It’s already happened: that’s the problem! Three-fourths of all mortgages in the bubble area were securitized. In other words, they were dissected like a reverse-Frankenstein … MBS, CDOs, slice’n’dice — any given mortgage could be in pieces in a number of different ~creative investment vehicles~ !

As well, there appears to have been little or no due diligence and a lack of paper trail through the securitization chain. It’s entirely possible these mortgages technically don’t exist in law now (IANAL) but one can remember a ways back, foreclosure proceedings in five states were thrown out, as the plantiffs could not show holding of any of the mortgages. I think Deutsche Bank was the first to try this ploy and end up with egg on their face.

Jinglemail was definitely the wrong move for the people who already accepted foreclosures, most likely in less than clear legal validity. If I’d been one of those unfortunately, i”d just squat and say “Show me the paper!”

I talked to a friend about my post on EW yesterday. He says the bankruptcy proposal is still being pushed by staffers to several senators who might actually count, and I think he might know. I think that would be a substantial improvement.

A staffer I know thinks the lending industry has a veto on that change. My friend thinks the industry has lost its clout.

This $11.62 million, of course, would be in addition to the $7.5 million signing bonus he was awarded when he joined WaMu earlier this month. Derek Aney, a WaMu spokesman, was not immediately available to discuss Mr. Fishman’s new role in the merged company or whether Mr. Fishman will be eligible to retain all of these payouts.”

With J.P. Morgan’s takeover of Washington Mutual, it’s unclear what role Alan Fishman—who was hired only 18 days ago as WaMu’s new CEO—will play in the combined company. But if Mr. Fishman leaves the thrift, it’s pretty clear that he would be well-compensated for his short stint on the job.”