WM wamu FDIC OTS - call for Congressional Investigation

The following is a letter one of our registrant has written to her congressman. It is published here so those wishing to use it as a template can do so. You can edit and change the text to suit your particular situation from within the textarea on the page. Then just copy/paste it out into the email text at the congress email form site link below.

"FYI today I wrote to EVERY US Senator. Unfortunately the way the House of Reps website is set up you can only write to your rep. Here is a copy of what I sent. Some of it was "borrowed" from what I found on one website, but I added to it. Feel free to change it as you wish. The important thing is to get letters of protest in to the Congress and get them to look at this. There is one section where I talked about how much $ we lost in this...you will want to change that part to fit your loss. It was tedious to write to each one but if we can get anyone to back peddle on this it will be worth it. You can copy and paste the letter but on each site you will need to fill in your name, address, email address. The more people who write, the better chance we will have of getting them to do something about this. Here is the website that will give you links to all their emails

http://www.senate.gov/general/contact_information/senators_cfm.cfm

Or Click This Link Here .Find and Email your Congress

Please pass this on to everyone you know who lost money in this mess, or anyone who would support us, and send an email to all US Senators and your US Representatives."

Dear <------------------>

I am writing with deep concern involving the recent seizure of the Washington Mutual Federal Bank by the FDIC on Thursday, September 25, 2008. What is particularly disturbing about this event is the deception and dishonesty leading to a perceived conspiracy between the FDIC and JPMorgan Chase that ultimately resulted in what appears to the largest government-assisted theft in U.S. history.

Although I do realize the FDIC and OTS positions in striving to protect bank depositors and taxpayers interest, it seems this particular action is not representative of a democratic society. I am specifically outraged on learning of the FDIC/OTS conducting a "secret auction" of Washington Mutual without informing shareholders which thereby disallowed executive management to meet its fiduciary and legal obligation to protect and work in the best interests of shareholders as expressed in the corporate bylaws.

Washington Mutual CEO, Alan Fishman, repeatedly stated as of Monday, September 22, in a letter to shareholders, that the company's liquidity was above the minimum for well-capitalized banks and he was excited about the future of Washington Mutual. The company had $380B in assets, $143B in deposits and earned $2B per quarter on interest income. Additionally, Fishman said the company had access to $50B in cash if necessary. Fishman stated the company was in better shape than that reported by media numerous times and also stated Washington Mutual could sustain operations thru 2010. We as shareholders now know the bank-run to the amount of $16B in the nine days leading up to September 25 is what actually triggered the seizure. Blame for this fear-induced act certainly lies in part with Wall Street and its questionable practices such as stock shorting as well as the media's sensationalized and often incorrect or prejudiced reporting. However, what is most disturbing is the reported FDIC/Washington Mutual collusive act to suppress information regarding deposit withdrawal during, at least, that nine day period. Shareholders were unaware this was occurring, or more specifically, were unaware that it had occurred to this extent. I respect the action the FDIC must take to protect the reserves, but not issuing public notice or providing awareness of an ongoing investigation of insufficient funds was wrong. Washington Mutual shareholders were caught off-guard and we lost everything.

The Government's seizure and sale of Washington Mutual was anything but a judicious act. The sale was a desperate and hasty move that could have been avoided, for example, by offering a temporary bridge loan until Congress was able to disposition the proposed $700B financial system bail-out and thereby save this historical institution that has provided over one century of service to this country and its citizens. There was no need to purposely destroy this enterprise - most recently the nation's largest Savings and Loan - and effectively wipe-out shareholder value. The shareholders of Washington Mutual were given no voice in this transaction. Ultimately our assets were taken by the FDIC and sold at bargain price to the highest bidder in a "secret auction". The FDIC, in turn, kept the $1.9B in proceeds without any compensation or explanation to the shareholder. This unfortunately resembles more the actions of a communist dictatorship than that of a democratic government. This act has financially devastated well-intentioned private investors that range from those who depended on 401k pension plans for retirement, to those that intended to fund family educations, to those that were trying to do the right thing by the way of investing in the hopes that the American dream could be realized. Both the FDIC and JPMorgan Chase have each benefited to their own extent, in their own interests, at the full expense of the Washington Mutual shareholder.

It is absolutely appalling to see what happened last week to Washington Mutual.  It is my belief that the FDIC was premature in seizing WAMU assets.  All the numbers I have read indicate that although things were rough at WAMU, they had enough assets to make it through this mess.  The FDIC took premature action, and rendered the stock of a lot of stockholders virtually worthless.  I think this needs to be thoroughly investigated.

How can it be right for the FDIC swoop down on WAMU, while the CEO is not even available to know what is going on (he was in an airplane on a cross country flight when this all transpired).  I submit to you that what the FDIC did was wrong and probably illegal.  WAMU had just turned down a JPMorgan offer for purchase which would have given WAMU between $4-8 per share.  WAMU executives knew this was not enough money to buy this goldmine.  Then within days, the FDIC and JPMorgan conspire to STEAL the company, for a mere 1.9 billion (they received approx 300 billion in assets for a mere 1.9 billion dollars) and then to add insult to injury, the FDIC pocketed the money.  This company belonged to the stockholders, not the FDIC.  What right did they have to steal 1.9 billion (let alone the 300 billion).

No one knew this was coming.  CNN reported that all was well with WAMU, indicating the firm was so big that the gov would not let it fail.  Investment advisors recommended WAMU as a strong buy for stockholders.  Everything looked fine until the FDIC prematurely seized this companies assets.

What happened was an abuse of power of the FDIC.  This kind of thing cannot be permitted to happen.  A lot of small stockholders such as myself are bearing the brunt of this outrageous action by the feds.  If the FDIC is permitted to be so reckless, how can we have faith in them?

At the very least, at this point, the bailout plan should include WAMU.  This entire mess could be reversed if the FDIC and our government do what is right.  Please help us in getting this unforgivable wrong righted.  It is not right that the FDIC "jumped" prematurely, and seized this company.  The manner in which they did it was not fair to anyone who holds WAMU(Q) stock.

What gives the FDIC the power to "screw" millions of stockholders?  Even if the situation was dire at WAMU, the FDIC has a fiduciary responsibility to make an equitable deal for the stockholders of the company.  They did not act responsibly.

I urge your full support of an investigation concerning the legality of this act, including the statements and acts of Washington Mutual CEO Alan Fishman, and to ensure the rights of shareholders of Washington Mutual are, and have been, protected. Your attention to this matter is appreciated. I look forward to hearing from you. Please help the stockholders of WAMUQ.  The FDIC should never be allowed to overstep their bounds again and should be made to take steps to correct this untenable action.

Thank you for your support in trying to right this egregious  wrong.

Sincerely,

Coup

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