait for the seizure.
> Apparently the seizure was a forgone conclusion.  According to sworn
> statements released October 28th, 2008 to the district of Delware's
> bankruptcy court Washington Mutual was in fact well capitalized.

>     OBJECTION OF THE WMB NOTEHOLDER GROUP TO MOTION OF DEBTORS
> PURSUANT TO
>     SECTIONS 105(a), 361, 362, and 542(b) OF BANKRUPTCY CODE SEEKING
>     APPROVAL OF A STIPULATION AND AGREEMENT CONCERNING DEPOSIT
> ACCOUNTS AT
>     JPMORGAN CHASE BANK, NATIONAL ASSOCIATION.

>     "Although it has been termed the largest thrift 'failure' in
> United
>      States history, WMB had capital in excess of the regulatory
> standards
>      for 'well capitalized' institutions and was unquestionably
> solvent on
>      a fair valuation basis when the OTS pulled the plug.  Even more
>      remarkably, WMI had access to very substantial capital at the
> time ..."

> They continue to assert that the OTS was afraid (oops here we go with
> fear) that despite being well capitalized that the FDIC would have to
> cover the deposists they insure if things got worse.  This sounds a
> lot like the behavior during the Great Depression.  Fear of the future
> can be a powerful thing.  Except in this case the very institution
> that was created to alleviate fear was the biggest culprit of all.
> The FDIC seized Washington Mutual out of fear and betrayed the very
> mandate that they serve.  They are there to protect us from fear; not
> inspire it.  Sadly, the failure of Washington Mutual may have well
> been avoided.  The problem they experienced was a withdrawal in large
> deposits.  The financial bailout approved only days later may have
> reasured depositors.  Something was needed besides the FDIC cowering
> in fear over their budget.  Public statements about their budget of
> $46 Billion not being adequate to cover Washington Mutual's $300
> Billion only served to spread that fear.  It undermined the confidence
> of the uninsured and insured alike.

> The aftermath should have been expected.  People with more money than
> your or I can imagine lost their trust on that day.  The institutions
> themselves didn't just collapse.  All the infrastructure connected to
> these institutions came crashing down.  Hind sight is always 20/20.
> And despite that fact there will probably never be a conensus on what
> the government's role should be.  However, one thing is certain.
> Negligence and corruption by the OTS and FDIC are not forgiveable.
> The current FBI investigation is undoubedtly a dog and pony show.  The
> investigators involve the very organizations that should be the
> subject of investigation.  Despite all of my anger at this injustice I
> chalk it up to an expensive lesson.  Agencies like the FDIC are not
> properly regulated and will continue to abuse their power as they have
> in the past.  I have come to realize that if a giant like Washington
> Mutual can be systematically dismantled and made the patsy that my
> civil rights are like dust in the wind.  In the modern age of smart
> guided warfare a precision strike against individuals raises less
> alarm.  This type of corruption festers under our noses and all we
> have to fear is is fear from within.

> By Dale Spencer

> All We Have to Fear

> The collapse of Washington Mutual has been labeled as the biggest
> banking failure to date.  In the wake of its collapse people have been
> asking what exactly went wrong.  This question has been deafened by
> the resounding noise of the recent stock market crash.  Perhaps at
> first glance the answer seems obvious.  Washington Mutual allegedly
> held a large portion of toxic debt such as the option ARMs and sub-
> prime loans we have come to despise.  This wraps up the Washington
> Mutual story in a nice tidy bow and we may now busy ourselves with
> larger concerns such as the impending recession.  However, if we dig a
> little deeper into the story we may find a chilling tale of federal
> corruption that begins with Washington Mutual and Lehman Brothers and
> ends with a stock market going belly up.  Unfortunately, the tale of
> woe does not end there for the American people.  We are left to pick
> up the pieces.

> You may have asked yourself why the market would crash after the
> government approved nearly a trillion dollars in bailout money for the
> financial market.  A cynic might answer that the government doesn't
> know how to fix things and that Wall street knows this.  I think
> there's a bit of a cynic in all of us when it comes to the government
> and it's easy to accept such an argument.  However, it appears
> increasingly likely that the market crash was due in no small part to
> the collapse of both financial giants Lehman Brothers and Washington
> Mutual.  The reason may seem cryptic to the average investor.
> Although, it is something that we are all familiar with and is
> fundamental to any relationship or business transaction.  Trust is the
> necessary ingredient.  Once trust is replaced with fear all bets are
> off.  We saw the power of fear amplified during the Great Depression
> and the spectacular collapse of the stock market in 1929.  President
> Roosevelt and his advisors knew the necessity of trust.  They knew
> that fear was the cause.  The administration sought to remove fear
> from the public with his fire side chats.  The government sought to
> put trust back into the system with agencies such as the FDIC.  That
> trust suffered a terrible blow when the government stood by and
> watched two giants fall as their competitors engineered their demise
> through the aid of their political connections.

> Trust also suffered a serious blow when the FDIC overstepped its
> authority and seized Washington Mutual.  The details of this seizure
> have been a matter of speculation and the subject of an FBI
> investigation.  Many shareholders believed that the FDIC acted
> prematurely given the forward looking 3rd quarter statement by CEO
> Alan Fishman.  Reportedly Washington Mutual had access to over 50
> billion dollars in capital and enough liquidity until 2010 according
> to outside analysts.  This analysis was just days before the seizure.
> The news came as shock to the CEO as well. Fishman was informed after
> the fact while in transist.  Several new pieces in the puzzle have
> come to light as a result of the bankruptcy case filed by Washington
> Mutual, Inc. It is clear that JPMorgan Chase received notification of
> the OTS's and FDIC's intent a full 3 weeks before the seizure.
> Washington Mutual never had a hope in a legitimate sale.  The
> competition could undercut any bids and wait for the seizure.
> Apparently the seizure was a forgone conclusion.  According to sworn
> statements released October 28th, 2008 to the district of Delware's
> bankruptcy court Washington Mutual was in fact well capitalized.

>     OBJECTION OF THE WMB NOTEHOLDER GROUP TO MOTION OF DEBTORS
> PURSUANT TO
>     SECTIONS 105(a), 361, 362, and 542(b) OF BANKRUPTCY CODE SEEKING
>     APPROVAL OF A STIPULATION AND AGREEMENT CONCERNING DEPOSIT
> ACCOUNTS AT
>     JPMORGAN CHASE BANK, NATIONAL ASSOCIATION.

>     "Although it has been termed the largest thrift 'failure' in
> United
>      States history, WMB had capital in excess of the regulatory
> standards
>      for 'well capitalized' institutions and was unquestionably
> solvent on
>      a fair valuation basis when the OTS pulled the plug.  Even more
>      remarkably, WMI had access to very substantial capital at the
> time ..."

> They continue to assert that the OTS was afraid (oops here we go with
> fear) that despite being well capitalized that the FDIC would have to
> cover the deposists they insure if things got worse.  This sounds a
> lot like the behavior during the Great Depression.  Fear of the future
> can be a powerful thing.  Except in this case the very institution
> that was created to alleviate fear was the biggest culprit of all.
> The FDIC seized Washington Mutual out of fear and betrayed the very
> mandate that they serve.  They are there to protect us from fear; not
> inspire it.  Sadly, the failure of Washington Mutual may have well
> been avoided.  The problem they experienced was a withdrawal in large
> deposits.  The financial bailout approved only days later may have
> reasured depositors.  Something was needed besides the FDIC cowering
> in fear over their budget.  Public statements about their budget of
> $46 Billion not being adequate to cover Washington Mutual's $300
> Billion only served to spread that fear.  It undermined the confidence
> of the uninsured and insured alike.

> The aftermath should have been expected.  People with more money than
> your or I can imagine lost their trust on that day.  The institutions
> themselves didn't just collapse.  All the infrastructure connected to
> these institutions came crashing down.  Hind sight is always 20/20.
> And despite that fact there will probably never be a conensus on what
> the government's role should be.  However, one thing is certain.
> Negligence and corruption by the OTS and FDIC are not forgiveable.
> The current FBI investigation is undoubedtly a dog and pony show.  The
> investigators involve the very organizations that should be the
> subject of investigation.  Despite all of my anger at this injustice I
> chalk it up to an expensive lesson.  Agencies like the FDIC are not
> properly regulated and will continue to abuse their power as they have
> in the past.  I have come to realize that if a giant like Washington
> Mutual can be systematically dismantled and made the patsy that my
> civil rights are like dust in the wind.  In the modern age of smart
> guided warfare a precision strike against individuals raises less
> alarm.  This type of corruption festers under our noses and all we
> have to fear is is fear from within.

> By Dale Spencer