DISTRICT OF DELAWARE WMI INVESTMENT CORP., ) IN RE: ) …

UNITED STATES BANKRUPTCY COURTDISTRICT OF DELAWARE

IN RE: ) Case No. 08-12228(MFW)) Chapter 11

WMI INVESTMENT CORP., ) ) )

Debtor. ) ______________________________) IN RE: ) Case No. 08-12229(MFW)

) Chapter 11WASHINGTON MUTUAL, INC., )

) Courtroom 4) 824 Market Street

Debtor. ) Wilmington, Delaware 19801) ) October 3, 2008) 9:43 A.M.

TRANSCRIPT OF FIRST DAY MOTIONS and STATUS HEARINGBEFORE HONORABLE MARY F. WALRATHUNITED STATES BANKRUPTCY JUDGE

APPEARANCES:

For the Debtors: Richards Layton & Finger, PABy: MARK COLLINS, ESQ.

CHUN JUNG, ESQ.One Rodney Square, P.O. Box 551Wilmington, Delaware 19899

Weil Gotshal & MangesBy: ADAM P. STROCHAK1300 Eye Street, NW, Suite 900Washington, DC 20005

Weil Gotshal & MangesBy: MARCIA GOLDSTEIN, ESQ.

MICHAEL WALSH, ESQ.767 Fifth AvenueNew York, New York 10153

ECRO: Brandon McCarthy

TRANSCRIPTION SERVICE: TRANSCRIPTS PLUS435 Riverview CircleNew Hope, Pennsylvania 18938Telephone: 215-862-1115Facsimile: 215-862-6639e-mail [email protected]

Proceedings recorded by electronic sound recording, transcriptproduced by transcription service.

2

Appearances:(Continued)

For Various Bondholders: Bayard, P.A.By: JEFFREY SCHLERF, ESQ.P.O. Box 25130Wilmington, Delaware 19899

White and CaseBy: THOMAS E LAURIA, ESQ.Wachovia Financial Center200 South Biscayne BoulevardSuite 4900Miami, Florida 33131-2352

White and CaseBy: GERARD UZZI, ESQ.1155 Avenue of the AmericasNew York, New York

For Washington Mutual Potter Anderson & Corroon, LLPNoteholders Group: By: TERRI BROWN-EDWARDS, ESQ.

Hercules Plaza1313 N. Market StreetP.O. Box 951Wilmington, Delaware 19899-0951

Bracewell & Giuliani LLPBy: JEFFREY ANSLEY, ESQ.1445 Ross Avenue, Suite 3800 Dallas, Texas

Bracewell & Giuliani LLPBy: LASHON KELLS, ESQ.2000 K Street NW, Suite 500 Washington, D.C.

For JPMorgan Chase: Landis Rath & CobbBy: ADAM LANDIS, ESQ.The Brandywine Building 1000 West Street, Suite 1410Wilmington, Delaware 19801

For FDIC: DLA Piper, LLPBy: JEREMY JOHNSON, ESQ.1251 Avenue of the AmericasNew York, New York 10020-1104

3

Appearances:(Continued)

The U.S. Trustee: United States D.O.J.Office of the U.S. TrusteeBy: JOSEPH J. McMAHON, JR., ESQ.844 King StreetWilmington, Delaware 19899

TELEPHONE APPEARANCES:

For Michael D. Adamski: MICHAEL D. ADAMSKI, Pro Se

For Richard Ellis: Hennigan Bennett & DormanBy: BEN MURPHY, ESQ.

For Suleman E. Lunat: Apollo CapitalBy: SULEMAN E. LUNAT

For Longacre Fund Longacre Fund Management, LLCManagement, LLC: By: BRITT DEVER

For John Baylis: Citadel InvestmentBy: JOHN BAYLIS

For BroadPoint Capital: RICHARD NAEJAME, Representative

For Normandy Hill Capital MATTHEW CANTOR, RepresentativeLP:

For JPMorgan Chase: Sullivan & Cromwell, LLPBy: HYDEE R. FELDSTEIN, ESQ.

For Bank of America ALEXANDER FLIPPER, RepresentativeSecurities:

For Credit Suisse TIM McARDLE, RepresentativeFirst Boston:

For Genworgh: Debevoise & Plimpton, LLPBy: MAUREEN CRONIN, ESQ.

For Solus, LP: STEPHEN BLAUNER, Representative

For Barclays Capital: GEORGE BRICKFIELD

4

Telephonic Appearances:(Continued)

For Serengeti Asset NIHIR SHAH, RepresentativeManagement:

For R3 Capital: ROSS ROSENFELT, Representative

For Nat Vantzelfde: NAT VANTZELFDE, Representative

For RBS: RBS Greenwich CapitalBy: JEFFREY FARKAS, Rep.

For Suleman E. Lunat: Apollo CapitalBy: SULEMAN E. LUNAT, Rep.

For Elliott Management: JOHN PIKE, Representative

For Robert White: Fintech AdvisoryBy: ROBERT WHITE, Rep.

For EMC: Winston & StrawnBy: CAREY D. SCHREIBER, ESQ.

For Cerberus: MARC MILLMAN, Representative

For Elliot Management: Stutman Treister & GlattBy: WHITMAN HOLT, ESQ.

For Aurelius ELEANOR CHAN, Representative

For Sandell Asset Management: BRIAN WERNER, Representative

For VSO Capital: ALEX LAGETKO, Representative

For Sonnenschein, Nath Sonnenschein, Nath & Rosenthal& Rosenthal: By: DAVID FARRINGTON YATES, ESQ.

For Canyon Capital Advisors: Sidley AustinBy: CHRISTINA M. CRAIGE, ESQ.

JEREMY ROSENTHAL, ESQ.

For Owl Creek Management: MARK KRONSELD, Representative

For CRT Capital Group: KEVIN STARKE, Representative

For Various Interested Kramer Levin NaftalisParties: & Franekl, LLP

By: DANIEL M. EGGERMAN, ESQ.

5

Telephonic Appearances:(Continued)

For SilverPoint Capital: MATTHEW EHMER, Representative

For Arapahoe County, GEORGE ROSENBERG, RepresentativeColorado:

For Appaloosa Management: KENNETH MALMAN, Representative

For Och-Ziff Capital: SOURSH ABBOUD

For Chicago Fundamental PHILIP ORDWAY, RepresentativeInvestment Partners:

For Tudor Investment: MITCHELL E. SUSSMAR, Rep.

For Milbank Tweed Hadley Milbank Tweed Hadley & McCloy& McCloy: By: MATTHEW BARR, ESQ.

For Chapman Syme: CHAPMAN SYME, Pro Se

For D.K. Partners: GAVASKAR BALASINGAM

For Akanthos Capital DAN KAPLAN, RepresentativePartners:

For Advent Capital: DAVID BULLOCK, Representative

For Onex Credit Partners: STEVEN GUTMAN, Representative

For Morgan Stanley: MATTHEW HOFFMAN, Representative

6

TRANSCRIPTS PLUS - 215-862-1115

THE COURT: Good morning.1

MR. COLLINS: Good morning, Your Honor. For the2

record, Mark Collins of Richards Layton and Finger on behalf of3

Washington Mutual, Inc., and WMI Investment Corp.4

First of all, Your Honor, thank you very much for5

scheduling today’s both status hearing, as well, as the hearing6

on certain first day motions. We do very much appreciate that.7

Your Honor, very briefly, some introductions on8

behalf of the companies. With me are my co-counsel, Marcia9

Goldstein, Michael Walsh, and Adam Strochak with the law firm10

of Weil Gotshal & Manges.11

I know there are a number of other parties in the12

courtroom. Instead of having a number of people coming up to13

the podium, I think it may make sense if people have certain14

comments, then we could have the introductions at that point in15

time. And what I would propose is we turn the podium over to16

Ms. Goldstein to provide Your Honor with some additional17

information regarding the status of these cases, and what we18

hope to accomplish.19

THE COURT: All right. Thank you. 20

MR. COLLINS: Thank you, Your Honor.21

THE COURT: I’d just ask those parties on the phone22

to keep their phones muted so we don’t get a lot of feedback. 23

Thank you.24

Ms. Goldstein?25

7


MS. GOLDSTEIN: Yes. Thank you very much, Judge. I1

think, as everybody here knows, Washington Mutual, Inc., the2

holding company for Washington Mutual Bank and Washington3

Mutual Bank FSB had a major change -- or the former holding4

company for those banks had a major change of circumstances5

late last week that led to this Chapter 11 filing.6

Up until last Thursday evening, the company’s most7

important asset was its ownership interest in Washington Mutual8

Bank, which was the largest thrift in the United States.9

On Thursday evening, the Office of Thrift Supervision10

appointed the FDIC as receiver for the bank. And immediately,11

the FDIC sold the bank to JPMorgan Chase.12

The debtors filed the Chapter 11 petitions that are13

now before this Court approximately 24 hours later. As you can14

imagine, there were numerous complications created by that15

situation, but an immediate one certainly for the holding16

company is that it and the bank shared premises, e-mail,17

computer systems, and employees.18

We initiated the filing as quickly as we did,19

frankly, because with FDIC and JPMorgan on the premises, the20

Board determined that the protection of Chapter 11 was21

important to protecting the remaining assets of the holding22

company.23

So, where are we now? It’s been a week since the24

filing. The Board of Directors -- and I’ll refer to Washington25

8


Mutual, Inc. as WMI, just for clarity. The Board of Directors1

of WMI is fully functioning, it’s engaged on the issues that2

are confronting the holding company, and they are pursuing, as3

evidenced by the filing of this Chapter 11 case, the protection4

of the assets that would be available for the creditors and5

other stakeholders of WMI.6

Obviously they are focused on maximizing the value of7

these remaining assets, and putting a plan of action together8

to do so. And as we have learned this morning, and are pleased9

to see that the creditors are getting represented, and we are10

going to be pleased to make sure they are informed of the plans11

of action of the debtors.12

There was a fair amount of chaos, frankly, starting13

Thursday evening when it was unexpected that the transition14

would happen so quickly, indeed, particularly for the employees15

of the bank. But the debtors are now working with JPMorgan --16

and when I say the employees of the bank, we also have17

employees of the holding company. There was some overlap, and18

some separate employees. We are trying to work with JPMorgan19

to resolve any remaining confusion with respect to those20

employees.21

We have been in close touch with JPMorgan on their22

plans for the employees. And we hope to know, or resolve23

relatively quickly, what employee resources will be available24

to the debtors. We have one senior executive who is a --25

9


solely a WMI employee who has been functioning in that capacity1

and interfacing on a daily basis, seven days a week with both2

the FDIC and JPMorgan on numerous matters. But we hope to have3

additional employees available to WMI in the short term.4

And so, Your Honor, as you can imagine, this is one5

of the reasons why we did not have the usual list of first day6

pleadings. For example, at this time, we don’t have an7

employee motion. We are not certain at this time that there8

are prepetition amounts due to the WMI employees; we may get9

some clarity on that. But at this point in time, it was10

premature to file a motion.11

Just as another note, we do not have a motion for12

debtor in possession financing because this debtor has adequate13

cash available to it to cover the cost of administration and to14

cover the cost of managing the assets and any continuing15

operations in the subsidiaries.16

At this point in time, Your Honor, we are also in17

discussion with JPMorgan about providing certain transitional18

services to these debtors since they are now in possession of19

all of the accounting systems that were utilized by both the20

debtors and the bank. And they have access to information that21

these debtors will need on an ongoing basis to accomplish the22

preservation of assets that we see as the function of these23

debtors.24

In addition, the debtors are likely to retain25

10


professionals to assist in this regard, and we hope to identify1

that firm and make a motion shortly. And that will be of great2

assistance in terms of identifying and preserving the parent3

company assets.4

In terms of cooperation, as I mentioned, we are5

working with JPMorgan to resolve that. At least at the moment,6

we are not getting the access to the information that we need,7

but we are hopeful that that will be resolved in the short8

term.9

In the short term, in addition to resolving the10

access to information with JPMorgan and, I’ll get to in a few11

moments, the FDIC, we will be putting in place a team greater12

than what we have right now to manage the process of running13

the remaining businesses, at least until they can be sold, and14

managing the assets. That will likely be a combination of15

former WMI employees, as well as the professional firm that we16

will bring on board to assist.17

Now, we also -- and there’s been much press about it18

-- will be pursuing key issues in this case. Perhaps the one19

that’s caused the most attention is the $5 billion of cash that20

had been on deposit in WMV and WMVFSB prior to the takeover. 21

It is our understanding that those deposits were taken as part22

of the transaction with JPMorgan Chase. They have indicated to23

us that they would like some opportunity to review the facts24

that relate to those deposits. And we hope that we can resolve25

11


our entitlement to those deposits with JPMorgan based on a1

study of the relevant information. And we have, therefore,2

entered into a standstill agreement with JPMorgan which we have3

agreed to give them 48 hours before making a draw request, or4

filing a motion with this Court concerning the account. And5

similarly, JPMorgan has agreed to give us 48 hours’ notice6

before commencing any legal proceedings in this Court regarding7

that account. It’s a very simple standstill, Your Honor. It8

was designed simply to prevent both sides from running to court9

with limited notice when, in fact, we do hope that reviewing10

information will lead to the ability of our debtor to at least11

establish the status of those accounts as property of the12

estate.13

We had --14

THE COURT: Well, one clarification.15

MS. GOLDSTEIN: Yes.16

THE COURT: I think you stated that the debtor would17

provide 48 hours before drawing or filing a motion.18

MS. GOLDSTEIN: Notice, yes.19

THE COURT: And that JPMorgan will give 48 hours20

before filing a motion or doing litigation. Does that suggest21

that they may take the money out without giving notice?22

MS. GOLDSTEIN: Your Honor, we do not believe that23

JPMorgan may take that money out. If -- either it is a24

deposit, or it is something else. We believe it’s a deposit. 25

12


But we do not regard JPMorgan as an unsafe depository in any1

way.2

We believe it would be a blatant violation of the3

automatic stay if they were to take the money out, Your Honor. 4

And I think their indication that they would come to this Court5

for a determination regarding the status, I take, as an6

acknowledgment that the automatic stay certainly would preclude7

them from, in effect, doing anything to remove the money from8

that account.9

We have -- we had initially entered into that10

standstill to be effective through today. We have agreed with11

JPMorgan that it would be effective through October 15th. We12

expect to have conversations with them shortly about a process13

for resolving their issues regarding the deposit.14

THE COURT: Thank you. 15

MS. GOLDSTEIN: Longer term, Your Honor, we put that16

as a -- perhaps our key short-term issue. Longer term, we17

would with the assistance of the appropriate team that I18

referenced earlier, that we would determine a course of action19

for WMI’s numerous subsidiaries. There are approximately 10020

subsidiaries of the debtors. A number of them are inactive,21

some of them may have ongoing operations, and some of them may22

become additional debtors in these proceedings. Obviously we23

want to propose a course of action that will maximize their24

value, and particularly if there is a sale process, and25

13


ultimately propose a plan that would provide for distributions1

to the various classes of creditors here.2

A little bit more on these nondebtor subs. Obviously3

because of the limitations on accessing information, we don’t4

have complete information about them but, again, we hope to get5

that. But most of them are vestiges of prior acquisitions,6

some of them are real estate development subsidiaries. Some7

may have real estate, or may have mortgage portfolios. These8

are not the so-called toxic mortgages that may have been heard9

about.10

There are subsidiaries that have some insurance11

business, and there is a 1031 exchange entity. So, in effect,12

Your Honor, we need to have the ability, and we expect to have13

the ability to understand those subsidiaries and propose an14

appropriate course of action that would maximize their value to15

the creditors here.16

Your Honor, I think I would, at this point, unless17

you have additional questions, turn the podium back to Mark18

Collins, who will present the motions that are calendared for19

today.20

THE COURT: All right. Thank you. 21

MS. GOLDSTEIN: Thank you, Your Honor.22

MR. COLLINS: Your Honor, turning to the agenda23

itself, Agenda Item Number 4, Your Honor, is simply our motion24

for an order directing joint administration of these two25

14


Chapter 11 cases. We have had discussions with Mr. McMahon1

regarding the form of that order. We have made some minor2

modifications, and if I could present that form of order and3

walk Your Honor briefly through those changes.4

THE COURT: You may. Thank you.5

MR. COLLINS: Very briefly, Your Honor. We did6

modify the caption that will be used going forward as noted on7

Page 3 of the proposed form of order or the black line. So,8

now we referenced both the last four digits of the tax ID9

number, as well as the business address for the two debtor10

entities.11

Your Honor, we have also included in this form of12

order, and a couple of the other ones, an ability to have this13

type of order, which is really procedural in nature, it doesn’t14

seek true substantive relief, to be applicable to any future15

Chapter 11 cases that we may file that are affiliates of these16

debtor entities.17

We have proposed that if we do file a future Chapter18

11 case, we would submit to Your Honor a certification of19

counsel that would note that these entities are, in fact,20

affiliates as required under Bankruptcy Rule 1015(b), and any21

other supplemental information that we believe Your Honor would22

like to see, or to be made aware of. And attached to that23

certification of counsel a simple proposed form of order that24

would make this order applicable to those go-forward Chapter 1125

15


cases.1

We thought that would streamline the process because2

the relief sought in these motions is really procedural. We’re3

not seeking in any of those orders that we have this provision4

approval to pay prepetition amounts, to deal with employee5

obligations, or the like.6

I know that has given Mr. McMahon some pause. And if7

Your Honor is uncomfortable, as well, we will do the -- you8

know, file a separate motion and deal with it at that time. We9

are simply seeking to streamline the process for ease of10

administration.11

THE COURT: Well, let me hear from the U.S. Trustee’s12

Office then.13

MR. McMAHON: Your Honor, good morning. Joseph14

McMahon for the United States Trustee.15

I don’t know if I necessarily agree with the debtors’16

counsel’s characterization of what’s being done as procedural. 17

A couple of points here, Your Honor:18

First, even on something like joint administration19

where parties in interest have the ability, the right to be20

heard with respect to it, that’s our Office’s basic concern21

here. Which is when these subsidiaries come in, there should22

be some ability for parties in interest to consider whether or23

not the relief that’s being sought via these motions should be24

applicable for those debtors.25

16


Another concern that we raise with debtors’ counsel1

is, I guess, a loss in translation concern, which is let’s take2

the 1031 exchange entity, for example. I don’t know what bank3

accounts that entity may have independent of the specific4

accounts that are referenced herein. There’s some broad5

language dealing with depository accounts and the like that’s6

in the bank accounts motion. Those accounts automatically, I7

guess, covered by this form of order, it’s -- I think what we8

need to do, Your Honor, is to take up those issues at the time9

that the -- I guess to the extent that the debtors are --10

nondebtor affiliates are going to voluntarily file for11

bankruptcy protection, it’s appropriate to reach that issue at12

that time.13

THE COURT: Well, I don’t understand, and I’ll let14

the debtor clarify, I don’t understand that by entering a joint15

administration order for later filed subsidiaries that any of16

the orders entered in this case with respect to the debtors17

would be applicable, such as the cash management order, or any18

other order. Does the debtor disagree with that?19

MR. COLLINS: No, Your Honor. And our procedure20

would be that if we wanted a specific order to be applicable to21

those new debtor entities, such as extension of time to file22

schedules and statements, joint administration, maintenance of23

bank accounts, we would have to submit a certification of24

counsel explaining why that would be appropriate, and attach a25

17


form of order. And if Your Honor would rather us proceed by1

motion --2

THE COURT: I’d rather you not -- I think you need to3

file a motion then.4

MR. COLLINS: Okay. We will do so, Your Honor. 5

We’ll strike that provision from the clean order.6

THE COURT: Okay.7

MR. COLLINS: Other than that, Your Honor, I believe8

the order is standard, and we’d ask for its approval.9

THE COURT: All right. I will grant the normal joint10

administration order.11

MR. COLLINS: Thank you, Your Honor. I would note I12

believe that I handed Your Honor the original. So, if Your13

Honor wouldn’t mind striking that one provision, or I can take14

it back; either way, Your Honor.15

THE COURT: Let me strike it. It’s the provision16

immediately after the paragraph that starts with, “Ordered that17

a docket entry shall be made?”18

MR. COLLINS: That’s correct, Your Honor.19

THE COURT: So, the following Paragraph will be20

stricken.21

MR. COLLINS: Thank you. 22

THE COURT: All right. Without that provision, I23

will enter the order then.24

MR. COLLINS: Your Honor, Agenda Item Number 5 is our25

18


motion to seek a waiver of the requirement to file our list of1

creditors with our petition, an extension -- and an extension2

of time to file a list of creditors, and authority to establish3

procedures for serving out the 341 notice.4

Your Honor, given the comments of Ms. Goldstein,5

along with the affidavit of Mr. Landefeld, obviously the6

debtors did not have the opportunity or access to the7

appropriate information to file a detailed list of creditors8

with our petition.9

We have been in dialogue with both Mr. McMahon, as10

well as counsel to JPMorgan, about when it is we will have11

access to the computers that are now under the control of JPM 12

and the employees of JPM so that we can prepare this list of13

creditors. We are prepared to do so immediately, but given14

that we don’t have control over those computers, and access to15

the employees, we are somewhat at their mercy in the timing of16

filing our list of creditors.17

I know that Mr. McMahon would like us to file it very18

quickly so that we could go forward with serving out notice of19

the 341 meeting, which has been tentatively set for October20

30th.21

So, Your Honor, in the proposed form of order that we22

have, I have currently left the date by which we must file our23

list of creditors blank.24

I would expect that if -- with JPM’s cooperation, we25

19


could have this accomplished next week. But we are somewhat at1

their mercy with respect to that.2

THE COURT: Well, let me ask a question. Because I3

understood from your motion that the bulk of your -- you4

suggest that the bulk of the creditors are public debt holders. 5

The debtor surely can get that information from either the6

indenture trustee or the public records.7

MR. COLLINS: That’s correct, Your Honor. But there8

are also contract parties and other third party creditors that9

we would need to have access to the computers and the employees10

to obtain a more fulsome list. I mean I think we could file it11

-- a reduced list, but we were hopeful to file a more fulsome12

list so that we could then feel comfortable sending out the 34113

notice.14

And clearly we had talked about filing a list of15

creditors on a rolling basis where we would file what we had,16

and then continue to supplement it. But I think that made Mr.17

McMahon also uncomfortable.18

So -- and I know that JPMorgan’s counsel is in the19

courtroom. If they could advise us as to when we could get20

access to that information, that would obviously be helpful.21

THE COURT: Do they want to volunteer?22

MS. FELDSTEIN: Your Honor?23

THE COURT: Yes.24

MS. FELDSTEIN: Hello?25

20


THE COURT: Yes?1

MS. FELDSTEIN: Hydee Feldstein from Sullivan and2

Cromwell.3

MR. LANDIS: Your Honor, Ms. Feldstein -- Adam Landis4

is here in the courtroom, as well, from Landis, Rath and Cobb5

on behalf of JPMorgan. In response to Mr. Collins’ questions,6

I’ll defer to Ms. Feldstein on this matter.7

MS. FELDSTEIN: Your Honor, I think we are working as8

hard as we can. If the debtors -- I’m sorry. It’s Hydee9

Feldstein from Sullivan and Cromwell representing JPMorgan10

Chase.11

We have been working with Weil Gotshal and WMI, and12

have had various conversations regarding some of these issues. 13

We understand the need for access to the records of WMI, and14

have -- if they were neatly segregated, Your Honor, I think15

this would be a simple proposition.16

We had started to talk about a transition services17

agreement, but it is not a simple situation in a circumstance18

where we, as well as WMI, have really been attempting for the19

last week to effect an orderly transition of the operations and20

really first and foremost, to ensure that customers,21

depositors, and employees, and some of those confusion22

regarding those issues was clarified. We have made substantial23

progress in that regard. We have a senior team of finance24

professionals working through the books and records of the25

21


failed bank. We have many time priority items, but we do1

understand that this is one of them, and we are working as2

cooperatively and as quickly as we can.3

I wish I could give a date to the Court. But at this4

point, I don’t have a date by which it is realistic. I can5

tell Your Honor that we will be speaking further to debtors’6

counsel after this hearing and over the weekend to try to7

prioritize some of the information and see what we can do to8

meet the legitimate requests that have been made of us.9

We only bought the assets and the books and records10

of the failed bank. Under our agreement with the FDIC, we11

obviously did not acquire assets or books and records of the12

parent company. And it is a question of identification, and13

having the personnel and the knowledge base in which to respond14

on a timely basis.15

I’m happy to report back to the Court once we’ve16

gotten a further report from our client later today.17

THE COURT: Let me hear from the U.S. Trustee then.18

MR. McMAHON: Your Honor, good morning. Joseph19

McMahon for the United States Trustee again.20

With respect to our Office’s position, as was21

communicated to debtors’ counsel yesterday, first the list22

needs to get filed with this Court, that’s point number one. 23

So, when you see the form of order, the second ordered24

paragraph from our perspective, should be deleted.25

22


Second thing, timing. We appreciate the fact that1

the first day affidavit raises some logistical issues for the2

debtors insofar as obtaining information. Here’s the problem3

we have right now. This is a pretty big bankruptcy case, and4

we are aware of exactly one entity, the indenture trustee for5

the 12, I believe it is, separate note issues. And they’re the6

only entity that’s receiving notice in connection with these7

proceedings formally, aside from the other related governmental8

units and other entities that are noted in the debtors’ various9

motions.10

Our Office has to conduct a 341 meeting within 4011

days. I believe that the drop dead date is the middle of the12

first full week of November. It’s a tough week, there is13

Election Day that Tuesday. We’ve worked our way back to the14

30th with the debtors; we propose that date. I haven’t15

received formal confirmation that Thursday the 30th of October16

works for them. But if we’re going to make this work, that17

notice has to go out early next week for the creditors to18

receive the notice --19

THE COURT: Twenty --20

MR. McMAHON: -- they’re obligated to receive under21

the rules.22

THE COURT: Require 20 days’ notice, yes.23

MR. McMAHON: So, with respect to the list then, it’s24

a “now” issue. And, you know, from our perspective, if we’re25

23


going to have a meaningful meeting of creditors, meaningful1

notice of these cases, it’s an issue that has to be turned2

immediately.3

One final concern the form of order. We just bridged4

it with the automatic applicability point, there’s a paragraph5

in this form of order with respect to that point at the end. 6

But ultimately, Your Honor, while we’re -- we do understand the7

debtors find themselves where they are, there has to be8

substantial effort made to be getting that list filed,9

hopefully by early next week so we can do the things that a10

debtor in possession needs to.11

MR. COLLINS: Your Honor, may I make a suggestion? 12

Based upon Ms. Feldstein’s comments in the hope that certain13

items are prioritized, including preparation of this list of14

creditors, that we would include in this form of order that the15

debtor shall file the list of creditors by October 8th. That16

would then give a day or two to be able to serve out the 34117

notice to make that October 30th date. But all with the18

understanding that we are somewhat at the mercy of JPM with19

respect to this. But we will use all of our good faith20

efforts, and we hope JPM will do so, as well, in order to get21

this on file by the 8th, get it served out by the 9th or 10th22

so we can have the 341 meeting on the 30th. But obviously with23

our rights reserves to seek a further extension if, for reasons24

really out of our control, we are unable to comply with that. 25

24


And obviously we’ll strike the provision with respect1

to the auto apply, and we’ll do that in every order that we’re2

going to present to Your Honor.3

THE COURT: Okay.4

MR. SCHLERF: Good morning, Your Honor. Jeffrey5

Schlerf for Bayard.6

Your Honor, I think this is a good time to introduce,7

or re-introduce, the Court to Mr. Lauria of White and Case,8

appearing on behalf of some bondholders who did not have time9

to file motion papers, Your Honor, but I’d like to orally move10

his admission for purposes of this hearing. We will file11

papers later today.12

THE COURT: All right. It will be granted.13

MR. SCHLERF: Thank you.14

THE COURT: So, at least somebody got notice of15

today.16

(Laughter)17

THE COURT: Indirectly.18

MR. LAURIA: From the newspaper, Your Honor. Thank19

you, Your Honor. Tom Lauria with White and Case.20

I’m here today representing 16 holders of senior21

notes of Washington Mutual, Inc. that, in the aggregate, hold22

approximately $800 million of the senior notes. Those holders23

are Anchorage Advisors, Advent, Capital Management, Carval24

Investors, Chicago Fundamental Investment Partners, Concordia25

25


Advisors, CRT Capital Group, Deutsche Bank Securities, Inc.,1

Ivory Investment, K.S. Capital Partners, Latigo Partners, Lexor2

Capital, J.P. Schoenfeld Asset Management, Stark and Ruth,3

Inc., Taconic Capital Advisors, VSO Capital, and Alcreek4

(phonetic). And as Mr. Schlerf mentioned, we will be filing5

our appearance as quickly as possible and other related papers. 6

I apologize for not having them on file for this hearing. 7

However, we first met with our clients yesterday, and were8

retained yesterday afternoon. Things are moving pretty9

rapidly.10

Your Honor, the first thing I want to mention here is11

that the bondholders that I represent are, in fact, deeply12

concerned about the circumstances they find themselves in, and13

that we find our borrower in at this point. We -- to this14

point in the case, which has been pending for a week, have15

learned more through the media about the status of the debtor,16

and its assets, and liabilities than we have as a consequence17

of any filings or proceedings that have been conducted in this18

Court.19

And fundamentally, this goes to the whole principle20

of bankruptcy. Transparency is the debtors’ obligation, and21

where the debtor stands. And what we feel like we’ve been22

experiencing is, instead, an opaque process to this point, and23

this is not just form over substance.24

Immediately before the bankruptcy was filed, we are25

26


told that an agreement was reached between the bank1

subsidiaries and JPMorgan Chase pursuant to which substantially2

all the assets of the bank’s subsidiaries were transferred to3

JPMorgan Chase. To this point, that agreement has not been4

made public anywhere. We don’t understand how that could be,5

given the apparent dramatic impact that it is having on the6

rights, and perhaps liabilities of these bankruptcy estates.7

And since the bankruptcy has occurred, we are told8

that the debtor has entered into a standstill agreement with9

JPMorgan Chase. This is an agreement that also has not been10

made available, nor has notice of it been provided or any11

permission sought from this Court as to that agreement. And I12

understand that, you know, it could be argued as to whether not13

such an agreement is an ordinary course arrangement; I’m not14

sure that it is. I have no factual predicate for making an15

assessment of that other than to say it sounds very unusual for16

the holder of a $5 billion account to agree not to make17

withdraws out of that account.18

Certainly by virtue of being a debtor, the automatic19

stay, we would all assume, protects the debtors’ interest in20

the account. So, to standstill seems to be giving the bank21

where the account is protections that it’s not otherwise22

entitled to as a consequence of the bankruptcy, and it’s23

something that we’d all like to understand. Now, we, this24

morning, raised our concerns about the standstill and status25

27


with debtors’ counsel. And I think that we have an1

understanding, as soon as we’re done here this morning, that2

we’re going to sit down and try to start sharing information3

and getting an understanding of what’s going on.4

But standing here today, we have precious little in5

the way of real facts. And we’re certainly concerned, based on6

precedent that has already occurred in connection with other7

financial institution insolvencies and takeovers, that under8

the circumstances, the government is moving very swiftly,9

things are done that are very hard to undo, if not impossible10

to undo. And we are concerned that we don’t want to be the11

barking dog chasing the U.S. federal government truck down the12

street. We’re very happy that there is a case pending here13

because it is clear to us that this Court and this case exists14

for the purpose of protecting the assets of the debtor and,15

importantly, protecting the rights of the debtors’16

stakeholders, which include my clients, which we hope, properly17

exercised, will balance whatever other policies and interests18

other branches of the government are simultaneously pursuing,19

but we won’t find ourselves in a situation where all we’ve got20

to do here is cry over what’s already happened.21

And so we’re very concerned about the status of our22

debtor, and the status and inaction in this case to this point,23

recognizing how fast things seem to be moving outside the24

court.25

28


A procedural matter I want to make note of. Your1

Honor, a declaration has been filed in support of this motion,2

and the other first days that the debtors were asking the Court3

to grant today. However, the declarant is not available for4

cross examination. We think that’s highly unusual, and5

probably renders it impossible for any statements in the6

declaration to be treated as an evidentiary predicate for the7

relief the debtor has sought -- is seeking. And we want to8

make sure that we’re not waiving any rights that we have to9

revisit any of the relief, to the extent the Court does grant10

this relief today, if, after a proper evidentiary predicate, 11

it is determined that that relief was inappropriate. 12

Specifically --13

THE COURT: Well, with respect to that, our local14

rules make it clear that any order entered on the first day is15

an interim order, and subject to being revisited at any time on16

motion of any creditor.17

MR. LAURIA: Your Honor, the one concern we have is a18

potential shifting of burden. We don’t want to be bearing a19

burden of seeking reconsideration. You know, if, upon an20

appropriate evidentiary predicate --21

THE COURT: The burden does not shift.22

MR. LAURIA: Thank you, Your Honor. There have been23

some extraordinary statements, by the way, in the declaration,24

and a couple have been made on the record this morning. In25

29


particular, I would draw the Court’s attention to Paragraphs 321

and 36 of the first day declaration of Mr. Landefeld. In 32,2

he makes the statement, I’ll just -- “Prior to the commencement3

date, the debtors began gathering the information necessary to4

generate a complete list of their creditors for filing with the5

Court. But the bank receivership disrupted this process by6

limiting the debtors’ access to their employees, and their7

books and records.”8

This statement is reiterated in Paragraph 36 where9

the declarant says, “Assembling the necessary information will10

be a significant task for the debtors especially in light of11

the bank receivership and its disruption to the debtors’12

business operations. Indeed, the debtors believe that many of13

their books and records may be in the possession of the FDIC or14

JPMorgan Chase, and retrieving such information will take15

additional time. The debtors also lost a number of employees16

to JPMorgan Chase.”17

Your Honor, I believe the Bankruptcy Code provides18

protections and rights to a debtor that are supposed to go to19

these types of problems, Section 542 and 543 of the Code come20

to mind, in particular. And to listen to debtors’ counsel say21

that they are at the mercy of JPMorgan Chase in terms of22

getting the information, to me, sounds upside down. I think23

JPMorgan Chase is at the mercy of this Court to turn over to24

the debtors promptly the property and books and records of the25

30


debtor, to the extent it’s in their possession, either as a1

custodian or otherwise.2

And so we’re very troubled that, you know, as this3

Court and this process remains in stasis, and we talk about4

doing things by October 8th and October 30th. In the meantime,5

the real world around us is moving rapidly and things are6

happening, all of which may be ultimately accruing to the great7

prejudice to this estate and its stakeholders. So, we’re very8

troubled by that situation.9

And we’re troubled by some of the comments of counsel10

promising that there will be a full fleet of professionals and11

other team members assembled in the future. We need -- we, the12

stakeholders, need to understand what this staffing exercise is13

going to be. We need to understand if there is a debtor, are14

there actual employees who work for this debtor, and not for15

anybody else, the banks, JPMorgan? Are there employees who16

have fiduciary duties only to this estate, and not to other17

entities?18

And I think that we need to have an opportunity to19

understand that before we go down a path of what sounds to me20

potentially like creating a debtor that today may not exist. 21

And we need to think about what the appropriate measures or22

consequences should be to make sure that the interest of23

stakeholders are properly protected.24

So, against that backdrop, we want to make sure that25

31


our rights are preserved here, and we want to have the1

opportunity to actively participate in the protection of our2

rights in connection with this Chapter 11 case.3

THE COURT: All right. Thank you.4

MS. GOLDSTEIN: Your Honor, I think this is out of5

order, but I think it’s appropriate to respond to a number of6

those comments before Mr. Collins completes the presentation of7

the motions.8

For one, as to the standstill, we did advise Mr.9

Lauria earlier today that we would provide him a copy of the10

standstill. And as I thought I quite explicitly described to11

the Court, all it is is an agreement between two parties that12

each would give 48 hours’ notice to the other before it does13

something. I don’t think that requires court approval, no14

substantive rights of anybody were given up. And so we --15

happy to share that very, very short document with Mr. Lauria,16

but we do not believe that is anything --17

UNIDENTIFIED SPEAKER: Negotiations with -- involving18

Wells and Wachovia.19

THE COURT: Who is this peaking?20

UNIDENTIFIED MALE SPEAKERS: Who said what to whom21

over the next --22

THE COURT: Excuse me.23

UNIDENTIFIED MALE SPEAKERS: -- today, I believe.24

UNIDENTIFIED FEMALE SPEAKER: And we certainly will. 25

32


Although I --1

THE COURT: Excuse me. Would the parties on the2

phone please stop talking.3

UNIDENTIFIED FEMALE SPEAKER: Would even be grateful4

to not have to take --5

THE COURT: I’m going to ask CourtCall to cut off the6

people that are talking if they can’t respond to the Court.7

UNIDENTIFIED MALE SPEAKER: We’re going to do that8

right now, hit and run, we’ll be right back.9

UNIDENTIFIED FEMALE SPEAKER: Yes, we do.10

(Music playing)11

THE COURT: CourtCall. Excuse me. Somebody put us12

on hold instead of mute. Is the CourtCall operator there?13

MS. FELDSTEIN: This is Hydee Feldstein from Sullivan14

Cromwell. It’s not me, Your Honor. Would it help if I hung up15

and dialed back in so you could cut off the call?16

THE COURT: No, I’m going to get -- try to get the17

CourtCall operator, who should be on the call. Let’s take a18

two-minute recess.19

(Recess 10:25 A.M./Reconvene 10:27 A.M.)20

THE COURT: We’re back on the record then.21

MS. GOLDSTEIN: Thank you very much, Your Honor. 22

It’s much easier to speak to you now.23

I think I had left off on, you know, addressing the24

standstill and that we certainly will share it with Mr. Lauria. 25

33


We have shared a copy with the United States Trustee. As I1

said, it is not a substantive matter. It is merely two parties2

agreeing to give each other 48 hours’ notice before, in our3

case, making a withdrawal. We’re not giving up any withdrawal4

rights, just giving -- agreeing to give 48 hours’ notice.5

Even JPMorgan might have trouble with a withdrawal6

request of $5 billion, Your Honor. So, we did not think it was7

a major give-up of rights to give them 48 hours’ notice, if any8

give up of rights.9

So, in any event, we -- that will be in place until10

October 15th.11

THE COURT: Well, I’m not being asked to approve it.12

MS. GOLDSTEIN: No, you’re not, Your Honor.13

THE COURT: So, I’m making no comment on it.14

MS. GOLDSTEIN: Okay. Thank you, Your Honor. One15

thing I certainly do agree with Mr. Lauria, in terms of his16

comments, is we do believe that the asset purchase agreement17

between the FDIC and JPMorgan Chase should be made public, and18

we certainly support that.19

We note that a FOIA request can be made for that at20

this point in time, and we are hopeful that the FDIC will make21

that document public.22

THE COURT: Well, there are other means by which23

parties in a bankruptcy case can get access to information.24

MS. GOLDSTEIN: Yes, and we are pursuing -- and we25

34


are pursuing all of those options, Your Honor.1

Now, in terms of Mr. Lauria’s comments, I’m not sure2

he accurately quoted me with regard to the WMI employees. 3

Let’s just step back a minute. Before the seizure, there were4

43,000 employees of the bank, and there were about 14 employees5

who were only WMI employees.6

Thursday evening when the OTS order was issued, and7

then the sale to JPMorgan occurred, all of those employees were8

given the opportunity to become JPMorgan employees.9

Today there is one executive level employee, the10

declarant, who is a WMI employee only. We do expect to have11

back, we hope, a few who -- employees who were WMI employees,12

who will be released, if you will, by JPM, or who will not have13

long-term jobs with JPMorgan, to be back on the team. We are14

not bringing in a fleet, this is not a job for a fleet.15

However, there are a number of things that a small16

team -- remember, this is not the same business it was. 17

Obviously the debtor has to reassess the specific needs. Some18

of those needs are very bankruptcy driven, and there will be a19

need for a small team from an appropriate firm. And I’m --20

we’re not, at this point, ready to make that motion to the21

Court. But we will be very shortly, and Mr. Lauria and other22

counsel for parties in interest will have certainly an23

opportunity to look at that, and what the scope of that will24

be.25

35


Your Honor, I think -- while I still have the podium,1

and before Mr. Collins goes back to the motions, I thought I2

would at least try for the efficiency of finishing everything I3

was going to say later in terms of what we anticipate bringing4

before this Court in the short term.5

As I mentioned, we have been working with JPMorgan on6

certain transitional issues. So, we will be hopefully coming7

to court to seek approval of a transition services agreement.8

We will be making a motion under Section 363 and 365 to assign9

several qualified benefit plans to JPMorgan. These are plans10

that WMI was the sponsor of, but the plans were to cover, and11

did cover, the 43,000 bank employees. So, we will make a12

motion very shortly to assign those plans to JPMorgan, who will13

become the sponsor.14

We will also be seeking approval of the Court for a15

stipulation with JPMorgan, which also relates to the16

transition, and this relates to vendor contracts. WMI was a17

party to a number of contracts with vendors, but they -- the18

vendors provided services to the bank. In some instances, some19

of those services would be provided to WMI. But in order to20

enable JPM to have an orderly transition of their business, we21

are going to present stipulation which would, in effect, permit22

them to take 90 days to look at those contracts, and if it’s23

appropriate, and they elect to do so, we may seek a motion or24

make a motion to assume and assign certain of those contracts25

36


to JPMorgan. In the interim period, we agree that they may1

continue to pay those vendors who are providing interim2

services to them, and we agree that that, from the debtors’3

point of view, that their interaction with those vendors would4

not constitute violation of the automatic stay.5

I’m not going to -- I’m not prepared at this time,6

frankly, Your Honor, to read a stipulation into the record7

that’s the subject matter of it. We are still working on it to8

make sure that the debtors’ rights are fully protected, as9

well. But we would hope to provide a certification of counsel10

on this, and seek approval of this stipulation very, very11

shortly.12

Your Honor, other things that I think the Court could13

anticipate: The FDIC, at this point in time, is exercising14

control over not just the bank documents, but we learned in the15

last day that also over the WMI documents. And if we don’t16

resolve this quickly, we will be coming to this Court for17

emergency relief.18

In connection with the JPMorgan situation where they19

have control of certain documents, as Ms. Feldstein indicated,20

we intend to keep working to get that done. And obviously if21

there is no resolution of that, then we may seek the assistance22

of the Court on that, as well.23

So, Your Honor, I think that -- in addition, Your24

Honor, of course, you will be seeing the retention applications25

37


for counsel. We haven’t filed those yet, but we will be filing1

those very shortly, as well.2

So, on that note -- and we can discuss this at the3

end of the hearing, we will be asking for future hearing dates,4

perhaps for the beginning of the case, two hearings a month. 5

But we can take that back up at the conclusion of the hearing.6

THE COURT: All right. 7

MS. GOLDSTEIN: Thank you.8

THE COURT: Thank you. Let’s go back to our motions.9

MR. COLLINS: Your Honor, if I may present a form of10

order that I believe we have reached resolution with Mr.11

McMahon regarding the list of the filing or the filing of the12

list of creditors -- one moment, Your Honor.13

(Pause)14

MR. COLLINS: May I present the form of order, Your15

Honor?16

THE COURT: You may. Are these revisions acceptable17

then to you, Mr. McMahon?18

MR. McMAHON: Your Honor, I handed Mr. Collins a19

markup. He’s represented that the changes that we requested20

are incorporated in that form of order, and that’s acceptable.21

THE COURT: All right. Then I will grant the motion22

to the extent it seeks an extension of time to file the list of23

creditors to October 8th.24

MR. COLLINS: Thank you, Your Honor. Your Honor,25

38


turning to Agenda Item Number 6, this is our motion to obtain1

an extension of time and to file schedules and statements of2

financial affairs, as well as a waiver of the requirement to3

serve all of the equity holders with our Section 341 notice.4

Your Honor, the reason why we filed this as a first5

day motion, typically these are served out, at least the6

request to extend the time to file schedules and statements is7

typically heard at the next hearing. We were somewhat8

concerned given the fact that we did not file a list of9

creditors and thereby establish more than 200 creditors, that10

we would not have fallen within the local rule that would have11

automatically given us an additional 15 days.12

I have spoken with Mr. McMahon, and based upon the13

comments and assertions set forth both in Mr. Landefeld’s14

affidavit which says, “In good faith, we believe we have more15

than 200 creditors,” as well as what was set forth in the16

motion. I believe we’re comfortable that we have met the local17

rule and, therefore, have the full 30 days under the local18

rule. As a result, we can put off that aspect of the motion to19

the next hearing date in these cases.20

The other aspect of the motion really sought two21

items, they’re somewhat related:22

One was we were seeking a waiver of the requirement23

to file a list of equity security holders. We have withdrawn24

that request. We will, in fact, work with DTC and others to25

39


obtain a list of record holders, and we’ll then file that with1

the Court.2

What we’re also seeking, and this is important for3

purposes of today, Your Honor, is a waiver to the extent it is4

even applicable under the Rules, to serve out by mail the 3415

notice to all of the record holders of our equity. We believe6

that we could have in excess of 50,000 record holders of our7

equity, and did not think it was a worthwhile use of the8

estate’s resources to serve that out upon all of those record9

holders.10

And, in fact, I would note in Bankruptcy Rule 2002,11

it talks about that the Court can order that such notice need12

not be given, or can direct the manner in which it is given. 13

It is not required that it be served by mail. So, we wanted to14

bring this to Your Honor’s attention --15

THE COURT: And what manner do you suggest?16

MR. COLLINS: Your Honor, what we have done -- we17

think a couple of things:18

One is obviously the publicity associated with this19

filing, I think, is very well known.20

We have also filed an 8-K with the Securities and21

Exchange Commission noting the fact that we have, in fact,22

commenced a Chapter 11 case in this Court.23

A third way to proceed would be to public a 34124

notice in a national newspaper, whether it be the Wall Street25

40


Journal or U.S.A. Today, to provide further notice.1

But we’re at the discretion of the Court. If Your2

Honor believes, under 2002, we should, in fact, serve it out3

upon all 55,000 people, we will do so. I don’t think it is4

possible that it would be done within a day or two of obtaining5

the list, just given the magnitude of it.6

So, we wanted to raise that with Your Honor. And7

given the nature of this case, we really didn’t think it was8

appropriate and wanted to get some relief from that potential9

obligation.10

THE COURT: Let me hear from the U.S. Trustee then.11

MR. McMAHON: Your Honor, good morning again. To12

make something clear as a distinction here, Your Honor. 13

Typically claims agents with this Court merge the notice of the14

commencement of the voluntary case with notice of the 34115

meeting to creditors. And here we’re dealing with equity16

security holders with respect to this particular aspect of the17

relief.18

So, as a technical matter, under Rule 2002(d), the19

equity security holders are entitled to notice of the order for20

relief. Any meeting of equity security holders, not creditors. 21

So, there is a distinction to be drawn here. Meetings of22

equity security holders are not mandatory. And the meeting23

we’re talking about is a creditors’ meeting. So, that’s one24

issue.25

41


With respect to cause for seeking a waiver, the1

requirement to give notice, we are concerned, Your Honor, with2

respect to that request. And, in fact, we object to it for the3

following reasons: There -- this is a big company that has a4

substantial capital contribution at the equity level. And5

specifically if you look at the first affidavit, most recently,6

the seven or eight billion number, just slipped me, capital7

raised in April of this year is a substantial amount of money8

that is a threat of being erased in a very short period of time9

after it was raised.10

The interest of equity security holders being aware11

that these cases are out there, we think, when measured against12

the cost of sending them a piece of paper, I know that the13

number of them are substantial, but we believe that the cost is14

justified with respect to ensuring that everyone who holds15

equity is aware that these cases are pending.16

THE COURT: Thank you.17

MR. COLLINS: Your Honor, just so we’re clear with18

the Rule that we’re talking about. If you turn to Bankruptcy19

Rule 2002(d) --20

THE COURT: I have it.21

MR. COLLINS: -- it says, “In a Chapter 1122

reorganization case, unless otherwise ordered by the court, the23

clerk or some other person, as the court may direct, shall in 24

the manner and form directed by the court give notice to all25

42


equity security holders of the order for relief.”1

If you compare that, Your Honor, to 2002(a), 2002(a)2

says, with respect to the 341 notice that the trustee -- “The3

court may direct, shall give the debtor, the trustee, all4

creditors and indenture trustees at least 20 days' notice by5

mail of the 341 meeting,” that’s 2002(a)(1).6

So, clearly 2002(d) talks -- does not mandate mail. 7

It is first to determine if this requirement to give notice8

should be ordered. And if so, what is the appropriate manner9

of that notice given the nature and size of the equity security10

holder’s body, given in excess of 50,000 potential record11

holders. The fact that we have filed an 8-K, that equity12

security holders could easily determine the fact that this has13

been -- these cases have been commenced, along with the14

publicity. We thought it best to not go through the process of15

mailing all of those record holders with the simple notice of16

commencement of these Chapter 11 cases. So, that is why we’re17

before Your Honor on this.18

THE COURT: Well, with respect only to the notice of19

the order for relief and 341, I will grant the debtors’ request20

of relief. I think this is an unusual case, given the large21

number of equity holders, the uncertainty of what’s going on,22

or what will be the result in this case, and the need to get23

the notice out quickly. I will authorize the debtor to provide24

notice to the equity security holders by filing such a notice25

43


or -- excuse me, by publishing such a notice in a national1

newspaper.2

MR. COLLINS: Okay.3

THE COURT: And I’d request that it be done next week4

before the October 10th --5

MR. COLLINS: We’ll do everything we can, Your Honor,6

to make that happen.7

We will obviously be submitting a revised form of8

order. Because the order that we have dealt with both the9

extension of schedules and statements, along with this aspect. 10

So, we’ll submit that by certification of counsel, Your Honor.11

THE COURT: All right.12

MR. COLLINS: Thank you. Your Honor, turning to the13

last motion we have before the Court. And I’d like to do a14

couple of things. I would like to first submit a black line of15

the form of order, which reflects a number of changes that were16

requested by the Office of the United States Trustee. I know17

that Mr. Lauria had certain concerns regarding this motion, as18

well. And what we have agreed to do, I believe, is to continue19

to work with Mr. Lauria and his group of clients, and not20

submit the form of order for execution until Monday where21

hopefully we have resolved his concerns and can submit an order22

to be executed by Your Honor under certification of counsel.23

If we are unable to reach agreement on that form of24

order, then we would obviously be back before Your Honor at the25

44


next hearing bringing this item back up.1

THE COURT: All right. Thank you.2

(Pause)3

MR. COLLINS: Your Honor, turning to Page 3 of the4

order, we have made a number of changes at the request of Mr.5

McMahon. To note, that those entities that we have depository6

bank accounts, to the extent they are -- have already entered7

into depository agreements with the Office of the United States8

Trustee, then we’re obviously in compliance with Section9

345(b), and it provides that we could -- or without prejudice10

to our rights to deposit into future bank accounts, provided11

that they meet either Section 345 or otherwise approved by an12

order of Your Honor.13

Further, Your Honor, on Page 4, we have noted that to14

the extent we open any new account or close any account, we15

would provide notice of that to any official committee16

appointed in these cases, along with the Office of the United17

States Trustee.18

And we will, obviously, Your Honor, delete that --19

the one paragraph that we included in the other orders with20

respect to the applicability of this order to future affiliated21

debtors.22

So, as I mentioned, Your Honor, if we could defer23

consideration of this order until hopefully Monday so we can24

have a continuation of a dialogue with Mr. Lauria and his25

45


group, that would be, I think, helpful to the process.1

THE COURT: Well, it would also be helpful if I had a2

list of your bank accounts.3

MR. COLLINS: Yes, Your Honor, we understand. And4

that is part of the dialogue that we’re going to be having with5

Mr. Lauria, putting together that list, and potentially having6

that on file as early as Monday. That is something that we’re7

-- is a work in process, as well.8

THE COURT: Well, two other comments that you may9

want to consider:10

One, to the extent that the debtors’ checks are11

computer-generated, I think it’s not a burden to have the12

debtor change and add the debtor in possession language with13

the bankruptcy case number.14

MR. COLLINS: We will do that, Your Honor.15

THE COURT: In addition to the lack of the list of16

the accounts, I didn’t understand what the debtors’ investment17

practices are. It’s not really described in the motion. And18

you want me to approve your normal investment practices, I19

think I --20

MR. COLLINS: Well, Your Honor, what we’re seeking21

actually at this point is simply an extension of the time to22

come into compliance with Section 345(b). So, we’re not, at23

this point, seeking approval of our investment practices.24

THE COURT: Okay.25

46


MR. COLLINS: It’s simply to give us certain time to1

determine how to comply. Or if we cannot comply with the2

literal language of 345, we’ll be back before Your Honor on3

that motion.4

Your Honor, with respect to your comments regarding5

electronic checks, I assume that’s to the extent we have access6

to those, the ability to modify the checks to so state. So, in7

other words, if we had the ability to do so, then we will do so8

as soon as practicable. If we do not, and we use existing9

check stock, we can continue to use the existing check stock.10

THE COURT: You may.11

MR. COLLINS: Thank you, Your Honor. 12

THE COURT: All right. Those are my only comments,13

and I’ll look for a certification of counsel on Monday then.14


MR. JOHNSON: Good morning, Your Honor. Jeremy16

Johnson from DLA Piper.17

We just want to be on the record that we’re going to18

be involved. We represent the FDIC and we’ve been brought up19

several times today, as you’ve already heard, and I’m sure20

we’re going to be engaged. Our firm is in the process of21

associating with local counsel, and we’ll certainly get a22

notice on as soon as we’ve retained local counsel. But we’ve23

requested, and I believe the debtors have agreed, for us -- our24

involvement with respect to the cash management order and the25

47


bank account issues, to the extent the FDIC would have any1

concerns with that.2

THE COURT: Okay.3

MR. JOHNSON: Thank you, Your Honor.4

MS. BROWN-EDWARDS: Good morning, Your Honor. For5

the record, Terri Brown-Edwards of Potter Anderson and Corroon6

on behalf of the Washington Mutual Noteholder Group, certain7

noteholders at the bank level.8

Your Honor, I’d like to introduce to the Court my co-9

counsel from the law firm of Bracewell Giuliani, Jeff Ansley10

from the Houston Office of Bracewell Giuliani, and he’s a11

member of the Texas Bar, Your Honor. I’d like to move his12

admission pro hac vice orally, and we will follow that up with13

papers.14

And also Lashon Kells, from the Washington, D.C.15

Office of Bracewell Giuliani. Ms. Kells is a member of the New16

York and D.C. Bars, and we will file papers for her motion --17

file papers on a motion for pro hac vice on behalf of her. But18

I’d like to move orally for their admission today.19

THE COURT: All right. It will be granted. Thank20

you.21

MS. BROWN-EDWARDS: Thank you, Your Honor. At this22

time, I’d like to cede the podium to Mr. Ansley, who will have23

a brief discussion of many of the issues that you’ve heard24

already today.25

48



MS. BROWN-EDWARDS: Thank you.2

MS. ANSLEY: Thank you, Your Honor. And I will be3

more brief than most as we were just engaged literally a few4

hours ago. Jeff Ansley and Ms. Kells, along with Terri Brown-5

Edwards representing the Washington Mutual Noteholders Group.6

I want to echo, Your Honor, a lot of the comments Mr.7

Lauria has already made this morning. Our group, to begin8

with, I can’t identify who all those clients are because they9

were just hired -- at least we were just hired. But our10

clients consist exclusively of both senior and subordinate11

noteholders with Washington Mutual.12

That’s a group, Your Honor, first of all, I wanted to13

inform both the Court and the parties here that the group has14

been formed, and also that the group has engaged us to15

represent that group throughout this entire process. We are16

interested, and our clients are interested, in this process,17

and in particular about the $5 billion cash deposit that we’ve18

been talking about at some length this morning. We’re19

concerned, in particular, about the fact that the holding20

company had $5 billion cash apparently, an amount of money that21

was far more significant than the amount that Washington Mutual22

itself had. So, we’re concerned about the fact that money was23

there, and we’d like to be involved in the process as it goes24

forward concerning what happens with that $5 billion.25

49


I think on that point, Your Honor, the issue of the1

standstill agreement with JPMorgan Chase has already been2

addressed through Mr. Lauria.3

We would also like, as interested parties, we would4

also request Ms. Goldstein provide a copy of that standstill5

agreement, as short and brief as it may be. We’re interested6

in the contents of that, and feel that our clients need to see7

a copy of that agreement, as well.8

So, bottom line, Your Honor, we’re asking for9

transparency through this process, and that as things develop,10

and as actions are taken, that our group as interested equity11

holders here be as involved in that transparent process as we12

possibly can.13


MS. GOLDSTEIN: Your Honor, it’s not clear to me that15

the creditors of the bank have standing in this case. And I am16

not prepared to agree to anything today that would, in any way,17

impair my ability to argue that.18


MR. McMAHON: Your Honor, Joseph McMahon for the20

United States Trustee.21

One housekeeping matter. I just wanted to make an22

announcement on the record. We have scheduled a formation23

meeting for Wednesday, October 15th. We put something on the24

docket given that the top 20 list consist of --25

50


THE COURT: One entity?1

MR. McMAHON: Exactly. So, we’re hoping that word of2

mouth spreads to the beneficial holders. We’re trying our best3

to provide notice. And to the extent that there are parties in4

the courtroom interested in serving on the committee, they’re5

free to contact our office to obtain a questionnaire.6

THE COURT: Well, the debtor will be providing the7

full list of creditors by the 8th, presumably. Should I8

require the debtor to amend the 20 largest list of creditors at9

that time, as well?10

MR. McMAHON: Your Honor, we were anticipating --11

well, first, it’s our understanding that while the Bank of New12

York Mellon may be transitioning out of its position as13

indenture trustee on one or more of those issues, that’s a14

possibility.15

To the extent that that occurs by early next, we’re16

certainly going to serve the successor indenture trustees with17

respect to that matter. And we’re happy, obviously, to serve --18

reserve the formation meeting notice when we obtain that19

amended list of top 20 creditors.20

MS. GOLDSTEIN: Your Honor, the identification of the21

bondholders and -- you know, particularly the amounts that22

they hold is not something that the debtor has in its23

possession, even when we get access to the JPMorgan records or24

the FDIC’s records as the case may be. That will not tell us25

51


who the largest bondholders are. We know who the indenture1

trustees are, we’ve been serving them. And I think it’s2

incumbent upon them to identify the bondholders.3

THE COURT: Either that or you list them as number4

one and the other creditors as --5

MS. GOLDSTEIN: Yeah, I mean we clearly are listing6

the indenture trustee. Right now it’s only one, and as Mr.7

McMahon indicated, there is a succession process going on. But8

for the moment, we’re dealing with Bank of New York Mellon.9

THE COURT: Well, but they’re only one per series --10

MS. GOLDSTEIN: Well, I think they’re -- they’re --11

THE COURT: -- but do you have 20 series of debt?12

MS. GOLDSTEIN: Three, Your Honor.13

THE COURT: All right. So, that they may -- possibly14

be three entities, but certainly there are 17 other creditors.15

MS. GOLDSTEIN: Your Honor, those are the creditors16

we’re trying to identify through access to the bank record. 17

So, we have -- well, right now, it’s one -- one institution,18

that is the indenture trustee on all three.19

THE COURT: Right.20

MS. GOLDSTEIN: There may be, you know, changes there21

obviously.22

THE COURT: Understood.23

MS. GOLDSTEIN: But we will do our best to get the24

information on the other 17.25

52


THE COURT: All right. And amend your 20 largest1

list then. All right.2

MR. COLLINS: Your Honor, then I think we have left3

is just to talk briefly about scheduling. We were hopeful to4

have another hearing at the end of next week, potentially5

October 10th, as emergent matters come before the company. In6

many respects, it might be considered a continuation of the7

first day hearing in these cases given the circumstances of8

this case.9

The next hearing we would look for at the end of the10

month. Obviously our 341 meeting is in the morning of October11

30th. To the extent Your Honor has time in the afternoon, that12

would be helpful simply because the debtors’ professionals and13

others would all be in town for that.14

THE COURT: I could do two o’clock on the 10th. And15

on the 30th, let’s see. How about two o’clock on the 30th, as16

well, does that work?17

MR. COLLINS: Yes, Your Honor. Thank you.18

THE COURT: All right. And for any other dates,19

you’ll contact Ms. Capp, and let’s get two a month set up.20

MR. COLLINS: Will do.21

THE COURT: All right.22


THE COURT: Anything else?24

MR. COLLINS: Nothing further.25

53


THE COURT: All right. We’ll stand adjourned. Thank1

you.2

(Proceedings Adjourn at 10:59 A.M.)3

4

5

C E R T I F I C A T I O N6

7

I, Karen Hartmann, certify that the foregoing is a8

correct transcript to the best of my ability, from the9

electronic sound recording of the proceedings in the above-10

entitled matter.11

12

/s/ Karen Hartmann Date: October 6, 200813

TRANSCRIPTS PLUS14

15

16

17

18

19

20

21

22

23

24

25

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$$5- 10:20 26:1733:7 48:18,21,25$800- 24:23

&&- 6:11

//S/- 53:13

1100- 12:201015B- 14:211031- 13:12 16:310:25- 32:2010:27- 32:2010:59- 53:310TH- 23:22 43:552:6,1511- 7:6,13,21 8:414:1,16,19,2531:3 39:23 41:2242:1712- 22:614- 34:515- 38:1215TH- 12:12 33:1149:2416- 24:2117- 51:15,25

220- 22:23 42:549:25 50:9,2051:12 52:1200- 38:10,162002- 39:11 40:32002A- 42:22002A1- 42:62002D- 40:1941:20 42:72008- 53:1324- 7:14

33- 14:8 44:430- 38:1830TH- 18:2122:15,16 23:18,2330:5 52:12,1632- 29:1,2341- 18:4,2019:13 22:1123:17,23 38:439:5,24 40:1542:3,6,20 52:11345- 44:12 46:3345B- 44:10 45:2336- 29:2,9363- 35:9365- 35:9

44- 13:24 44:1440- 22:1143,000- 34:535:12

48- 11:4,6,18,2031:13 33:3,5,8

55- 17:2550,000- 39:742:11542- 29:20543- 29:2055,000- 40:4

66- 38:1 53:13

88K- 39:21 42:128TH- 23:16,2230:5 37:24 50:8

990- 35:239TH- 23:22

AABILITY- 11:1113:13,14 14:1315:20,23 46:7,849:18 53:9ABLE- 23:17ABOVE- 53:10ACCEPTABLE-37:17,21ACCESS- 9:2110:7,1118:7,12,1519:10,21 20:1429:7 33:24 46:650:24 51:17ACCESSING- 13:4ACCOMPLISH- 6:199:22ACCOMPLISHED-19:1ACCOUNT- 11:5,812:926:17,18,21,2244:15 47:1ACCOUNTING- 9:20ACCOUNTS- 11:1216:4,5,6,7,2444:7,11 45:3,17ACCRUING- 30:7ACCURATELY- 34:3ACKNOWLEDGMENT-12:7ACQUIRE- 21:12ACQUISITIONS-13:6ACTION- 8:8,1212:19,24 13:15ACTIONS- 49:11ACTIVELY- 31:2ACTUAL- 30:15ADAM- 6:10 20:4ADD- 45:13ADDITION- 9:2510:10 36:24 45:16ADDITIONAL- 6:179:4 12:23 13:18

29:16 38:12ADDRESS- 14:10ADDRESSED- 49:3ADDRESSING- 32:24ADEQUATE- 9:13ADJOURN- 53:3ADJOURNED- 53:1ADMINISTRATION-9:14 13:2515:11,19 16:16,2317:11ADMISSION- 24:1147:13,19ADVENT- 24:24ADVISE- 19:2031:9ADVISORS- 24:2425:1,4AFFAIRS- 38:3AFFIDAVIT- 18:622:2 38:15 41:6AFFILIATED- 44:21AFFILIATES-14:16,21 16:11AFTERNOON- 25:952:12AGAINST- 30:2541:12AGENDA- 13:23,2417:25 38:1AGENTS- 40:14AGGREGATE- 24:22AGREE- 15:1626:17 33:1636:1,3 49:17AGREED- 11:4,612:11 43:19 46:24AGREEING- 33:3,5AGREEMENT- 11:320:18 21:1126:1,4,9,10,12,1431:12 33:17 35:843:24 49:2,6,8AGREEMENTS- 44:8ALCREEK- 25:4AM/RECONVENE-32:20AMEND- 50:9 52:1AMENDED- 50:20AMOUNT- 8:13 41:848:21,22AMOUNTS- 9:9 15:550:22ANCHORAGE- 24:24ANDERSON- 47:6ANNOUNCEMENT-49:23ANSLEY- 47:10,2348:3,5ANTICIPATE- 35:436:14ANTICIPATING-50:11ANYWHERE- 26:5APOLOGIZE- 25:7APPARENT- 26:6APPARENTLY- 48:21APPEARANCE- 25:6APPEARING- 24:9

APPLICABILITY-23:5 44:21APPLICABLE-14:15,25 15:2516:18,21 39:5APPLICATIONS-36:25APPLY- 24:2APPOINTED- 7:1144:17APPRECIATE- 6:722:1APPROPRIATE-12:18 13:1516:12,25 18:828:21 30:22 31:634:20 35:24 40:942:9APPROVAL- 15:517:9 31:1435:8,15 36:1145:24APPROVE- 33:1245:19APPROVED- 44:12APPROXIMATELY-7:14 12:20 24:23APRIL- 41:8ARGUE- 49:18ARGUED- 26:13ARRANGEMENT-26:14ASPECT- 38:19,2140:17 43:10ASSEMBLED- 30:12ASSEMBLING- 29:10ASSERTIONS- 38:14ASSESSMENT- 26:16ASSET- 7:8 25:333:17ASSETS- 7:228:5,8 9:15,2310:4,15 21:10,1225:17 26:3 27:15ASSIGN-35:9,13,25ASSIST- 10:1,17ASSISTANCE- 10:312:18 36:22ASSOCIATED- 39:19ASSOCIATING-46:22ASSUME- 26:2035:25 46:6ATTACH- 16:25ATTACHED- 14:23ATTEMPTING- 20:19ATTENTION- 10:2029:1 39:15AUTHORITY- 18:3AUTHORIZE- 42:24AUTO- 24:2AUTOMATIC- 12:4,723:5 26:19 36:5AUTOMATICALLY-16:7 38:12AVAILABLE- 8:5,249:4,14 26:11 28:4AWARE- 14:23 22:5

41:11,16

BBACK- 13:18 17:1521:16 22:1432:9,16,2134:4,12,14 35:237:6,9 43:25 44:146:3BACKDROP- 30:25BALANCE- 27:18BANK'S- 26:3BANKRUPTCY- 14:2116:12 22:425:21,2526:7,8,23 29:1833:24 34:19 39:1141:19 45:14BANKS- 7:5 30:16BAR- 47:12BARKING- 27:12BARS- 47:17BASE- 21:14BASED- 11:1 23:1327:6 38:13BASIC- 15:21BASIS- 9:2,2219:16 21:15BAYARD- 24:6BEARING- 28:19BECOME- 12:2334:9 35:14BEGAN- 29:4BEGINNING- 37:5BELIEVES- 40:3BENEFICIAL- 50:3BENEFIT- 35:10BETWEEN- 26:131:12 33:18BIG- 22:4 41:4BILLION- 10:2026:17 33:7 41:748:18,21,25BIT- 13:3BLACK- 14:8 43:15BLANK- 18:24BLATANT- 12:3BOARD- 7:21,258:1 10:17BODY- 42:11BONDHOLDERS- 24:925:12 50:2251:1,3BOOKS- 20:2521:10,1229:8,14,25BORROWER- 25:14BOTH- 6:6 9:2,2011:9 14:9 18:1038:14 43:948:11,14BOTTOM- 49:9BOUGHT- 21:10BRACEWELL-47:10,11,16BRANCHES- 27:19BRIDGED- 23:4BRIEF- 47:24 48:449:6

55

BROAD- 16:5BROUGHT- 46:19BROWN- 48:5BROWNEDWARDS-47:5,6,22 48:2BULK- 19:4,5BURDEN-28:19,20,22 45:12BUSINESS- 13:1214:10 29:13 34:1735:21BUSINESSES- 10:14

CCALENDARED- 13:19CALL- 32:16,18CAN'T- 32:7 48:9CANNOT- 46:2CAPACITY- 9:1CAPITAL- 24:2425:1,2,3,4 41:5,7CAPP- 52:20CAPTION- 14:7CARVAL- 24:24CASES- 6:1814:1,16 15:1 23:238:20 41:12,1642:14,17 44:1752:8CASH- 9:14 10:2016:18 46:2548:18,21CAUSE- 41:1CAUSED- 10:20CEDE- 47:23CERTAIN- 6:7,149:8,18 23:1335:7,25 36:2043:18 46:1 47:7CERTAINLY- 7:1612:7 26:19 27:631:25 32:2533:16,19 34:2346:22 50:17 51:15CERTIFICATION-14:19,24 16:2436:10 43:11,2346:14CERTIFY- 53:8CHANGE- 7:4,545:13CHANGES- 14:437:20 43:16 44:551:21CHAOS- 8:13CHAPTER-7:6,13,21 8:414:1,16,18,2531:3 39:23 41:2242:17CHARACTERIZATION-15:17CHASE- 7:12 10:2320:11 26:2,4,1029:15,17,22,2433:18 49:2CHASING- 27:12CHECK- 46:10CHECKS- 45:11

46:6,7CHICAGO- 24:25CIRCUMSTANCE-20:18CIRCUMSTANCES-7:5 25:13 27:952:8CLAIMS- 40:14CLARIFICATION-11:15CLARIFIED- 20:23CLARIFY- 16:15CLARITY- 8:1 9:10CLASSES- 13:2CLEAN- 17:6CLEAR- 27:1428:15 40:13 41:1849:15CLEARLY- 19:1542:7 51:6CLERK- 41:24CLIENTS- 25:827:17 43:2048:9,11,17 49:7CLOSE- 8:22 44:15CO- 47:9COBB- 20:5CO-COUNSEL- 6:9CODE- 29:18,20COLLINS'- 20:6COMBINATION-10:15COME- 12:5 15:2229:20 45:23 52:6COMFORTABLE-19:13 38:17COMING- 6:13 35:736:17COMMENCED- 39:2342:14COMMENCEMENT-29:3 40:15 42:17COMMENCING- 11:7COMMENT- 33:14COMMENTS- 6:1518:5 23:13 30:1031:7 33:17 34:238:14 45:946:5,13 48:7COMMISSION- 39:22COMMITTEE- 44:1650:5COMMUNICATED-21:22COMPANIES- 6:9COMPANY-7:3,5,17,238:3,18 10:4 21:1341:4 48:21 52:6COMPANY'S- 7:7COMPARE- 42:2COMPLETE- 13:529:5COMPLETES- 31:7COMPLIANCE- 44:945:23COMPLICATIONS-7:15COMPLY- 23:25

46:2COMPUTER- 7:18COMPUTER-GENERATED 45:12

COMPUTERS-18:12,15 19:10CONCERN- 15:2116:1,2 23:4 28:18CONCERNED- 25:1327:6,11,22 38:941:2 48:20,23CONCERNING- 11:548:25CONCERNS- 26:2543:18,22 47:2CONCLUSION- 37:6CONCORDIA- 24:25CONDUCT- 22:11CONDUCTED- 25:18CONFIRMATION-22:16CONFRONTING- 8:3CONFUSION- 8:2020:22CONNECTION- 22:727:7 31:3 36:19CONSEQUENCE-25:17 26:23CONSEQUENCES-30:23CONSIDER- 15:2345:10CONSIDERATION-44:24CONSIDERED- 52:7CONSIST- 48:1149:25CONSTITUTE- 36:5CONTACT- 50:652:20CONTENTS- 49:7CONTINUATION-44:25 52:7CONTINUE- 19:1736:2 43:19 46:10CONTINUING- 9:15CONTRACT- 19:9CONTRACTS-35:17,18,23,25CONTRIBUTION-41:5CONTROL- 18:12,1523:25 36:15,20CONVERSATIONS-12:13 20:13COOPERATION- 10:518:25COOPERATIVELY-21:3COPY- 31:10 33:149:5,8CORP- 6:4CORRECT- 17:1919:8 53:9

CORROON- 47:6COST- 9:14,1541:13,14COUNSEL- 14:20,2416:1,25 18:1119:19 21:7,2227:1 29:21 30:1034:23 36:10 37:143:11,2346:14,22,23 47:10COUNSEL'S- 15:17COUPLE- 14:1315:18 28:25 39:1843:15COURSE- 12:19,2413:15 26:14 36:25COURT'S- 29:1COURTCALL-32:6,12,13,18COURTROOM- 6:1319:20 20:5 50:5COVER- 9:14,1535:11,12COVERED- 16:8CREATED- 7:15CREATING- 30:21CREDITOR- 28:17CREDITORS'- 40:24CROMWELL- 20:3,1032:15CROSS- 28:5CRT- 25:1CRY- 27:21CURRENTLY- 18:23CUSTODIAN- 30:2CUSTOMERS- 20:21CUT- 32:6,16

DDAILY- 9:2DATE- 18:2321:4,5 22:12,1523:18 29:4 38:2053:13DATES- 37:4 52:19DAY- 6:7 9:622:2,14 23:1728:15 29:2 36:1638:6 40:5 52:8DAYS- 9:2 22:1228:3 35:2338:12,18DAYS'- 22:23 42:5DC- 47:15,17DEAD- 22:12DEAL- 15:5,9DEALING- 16:640:16 51:9DEALT- 43:9DEBT- 19:5 51:12DEBTORS'- 15:1616:1 21:6,22 22:925:21 26:2027:1,1629:7,12,21 36:3,942:20 45:11,1752:13DECLARANT- 28:429:10 34:11

DECLARATION-28:2,7,24 29:2DEEPLY- 25:12DEFER- 20:7 44:23DELETE- 44:19DELETED- 21:25DEPOSIT- 10:2111:25 12:14 44:1148:18DEPOSITORS- 20:22DEPOSITORY- 12:116:6 44:6,8DEPOSITS-10:22,25 11:1DESCRIBED- 31:1145:18DESIGNED- 11:9DETAILED- 18:8DETERMINATION-12:6DETERMINE- 12:1942:8,13 46:2DETERMINED- 7:2128:12DEUTSCHE- 25:1DEVELOP- 49:10DEVELOPMENT- 13:7DIALED- 32:16DIALOGUE- 18:1044:25 45:5DIDN'T- 40:845:17DIGITS- 14:9DIRECTED- 41:25DIRECTING- 13:25DIRECTORS- 7:258:1DISAGREE- 16:19DISCRETION- 40:2DISCUSS- 37:3DISCUSSION- 9:1847:24DISCUSSIONS- 14:1DISRUPTED- 29:6DISRUPTION- 29:12DISTINCTION-40:13,22DISTRIBUTIONS-13:1DLA- 46:17DOCKET- 17:1849:25DOCUMENT- 31:1633:22DOCUMENTS-36:15,16,20DOESN'T- 14:14DOG- 27:12DRAMATIC- 26:6DRAW- 11:4 29:1DRAWING- 11:18DRAWN- 40:22DRIVEN- 34:19DROP- 22:12DTC- 38:25DUE- 9:9DUTIES- 30:17

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EEACH- 31:13 33:3EARLIER- 12:1931:10EARLY- 22:1823:10 45:7 50:16EASE- 15:10EASIER- 32:23EASILY- 42:13ECHO- 48:7EDWARDS- 48:6EFFECT- 12:813:12 20:20 35:22EFFECTIVE-12:11,12EFFICIENCY- 35:3EFFORT- 23:9EFFORTS- 23:21EIGHT- 41:7ELECT- 35:24ELECTION- 22:14ELECTRONIC- 46:653:10EMAIL- 7:17EMERGENCY- 36:18EMERGENT- 52:6EMPLOYEE- 8:249:1,8 15:534:10,11ENABLE- 35:21ENGAGED- 8:246:21 48:4,15ENSURE- 20:21ENSURING- 41:15ENTER- 17:24ENTERED- 11:312:10 16:17 26:928:15 44:7ENTERING- 16:15ENTIRE- 48:16ENTITIES-14:11,17,20 16:2222:9 30:18 44:651:15ENTITLED- 26:2340:20 53:11ENTITLEMENT- 11:1ENTITY- 13:1216:3,4 22:5,750:1ENTRY- 17:18EQUITY- 38:4,2439:6,840:16,20,21,2341:5,11,1642:1,10,12,22,2549:11ERASED- 41:9ESPECIALLY- 29:11ESTABLISH- 11:1218:3 38:10ESTATE- 11:1313:7,8 30:8,17ESTATE'S- 39:9ESTATES- 26:7EVENING- 7:7,108:14 34:7EVERYBODY- 7:2

EVERYONE- 41:15EVERYTHING- 35:343:6EVIDENCED- 8:4EVIDENTIARY-28:7,11,21EXACTLY- 22:550:2EXAMINATION- 28:5EXAMPLE- 9:7 16:3EXCESS- 39:742:11EXCHANGE- 13:1216:3 39:22EXCLUSIVELY-48:11EXCUSE- 31:2332:2,12 43:1EXECUTED- 43:23EXECUTION- 43:21EXECUTIVE- 8:2534:10EXERCISE- 30:13EXERCISED- 27:18EXERCISING- 36:14EXISTING- 46:9,10EXISTS- 27:14EXPECT- 12:1313:13 18:25 34:11EXPERIENCING-25:23EXPLAINING- 16:25EXPLICITLY- 31:11EXTENSION- 16:2218:2 23:24 37:2338:2 43:10 45:22EXTENT- 16:1028:10 30:1 37:2339:4 44:7,1545:11 46:6 47:150:4,16 52:12EXTRAORDINARY-28:24

FFACTUAL- 26:15FAILED- 21:1,11FAIR- 8:13FAITH- 23:2038:15FALLEN- 38:11FAR- 48:22FAST- 27:24FDIC- 7:11,12,209:3 10:12 21:1129:14 33:18,2136:14 46:19 47:1FDIC'S- 50:25FEDERAL- 27:12FEEDBACK- 6:23FEEL- 19:13 25:2249:7FELDSTEIN-19:23,2520:2,4,7,8,1032:14 36:20FELDSTEIN'S-23:13FEMALE- 31:25

32:4,10FIDUCIARY- 30:17FILED- 7:13 16:1621:23 23:9 25:2528:2 37:1 38:539:21 42:12FILING- 7:6,19,258:4 11:5,18,2118:17 19:15 25:529:5 37:1,1239:20 42:25FILINGS- 25:18FINAL- 23:4FINANCE- 20:24FINANCIAL- 27:838:3FINANCING- 9:13FIND- 23:825:13,14 27:20FINGER- 6:3FINISHING- 35:3FIRM- 6:1010:2,16 34:2046:21 47:10FIRST- 6:5,7 9:615:19 20:21 21:2222:2,13 25:8,1128:3,15 29:2 38:541:6 42:8 43:1548:13 50:12 52:8FLEET- 30:1134:15FOCUSED- 8:7FOIA- 33:20FOLLOW- 47:13FOLLOWING- 17:2041:4FOREGOING- 53:8FOREMOST- 20:21FORM-14:2,3,8,12,2416:8 17:1 18:2221:24 23:4,6,1525:24 37:10,15,2141:2543:8,16,21,24FORMAL- 22:16FORMALLY- 22:8FORMATION- 49:2350:19FORMED- 48:15FORMER- 7:4 10:16FORTH- 38:14,16FORWARD- 14:718:19 48:25FOUR- 14:9FRANKLY- 7:208:13 36:7FREE- 50:6FSB- 7:4FULL- 22:13 30:1138:18 50:8FULLY- 8:2 36:9FULSOME- 19:11,12FUNCTION- 9:23FUNCTIONING- 8:29:1FUNDAMENTAL-24:25

FUNDAMENTALLY-25:20FURTHER- 21:6,1723:24 40:1 44:1452:25FUTURE- 14:15,1830:12 37:444:11,21

GGATHERING- 29:4GENERATE- 29:5GET- 6:23 9:910:11 13:519:6,20 21:2323:21,22 32:1733:24 36:21 40:942:23 46:22 50:2451:24 52:20GIULIANI-47:10,11,16GIVE- 11:4,6,2021:4 23:17 31:1333:3,5,8,941:2,25 42:4,846:1GIVEN- 15:718:5,14 26:631:15 34:938:9,12 39:1340:6,842:10,11,21 49:2552:8GIVE-UP- 33:8GO- 18:19 22:1829:19 30:20 37:942:15GO-FORWARD- 14:25GOING- 8:11 14:716:11 22:17 23:124:3 27:3,4 30:1432:6,8,17 35:4,2236:6 42:22 45:546:18,21 50:1751:8GOOD- 6:1,2 15:1421:19 23:2024:5,7 38:1540:12 46:16 47:5GOT- 24:15 27:20GOTSHAL- 6:1120:12GOVERNMENT-27:9,12,19GOVERNMENTAL-22:8GRANT- 17:1028:4,10 37:2242:20GRANTED- 24:1347:20GRATEFUL- 32:4GREATER- 10:12GROUP- 25:1 43:2048:6,8,13,14,15,1645:1 47:7 49:11GUESS- 16:2,8,10

HHAC- 47:13,18HANDED- 17:1337:19HAPPEN- 8:15 43:7HAPPENED- 27:21HAPPENING- 30:7HAPPENS- 48:25HAPPY- 21:1627:13 31:16 50:18HARD- 20:9 27:10HAVEN'T- 22:1537:1HE'S- 37:20 47:11HEAR- 15:12 21:1840:11HEARD- 13:9 15:2138:8 46:20 47:24HEARING- 6:6 21:724:11 25:7 37:4,638:8,20 44:152:5,8,10HEARINGS- 37:5HELLO- 19:25HELP- 32:15HELPFUL- 19:2145:1,2 52:13HERE'S- 22:3HEREIN- 16:5HIGHLY- 28:5HIRED- 48:10HIT- 32:9HOLD- 24:22 32:1350:23HOLDER- 26:17HOLDER'S- 42:11HOLDERS- 19:524:21,23 38:4,2439:1,6,7,1040:17,20,21,2342:1,12,13,16,22,2541:11 49:12 50:3HOLDING-7:3,4,16,228:3,18 48:20HOLDS- 41:15HONOR'S- 39:15HOPE- 6:19 8:239:3 10:1,25 11:1013:5 23:13,2127:17 34:12 36:10HOPEFUL- 10:819:12 33:21 52:4HOPEFULLY- 23:1035:7 43:22 44:24HOPING- 50:2HOURS- 7:1411:4,18,20 48:5HOURS'- 11:631:13 33:3,5,8HOUSEKEEPING-49:22HOUSTON- 47:11HUNG- 32:15HYDEE- 20:2,932:14

57

IID- 14:9IDENTIFICATION-21:13 50:21IDENTIFY- 10:148:9 51:3,17IDENTIFYING- 10:3IMAGINE- 7:15 9:5IMMEDIATE- 7:16IMMEDIATELY- 7:1117:17 18:14 23:325:25IMPACT- 26:6IMPAIR- 49:18IMPORTANT- 7:8,2239:3IMPORTANTLY-27:16IMPOSSIBLE- 27:1028:6INACTION- 27:23INACTIVE- 12:21INAPPROPRIATE-28:12INC- 6:4 7:2 8:124:22 25:1,4INCORPORATED-37:21INCUMBENT- 51:3INDEED- 8:1529:13INDENTURE- 19:722:5 42:550:14,1751:1,7,19INDEPENDENT- 16:4INDICATED- 10:2336:20 51:8INDICATION- 12:5INDIRECTLY- 24:18INFORM- 48:14INFORMATION- 6:189:21 10:7,1111:2,11 13:4,514:22 18:819:6,21 21:8 22:327:329:4,10,15,2333:24 51:25INFORMED- 8:11INITIALLY- 12:10INITIATED- 7:19INSOFAR- 22:3INSOLVENCIES-27:8INSTANCES- 35:19INSTEAD- 6:1325:23 32:13INSTITUTION- 27:851:18INSURANCE- 13:11INTEND- 36:21INTERACTION- 36:4INTEREST- 7:815:20,23 26:2030:23 34:23 41:11INTERESTED- 48:1749:4,6,11 50:5

INTERESTS- 27:18INTERFACING- 9:2INTERIM- 28:1636:1,2INTRODUCE- 24:747:9INTRODUCTIONS-6:8,15INVESTMENT- 6:424:25 25:245:17,19,24INVESTORS- 24:25INVOLVEMENT-46:25ISSUE- 12:1716:12 22:25 23:240:25 49:1ISSUED- 34:7ISSUES- 8:2 10:1912:14 16:920:13,23 22:2,635:7 47:1,2450:14ITEM- 13:24 17:2538:1 44:1ITEMS- 21:1 23:1438:22IVORY- 25:2

JJEFF- 47:10 48:5JEFFREY- 24:5JEREMY- 46:16JOB- 34:15JOBS- 34:14JOHNSON- 46:16,1747:4JOINT- 13:2515:19 16:15,2317:10JOSEPH- 15:1421:19 49:20JOURNAL- 40:1JP- 25:3JPM- 18:12,1323:19,21 34:1335:21JPM'S- 18:25JPMORGAN'S- 19:19JUDGE- 7:1JUSTIFIED- 41:15

KKELLS- 47:15,1648:5KEY- 10:19 12:17KNOWLEDGE- 21:14KNOWN- 39:20KNOWS- 7:2KS- 25:2

LLACK- 45:16LANDEFELD- 18:629:2LANDEFELD'S-38:14LANDIS- 20:4,5LANGUAGE- 16:6

45:13 46:3LARGE- 42:21LARGEST- 7:9 50:951:1 52:1LASHON- 47:15LATE- 7:6LATER- 7:14 16:1621:17 24:12 35:4LATIGO- 25:2LAUGHTER- 24:17LAURIA-24:8,19,2028:18,23 31:10,1632:25 33:16 34:2243:18,20 44:2545:6 48:8 49:3LAURIA'S- 34:2LAYTON- 6:3LEAD- 11:11LEARNED- 8:925:16 36:15LED- 7:6LEFT- 18:23 32:2452:3LEGAL- 11:7LEGITIMATE- 21:9LENGTH- 48:19LET'S- 16:2 32:1834:4 37:952:16,20LEVEL- 34:10 41:547:8LEXOR- 25:2LIABILITIES-25:17 26:7LIGHT- 29:11LIMITATIONS- 13:4LIMITED- 11:10LIMITING- 29:7LINE- 14:8 43:1549:9LISTING- 51:6LITERAL- 46:3LITERALLY- 48:4LITIGATION- 11:21LOCAL- 28:1438:11,17,1846:22,23LOGISTICAL- 22:2LONGER- 12:16,17LONG-TERM- 34:14LOOK- 34:24 35:2341:6 46:14 52:10LOSS- 16:2LOST- 29:16LOT- 6:23 48:7

MMAGNITUDE- 40:6MAIL- 39:5,1442:6,7MAILING- 42:16MAINTENANCE-16:23MAJOR- 7:4,5 33:8MAKING- 11:426:15 33:4,1435:9MALE- 31:21,24

32:8MANAGE- 10:13MANAGEMENT- 16:1824:24 25:3 46:25MANAGING- 9:1510:15MANDATE- 42:7MANDATORY- 40:23MANGES- 6:11MANNER- 39:13,1641:25 42:9MANY- 21:1 29:1347:24 52:7MARCIA- 6:9MARK- 6:3 13:18MARKUP- 37:20MATTER- 20:7 28:133:2 36:8 40:1949:22 50:18 53:11MATTERS- 9:3 52:6MAXIMIZE- 12:2413:15MAXIMIZING- 8:7MCMAHON- 14:115:7,14,1518:10,18 19:1821:19,20 22:21,2437:12,18,19 38:1340:12 44:6 49:2050:2,11 51:8MEANINGFUL- 23:1MEANS- 33:23MEANTIME- 30:5MEASURED- 41:12MEASURES- 30:22MEDIA- 25:16MEET- 21:9 44:12MEETING- 18:2022:11 23:1,2340:16,21,23,2442:6 49:24 50:1952:11MEETINGS- 40:22MELLON- 50:1351:9MEMBER- 47:12,16MEMBERS- 30:12MERCY- 18:16 19:223:19 29:22,24MERELY- 33:2MERGE- 40:14MET- 25:8 38:17MICHAEL- 6:10MILLION- 24:23MINOR- 14:2MODIFICATIONS-14:3MODIFY- 14:7 46:7MOMENTS- 10:12MONDAY- 43:2144:24 45:7 46:14MONEY- 11:22,2412:4,8 41:848:21,23MONTH- 37:552:11,20MORNING- 6:1,28:9 15:14 21:1924:5 26:25 27:2

28:25 40:12 46:1647:5 48:8,1952:11MORTGAGE- 13:8MORTGAGES- 13:9MOTIONS- 6:713:19 15:3,2422:10 31:8 35:237:9MOUTH- 50:3MOVE- 24:1047:12,19MOVING- 25:927:9,24 30:6MUCH- 6:5,7 7:110:18 32:22,23MUSIC- 32:11MUTE- 32:13MUTED- 6:23MUTUAL- 6:47:2,3,4,8 8:124:22 47:748:6,12,22

NNATIONAL- 39:2543:1NEATLY- 20:15NECESSARILY-15:16NECESSARY-29:4,10NEGOTIATIONS-31:18NEW- 16:22 44:1547:16 50:12 51:9NEWSPAPER- 24:1939:25 43:2NONDEBTOR- 13:316:11NOR- 26:11NORMAL- 17:1045:19NOTE- 9:12 14:2017:12 22:6 28:133:20 37:3 39:1144:6NOTED- 14:7 22:944:14NOTEHOLDER- 47:7NOTEHOLDERS- 47:848:6,12NOTES- 24:22,23NOTING- 39:22NOVEMBER- 22:13NUMEROUS- 7:159:3 12:20

OOBJECT- 41:3OBLIGATED- 22:21OBLIGATION- 25:2140:10OBLIGATIONS- 15:6OBTAIN- 19:1138:1 39:1 50:6,19OBTAINING- 22:340:5OBVIOUSLY- 8:7

58

12:23 13:3 18:619:21 21:12 23:2324:1 34:18 36:2139:19 43:8,2544:9,19 50:1851:22 52:11OCCURRED- 26:827:7 34:8OCCURS- 50:16OCTOBER- 12:1218:20 22:1623:16,18 30:533:11 37:24 43:549:24 52:6,1153:13OFFICE- 7:1015:13 22:11 43:1744:8,17 47:11,1650:6OFFICE'S- 15:2121:21OFFICIAL- 44:16ONES- 14:13ONGOING- 9:2212:22OPAQUE- 25:23OPEN- 44:15OPERATIONS- 9:1612:22 20:20 29:13OPERATOR-32:13,18OPPORTUNITY-10:24 18:7 30:1931:2 34:9,24OPTIONS- 34:1ORALLY- 24:1047:13,19ORDERED- 17:1721:24 41:23 42:9ORDERLY- 20:2035:21ORDERS- 15:416:17 44:20ORDINARY- 26:14ORIGINAL- 17:13OTHERWISE- 26:2230:2 41:23 44:12OTS- 34:7OURSELVES- 27:20OVERLAP- 8:18OWNERSHIP- 7:8

PPAPERS- 24:10,1225:6 47:14,17,18PARENT- 10:321:13PARTICIPATE- 31:2PARTICULAR-29:1,21 40:1748:18,20PARTICULARLY-8:15 12:25 50:22PARTIES- 6:12,2215:20,23 19:931:12 32:233:2,24 34:2348:14 49:4 50:4PARTNERS- 24:25

25:2PARTY- 19:9 35:18PATH- 30:20PAUSE- 15:7 37:1444:3PAY- 15:5 36:2PEAKING- 31:20PENDING- 25:1527:13 41:16PEOPLE- 6:13,1432:7 40:4PERHAPS- 10:1912:17 26:7 37:5PERIOD- 36:1 41:9PERMISSION- 26:12PERMIT- 35:22PERSON- 41:24PERSONNEL- 21:14PERSPECTIVE-21:25 22:25PETITION- 18:2,9PETITIONS- 7:13PHONE- 6:22 32:3PHONES- 6:23PIECE- 41:13PIPER- 46:17PLACE- 10:1233:10PLAN- 8:8 13:1PLANS- 8:11,2335:10,11,13PLAYING- 32:11PLEADINGS- 9:7PLEASED- 8:9,11PODIUM- 6:14,1613:18 35:1 47:23POINTS- 15:18POLICIES- 27:18PORTFOLIOS- 13:8POSITION- 21:2150:13POSSESSION-9:13,19 23:1129:14 30:1 45:1350:24POSSIBILITY-50:15POTENTIAL- 28:1940:9 42:11POTENTIALLY-30:21 45:6 52:5POTTER- 47:6PRACTICABLE- 46:9PRACTICES-45:18,19,24PRECEDENT- 27:7PRECIOUS- 27:5PRECLUDE- 12:7PREDICATE- 26:1528:7,11,21PREJUDICE- 30:844:10PREMATURE- 9:11PREMISES- 7:17,20PREPARATION-23:14PREPARE- 18:13PREPARED- 18:1436:6 49:17

PREPETITION- 9:915:5PRESENT- 13:1914:3 24:3 35:2237:10,15PRESENTATION-31:7PRESERVATION-9:23PRESERVED- 31:1PRESERVING- 10:3PRESS- 10:18PRESUMABLY- 50:8PREVENT- 11:9PRINCIPLE- 25:20PRIOR- 10:21 13:629:3PRIORITIZE- 21:8PRIORITIZED-23:14PRIORITY- 21:1PRO- 47:13,18PROBABLY- 28:6PROBLEM- 22:3PROBLEMS- 29:20PROCEDURAL- 14:1415:3,17 28:1PROCEDURE- 16:20PROCEDURES- 18:4PROCEED- 17:139:24PROCEEDINGS- 11:712:23 22:8 25:1853:3,10PROCESS- 10:1312:13,25 15:2,1025:23 29:6 30:442:15 45:1,846:21 48:16,17,2449:10,12 51:8PROFESSIONAL-10:16PROFESSIONALS-10:1 20:25 30:1152:13PROGRESS- 20:24PROMISING- 30:11PROMPTLY- 29:25PROPER- 28:11PROPERLY- 27:1730:24PROPERTY- 11:1229:25PROPOSE- 6:1612:24 13:1,1422:15PROPOSED-14:8,18,24 18:22PROPOSITION-20:16PROTECTED- 30:2436:9PROTECTING- 7:2227:15,16PROTECTION- 7:218:4 16:12 31:2PROTECTIONS-26:22 29:19PROTECTS- 26:20

PROVIDE- 6:1711:18 13:1 31:1036:10 40:1 42:2444:16 49:5 50:4PROVIDED- 26:1135:19,20 44:11PROVIDES- 29:1844:10PROVIDING- 9:1836:2 50:7PROVISION- 15:417:6,14,16,2324:1PUBLIC- 19:5,726:5 33:18,2239:24PUBLICITY- 39:1942:15PUBLISHING- 43:1PURCHASE- 33:17PURPOSE- 27:15PURPOSES- 24:1139:4PURSUANT- 26:2PURSUING- 8:310:19 27:19 33:2534:1PUTTING- 8:810:12 45:6

QQUALIFIED- 35:10QUESTIONNAIRE-50:6QUESTIONS- 13:1820:6QUICKLY- 7:198:15,24 18:1921:3 25:6 36:1742:24QUOTED- 34:3

RRAISE- 16:1 40:7RAISED- 26:2541:8,10RAISES- 22:2RAPIDLY- 25:1030:6RATH- 20:5RATHER- 17:1,3REACH- 16:1243:24REACHED- 26:137:11READY- 34:21REALISTIC- 21:5REASON- 38:5REASONS- 9:623:24 41:4REASSESS- 34:18RECEIVE- 22:19,21RECEIVED- 22:16RECEIVER- 7:11RECEIVERSHIP-29:6,12RECEIVING- 22:7RECENTLY- 41:6RECOGNIZING-

27:24RECONSIDERATION-28:20RECORDING- 53:10RECORDS- 19:720:14,25 21:10,1229:8,14,2550:24,25REDUCED- 19:12REFERENCED- 12:1914:9 16:5REFLECTS- 43:16REINTRODUCE- 24:8REITERATED- 29:9RELATE- 10:25RELATIVELY- 8:24RELEASED- 34:13RELIEF- 14:1515:3,2428:8,10,11,1236:18 40:9,18,2142:1,20,21REMAINING- 7:228:8,20 10:14REMAINS- 30:4REMOVE- 12:8RENDERS- 28:6REORGANIZATION-41:23REPORT- 21:16,17REPRESENTED- 8:1037:20REQUEST- 11:433:7,20 38:7,2541:3 42:20 43:444:5 49:5REQUESTED- 37:2043:17 46:24REQUESTS- 21:9REQUIRE- 22:2350:9REQUIRED- 14:2139:14REQUIREMENT- 18:138:3,23 41:2 42:8REQUIRES- 31:14RESERVE- 50:19RESERVES- 23:24RESOLUTION- 36:2237:11RESOLVE- 8:20,2310:6,25 36:17RESOLVED- 10:843:22RESOLVING- 10:1012:14RESOURCES- 8:2439:9RESPECT- 8:2015:21 16:17 19:221:21 22:2423:6,20 24:128:14 40:1741:1,3,15 42:3,1944:21 46:5,2550:18RESPECTS- 52:7RESPOND- 21:1431:6 32:7

59

RESPONSE- 20:6RESULT- 38:1942:23RETAIN- 9:25RETAINED- 25:946:23RETENTION- 36:25RETRIEVING- 29:15REVIEWING- 11:10REVISED- 43:8REVISIONS- 37:17REVISIT- 28:10REVISITED- 28:16RICHARDS- 6:3RIGHTS- 23:2426:7 27:16 28:929:19 31:1,3,1533:5,8,9 36:944:11ROLLING- 19:16RULE- 14:2138:11,18,19 39:1140:19 41:19,20RULES- 22:2228:15 39:5RUN- 32:9RUNNING- 10:1311:9RUTH- 25:3

SSALE- 12:25 34:8SCHEDULED- 49:23SCHEDULES- 16:2338:2,7 43:10SCHEDULING- 6:652:4SCHLERF-24:5,6,14 25:5SCHOENFELD- 25:3SCOPE- 34:24SECOND- 21:2422:1SECURITIES- 25:139:21SECURITY- 38:2440:17,20,21,2341:1142:1,10,13,25SEE- 8:10 9:2314:23 21:8,2449:7 52:16SEEING- 36:25SEEK- 14:15 18:123:24 35:8,2436:11,22SEEKING- 15:4,1028:8,20 35:1538:23 39:3 41:145:21,24SEEKS- 37:23SEGREGATED- 20:15SEIZURE- 34:4SENDING- 19:1341:13SENIOR- 8:2520:24 24:21,2348:11SEPARATE- 8:19

15:9 22:6SERIES- 51:10,12SERVE- 23:17 38:439:5,9 40:350:17,18SERVED- 23:2238:6 39:14SERVICES- 9:1920:17 35:8,19,2036:3SERVING- 18:4,1950:5 51:2SET- 18:2038:14,16 52:20SEVEN- 9:2 41:7SEVERAL- 35:1046:20SHALL- 17:1823:16 41:24 42:4SHARE- 31:1632:25SHARED- 7:17 33:1SHARING- 27:3SHIFT- 28:22SHIFTING- 28:19SHORTLY- 10:212:13 34:22 35:1336:12 37:2SHORT-TERM- 12:17SIDES- 11:9SIGNIFICANT-29:11 48:22SIMILARLY- 11:6SIMPLE- 11:814:24 20:16,1842:16SIMPLY- 11:913:24 15:10 45:2246:1 52:13SIMULTANEOUSLY-27:19SIT- 27:3SITUATION- 7:1620:18 27:20 30:936:19SIZE- 42:10SLIPPED- 41:7SMALL- 34:16,20SO-CALLED- 13:9SOLD- 7:12 10:14SOLELY- 9:1SOMEWHAT- 18:1619:1 23:1938:8,22SOUGHT- 15:3,2426:12 28:8 38:21SOUND- 53:10SOUNDS- 26:1629:23 30:20SPEAKER- 31:18,2532:4,8,10SPEAKERS-31:21,24SPECIFIC- 16:4,2134:18SPECIFICALLY-28:13 41:6SPOKEN- 38:13SPONSOR- 35:11,14

SPREADS- 50:3STAFFING- 30:13STAKEHOLDERS- 8:627:17 30:8,13,24STAND- 53:1STANDARD- 17:9STANDING- 27:549:16STANDS- 25:22STANDSTILL-11:3,8 12:1126:9,21,2531:9,11 32:2549:2,5STARK- 25:3START- 27:3STARTED- 20:17STARTING- 8:13STARTS- 17:17STASIS- 30:4STATE- 46:7STATEMENT- 29:3,9STATEMENTS- 16:2328:6,24 38:2,743:10STATUS- 6:6,1811:12 12:6 25:1626:25 27:22,23STAY- 12:4,726:20 36:5STEP- 34:4STIPULATION-35:16,22 36:7,11STOCK- 46:10STOP- 32:3STREAMLINE-15:2,10STREET- 27:1339:25STRICKEN- 17:21STRIKE- 17:6,1624:1STRIKING- 17:14STROCHAK- 6:10STUDY- 11:2SUBMITTING- 43:8SUBORDINATE-48:11SUBS- 13:3SUBSIDIARIES-9:16 12:20,2113:7,11,14 15:2216:16 26:2,3SUBSTANCE- 25:24SUBSTANTIAL-20:23 23:941:5,8,14SUBSTANTIALLY-26:2SUBSTANTIVE-14:15 31:15 33:2SUCCESSION- 51:8SUCCESSOR- 50:17SUGGESTION- 23:12SULLIVAN- 20:2,1032:14SUPERVISION- 7:10SUPPLEMENT- 19:17SUPPLEMENTAL-

14:22SUPPORT- 28:233:19SUPPOSED- 29:19SURELY- 19:6SWIFTLY- 27:9SYSTEMS- 7:189:20

TTACONIC- 25:4TAKEOVER- 10:21TAKEOVERS- 27:8TASK- 29:11TAX- 14:9TEAM- 10:12 12:1820:24 30:1234:14,17,20TECHNICAL- 40:19TENTATIVELY-18:20TERM- 9:4 10:9,1012:16,17 35:5TERMS- 10:3,529:22 33:16 34:235:4TERRI- 47:6 48:5TEXAS- 47:12THEREBY- 38:10THEREFORE- 11:238:18THIRD- 19:9 39:24THREAT- 41:9THREE-51:13,15,19THRIFT- 7:9,10THURSDAY- 7:7,108:14 22:16 34:7TIMELY- 21:15TIMES- 46:20TIMING- 18:1622:1TODAY- 12:1113:20 21:1724:12,16,21 27:528:4,11 30:2131:10,24 34:1039:4 40:1 46:2047:19,25 49:17TODAY'S- 6:6TOGETHER- 8:845:6TOM- 24:20TOP- 49:25 50:20TOUCH- 8:22TOUGH- 22:13TOWN- 52:14TOXIC- 13:9TRANSACTION-10:23TRANSCRIPT- 53:9TRANSCRIPTS-53:14TRANSFERRED- 26:3TRANSITION- 8:1420:17,2035:8,17,21TRANSITIONAL-9:18 35:7

TRANSITIONING-50:13TRANSLATION- 16:2TRANSPARENCY-25:21 49:10TRANSPARENT-49:12TREATED- 28:7TROUBLE- 33:6TROUBLED-30:3,9,10TRUCK- 27:12TRUSTEE- 15:1519:7 21:18,2022:5 33:1 40:1142:3,4 43:1744:9,18 49:2150:14 51:7,19TRUSTEE'S- 15:12TRUSTEES- 42:550:17 51:2TUESDAY- 22:14TURN- 6:16 13:1829:24 41:19TURNED- 23:2TURNING- 13:2338:1 43:13 44:4TWENTY- 22:20TWO- 13:25 14:1023:17 31:12 33:237:5 38:21 40:545:9 52:15,16,20TWO-MINUTE- 32:19TYPES- 29:20TYPICALLY- 38:6,840:14

UULTIMATELY- 13:123:7 30:7UNABLE- 23:2543:24UNCERTAINTY-42:22UNCOMFORTABLE-15:8 19:18UNDERSTANDING-10:22 23:1927:2,4 50:12UNDERSTOOD- 19:451:23UNDO- 27:10,11UNEXPECTED- 8:14UNIDENTIFIED-31:18,21,24,2532:4,8,10UNITED- 7:9 15:1521:20 33:1 43:1744:8,17 49:21UNITS- 22:9UNLESS- 13:1741:23UNSAFE- 12:1UNUSUAL- 26:1628:5 42:21UPSIDE- 29:23USA- 40:1USED- 14:7UTILIZED- 9:20

60

VVALUE- 8:7 12:2513:15VARIOUS- 13:220:13 22:9VENDOR- 35:17VENDORS- 35:18,1936:2,4VESTIGES- 13:6VIA- 15:24VICE- 47:13,18VIEW- 36:4VIOLATION- 12:336:5VIRTUE- 26:19VOLUNTARILY-16:11VOLUNTARY- 40:15VOLUNTEER- 19:22VSO- 25:4

WWACHOVIA- 31:19WAIVER- 18:138:3,23 39:4 41:1WAIVING- 28:9WALK- 14:4WALL- 39:25WALSH- 6:10WASHINGTON- 6:47:2,3,8,25 24:2247:7,1548:6,12,22WEDNESDAY- 49:24WEEK- 7:6,24 9:219:1 20:2022:13,18 23:1025:15 43:4 52:5WEEKEND- 21:7WEIL- 6:11 20:12WELLS- 31:19WHITE- 24:8,20WHOLE- 25:20WISH- 21:4WITHDRAWAL-33:4,6WITHDRAWN- 38:24WITHDRAWS- 26:18WMI- 6:4 8:1,2,69:1,4,9 10:1620:12,14,1934:3,6,11,1235:11,17,20 36:16WMI'S- 12:20WMV- 10:21WMVFSB- 10:21WON'T- 27:20WORD- 50:2WORDS- 46:8WORK- 8:19 22:1730:15 38:25 43:2045:8 52:17WORKED- 22:14WORKING- 8:1610:6 20:8,12,2521:2 35:6 36:8,21WORKS- 22:17WORLD- 30:6

WORTHWHILE- 39:8WOULDN'T- 17:14

YYEAR- 41:8YESTERDAY- 21:2225:8,9YORK- 47:17 50:1351:9YOU'LL- 52:20YOU'RE- 33:13

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DISTRICT OF DELAWARE WMI INVESTMENT CORP., ) IN RE: ) …