COOP News (ehemals: Wamu /WMIH)

julius-hensel.com/werke/

Playing catch up appears to have infected some regulators with the revenge factor. That’s understandable. The public have been waiting 4 long years for retribution against Wall Street. As the biggest target, JP Morgan must pay a whopping fine for falsely reporting the loss on the “London whale” trades made with the bank’s own money. This is fair and square.

The government appears to be in overkill mode as the public has been braying for blood from the too-big-to fail banks they helped survive with transfusions of hundreds of billions of bailout money. This is understandable in the sense of the revengeful feelings of the middle class and the people who are out of work and out of home.

The baring of JP Morgan’s errors and omissions and false reporting of the losses from the  huge illiquid trades in London do require a meaningfully huge financial penance. The invulnerability of boss Jamie Dimon has put him in a very unfavorable spotlight. The government should demand retribution for the crimes committed by The House of Morgan, not two mediocre financial institutions picked up on the cheap when the world was falling apart.

www.forbes.com/sites/robertlenzner/2013/08/...shington-mutual/

Gruss
DigiTig :-)

julius-hensel.com/2011/10/...hltaten-der-libyschen-jamahirija/

ein dreieck!

das bei Dir zwei drei Tage reichen sollten??????????

Jeder Tag Krieg noch dazu ungerechtfertigter Krieg ist einer viel zu viel! Die sollen doch ihre Bomben und den ganzen Dreck in Nevada ablegen und verrotten lassen. Dann gibt es wenigstens keine Lager dazu.
Könnte irre werden über soviel Arroganz!

www.boardpost.net/forum/index.php?topic=2952.msg32337#msg32337

vieleicht interesant für den einen o. anderen...
(geht um WMIHC, WMMRC`s Versicherungsbildung auf Hawaianisch/Delewareisch:))))))

Zitat sysintelfin:
"Pursuant to the Indentures, WMIHC is required to use commercially reasonable efforts to obtain the necessary regulatory approval to convert from a Class 2 captive insurance company to a Class 4 sponsored, segregated cell captive insurance company and transfer/novate all existing business, assets, liabilities, equity and agreements from WMMRC to the newly created segregated cell. The purpose of this conversion is to allow WMMRC to operate the WMMRC business in runoff mode in a segregated cell separate from WMMRC and pledge WMIHC"s ownership interest in the segregated cell to the holders of Runoff Notes Noteholders and lenders pursuant to the Indentures and the Financing Agreement. In addition, if permitted by the Hawaiian regulator, WMMRC will pledge its assets to the Lenders, WMIHC will pledge its ownership interest in WMMRC to the Lenders, and the segregated cell will become a party to the Financing Agreement documents. Although we have started the process to consummate the conversion, there can be no assurance that the conversion described above will be consummated."

Sponsored, segregated cell captive insurance is a pretty interesting structure in terms of options...

The fact that WMMRC assets and liabilities are being seperated under segregated cell indicates many possibilities.

1. Other insurance activities as seperated from WMMRC run-off might be embedded under the cells.

2. Capitalization through non-voting preferred to participants (will have to read some to understand segregated captive cell along with other similar forms)

3. Other businesses could be added (mostly insurance, reinsurance, financial services and insurance linked securities) even when not acquired. Just for increasing cash flow by "renting" the cells.

Many possibilities with a flexible structure... It is a developing area; Hawaii and Delaware both allow such structure (special purpose vehicle).
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Zitat  bgriffinokc:
Sys, did a lot of DD on the captive cells and deserves all the credit, he posted this information not long ago. I believe I see the tip of an Ice Berg and I'm sailing towards it to get a better glimpse....heck, we might need sonar.
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Zitat CharlienDude:
With the discussion of the MGIC reinsurance business in the "Reasons to be Bearish on WMIH", I realized we haven't checked on the proposed changes to segregate WMMRC runoff business.   Thought I'd bump this old thread with some discussion of that filing that was announced in the 10K back in March.  

I've not been able to find the link to the State of Hawaii's insurance department to see if there was any update on that.   Does anyone else know how to locate that information?

I would think that would be positive news if that was approved so that WMMRC could begin to take on additional reinsurance business.   I also would hope there would be a PR on it, too!!



Here's a link from another thread to the 10K and some State of Hawaii links.
www.sec.gov/Archives/edgar/data/933136/...0149/d445890d10k.htm



hawaii.gov/dcca/captive/pdfs-documents/tokyo_11-5-08_basics.pdf

www.capitol.hawaii.gov/hrscurrent/...31/HRS_0431-0019-0101.htm

hawaii.gov/dcca/captive/hawaii-captive-enviroment

hawaii.gov/dcca/captive/2011_HI_Fact_Sheet.pdf

legiscan.com/HI/text/SB2765/id/615051/...2-SB2765-Amended.html

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ZItat sunshine:
Thanks for the follow up. Just have a question that I posed sometime ago:

If WMIH acquire an existing, fully operating reinsurance company as a sub, would it still need to get the "approval"? Or would one seek approval once the deal is consummated? Which route is faster?
--------------------
ZItat jaysenese:
If I read this correctly, WM's insurance license is current in Hawaii.

Interesting ... it expires April 1, 2014.
insurance.ehawaii.gov/ils/...%20Insurance%20Company%20Type%202
-----------
Zitat CharlienDude:
Vndr Name: WM MORTGAGE REINSURANCE COMPANY INC

License Status: ACTIVE

Effective Date: 03-02-2000

Expiration Date: 04-01-2014

License Type: Captive Insurance Company Type 2
**************************************************


Thanks, Jaysenese.   For the sake of me, I could not locate the WMMRC license at that page earlier.  

Yes, they are still active.   From this information, they renewed the license in 2000.   Most likely they need to keep it active as long as they have policies on their books, even if they are in runoff.

One thing I noted from this information is that the license is a "type 2" and the information states they want to convert to a Class 4.    So what's the hold up?   How do we find out what is going on with that?   It seems to me they need to finalize that step before they take on new reinsurance business.



"Pursuant to the Indentures, WMIHC is required to use commercially reasonable efforts to obtain the necessary regulatory approval to convert from a Class 2 captive insurance company to a Class 4 sponsored, segregated cell captive insurance company and transfer/novate all existing business, assets, liabilities, equity and agreements from WMMRC to the newly created segregated cell. The purpose of this conversion is to allow WMMRC to operate the WMMRC business in runoff mode in a segregated cell separate from WMMRC and pledge WMIHC"s ownership interest in the segregated cell to the holders of Runoff Notes Noteholders and lenders pursuant to the Indentures and the Financing Agreement. In addition, if permitted by the Hawaiian regulator, WMMRC will pledge its assets to the Lenders, WMIHC will pledge its ownership interest in WMMRC to the Lenders, and the segregated cell will become a party to the Financing Agreement documents. Although we have started the process to consummate the conversion, there can be no assurance that the conversion described above will be consummated."
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ZItat sunshine:
A possible hold up --  money ( WMIH has ~$68+M in cash and equivalent + $125M credit facility but needing approval from hedgies) vs MGIC's $2Bil recapitalization ( per Wamuvulture). How much new business can they actually write @ 8 to 1 , 10 to1 type ratio? Would the approval agency view the existing funding sufficient given what happened with the  Re-Ins industry in 2008 through 2010?
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ZItat kenwalker:
I look into PMI / Re insurers here a while back with the specific goal of estimating WMMRC's capital holdings. PMI insurers have state ( or country of origin ) regulators, re insurers not only have the same state / country of origin regulators but being Re insurers they also fall under the ceding company's regulators and from what I remember each ceding / reinsurer contract is individualized. Not to say you couldn't buy a reinsurance company but with the regulator, contracts, and more than likely some bad policies and debt due to the past few years, it would seem to me that it would be better to "grow your own" and start fresh but WTH do I know plus everything has a "right" price.

Charlien,  Hawaii don't make it easy, I never could find find their capital requirements.

I've reconsidered that purchase issue. These companies are in trouble in a highly capitalized business with problems that are relatively short lived. Were you to approach a company locked down by its capital ratio, bleeding money from debt and bad policies that could not find the cash to bridge it over till it got beyond their soon to be gone old policies, I could see them jumping at the chance.
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Zitat sunshine:
Ken,

Thanks for the reply. I am just trying to look for "fastest" way to get approval. Like you, I rather WMIH starts "fresh" then buy existing business with some unwanted baggage. However, @the right price, I am sure it would be worthwhile just like BX has been buying up foreclosed properties all over ( especially in southern Cal).

I"ve done a "sloppy" SWOT analysis on "fresh" start vs buying an existing Re-Ins business for discussion sake only. The strengths and opportunities ( 2 of the SWOT components) favor buying rather than "fresh" starting and is consistent with WHIH strategic initiative : profitable and no "turnaround" companies to be considered plus no significant stock dilution, etc. The major Achilles heel ( weakness) in "fresh" starting is the time to get the proper infrastructure up and running which delays the chance to make immediate use of NOL.

Again, this just for fun discussion while we wait...
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Zitat CharlienDude:
Did some more searching at the Hawaii Insurance site and found this application information that provides the HI requirements for each Captive level.   Ken ~ that might answer your question.  I feel certain WMMRC has the $500,000 that is required for Captive 4 with the RONs at the level they are now.
files.hawaii.gov/dcca/captive/...ents/tokyo_11-5-08_basics.pdf
This is nearly 5 years old but I feel like if their requirements had changed, they would have updated it.

See page 8 & 9.   Since WMI kept the license current, they must be filing all of the required documentation and maintaining the WMMRC requirements as dictated.  I just can't see why they haven't gotten approval to move all the runoff policies to the Captive 4 Segregated cell so that WMMRC would be open to new business under that subsidiary.

The Captive Application
• Application for Admission
• Business Plan
– Economic Feasibility Study
– Captive Strategic Plan (Five-Year)
• Supplementary Information
– Biographical Affidavits of initial directors and officers
– Application forms for key service providers
(auditor/actuary)
– 5 year pro forma financial statements
(adverse/expected scenarios)
– Draft governing documents (articles of incorporation
and bylaws)

Hawaii Licensing Classes
• Class 1 – Pure Captive (Reinsurance Only)
• Class 2 – Pure Captive (Direct & Reinsurance)
• Class 3 – Association or Risk Retention Group Captive
• Class 4 – Sponsored / Cell Captive
• Class 5 – Excess or Reinsurance Captive


Funding and Start-up
• Minimum Statutory Capital and Surplus
– Class 1: US$ 100,000
– Class 2: US$ 250,000
– Class 3: US$ 500,000
– Class 4: US$ 500,000
– Class 5: As Determined by Insurance Commissioner
• Funding Methods – Cash, Letter of Credit or other
assets approved by Insurance Commissioner


Ongoing Requirements
• Compliance with Approved Business Plan
• Annual Filings
– Audited Financial Statements
– Actuarial Certification of Losses
– Premium Tax Report and Payment (if required)
• Annual License Fees
– Class 1 and 2 => US$ 300
– Class 3 => US$ 500
– Class 4 and 5 => US$1,000
• Examination by Insurance Commissioner at least every
three years; and may apply for 5 year term thereafter
Added:www.lawserver.com/law/state/hawaii/...ii_statutes_431-19-106-5
About mid-way through the statutes language it discusses conversion or merger of captive insurers.  My take is these statutes is what WMMRC must abide by.   From what I've seen, it looks like we meet the requirements.    Again, have to wonder what the hold up is that HI commission hasn't approved the conversion.
--------------
Zitat kenwalker:
In my reconsidering new vs existing I took into account the similarities of PMI / reinsurance and residential construction. Both suffer from the worst on record housing situation and the capital they have at stake. Not at the publically owned national builder level by at my and my piers level; construction loans are backed by personal worth as surety. You don't make make it, you loose it all. So ........... at a point it becomes more about protecting you capital than making money.

These PMI / re insurers similarly have capital at stake and when things went bad some stopped paying the premiums, the capital got locked up, the risk-to-capital ratio went to crap, couldn't write new policies, then the payout started. Death spiral and if you didn't have cash flow to make it the regulators took your capital and you loose it all. I would have to assume that at some point it become about protecting your capital more than making money.

Back in 2007 - 2010 these co's faced choices ( this from MGIC's 1st qtr 2013 )

If, down the road, these borrowers fail to repay their
mortgage, the lender or investor files a claim based
on the unpaid loan balance, delinquent interest and
foreclosure costs.
(See MGIC"s Default Servicing Guide for details).
MGIC will elect one of three claim settlement
options:
––Payment of Percentage Guaranty – MGIC
applies the amount of coverage to the total
claim amount. The title of the proper ty remains
with the lender.
––Payment of Loss on Sale – If MGIC authorizes
the sale of the property prior to settling the
claim, the lender or investor is paid the agreedupon
amount.
––Acquisition of Property – MGIC could opt
to acquire title to the property, eliminating
any potential loss for the lender. The claim
settlement paid equals the total claim amount.

I'm sure with 20/20 hindsight these co's made some wrong choices and gauged a end point that they thought they could make from a cash flow perspective. This has gone longer than most anticipated but it does have an end, especially from the PMI standpoint. A PMI bet as late as 2008 is 5 years into a max 10 year life span now figure into that any PMI paying this long is probably a good bet at this point. Now look at the options, other than just paying up the other two take time; they get behind, mortgage co works with them, repossession starts, house is refurbished for resale, then it sits for sale in a slow market. They can see the end but can they make it?

This is getting too long but don't be surprised if we buy what appears to be a dog. WMMRC's wish list; profitable and no "turnaround" - IMHO - may just need to be loosened up a bit. I can see a desperation bargain where we could bridge these issues and get a "existing" PMI on the cheep. Considering NOL and ownership issues are measured in worth and where these PMI co are leveraged to housing value where housing value is all screwed up.
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Quote from: IKALEX on Today at 01:24:18 PM
Ongoing Requirements
• Compliance with Approved Business Plan
• Annual Filings– Audited Financial Statements
– Actuarial Certification of Losses
– Premium Tax Report and Payment (if required)
• Annual License Fees
– Class 1 and 2 => US$ 300
– Class 3 => US$ 500
– Class 4 and 5 => US$1,000
• Examination by Insurance Commissioner at least every
three years; and may apply for 5 year term thereafter

They need a Business plan to change from Class 2 to Class 4. We might get one soon if they are in the process of changing classes.

___________________________________
Zitat CharlienDude:
A business plan for WMMRC (a subsidiary) may be different than a business plan for WMIH.   Not 100% sure but I would think when they were under the WMI umbrella pre-BK, each subsidiary had different business plans.    Would think that would still apply.   For now, the plan might just simply be we are converting runoff policies to Captive 4 to allow for future new business.
----------
Zitat sunshine:
Ken,
Thanks for taking the time to provide me with additional details wrt the re-ins business. I am almost ignorant in my understanding of the "ins and outs". I did my sloppy SWOT analysis from a "macro" view like any typical business and is clearly incomplete. My exercise was to lay out what I could see with a quick brush and did not get into the "guts" as you have. Certainly, it is interesting to see WMMRC's next move but more importantly, WMIH's ultimate target.
--------------------------------------------------
Zitatende

MfG.L:)

plus:
wir punktgenau auf dem moving average (MA) vom bollinger band - alles interessante punkte wie auch krötendetektor schon ausgeführt hat ;)
so looonk *klonk*
/paketix

was bringt ein dreieck ?

Super endlich ....
Ich bin so froh...;-))

das schweineschwänzchen um endgültig all in zu gehen .....:-)


und genug holz um auf putins aussage zu reagieren
..wenn deutschland wieder mit holz heizen will.....
guts nächtle

11350 Change of Address for William E. Broza
          §142 k

www.kccllc.net/wamu/document/0812229130828000000000001

nach oben oder nach unten ? ;)

JPMorgan Should Not Have To Pay For The Sins Of Bear Stearns And Washington Mutual

www.forbes.com/sites/robertlenzner/2013/08/...shington-mutual/

www.finanznachrichten.de/...ien/wmi-holdings-corp.htm#19727138

bei unserm Glück gehören wir sicherlich zu dem anderen Drittel :-(

ich tippe dass der dollar hält ... aber nichts genaues weiss man nicht

29.08.13/06:24:19
 
 
WDH-Kreise- JPMorgan verhandelt über Vergleich im Handelsskandal



New York, 28. Aug (Reuters) - Die US-Großbank JPMorgan  könnte ihren Handelsskandal rund um den sogenannten "Wal von London" mit einem millionenschweren Vergleich beilegen. Das Institut verhandele mit mehreren Aufsichtsbehörden über eine Zahlung von 600 Millionen Dollar, sagte eine mit den Gesprächen vertraute Person am Mittwoch. Vertreter unter anderem britischer Regulierungsbehörden und der US-Börsenaufsicht SEC sprächen mit den Anwälten von JPMorgan über eine umfassende Einigung. In dem Fall geht es um den Londoner Händler Bruno Iksil, der mit riskanten Derivate-Geschäften 6,2 Milliarden Dollar versenkte und wegen des massiven Handelsumfangs als "Wal von London" bekanntwurde.

Auch Vertreter von US-Staatsanwalt Preet Bharara seien an den Gesprächen beteiligt, hieß es weiter. Ein Sprecher Bhararas lehnte eine Stellungnahme ab, JPMorgan und die SEC waren dafür zunächst nicht zu erreichen. Nach früheren Informationen von Insidern will sich die Bank mit den Ermittlern einigen, indem sie eine Strafe zahlt und Fehler einräumt. Bis zum Jahresende werde es wohl einen Abschluss geben. Das Geldhaus hat sich bereits mehrfach entschuldigt.

Wegen des Handelsskandals sind Iksils direkter Vorgesetzter Javier Martin-Artajo und der Iksil unterstellte Händler Julien Grout in den USA angeklagt. Ihnen wird vorgeworfen, Verluste in Höhe von Hunderten Millionen Dollar vertuscht zu haben. Iksil selbst kooperiert Insidern zufolge mit den Behörden und wird deshalb nicht vor ein Strafgericht gestellt.

www.forbes.com/sites/robertlenzner/2013/08/...shington-mutual/

hier mal die antworten von w268 dazu lesen, und was herr lenzer dann vor hat zu tun.
gruss

super wenn ein englisch profi von uns auch kommentieren würde und dem herrn mal input gibt. vielleicht mit links aus dem faq. und oder ähnliches.

Moin Leute!

Der Schreiberling hat wohl einen großen Arbeitgeber :-)


Kommentare folgten aber

Mr Lenzer your article is nothing more than bad revisionist history. In the government assisted takeout of WaMu, JPM knew EXACTLY what it was doing and what it was receiving.

Glückauf

ja hope das wichtige daran ist die antwort des autors auf die richtigstellungen in den kommentaren:

if you are right after i check all of this out i will be very grateful to you. i didnt think they rally had time to do all those things. but if they do i will i will write a correction and slam them as iu have over the London trading, the Madoff scandal, and other notorious episodes.

wenn mal einer hier die Eingabe hat :-)

twitter.com/boblenzner

"Lenzer"

....leidet wohl schon an "Altersstarrsinn" und/oder er ist bereits "Dement".

Vogel der.....