By Bopfan:

Last November I knew something was very fishy when a court attendee told me Weil stopped Judge Walrath from signing the stipulation between WMI and JPM (with the blessing of the FDIC) turning over the $4 billion. I had never heard of a debtor leaving money -- any money -- in the hands of a hostile party. After this there were several postponements of the matter until it was taken off calendar. With great fanfare and Weil's contrived indignation it was recommenced late last year. It still smelled, and I said so.

Today's second act confirms the conspiratorial (in its darkest sense) nature of the alliance (though I am only a VERY recent convert to this view I now agree that it is not to preserve WMI's avoidance claims). However, I am not alarmed; the specious 'settlement' device cannot materialize and every lawyer in the courtroom knew it.

Although today's events will come to naught it did enough damage by frightening people into panic selling. Hopefully everyone will be more sanguine in the next crisis.