More on WaMu Trading Activity
I also wanted to mention what I noticed as extremely bizarre WaMu stock price movements.
From about March to June 2008, as WaMu average trading volume soared to over 200 million shares traded daily (to the best of my memory), I found WaMu stock price movements for most days over that period difficult to explain.
Let me be clear on this.
I closely followed WaMu every day during that period.
I also followed the other banking stocks.
All of the other bank stock price movements during that period were explainable based on market strength, material public disclosures and financial industry investor sentiment.
But the stock price movements of WaMu were quite bizarre in my opinion.
I was so actively involved that I placed approximately 200 day trades in WaMu from my personal account during a 3-month period.
That may not be a lot of trades for some of you, but it was for me since I’m not a day trader.
Day trading WaMu on many occasions was easy for even me; someone who focuses more on short-term and intermediate trades.
To be a successful day trader, you need to focus less on rational and fundamentals and more on instincts and technical analysis. Of all things that are of benefit to day traders, trading volume can be one of the most revealing.
Day trading is much different than longer-term trading. It’s more of a crap shoot because many of the most valuable resources (such as valuations, market strength, etc.) are not that important since the trades are very short-term.
Yet, day trading WaMu in the Spring of 2008 was quite easy because many of the stock price movements (once they were in play) were easy to profit from because they occurred on huge volumes with a great deal of block trading.
All one had to do was wait for the price move on heavy block trades and jump aboard for the ride.
And of course, make sure to get out before the end of the day.
I recall noting that for approximately 80% to 90% of the trading days over that time frame, WaMu stock price movements made absolutely no sense given the disclosed material for the bank as well as the general movement from the other banks (note that I previously stated that day trading was easy because the price movements could often be anticipated. Do not take that to mean that the price direction made sense).
Finally, note that there were several days (maybe 20-30) when WaMu had intraday swings of 15-20%, once again on heavy trading volume.
It was one of the most bizarre periods of trading activity over a several month period I have ever seen.
If you are able to go back and study all of the data for each day during that period (and that would consume an enormous amount of time) you would understand what I mean. Some of you might have been trading WaMu during that period and know precisely what I’m talking about.
So what do these observations mean?
I have no idea.
What I do know is that something very strange was going on with WaMu stock; not for one day or one week; not even for one month, but for several months.
And this bizarre price activity was occurring on huge trading volumes.
The question I have is this; how could so many shares behave so unpredictably and contrary to reason based on my own assessment of all publicly released data, and for such a long time frame?
Remember, I’m the guy who wrote in a book (2006) to short Fannie, Freddie, Accredited Lenders, Fremont General, Novistar, the banks and homebuilders.
So for those of you who don’t know who I am (which is understandable since the financial media has banned me), I can guarantee you there is no one who has more insight on this collapse.
http://www.avaresearch.com/files/20090510131858.pdf
In fact, if you doubt me, perhaps you’d like to take a stab at the $20,000 reward I’m offering.
http://www.avaresearch.com/article_details-385.html
Even after TPG funded WaMu with over $7 billion in the Spring of 2008, the stock continued to trade in a very unpredictable manner.
This too was very strange.
In fact, as I previously mentioned, WaMu stock collapsed down to a price (~$9.25 from my best memory) shortly after TPG purchased WaMu shares for ($8.75).
Now we know that during that time frame, JPM made an offer of around $8/share for WaMu. Was this information spread illegally and acted upon by funds or banks?
I’d say the SEC needs to add this investigation to the list I have made.
You might recall that one of my claims in the SEC complaint was that WaMu was not insolvent.
Since the seizure, court documents now reveal that JPM has claimed WaMu was NOT insolvent.
If WaMu was not insolvent, why was insolvency listed as the official reason for the seizure by both the OTS and FDIC?
When I made calls to the OTS and FDIC requesting proof of insolvency, officials kept using various methods of distraction and sidelining the issue. After I educated them on what was going on with the banking scams, they appeared to get nervous.
Let me be clear. The FDIC, under Shelia Bair robbed WaMu shareholders.
WaMu shareholders must demand answers.
Where is the proof that JPM was the only bidder for WaMu?
Why was JPM permitted to steal WaMu assets and deposits totaling over one-half trillion dollars for a paltry $1.9 billion? The WaMu brand name combined with its 5000 fully-owned ATMs and 2200 branches alone was worth at least this much.
Why was JPM permitted to take over $20 billion in cash from WaMu Federal Savings Bank and $4 billion from WaMu’s bank holding company?
Since the seizure, we also know that JPM had access to WaMu’s books when the bank was conducting due diligence. We must ask whether JPM leaked any rumors or inside information to other parties, which might have caused further naked shorting activities.
The SEC could easily find out this information if it wanted to. The sad thing is that we will never know whether they checked.
You should assume they did not and will not investigate any of the issues I have raised, UNLESS people start raising Hell with Washington.
In other words, YOU NEED TO SEND YOUR CONGRESSMEN AND SENATORS THESE ARTICLES AND DEMAND A FULL INVESTIGATION BE CONDUCTED BY OUTSIDE PARTIES.
Finally, we know that WaMu was not included on the initial short ban list in July 2008. But we now know that former CEO Kerry Killinger sent a letter to the SEC specifically requesting to be included in this list. http://www.avaresearch.com/article_details-394.html
As I have previously stated, excluding Fannie and Freddie, there was absolutely no reason why the remaining 17 financial institutions would be added to this list based upon short interest data and financial information as of that period.
The short interest ratio for the remaining financial firms was very low, and investors still had no idea of the extent of the problems with the banks’ toxic assets.
In contrast, rumors were being spread about WaMu, Wachovia and E-Trade. As well, the financial instability of these three banks was the most vulnerable of all other financial firms.
As a result, the short interest ratio for each of these three firms ranged between 15-25% (WaMu short interest was 25%) during the time which this first short ban list was created.
Once again, the SEC needs to investigate the source of rumors regarding WaMu.
I’m willing to bet at least some of the rumors originated from someone inside JPM.
Perhaps the most sickening thing out this entire charade was that, all throughout, America’s mass-media propaganda machine hailed JP Morgan as a hero, rushing in to save America as it had done a few months earlier when it was handed Bear Stearns for pennies on the dollar, and with O risk involved. http://www.avaresearch.com/article_details-161.html
In reality, the two largest banking heists in world history are certain to add tens of billions of dollars in net worth to JP Morgan, and potentially a similar amount of net income.
After writing down $118 billion in impaired WaMu assets by 25%, JPM is already making money. Just a few months later, those impaired assets have resulted in a net income of some $1.5 billion for the quarter (2009).
Estimates now show that those write downs could flip-flop into $29 billion of net income over the life of WaMu’s debt maturity.
And of course, the media has propped Jamie Dimon as some kind of hero.
The media has also praised Shelia Bair as another superstar.
Similar to how the media praised Alan Greenspan for so many years, my guess is that down the road, the media will once again be eating its words when the truth comes out about JPM, Jamie Dimon, the FDIC, and the biggest banking heist in world history.
It would appear that Dimon has no intention of sticking around when the full truth surfaces. Just as class-action lawsuits are starting to pile up from WaMu shareholders, Dimon has recently announced a coming resignation.
Is his announcement a coincidence? Decide for yourself.
Perhaps you recall in late 2007 when Bank of America CEO Ken Lewis made a bid for Countrywide Financial.
Do you remember how the financial media was painting him out to be some great banking genius?
A year later when Lewis announced the Merrill Lynch deal, the media continued with its praise. You might recall I wrote an article immediately after the announcement, exposing the real deal. Only in 2009 have I been proven correct. http://www.avaresearch.com/article_details-86.html
Like always, America’s useless media is now eating its words.
Meanwhile, the media continues its ban on me because they don’t want the truth to come out. They are protecting the interests of their financial sponsors; the financial industry.
That is precisely why they have selected the hams you read about and see on TV. I don’t think I need to mention any names.
I have no reason to believe I will not be proven correct about WaMu, the FDIC, and JPM.
I don’t need to wait for the facts to surface because I already know the reality. And I’m willing to bet any amount of money that I’m right. |
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