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Sent: January 5, 2009

To: Peter S. Goodman, New York Times

The following email (I no longer have the previous email) was in response to Peter Goodman asking me if I have proof that Washington Mutual was not insolvent and was seized inappropriately. I had previously emailed him with information about the illegal seizure of Washington Mutual.

Background reading materials

The Biggest Banking Heist in World History: Washington Mutual

Illegal Seizure of Washington Mutual (complaint to SEC)

Blast from the Past: Mike Predicts Demise of Washington Mutual and Lehman

Evidence the SEC Ignored WaMu's Request to be SAVED

WaMu: One Year Later and Still No Indictments

WaMu Insider Trading & Naked Short Selling

Ignorance of Main Street Best Seen in WaMu Shareholders

WaMu Coverup: Email to Dan Wilchins Reuters Prick and Wall Street Hack

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The evidence is not so easily seen. But please hear me out and you can decide for yourself.

My evidence stems from deductions based upon my expertise. For instance, net withdrawals of $16.7 billion over a 10-business day period were stated as the cause of insolvency. However, this came from a total deposit base of over $190 billion and a total asset base of over $300 billion.

Does that look like insolvency to you?

That comes to average daily withdrawals of $1.67 billion per day, which is a trivial amount for a two-week period.

Also notice the timing of the seizure - just a couple of days BEFORE the banking bailout was passed.

Why is it that the Fed or Treasury could not have provided a few billion to avoid this massive seizure (assuming that $16.7 billion in withdrawals even caused insolvency)?

After all, at that time the Fed was providing up to $400 billion in monthly loans to banks in its Emergency Term Credit Lending Facilities. It would have been quite easy to have included a large thrift such as WaMu in this program if it wanted to.

I have consulted with others who followed the situation closely and they agree with me.

Also note that a reporter from the AP informed me that he was told of the seizure one hour prior to the official release by a WaMu employee who stated it was “politically motivated.” I can produce his name and contact info upon request but only under the condition that you seek his approval for citing this conversation prior to reporting on it (to protect him from potential backlash from his superiors).

There is no way to conclusively prove illegal insolvency without release of third party audited financial statements. But the OTS, FDIC, and SEC have refused my requests for release of any evidence of insolvency.

Doesn't it seem strange that even WaMu shareholders have still not received evidence of insolvency? Yet, they were instantly and completely wiped out by an organization (the OTS) which reaffirmed on numerous occasions just a few days prior to the seizure that WaMu had no need to raise additional capital through at least 2008. You can search for the press releases.

Even assuming that this $16.7 billion in withdrawals did cause insolvency, don't you think heads should roll at the OTS due to incompetence? Yet, it’s business as usual.

The strategy of claiming insolvency and immediate seizure suits banking regulatory agencies (which are really controlled by the US Treasury) quite well if in fact their mission is to hand over huge bank assets to the banking cartel (JPM, BAC, C and now WFC) at pennies on the dollar. As you are aware, this is precisely what has been going on and they have used taxpayer funds for these dirt cheap acquisitions.

This lack of accountability is consistent with the dictator-like authorities created by Paulson.

The media continues to praise Shelia Bair. But I view her actions to be dangerous to the health of the U.S. banking system. These actions do, however, serve to strengthen the power of the banking cartel.

I have been in talks with one of the law firms representing WaMu shareholders. The lead counsel informed me that the FDIC is virtually impervious to any litigation despite the fact that it is supposed to be an independent non-government body. This is simply a farce. The FDIC is under the control of the U.S. Treasury.

He also informed me that the FDIC did many of the same activities during the S&L crisis.

If all of this sounds sketchy, I ask you to look at my track record on this crisis. I saw things no one else did until they materialized. My track record stands out as the best of anyone hands down, as confirmed by my books “America’s Financial Apocalypse” and “Cashing in on the Real Estate Bubble and my updates published online.

In brief, I specifically advised investors to short Fremont, Accredited Lenders, Novistar (all three now bankrupt), Fannie and Freddie (now below $1), the banks and homebuilders in late 2006 in these books. I also predicted a price decline in real estate nationwide of 30-35%.

I stated that the real estate meltdown “will make the S&L crisis look like a non-event.” Yet I continue to be ignored by the mainstream media despite having contacted producers of every major TV show since 2006. The media is protecting its political and financial agendas by hiding the truth.

I plan to write a book detailing this as well as the most common tricks they use to carry out their mission. When you examine the track records of the “experts” interviewed by the media, you can see that the truth has been and continues to be hidden – from the economists (most of which serve as government hacks) to the pundits. The same guys who have been wrong continue to be interviewed.

Only those who really predicted this mess in advance are positioned to know what is going on now and what to expect in the future. And that does not include the perma-bears out there like Roubini and Schiff who have been predicted doom for 2 decades. In my opinion, they have 0 credibility.

I have attached my original complaint to the SEC regarding WaMu submitted in October 2008 as well as some excerpts from my books.

I did receive a follow-up call from SEC attorneys in the San Francisco office. But it was apparent to me that they really have no idea what is going on and no intention to pursue the WaMu fraud to the extent I have mentioned.

They were not even aware of the conflict of interest in Nancy Pelosi’s IPO stake in Picken’s compressed natural gas company CLME. As you are aware, she has been one of the biggest supporters of the Picken’s (scam) Plan.

I trust you realize the real agenda behind his energy plan and it involves making billions selling north Texans water. For the record, I later submitted a formal complaint on Pelosi’s conflict of interest.

As you read the SEC complaint, you will notice that much of it has been written to let them know that they have been negligent. Also, I have named the SEC as a participant in some of the WaMu fraud.

Since the report was submitted, the SEC has denied my requests for data on WaMu short positions held by financial institutions. SEC attorneys advised me to request this data from the Freedom of Information Act. I knew not to waste my time with this.

Finally, note that during my investigations regarding the WaMu seizure, I made several calls to the OTS, OCC, and FDIC. In every case, they passed the buck or shifted the responsibility of proof to other agencies. They seemed to be much more interested in who I was and whether I had a website rather than providing transparency on the seizure after I informed them that I planned to expose this massive fraud.

Shortly thereafter, a federal agent paid me a visit. Apparently, the FDIC did not like me snooping around and questioning their authority. In my opinion, they felt threatened by my ability and commitment to expose the truth. In retaliation, the FDIC Ombudsman informed the FDA terrorist division that I would be someone who should be questioned in connection with the recent white powder mailings.

I learned of this from an FDA agent who was questioning (interrogating) me at the FDA Terrorist Division in Irving, Texas in relation to my investigations regarding the illegal seizure of WaMu.

This is another example of abuse of power and this person has committed a crime in making such an ungrounded and ridiculous report. It is obvious to me this was done as a way to intimidate me and push me away from further investigations.

I can only hope that the issues which have come to my attention will be discussed because every bank engaged in the same mortgage fraud as WaMu. The real fraud with WaMu involves insider trading, illegal seizure, and a unified effort by several large banks to take the bank down via illegal shorting activities which were facilitated by the SEC.

I have been way ahead of the curve on every facet of this crisis ever since the release of my books in 2006, and I continue to maintain this position today. The issues I have raised confirm this. For me to be silenced by the media serves as evidence whose interests the media really serves, and it’s certainly not main street.

Respectfully,

Mike Stathis

Managing Principal, Apex Venture Advisors

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As you can imagine, I never heard back from Goodman because his purpose is to deceive the public, just like everyone else in the media.