WaMu Tj010Ii'lCWaMu Timeline Redacted Dochow _ Darrel-00001338.:.... 017 .. ReturnWaMu 8 WaMu Tirneline Redacted DochowDarrel-00001338018 ReturnWaMu Timeline !..; Dochow019 WaMu Timeline Redacted -- '.-": . DochowDarrel-00001338019 ReturnWaMu Timeline Docbow WaMu Timeline Redacted DochowDarrel-00001338020 ReturnWaMlITimclineWaMu Timeline Redacted Dochow_DII rrel-OOOO 1338_021 ReturnWaMu TimelineWaMu Timeline Redacted ReturnWaMu Tillleline "::;, - . Dochow .- ;'.~-....- -". ~. WaMu Timeline Redacted DochowDarrc)00001338023 ReturnWaMuTimelineWaMuTimeline Redacted Dochow _DIlfl'cl-00001338 _024 ReturnWaMu Tillleli.le y,.' 2/28/0B ..,< .. WaMu Timeline Redacted CEO Killingermet withOTS Director 10discuss the condition of the Bank, examination concerns, and theroseets of raisincaita!' Redacted DochowDarrel-00001338025 - -ReturnWaMuWaMu Timeline Redacted ReturnWaMu Timolillc 4/4/08 r'-"'=-lw'R-;;:;:;;;;;;fe< DCtherevisedliquidity stress analysis with additional stress conditions reCluested by WR management including: a9billion deposit am offamong retail,custodial and commercial accounts,pIllSaillFunds capacity lind400 bpincrease ill the FHLBhaircut.Also included was new infoon severalsuch asthecall do upon a "material adverse change" indicating that potentiala mllch worse event shollid the FHLB of early amortization of olllstandingbalances or immediateupon default 1\change.Management reports thnt the)' are very close 10 signing a deal toadditionalcapitalapproximatingbillio/l,OTSencouragesand the Board to raise allthat ispossible inthis transaction.agrees with 01'8 tokeep JP Morgan 4/4108 WliMu Timeline Redacted WRprovidesDC thej3ank's revisedHquidity stress analysis with additionalstress conditions requested byWRmanagement including:a $19 billion deposit tun offamong retail,custodial and commercial accounts,plus a reductionin Fed Funds capacity and400 bpincrease in the FHLBhaircut.Also included wasnewinfoon severalitemssuch asclarification of what the FHLB's can do upon a "material adverse change"indicating that potential exists for a much worse event should the FHLB of SF triggers anearly amortization of outstanding'balances or immediate repayment upon default stemming from a materialadverse change.Management reports that they are very close to signing a deal to raise additionalcapitalapproxjmating $4.9 billion.OTSencouragesmanagement andthe Board to raise allthaI ispossible inthis transaction.Management agrees with OTS tokeep JP Morgan offer open. Redacted Dochow . Darrel-00001338 . 027 - -ReturnW"'VIIITimelillc 5116/08Onsite examiners discontinued sending liquidity reports 10 D"Cbecalise oft-herecent capital infusionbut continuedliquidity, "xaminersthey arc classifying allsubprime loans--l ofpa]{lTIIol1t status and as slich,would downgrade the Bank's asset quality ----" DoclIowDarrel-00001338028 - -5/5/08 5/8/08 5/16/08 WaMu Timeline Redacted FDICprovides a revised.:;apitalanalysisindicating that the Bank needed anadditional $5- $7.0 billion in capital ,[ernporarily discontinued weeklyIiquidity reports to DCdue torecent capitalinfusion Redacted Onsite examiners discontinued sending liquidity reports to DC because of therecent capital infusionbut '--___liquidity, 5/29/08 ... ",. Redacted Onsite FDIC examiner inform OTSexaminers that they are classifying-allsubprime loans "substandard" regardless of payment status andas stich,would downgrade the Bank's asset quality comanent from"3"to "4lt. Redacted DochowDarrel-00001338028 - -ReturnWaMu Tilllclil,eWaMu Timeline Redacted . ReturnWaMu TimelineWaMu Timeline. Redacted DochowDarrcI-00001338030 - -ReturnWaMu TimelilleWaMu Timeline Redacted DochowDarrel00001338031 ReturnWaMu ,"mung all7125108 WaMu Timeline Redacted FRBinformed WR Director that they would be sending an examiI1erfrom their Credit monitoring department tomonitor Iiauidity andrelatedcredit/collateral. Redacted DochowDarreI-00001338032 I ReturnWaMu TimelitleWaMuTimeline Redacted . :"',. Dochow_ Darrel-00001338_033 ReturnWaMu",,,,,,,u,,, WMJIWMBMOUas 9/1D/OSFHLE. SF presentation at WR managers meeting,itassets wouldFHLE.managersmofe assurance tocOllltimJeI,,,,di,,,, andinlhe 9/7/08 9/10/08 WaMu Timeline Redacted WMI!WMB MOU signedby directors, Alan Fishmanapproved asCEOby directors,and Kerry Killiner resinsasCEO. Redacted During FHLB. SF presentation at WR managersmeeting,itwas discussed whother a blank.et lien on WMB's assets would give FHLBmanagersmore assurance tocontinue lendiilg to the Bank.They indicatedthat it would andin the followinweek,this was accolnlisned. Redacted Return9/11/08 9115108 WaMu '1'''''0''' .liquiditynoted: -Anecdotalillformation from the brallchcstoday suggests that deposit withdrawalshigher than normal;most withdrawals were ill$50,000. 'Pos!-IndyMac plansbeen reillilialedillthebranches,whichinclude:emphasis on FDIC insurance education; waiver ofif customers restructure deposits toinsurance co'ver.age (with multiple accollnt owners,etc); waiverbackat II andredeposit thedistrihution of flyersoutside of downtownSeattle branches advertisingthe current 5% CD special .An 8 month CDat 4.25% willCIIITell!5%13month specialbeginning onSaturday headlinesnot directly impacted other funding sources so .Fishman,and McMurray arewith S&PThemeeting wasSCfleaUICUfor lIoxtbul wasof Ihisevents, .Management isconsidering a third quarterpre-earnings announcement next week toattempt 10calm the market.They are discussing this with S&P, all earnings annOllllcement to causato downgrade the credit' raling bank rating isexpected tostay unchanged(BBB),althoughIhelikely change to"Negative."This willbe a challge6'om prior practice by Fitch,whichhasgiven the bank andHe .. Branches in the Midwest andwest.eem',n,,"" closed todaybecause of increasedpress andnetwork news cOI(cragcQfr.cilman,AIG,elc. 9/11/08 9115108 WaMu Timeline Redacted Today's liquiditymeetingnoted: -Anecdotalinformation from the branchestoday suggests that deposit withdrawalsremainhigher than normal;most withdrawals were inincrements greater than $50,000. -Post-IndyMac plans" havebeen reinitiatedinthe branches,whichinclude:emphasis on FDIC insurance education; waiver of penalties if customers restructure deposits to increase insurance coverage (with multiple account owners,etc); waiver of penalties if customers bring back official checks at a later date andredeposit the funds;distribution of flyersoutside of downtownSeattle branches advertisingthe current 5% CD special -An 8 month CD special at 4.25% willreplace the current 5%13month specialbeginning on Saturday -The negative headlineshave not directly impacted other funding sources so far -Fishman,Rotella, Casey and McMurray are meeting with S&P today.The meeting was scheduled for next week,but was rescheduledbecause of this week's events. -Management is considering a third quarterpre-earnings announcement next week to attempt tocalm the market.They are discussing this with S&P. They expect an earnings announcement to cause Fitch to downgrade the holding comvany credit rating to BBB-.The bank rating isexpected tostay unchanged (BBB),althoughthe outlook willlikely change to "Negative."This willbe a change fromprior practice by Fitch,whichhas generally given the bank and the HC the same credit ratin. Branches in the Midwest andwest reportedcontinued higher thannormal activity after themarketI closed today because of increasedpress andnetwork news coverage of Lehman,AlG,etc. Redacted Dochow Darrel-00001338035. Return9/18/08 9/19/08 "'"-"----1 WaMu Timeline WMBreports high trafficinbranches and cormnlmr'g $33,3 billion. repclrtcd available liqulidilyat WMBupdated DC Management on Liquidity:Funding Plansthetrajectory ;)fdeposit outflows looks like it willIndyMac ($9.5B) + 70%,or a totaloutflow $16-$17Bover three weeks(including what has alreadyThey are borrowingFHLBs overnext two weeks.FHLBSF now has a blanket lien and hasassured. WMBtheywillllotanycuts in capacity. WMBwillalso be gettinginproceedsdiscoulltnote maturities andsales.Repo market is shut down.Rapo collateral isbeing shiftedtu SEA FHLB. Treasury Manager thil1ksthat liquidity at theendof thewillille"cess and$10Bin FHLB capacity. M&A - Fishman, and a repfromGoldman gave anupdate on M&A activity.JP Morgan isexpectedtocompletebyor tomorrow.is expected 1Cl."complete .diligence tomorrow.Also olle otlierthe name)islookinginto acquiring a minority interest.Goldman thinks a deal OTS downgra3es WMB's comoosite rating to FHLB -SF reports that their accountants,to follow FAS157value forthe collateral of problem banks andthatWAMUwas a problembank"That means tltey lookto observable sales of option armsandthoyfoundsome at firosale prices of35 cents ondollar that theywillhave.to use.Onthatthey arc out of collateral andgave advances yesterday onlybecause ofthe blanket lien.FHLBof SF toldmanagement thislate last night.FIILBof SF toldOTSthat might be able to lend$1to $2billionmorewas II bridge toII dcaldono.OTSmanagement cnc:ourag"dHILBs toIcnding. 036 WaMu Timeline Redacted 9/18/08 WMB reports high trafficinbranches and continuing branch closings and reported available liquidity at $33.3 billion . .WMBupdated DC Management on Liquidity:Funding Plans - thetrajectory of deposit outflows looks like it willbe IndyMac ($9.5B) + 70%, or a totaloutflow $16-$17B over three weeks(including what has alreadyhappened).They are borrowing $8.5Bfrom FHLBs over the next two weeks.FHLBSF now has a blanket lien and hasassured. WMB that they willnot have any additional cuts in capacity. WMBwillalso be getting $2H inproceeds froin discountnote maturities andsales.Repo market is shut down.Repo collateral isbeing shiftedto SEA FHLB. Treasury Manager thinks that liquidity at the endof the quarter will be $13B, 01'$38in excess cash and $IOBin FIlLB capacity. M&A - Casey,Fishman, and a rep fromGoldman gave an update on M&A activity.JP Morgan isexpectedtocomplete due diligence by today or tomorrow.Citiis expected tq..complete due .diligence tomorrow.Also one other party (missed the name)islooking into acquiring aminority interest.Goldman thinks adeal could be done by Sunday. OTS downgrades WMB's comDosite rating to "4" (343442). 9119/08 Redacted Liquidity projected at $29.8 I FDIC corresponds that Adviinces'stili avallablerrom the JiHLIisandthe situation is not dire. FIlLB -SF reports that their accountants,PWC requires them to follow FAS157 fair value accounting forthe collateral of problem banks andthatWAMU was aproblembank.That means they look to observable sales of option arms and they foundsome at fire sale prices of35 cents on the dollar that they willhave.to use.Onthat basis they are out of collateral andgave advances yesterday only because of the blanket lien.FIlLB of SF toldmanagement thislate last night.FIlLB of SF toldOTSthat they might be able to lend$1to $2billionmore ifit was a bridge to getting a dealdone.OTSmanagement encouraged FHLBs to continuelending. 9/22/08 Redacted DochowDarrel-00001338036 ReturnWaMu Timelille . 9/23/08 Latest .FRH pro,jecltion 9/24/08 outflows arc declining thoy are not stabilized and thatl'rtLD-':>" 9/25/08 report provided to WR andDC senior management.Available liquidity pn)je,;ted suli'ect iocontinuing to fund.

Dochow_Dartel-00001338037 -9123/08 9/24/08 9/25/08 , WaMu Timeline Redacted WMBprojected ending available liquidity to be $28.0 billion;however,they estimated $9.4 in FRB availability or $2.0 billion more that estimatedby the FRB.FDIC projected $20.8 billion in liquidity because they reduced the amount ($8.5billion) reportedly available fromFHLB-SF to $1.0 billion .. Redacted Latest FRB- projection indicates that WaMuliquidity would reach "0" by1019/08assuming approximately $2.0 billion runoff per day. WaMu projects available liquidity at $23.6 billion Redacted I FDIC reports to OTS that while-deposit outflows are declining they are not stabillze(f,ifidthatFtILB-SF, is "day to day" withrespect to future advances.. Redacted I Daily Liquidity report provided to WR andDe senior management.Available liquidity projected at $13.1billion (subject io FHLB continuing to fund). Redacted Dochow_Darrel-00001338037 ReturnW!I1yfuTimeline cateJ/;OfY, At FOI C' s Req uest,OTSeX!iffi!lllersdi re:t:ted1iVlVITrm;;'allnm":;;g;;;en;;;,;en;;:ttittd oi,,,iT,, . ~ : ; ; T ; v ,,;;:,~"I>;:;;f,;;:;;J'F.:;;;dT;;;:;R(a specialpurpose enlity).forfeit allapllw,dmalely $9:0 inloan collateral, WIl1\1uTimeline I The FRBof San Francisco moves the bank into the secondary creditI Redacted At FDIC's Request,OTS examiners directedWMI management to dissolve Preferred Funding REIT (a special purpose entity),forfeit all rightstothe approximately $9:0 in loan COllateral, and assign the collateral loans to WMB forinclusion inthe receivershiptransaction. Redacted Dochow_ DarreI-00001338_038 ReturnWaMu Timeline (2000/2001/2002/2003 /2004/20051,2006/2007/2008) WaMu Timelioe WAMUBANK SUPERVISORY TIMELINE (2000/2001/2002/2003 /2004/20051,2006/2007/2008) Redacted Dochow _Darrel-OOOOI338 _001 ReturnWaMu Timclin" Dochow_ DalTcl-00001338_002 WaMll Timeline Redacted .~ , : Dochow_ Darrel-00001338_002 ReturnWaMu Timeline 003 WaMu Timeline Redacted ReturnWaMuTimelil1eWaMu Timeline Redacted ".~':, . DochowDarreI-00001338004 - -ReturnWaMu Tinleli11eWaMu Timeline Redacted ...... . Dochow_ Darrcl-00001338.:. 005 ReturnWaMu TimclinoWaMu Timeline Redacted Dochow_ Darrcl-00001338_006 ReturnWaMuWaMuTimeJine Redacted Dochow _ Darrel-00001338..:. 007 ReturnWaMu TimelineWaMu Timeline Redacted ",;-,. ", ... (" :;" ..... Dochow_Darrel-00001338_008 Return'WaMu Timelil1eWaMu Timeline Redacted ','" -.,-' .. Dochow_ Da rrel-00001338_009 ReturnWaMu Timclino ,-',-." ,-.: WaMu Timeline Redacted .'-.'-; DochowDli rrel-00001338010 - -ReturnWaMu TimclineWaMu Timeline Redacted Dochow_Darrel-00001338 on ReturnWaMu Timelill8WaMu Timeline Redacted ".. \DochowDarrel-00001338012 - -ReturnWaMuWaMu Timeline Redacted : .. - .:-",.. -":' ... ReturnWaMu 4 WaMu Timeline Redacted .. ~ Dochow _DarreI-00001338_014 ReturnWaMuTim'Bline \.'. WaMu Timeline Redacted :i,::,___ .__".- .--.'"...... . DochowDarrel-00001338015 - -ReturnWaMuWaMu Timeline Redacted .:'..';'.".'"" DochowDarrel-00001338016 - -ReturnWaMu Tj010Ii'lCWaMu Timeline Redacted Dochow _ Darrel-00001338.:.... 017 .. ReturnWaMu 8 WaMu Tirneline Redacted DochowDarrel-00001338018 ReturnWaMu Timeline !..; Dochow019 WaMu Timeline Redacted -- '.-": . DochowDarrel-00001338019 ReturnWaMu Timeline Docbow WaMu Timeline Redacted DochowDarrel-00001338020 ReturnWaMlITimclineWaMu Timeline Redacted Dochow_DII rrel-OOOO 1338_021 ReturnWaMu TimelineWaMu Timeline Redacted ReturnWaMu Tillleline "::;, - . Dochow .- ;'.~-....- -". ~. WaMu Timeline Redacted DochowDarrc)00001338023 ReturnWaMuTimelineWaMuTimeline Redacted Dochow _DIlfl'cl-00001338 _024 ReturnWaMu Tillleli.le y,.' 2/28/0B ..,< .. WaMu Timeline Redacted CEO Killingermet withOTS Director 10discuss the condition of the Bank, examination concerns, and theroseets of raisincaita!' Redacted DochowDarrel-00001338025 - -ReturnWaMuWaMu Timeline Redacted ReturnWaMu Timolillc 4/4/08 r'-"'=-lw'R-;;:;:;;;;;;fe< DCtherevisedliquidity stress analysis with additional stress conditions reCluested by WR management including: a9billion deposit am offamong retail,custodial and commercial accounts,pIllSaillFunds capacity lind400 bpincrease ill the FHLBhaircut.Also included was new infoon severalsuch asthecall do upon a "material adverse change" indicating that potentiala mllch worse event shollid the FHLB of early amortization of olllstandingbalances or immediateupon default 1\change.Management reports thnt the)' are very close 10 signing a deal toadditionalcapitalapproximatingbillio/l,OTSencouragesand the Board to raise allthat ispossible inthis transaction.agrees with 01'8 tokeep JP Morgan 4/4108 WliMu Timeline Redacted WRprovidesDC thej3ank's revisedHquidity stress analysis with additionalstress conditions requested byWRmanagement including:a $19 billion deposit tun offamong retail,custodial and commercial accounts,plus a reductionin Fed Funds capacity and400 bpincrease in the FHLBhaircut.Also included wasnewinfoon severalitemssuch asclarification of what the FHLB's can do upon a "material adverse change"indicating that potential exists for a much worse event should the FHLB of SF triggers anearly amortization of outstanding'balances or immediate repayment upon default stemming from a materialadverse change.Management reports that they are very close to signing a deal to raise additionalcapitalapproxjmating $4.9 billion.OTSencouragesmanagement andthe Board to raise allthaI ispossible inthis transaction.Management agrees with OTS tokeep JP Morgan offer open. Redacted Dochow . Darrel-00001338 . 027 - -ReturnW"'VIIITimelillc 5116/08Onsite examiners discontinued sending liquidity reports 10 D"Cbecalise oft-herecent capital infusionbut continuedliquidity, "xaminersthey arc classifying allsubprime loans--l ofpa]{lTIIol1t status and as slich,would downgrade the Bank's asset quality ----" DoclIowDarrel-00001338028 - -5/5/08 5/8/08 5/16/08 WaMu Timeline Redacted FDICprovides a revised.:;apitalanalysisindicating that the Bank needed anadditional $5- $7.0 billion in capital ,[ernporarily discontinued weeklyIiquidity reports to DCdue torecent capitalinfusion Redacted Onsite examiners discontinued sending liquidity reports to DC because of therecent capital infusionbut '--___liquidity, 5/29/08 ... ",. Redacted Onsite FDIC examiner inform OTSexaminers that they are classifying-allsubprime loans "substandard" regardless of payment status andas stich,would downgrade the Bank's asset quality comanent from"3"to "4lt. Redacted DochowDarrel-00001338028 - -ReturnWaMu Tilllclil,eWaMu Timeline Redacted . ReturnWaMu TimelineWaMu Timeline. Redacted DochowDarrcI-00001338030 - -ReturnWaMu TimelilleWaMu Timeline Redacted DochowDarrel00001338031 ReturnWaMu ,"mung all7125108 WaMu Timeline Redacted FRBinformed WR Director that they would be sending an examiI1erfrom their Credit monitoring department tomonitor Iiauidity andrelatedcredit/collateral. Redacted DochowDarreI-00001338032 I ReturnWaMu TimelitleWaMuTimeline Redacted . :"',. Dochow_ Darrel-00001338_033 ReturnWaMu",,,,,,,u,,, WMJIWMBMOUas 9/1D/OSFHLE. SF presentation at WR managers meeting,itassets wouldFHLE.managersmofe assurance tocOllltimJeI,,,,di,,,, andinlhe 9/7/08 9/10/08 WaMu Timeline Redacted WMI!WMB MOU signedby directors, Alan Fishmanapproved asCEOby directors,and Kerry Killiner resinsasCEO. Redacted During FHLB. SF presentation at WR managersmeeting,itwas discussed whother a blank.et lien on WMB's assets would give FHLBmanagersmore assurance tocontinue lendiilg to the Bank.They indicatedthat it would andin the followinweek,this was accolnlisned. Redacted Return9/11/08 9115108 WaMu '1'''''0''' .liquiditynoted: -Anecdotalillformation from the brallchcstoday suggests that deposit withdrawalshigher than normal;most withdrawals were ill$50,000. 'Pos!-IndyMac plansbeen reillilialedillthebranches,whichinclude:emphasis on FDIC insurance education; waiver ofif customers restructure deposits toinsurance co'ver.age (with multiple accollnt owners,etc); waiverbackat II andredeposit thedistrihution of flyersoutside of downtownSeattle branches advertisingthe current 5% CD special .An 8 month CDat 4.25% willCIIITell!5%13month specialbeginning onSaturday headlinesnot directly impacted other funding sources so .Fishman,and McMurray arewith S&PThemeeting wasSCfleaUICUfor lIoxtbul wasof Ihisevents, .Management isconsidering a third quarterpre-earnings announcement next week toattempt 10calm the market.They are discussing this with S&P, all earnings annOllllcement to causato downgrade the credit' raling bank rating isexpected tostay unchanged(BBB),althoughIhelikely change to"Negative."This willbe a challge6'om prior practice by Fitch,whichhasgiven the bank andHe .. Branches in the Midwest andwest.eem',n,,"" closed todaybecause of increasedpress andnetwork news cOI(cragcQfr.cilman,AIG,elc. 9/11/08 9115108 WaMu Timeline Redacted Today's liquiditymeetingnoted: -Anecdotalinformation from the branchestoday suggests that deposit withdrawalsremainhigher than normal;most withdrawals were inincrements greater than $50,000. -Post-IndyMac plans" havebeen reinitiatedinthe branches,whichinclude:emphasis on FDIC insurance education; waiver of penalties if customers restructure deposits to increase insurance coverage (with multiple account owners,etc); waiver of penalties if customers bring back official checks at a later date andredeposit the funds;distribution of flyersoutside of downtownSeattle branches advertisingthe current 5% CD special -An 8 month CD special at 4.25% willreplace the current 5%13month specialbeginning on Saturday -The negative headlineshave not directly impacted other funding sources so far -Fishman,Rotella, Casey and McMurray are meeting with S&P today.The meeting was scheduled for next week,but was rescheduledbecause of this week's events. -Management is considering a third quarterpre-earnings announcement next week to attempt tocalm the market.They are discussing this with S&P. They expect an earnings announcement to cause Fitch to downgrade the holding comvany credit rating to BBB-.The bank rating isexpected tostay unchanged (BBB),althoughthe outlook willlikely change to "Negative."This willbe a change fromprior practice by Fitch,whichhas generally given the bank and the HC the same credit ratin. Branches in the Midwest andwest reportedcontinued higher thannormal activity after themarketI closed today because of increasedpress andnetwork news coverage of Lehman,AlG,etc. Redacted Dochow Darrel-00001338035. Return9/18/08 9/19/08 "'"-"----1 WaMu Timeline WMBreports high trafficinbranches and cormnlmr'g $33,3 billion. repclrtcd available liqulidilyat WMBupdated DC Management on Liquidity:Funding Plansthetrajectory ;)fdeposit outflows looks like it willIndyMac ($9.5B) + 70%,or a totaloutflow $16-$17Bover three weeks(including what has alreadyThey are borrowingFHLBs overnext two weeks.FHLBSF now has a blanket lien and hasassured. WMBtheywillllotanycuts in capacity. WMBwillalso be gettinginproceedsdiscoulltnote maturities andsales.Repo market is shut down.Rapo collateral isbeing shiftedtu SEA FHLB. Treasury Manager thil1ksthat liquidity at theendof thewillille"cess and$10Bin FHLB capacity. M&A - Fishman, and a repfromGoldman gave anupdate on M&A activity.JP Morgan isexpectedtocompletebyor tomorrow.is expected 1Cl."complete .diligence tomorrow.Also olle otlierthe name)islookinginto acquiring a minority interest.Goldman thinks a deal OTS downgra3es WMB's comoosite rating to FHLB -SF reports that their accountants,to follow FAS157value forthe collateral of problem banks andthatWAMUwas a problembank"That means tltey lookto observable sales of option armsandthoyfoundsome at firosale prices of35 cents ondollar that theywillhave.to use.Onthatthey arc out of collateral andgave advances yesterday onlybecause ofthe blanket lien.FHLBof SF toldmanagement thislate last night.FIILBof SF toldOTSthat might be able to lend$1to $2billionmorewas II bridge toII dcaldono.OTSmanagement cnc:ourag"dHILBs toIcnding. 036 WaMu Timeline Redacted 9/18/08 WMB reports high trafficinbranches and continuing branch closings and reported available liquidity at $33.3 billion . .WMBupdated DC Management on Liquidity:Funding Plans - thetrajectory of deposit outflows looks like it willbe IndyMac ($9.5B) + 70%, or a totaloutflow $16-$17B over three weeks(including what has alreadyhappened).They are borrowing $8.5Bfrom FHLBs over the next two weeks.FHLBSF now has a blanket lien and hasassured. WMB that they willnot have any additional cuts in capacity. WMBwillalso be getting $2H inproceeds froin discountnote maturities andsales.Repo market is shut down.Repo collateral isbeing shiftedto SEA FHLB. Treasury Manager thinks that liquidity at the endof the quarter will be $13B, 01'$38in excess cash and $IOBin FIlLB capacity. M&A - Casey,Fishman, and a rep fromGoldman gave an update on M&A activity.JP Morgan isexpectedtocomplete due diligence by today or tomorrow.Citiis expected tq..complete due .diligence tomorrow.Also one other party (missed the name)islooking into acquiring aminority interest.Goldman thinks adeal could be done by Sunday. OTS downgrades WMB's comDosite rating to "4" (343442). 9119/08 Redacted Liquidity projected at $29.8 I FDIC corresponds that Adviinces'stili avallablerrom the JiHLIisandthe situation is not dire. FIlLB -SF reports that their accountants,PWC requires them to follow FAS157 fair value accounting forthe collateral of problem banks andthatWAMU was aproblembank.That means they look to observable sales of option arms and they foundsome at fire sale prices of35 cents on the dollar that they willhave.to use.Onthat basis they are out of collateral andgave advances yesterday only because of the blanket lien.FIlLB of SF toldmanagement thislate last night.FIlLB of SF toldOTSthat they might be able to lend$1to $2billionmore ifit was a bridge to getting a dealdone.OTSmanagement encouraged FHLBs to continuelending. 9/22/08 Redacted DochowDarrel-00001338036 ReturnWaMu Timelille . 9/23/08 Latest .FRH pro,jecltion 9/24/08 outflows arc declining thoy are not stabilized and thatl'rtLD-':>" 9/25/08 report provided to WR andDC senior management.Available liquidity pn)je,;ted suli'ect iocontinuing to fund.

Dochow_Dartel-00001338037 -9123/08 9/24/08 9/25/08 , WaMu Timeline Redacted WMBprojected ending available liquidity to be $28.0 billion;however,they estimated $9.4 in FRB availability or $2.0 billion more that estimatedby the FRB.FDIC projected $20.8 billion in liquidity because they reduced the amount ($8.5billion) reportedly available fromFHLB-SF to $1.0 billion .. Redacted Latest FRB- projection indicates that WaMuliquidity would reach "0" by1019/08assuming approximately $2.0 billion runoff per day. WaMu projects available liquidity at $23.6 billion Redacted I FDIC reports to OTS that while-deposit outflows are declining they are not stabillze(f,ifidthatFtILB-SF, is "day to day" withrespect to future advances.. Redacted I Daily Liquidity report provided to WR andDe senior management.Available liquidity projected at $13.1billion (subject io FHLB continuing to fund). Redacted Dochow_Darrel-00001338037 ReturnW!I1yfuTimeline cateJ/;OfY, At FOI C' s Req uest,OTSeX!iffi!lllersdi re:t:ted1iVlVITrm;;'allnm":;;g;;;en;;;,;en;;:ttittd oi,,,iT,, . ~ : ; ; T ; v ,,;;:,~"I>;:;;f,;;:;;J'F.:;;;dT;;;:;R(a specialpurpose enlity).forfeit allapllw,dmalely $9:0 inloan collateral, WIl1\1uTimeline I The FRBof San Francisco moves the bank into the secondary creditI Redacted At FDIC's Request,OTS examiners directedWMI management to dissolve Preferred Funding REIT (a special purpose entity),forfeit all rightstothe approximately $9:0 in loan COllateral, and assign the collateral loans to WMB forinclusion inthe receivershiptransaction. Redacted Dochow_ DarreI-00001338_038 Return18:52 '0604P.0021003 Highly Confidential Highly Confidential ._----._-J. ,:?--::'C :"(), o.;:c. .'"- ...------,------.,, --.----.. Blincow.' , Manager, Franchlse Marketing, , Divisiori. of Resolutions and ReCeiverships, .Corl-'oralioll. 1601Brpll $!Il!::t. Dal1:lS. TexasDear Mr. Blin.cow:' ,Onbehalf of JP?-. !orgilll Cha.-;eD,:tnk. Nil i\!,::>(\cbrjc;'n ('"Chase Bi:tllk''j pkaselinu. PW-:.uaul [uyow: a hid p'.1i:kilg;:fur;l i-'t!rd::1:-." and assumption transaction rclatingto Washington Mutual Bank.. Hf'.riderson NV (the' lea-d tbrift>').We ere vt:ry pleased to have the opportunity to wor}('with you and your colleagues on this' For your informatiOn, we highlight the following points reflected in our bid:' . We believe tbatthe authority for the acquisition of the lead t:brl:ttmust be Seetion'13(k) of theDepoSit Insurance Act with a specific finding 'by the Board ofDirCctOI:SoftheFedoral DCposit lnJUranee Cotporation' that the laws ofany 'state now or hereafter ,enacted that wouIdor restrict Chase Bank from establishing. acquiring or reWning branches 6( .the lead tIft acquired by Chase Bimk areorovc:rridden.' We will continue tototcthcr with t&eJOffico oftheof the ' . Cum:ncy whcther:t)us is correct.,: ', We that yOll may be corisidcrirlg revisions to the jndemJiificationprovisions in Section We understanddo 1?-otrclate'to Scction2.5,andwe accept as drafted bytbe FDIC.' ' ' , " ,.'With.Iespect to the RElT preferred sccuritiesand the conditional excbangc permitted by the tctms tbereo( the Office ofthe Thrift SuPervision Will' dirm the exchaligo and the holding compaJ;Jr'immediately willcoIitribute the trust p:rcfettCdit receiveS upOn exchange to the bank ' :,', , The OCC has asked us to speclfytbSt in eoDnection the transactiOn, we plan to immediately transferthC 'acquired c.rCdit card bUsi.tieSs (melud,ingthe' WociatM assctB and liabilities.) to Cbase :Sink ("Chase ,Delaware,,) ia order to rcaiize' opcra!ional efficiencies bY having all of1hc credit card aceOunts ofthc firm in. the same financial atChifccttire.We alSo plai1 to' imln,ediatcly merge the subsidiary thrift into' Chase Bank to conSolidate the business in legal cnlily and operatiwal and , ' "07 M"-' NY10172 212 %10_ I'aatmII: li2 no 06.W ,'.......llSdl,IJpmchue..cDnl FDIC 00032 FDIC 31886 18:52 '0604P.0021003 Highly Confidential Highly Confidential ._----._-J. ,:?--::'C:"(), o.;:c. .' "- ;\:.::.A.o..m.:...------,- -----.' --.----.. Blincow.' , Manager, Franchlse Marketing, , Division of Resolutions and ReCeiverships, . Dcp;)sitCorl-'{\ralioll. JGu IDrpll $! Il!::t. Dal1:lS, TexasDear Mr. Blin.cow:' OnbChalfofJP?o.forgilll Cha.-;eD,:tnk. i \!;:;).'lcbrjc;' n ('"Chase Bi:I,1lk''j pkaselinu. PUr:,UllUl[uyow: ahid p'.1i:kag;:fur;l i-'t:rd::l :-." and assumption transaction rclatingto Washington Mutual Bank.. Hf'.riderson NV (the' ').We ere very pleased to have the opportunity to work'with you and your colleagues on this' For your informatiOn, we higbJight the fonowing points reflected in our bid:' . We believe tbatthc authority for the acquisition of the lead tbri:.tt must be Seetion'13(k) of theDepoSit Insurance Act with a specific finding 'by the Board ofDirCctOI:SoftheFedora1 DCposit lnJUranee Cotporation' that the laws afany'state now or bereafter ,cnacted that would prohibit,or restrict Chase Bank from establishing. acquiring or reWning branches 6( the lead tJft acquired by Chase Biink areorovc:rridden.' We will continue to consitier totcthcr with theJOfficc oftbeof the ' . Cum:ncy whcther:t)us is correct.,: ', We that yOll may be considering revisions to the indemliificationprovisions in Section We understanddo relate 'to Section 2.5,and 12. 1(bXxv) we accept as drafted by the FDIC.' ' ' , " ,.'With.Iespcct to the RElT prefexred sccuritiesand the conditional exchange permitted by the tcIms tbereo( the Office oftho Thrift SuPemsion Will' dirm the exchaligo and the holding compaJ;ly'imlncdiatcly willcorrtribuie the trust ptcfencdit receiveS upOn exchange to the bank ' ,,', , The OCC has asked us to speclfytbSt in eoimection the transactiOn, we plan to immediately transfer the 'acquired c.rCdit card, bUsiIiCSs (melud,ing the' Wocia!ed assctB and liabilities.) to Cbase :Sink ("Chase ,Dela.ware,,) ill order to reaiize' opcra!ional efficiencies bY having all ofthc credit card aceOunts ofthc firm in the same financial atehifccttire.We alSo plai1 to' imln,ediatcly merge the subsidiary thrift into' Chase Bank to conSolidate the business in legal emily and operatiODal and , ' "01 M"-' NY10172 212 %10 _I'aatmII: li2 no 06.W ,'.......llSdl,IJpmc:hue..eDnl FDIC 00032 FDIC 31886 ReturnSEP.24.200818:52 10601P.003/003 Highly Confidential Highly Confidential systcin efficiencies.In corinection with that, We"arc filing Bank Merger Act applications' with the Office ofthc CoinptroUer ofthe CurrencY withtespect to (1) Chase nan}(' . acquiring the assets'imdasswningtheliabilitics 'ofthe lead thrift; (2) Chase Bank '. mergingwitb the subsidiary thrift; and (3) Chase Bank trmisferring the credit ,card assetS and liabilities to Cb8se DelaWare. ' ,"We mmy Qf.these issues with.your colleagues in the of [heform l,,;c:lIlst:uftl)t: iWPVIWIC"; u(;a:::>tlUlptivlI.:tv :"11, 1)(0r(J.>.II, :wJ IeIt1: ': , final fOrInof thewe !;;!t itirnp.)ltrtIlIrodrl\\" Ih::scII) your attention. Enclosm-es cc' . . ' 'Z17 PaItt A-lenir 1ft Yortc. MY 10172 211270 555l- FaatmIIc 112 DO 0659 , FDIC 00033 I I (" , FDIC 31887 SEP.24.200818:52 '0601P.003/003 Highly Confidential Highly Confidential systcin efficiencies.In corinection with that, we "arc filing Bank Merger Act applications with the Office ofthc ComptroUer ofthe CurrenCy with respect to (1) Chase I3ank . acquiring the assets'imdassumingtheliabilitics ofthe lead thrift; (2) Chase Bank '. mergingwitb the subsidiary thrift; and (3) Chase Bank trmisferIing the credl t .card assetS and liabilities to Cb8se DelaWare. . . We mmy Qt.these issues with.your colleagUes in the of thefNIIll,,;c:lIlst:uftl)t; iWPVIWIC"; vi ili.::'c ;a:::>llUiptivII.:lv :..'IIr 1)(0rO.>.II,Int1: .: . firm!fOrIn of the...c li.:1titimj..'I)lt:lll(rodrlw rh::sc I,) your attention. Enclosw-es cc . . . .1-, . .J7 , . 9" .....-;-, ". "". aLI:' . 'Z17 PaItt1ft YOftc.MY 10'172 211270 55Sl- FaafmIIc 112 270 . FDIC 00033 , , I I (" , FDIC 31887 ReturnFDIC Institution Sales Frequently Asked Questions Achangewasmadeto#8toconformtotheP&AAgreements already posted to the Intralinks site. 1.HowwillFHLBAdvancesbetreatedintheproposedtransaction? Willtheacquirer assume the advances at the existing rates without penalty or adjustment,and take thecorrespondingassets? Answer:BidsshouldbesubmittedassumingthatallFHLB advanceswillbeassumedwithoutpenaltyoradjustment.All assetspledgedtosecuretheadvanceswillconveyinthe transaction. 2.HowwilltheUndrawnLinesbetreatedintheproposed transaction?WilltheFDICuseitspowerstoallowtheacquirer to cut off undrawnlines of credit inthehome equity portfolio? Answer:Allassetsandloanfundingobligationswillpasstothe acquirer inthe transaction. 3.HowwilltheREITpreferredandassociatedassetsbetreatedin theproposedtransaction?CantheRE ITpreferredbetreated sim ilarlywiththetrustpreferred,andleftbehindwiththe associatedassets supporting theRE IT preferred? Answer:TheREITpreferredshareswillnotbeassumedinthe transaction.However,theassociatedassetswillpasstothe acquirer. 4.HowwilltheCoveredBondsbetreatedintheproposed transaction?Willthecoveredbondsandassociatedassetspass tothe acquirer,similar to theFHLB Advances? Answer:Allsecuredliabilities,includingthecoveredbonds,and associatedassets willpass tothe acquirer. 5.HowwilltheRepurchaseAgreements(Repos)betreatedinthe proposedtransaction?Willtherepurchaseobligationsand associatedassets pass to the acquirer? Highly Confidential Highly Confidential Page1 of 4 FDIC 00034 FDIC 31888 FDIC Institution Sales Frequently Asked Questions Achangewasmadeto#8toconformtotheP&AAgreements already posted to the Intralinks site. 1.HowwillFHLBAdvancesbetreatedintheproposedtransaction? Willtheacquirer assume the advances at the existing rates without penalty or adjustment,and take thecorrespondingassets? Answer:BidsshouldbesubmittedassumingthatallFHLB advanceswillbeassumedwithoutpenaltyoradjustment.All assetspledgedtosecuretheadvanceswillconveyinthe transaction. 2.HowwilltheUndrawnLinesbetreatedintheproposed transaction?WilltheFDICuseitspowerstoallowtheacquirer to cut off undrawnlines of credit inthehome equity portfolio? Answer:Allassetsandloanfundingobligationswillpasstothe acquirer inthe transaction. 3.HowwilltheREITpreferredandassociatedassetsbetreatedin theproposedtransaction?CantheRE ITpreferredbetreated sim ilarlywiththetrustpreferred,andleftbehindwiththe associatedassets supporting theRE IT preferred? Answer:TheREITpreferredshareswillnotbeassumedinthe transaction.However,theassociatedassetswillpasstothe acquirer. 4.HowwilltheCoveredBondsbetreatedintheproposed transaction?Willthecoveredbondsandassociatedassetspass tothe acquirer, similar to theFHLB Advances? Answer:Allsecuredliabilities,includingthecoveredbonds,and associatedassets willpass tothe acquirer. 5.HowwilltheRepurchaseAgreements(Repos)betreatedinthe proposedtransaction?Willtherepurchaseobligationsand associatedassets pass to the acquirer? Highly Confidential Highly Confidential Page1 of 4 FDIC 00034 FDIC 31888 ReturnAnswer:AllReposandassociatedassetswillpasstothe acquirer. 6.HowwilltheUtahsubsidiarybetreatedintheproposed transaction?WouldtheFDICbewillingtousethecross guaranteeliabilityorsomeotherauthoritytoplacetheUtah subsidiaryintoreceivershiptoeliminatecontingentliabilitiesand facilitateintegration?CantheFDICprovidemoreinformation regarding thisinstitution,particularly onnondeposit liabilities? Answer:TheUtahsubsidiary willpasstotheacquirer asagoing concernand willnot be placedinto receivership. 7.WilltheFDICprovideadditionaltimeinordertoacceptorreject leasesandothercontracts?Giventhecomplexityofthetarget, wouldtheFDICbewillingtoallowtheacquirertodetermine whethertoaffirmorrepudiatecontractsclosertothe180day period theFDIC would enjoy for thispower instead of 90 days? Answer:Althoughwepreferthatmostagreementsbereviewed within90 days,theFDICasreceiver willwork withtheacquirer on a case-by-casebasis for up to fivemonths followingthe acquisition todeterminewhethertoaffirmorrepudiateleasesandother contracts retainedinreceivership. 8.Whatareyourexpectationsaboutthetreatmentof employeesin connectionwiththetransaction?Whatisthelengthof timeduring whichwe wouldneedtodecide whether or not tohireemployees? Willtherebeanopportunity to use receivershippowers tooptimize pension and other benefit plans? Answer:Employeesofthebankwillpasstotheacquirer.The receivershipwillretainindividual-specificemploymentcontracts. Anybenefit plans to whichthebankisa party willberetained by theReceiver intransactions 4 and5. 9.Aretheoff-balancesheetcreditcardportfolioandmortgage securitizationsincludedinthetransaction?Doyouexpectthe acquirertoassumetheservicingobligations?If therearepricing issuesassociatedwiththecontracts(e.g.,thepricingis disadvantageoustotheassuminginstitution),canwetake advantage of theFDIC's repudiationpowers to effect a repricing? Highly Confidential Highly Confidential Page 2 of 4 FDIC 00035 FDIC 31889 Answer:AllReposandassociatedassetswillpasstothe acquirer. 6.HowwilltheUtahsubsidiarybetreatedintheproposed transaction?WouldtheFDICbewillingtousethecross guaranteeliabilityorsomeotherauthoritytoplacetheUtah subsidiaryintoreceivershiptoeliminatecontingentliabilitiesand facilitateintegration?CantheFDICprovidemoreinformation regarding thisinstitution,particularly onnondeposit liabilities? Answer:TheUtahsubsidiary willpasstotheacquirer asagoing concernand willnot be placedinto receivership. 7.WilltheFDICprovideadditionaltimeinordertoacceptorreject leasesandothercontracts?Giventhecomplexityofthetarget, wouldtheFDICbewillingtoallowtheacquirertodetermine whethertoaffirmorrepudiatecontractsclosertothe180day period theFDIC would enjoy for thispower instead of 90 days? Answer:Althoughwepreferthatmostagreementsbereviewed within90 days,theFDICasreceiver willwork withtheacquirer on a case-by-casebasis for up to fivemonths followingthe acquisition todeterminewhethertoaffirmorrepudiateleasesandother contracts retainedinreceivership. 8.Whatareyourexpectationsaboutthetreatmentof employeesin connectionwiththetransaction?Whatisthelengthof timeduring whichwe wouldneedtodecide whether or not tohireemployees? Willtherebeanopportunity to use receivershippowers tooptimize pension and other benefit plans? Answer:Employeesofthebankwillpasstotheacquirer.The receivershipwillretainindividual-specificemploymentcontracts. Anybenefit plans to whichthebankisa party willberetained by theReceiver intransactions 4 and5. 9.Aretheoff-balancesheetcreditcardportfolioandmortgage securitizationsincludedinthetransaction?Doyouexpectthe acquirertoassumetheservicingobligations?If therearepricing issuesassociatedwiththecontracts(e.g.,thepricingis disadvantageoustotheassuminginstitution),canwetake advantage of theFDIC's repudiationpowers to effect a repricing? Highly Confidential Highly Confidential Page 2 of 4 FDIC 00035 FDIC 31889 ReturnAnswer:Thebank'sinterestsandobligationsassociatedwiththe off-balance sheet credit cardportfolio andmortgage securitizations passtotheacquirer.Onlycontractsandobligationsremainingin the receivership are subject torepudiationpowers. 10.Canyouprovidegreater clarityonwhether thereisadeferredtax asset at the thriftlevel,andif so,woulditpass to theacquirer? Answer:If thereisa deferred taxasset at the thriftlevel , itrelates totheentityitself andcannotpassinapurchaseandassumption transaction tothe acquirer. 11.Thereisa number of classactionandotherlenderliability matters broughtbyborrowersorthatmaybeassertedbyborrowers againstWashingtonMutual.WouldtheAssumingBankbe required toassume theseliabilities? Answer:ThePurchaseandAssumptionAgreementprovidesthat theAssumingBankdoesnotassumeliabilityforclaimsfor paymentorothermonetaryreliefthathavebeenormayinthe futurebeassertedbyborrowers.Suchliabilitiesareintendedto remainliabilitiesoftheFDICasreceiverofWashingtonMutual. Werecognize,however,thatcertainborrowersmayattemptto assertlenderliabilityclaimsagainsttheAssumingBank.We believe,basedontheprovisionsof thePurchaseandAssumption Agreement,thatsuchclaimsarelikelytobefoundtobeliabilities of thereceiverandnotof theAssumingBank.However,neither theFDICinitsCorporateCapacity,norasReceiverofthefailed institution,warrantssucharesultorindemnifiestheAssuming Bankagainstanylossesitmaysuffer asaresultof theassertion of such claims against it. 12.How doI findout whowon,howmanybidswerereceivedandthe amount of thebids? Highly Confidential Highly Confidential Answer:Informationaboutthewinningbidwillbeavailableinthe FDIC'spressreleaseimmediatelyafterclosing.Anyotherbid informationisavailablethroughtheFreedomofInformationAct. Youcanmake a FOIA request fromFDIC.gov. Page 3 of 4 FDIC 00036 FDIC 31890 Answer:Thebank'sinterestsandobligationsassociatedwiththe off-balance sheet credit cardportfolio andmortgage securitizations passtotheacquirer.Onlycontractsandobligationsremainingin the receivership are subject torepudiationpowers. 10.Canyouprovidegreater clarityonwhether thereisadeferredtax asset at the thriftlevel,andif so,woulditpass to theacquirer? Answer:If thereisa deferred taxasset atthe thriftlevel , itrelates totheentityitself andcannotpassinapurchaseandassumption transaction tothe acquirer. 11.Thereisa number of classactionandotherlenderliability matters broughtbyborrowersorthatmaybeassertedbyborrowers againstWashingtonMutual.WouldtheAssumingBankbe required toassume theseliabilities? Answer:ThePurchaseandAssumptionAgreementprovidesthat theAssumingBankdoesnotassumeliabilityforclaimsfor paymentorothermonetaryreliefthathavebeenormayinthe futurebeassertedbyborrowers.Suchliabilitiesareintendedto remainliabilitiesoftheFDICasreceiverofWashingtonMutual. Werecognize,however,thatcertainborrowersmayattemptto assertlenderliabilityclaimsagainsttheAssumingBank.We believe,basedontheprovisionsof thePurchaseandAssumption Agreement,thatsuchclaimsarelikelytobefoundtobeliabilities of thereceiverandnotof theAssumingBank.However,neither theFDICinitsCorporateCapacity,norasReceiverofthefailed institution,warrantssucharesultorindemnifiestheAssuming Bankagainstanylossesitmaysuffer asaresultof theassertion of such claims against it. 12.How doI findout whowon,howmanybidswerereceivedandthe amount of thebids? Highly Confidential Highly Confidential Answer:Informationaboutthewinningbidwillbeavailableinthe FDIC'spressreleaseimmediatelyafterclosing.Anyotherbid informationisavailablethroughtheFreedomofInformationAct. Youcanmake a FOIA request fromFDIC.gov. Page 3 of 4 FDIC 00036 FDIC 31890 Return13.Howareuninsureddepositorstreatedinaninsureddepositonly transaction? Answer:Theacquiringbankreceivestheinsuredportionofan uninsureddepositor'saccount.Insomeinstances,theFDICwill fundapercentageof theuninsuredportion(advancedividend)to thedepositor aswell.AReceivershipCertificatewillbeissuedto any depositor for theunfunded amount of their deposit(s). 14.Aredeposits valuedinany way?Dotheyplaya roleintheFDIC's cost test? Answer:DepositsarenotvaluedbytheFDIC;however,the uninsuredportiondoesplaya roleinthecosttest.TheFDICwill compare"alldeposits"bidstothe"insureddeposits"bidsandthe costof adepositpayout.An"alldeposits"bidwillbemorecostly thananinsureddepositsbid,becauseintheinsureddepositsbid orthedepositpayout,theuninsureddepositorsshare(withthe FDIC)intheultimatelossesexperiencedonloansandother assetsliquidated by theFDIC as Receiver. 15.What arethespecificbidevaluationmechanicsof theFDIC'scost test? Answer:TheFDIC'sleastcosttestcalculationsareconsidered proprietary andarenot offered tobidders. 16.Whatiftheassumingbank'sattorneysareuncomfortablewiththe languagecontainedinthePurchase&AssumptionAgreements? Is the finalagreement language negotiable? Highly Confidential Highly Confidential Answer:NothePurchase&Assumptionagreementlanguageis not negotiable. Page 4 of 4 FDIC 00037 FDIC 31891 13.Howareuninsureddepositorstreatedinaninsureddepositonly transaction? Answer:Theacquiringbankreceivestheinsuredportionofan uninsureddepositor'saccount.Insomeinstances,theFDICwill fundapercentageof theuninsuredportion(advancedividend)to thedepositor aswell.AReceivershipCertificatewillbeissuedto any depositor for theunfunded amount of their deposit(s). 14.Aredeposits valuedinany way?Dotheyplaya roleintheFDIC's cost test? Answer:DepositsarenotvaluedbytheFDIC;however,the uninsuredportiondoesplayaroleinthecosttest.TheFDICwill compare"alldeposits"bidstothe"insureddeposits"bidsandthe costof adepositpayout.An"alldeposits"bidwillbemorecostly thananinsureddepositsbid,becauseintheinsureddepositsbid orthedepositpayout,theuninsureddepositorsshare(withthe FDIC)intheultimatelossesexperiencedonloansandother assetsliquidated by theFDIC as Receiver. 15.What arethespecificbidevaluationmechanicsof theFDIC'scost test? Answer:TheFDIC'sleastcosttestcalculationsareconsidered proprietary andarenot offered tobidders. 16.Whatiftheassumingbank'sattorneysareuncomfortablewiththe languagecontainedinthePurchase&AssumptionAgreements? Is the finalagreement language negotiable? Highly Confidential Highly Confidential Answer:NothePurchase&Assumptionagreementlanguageis not negotiable. Page 4 of 4 FDIC 00037 FDIC 31891 ReturnFDIC Institution Sales Frequently Asked Questions Achangewasmadeto#8toconformtotheP&AAgreements already posted to the Intralinks site. 1.HowwillFHLBAdvancesbetreatedintheproposedtransaction? Willtheacquirer assume the advances at the existing rates without penalty or adjustment,and take thecorrespondingassets? Answer:BidsshouldbesubmittedassumingthatallFHLB advanceswillbeassumedwithoutpenaltyoradjustment.All assetspledgedtosecuretheadvanceswillconveyinthe transaction. 2.HowwilltheUndrawnLinesbetreatedintheproposed transaction?WilltheFDICuseitspowerstoallowtheacquirer to cut off undrawnlines of credit inthehome equity portfolio? Answer:Allassetsandloanfundingobligationswillpasstothe acquirer inthe transaction. 3.HowwilltheREITpreferredandassociatedassetsbetreatedin theproposedtransaction?CantheRE ITpreferredbetreated sim ilarlywiththetrustpreferred,andleftbehindwiththe associatedassets supporting theRE IT preferred? Answer:TheREITpreferredshareswillnotbeassumedinthe transaction.However,theassociatedassetswillpasstothe acquirer. 4.HowwilltheCoveredBondsbetreatedintheproposed transaction?Willthecoveredbondsandassociatedassetspass tothe acquirer,similar to theFHLB Advances? Answer:Allsecuredliabilities,includingthecoveredbonds,and associatedassets willpass tothe acquirer. 5.HowwilltheRepurchaseAgreements(Repos)betreatedinthe proposedtransaction?Willtherepurchaseobligationsand associatedassets pass to the acquirer? Highly Confidential Highly Confidential Page1 of 4 FDIC 00034 FDIC 31888 FDIC Institution Sales Frequently Asked Questions Achangewasmadeto#8toconformtotheP&AAgreements already posted to the Intralinks site. 1.HowwillFHLBAdvancesbetreatedintheproposedtransaction? Willtheacquirer assume the advances at the existing rates without penalty or adjustment,and take thecorrespondingassets? Answer:BidsshouldbesubmittedassumingthatallFHLB advanceswillbeassumedwithoutpenaltyoradjustment.All assetspledgedtosecuretheadvanceswillconveyinthe transaction. 2.HowwilltheUndrawnLinesbetreatedintheproposed transaction?WilltheFDICuseitspowerstoallowtheacquirer to cut off undrawnlines of credit inthehome equity portfolio? Answer:Allassetsandloanfundingobligationswillpasstothe acquirer inthe transaction. 3.HowwilltheREITpreferredandassociatedassetsbetreatedin theproposedtransaction?CantheRE ITpreferredbetreated sim ilarlywiththetrustpreferred,andleftbehindwiththe associatedassets supporting theRE IT preferred? Answer:TheREITpreferredshareswillnotbeassumedinthe transaction.However,theassociatedassetswillpasstothe acquirer. 4.HowwilltheCoveredBondsbetreatedintheproposed transaction?Willthecoveredbondsandassociatedassetspass tothe acquirer, similar to theFHLB Advances? Answer:Allsecuredliabilities,includingthecoveredbonds,and associatedassets willpass tothe acquirer. 5.HowwilltheRepurchaseAgreements(Repos)betreatedinthe proposedtransaction?Willtherepurchaseobligationsand associatedassets pass to the acquirer? Highly Confidential Highly Confidential Page1 of 4 FDIC 00034 FDIC 31888 ReturnAnswer:AllReposandassociatedassetswillpasstothe acquirer. 6.HowwilltheUtahsubsidiarybetreatedintheproposed transaction?WouldtheFDICbewillingtousethecross guaranteeliabilityorsomeotherauthoritytoplacetheUtah subsidiaryintoreceivershiptoeliminatecontingentliabilitiesand facilitateintegration?CantheFDICprovidemoreinformation regarding thisinstitution,particularly onnondeposit liabilities? Answer:TheUtahsubsidiary willpasstotheacquirer asagoing concernand willnot be placedinto receivership. 7.WilltheFDICprovideadditionaltimeinordertoacceptorreject leasesandothercontracts?Giventhecomplexityofthetarget, wouldtheFDICbewillingtoallowtheacquirertodetermine whethertoaffirmorrepudiatecontractsclosertothe180day period theFDIC would enjoy for thispower instead of 90 days? Answer:Althoughwepreferthatmostagreementsbereviewed within90 days,theFDICasreceiver willwork withtheacquirer on a case-by-casebasis for up to fivemonths followingthe acquisition todeterminewhethertoaffirmorrepudiateleasesandother contracts retainedinreceivership. 8.Whatareyourexpectationsaboutthetreatmentof employeesin connectionwiththetransaction?Whatisthelengthof timeduring whichwe wouldneedtodecide whether or not tohireemployees? Willtherebeanopportunity to use receivershippowers tooptimize pension and other benefit plans? Answer:Employeesofthebankwillpasstotheacquirer.The receivershipwillretainindividual-specificemploymentcontracts. Anybenefit plans to whichthebankisa party willberetained by theReceiver intransactions 4 and5. 9.Aretheoff-balancesheetcreditcardportfolioandmortgage securitizationsincludedinthetransaction?Doyouexpectthe acquirertoassumetheservicingobligations?If therearepricing issuesassociatedwiththecontracts(e.g.,thepricingis disadvantageoustotheassuminginstitution),canwetake advantage of theFDIC's repudiationpowers to effect a repricing? Highly Confidential Highly Confidential Page 2 of 4 FDIC 00035 FDIC 31889 Answer:AllReposandassociatedassetswillpasstothe acquirer. 6.HowwilltheUtahsubsidiarybetreatedintheproposed transaction?WouldtheFDICbewillingtousethecross guaranteeliabilityorsomeotherauthoritytoplacetheUtah subsidiaryintoreceivershiptoeliminatecontingentliabilitiesand facilitateintegration?CantheFDICprovidemoreinformation regarding thisinstitution,particularly onnondeposit liabilities? Answer:TheUtahsubsidiary willpasstotheacquirer asagoing concernand willnot be placedinto receivership. 7.WilltheFDICprovideadditionaltimeinordertoacceptorreject leasesandothercontracts?Giventhecomplexityofthetarget, wouldtheFDICbewillingtoallowtheacquirertodetermine whethertoaffirmorrepudiatecontractsclosertothe180day period theFDIC would enjoy for thispower instead of 90 days? Answer:Althoughwepreferthatmostagreementsbereviewed within90 days,theFDICasreceiver willwork withtheacquirer on a case-by-casebasis for up to fivemonths followingthe acquisition todeterminewhethertoaffirmorrepudiateleasesandother contracts retainedinreceivership. 8.Whatareyourexpectationsaboutthetreatmentof employeesin connectionwiththetransaction?Whatisthelengthof timeduring whichwe wouldneedtodecide whether or not tohireemployees? Willtherebeanopportunity to use receivershippowers tooptimize pension and other benefit plans? Answer:Employeesofthebankwillpasstotheacquirer.The receivershipwillretainindividual-specificemploymentcontracts. Anybenefit plans to whichthebankisa party willberetained by theReceiver intransactions 4 and5. 9.Aretheoff-balancesheetcreditcardportfolioandmortgage securitizationsincludedinthetransaction?Doyouexpectthe acquirertoassumetheservicingobligations?If therearepricing issuesassociatedwiththecontracts(e.g.,thepricingis disadvantageoustotheassuminginstitution),canwetake advantage of theFDIC's repudiationpowers to effect a repricing? Highly Confidential Highly Confidential Page 2 of 4 FDIC 00035 FDIC 31889 ReturnAnswer:Thebank'sinterestsandobligationsassociatedwiththe off-balance sheet credit cardportfolio andmortgage securitizations passtotheacquirer.Onlycontractsandobligationsremainingin the receivership are subject torepudiationpowers. 10.Canyouprovidegreater clarityonwhether thereisadeferredtax asset at the thriftlevel,andif so,woulditpass to theacquirer? Answer:If thereisa deferred taxasset at the thriftlevel , itrelates totheentityitself andcannotpassinapurchaseandassumption transaction tothe acquirer. 11.Thereisa number of classactionandotherlenderliability matters broughtbyborrowersorthatmaybeassertedbyborrowers againstWashingtonMutual.WouldtheAssumingBankbe required toassume theseliabilities? Answer:ThePurchaseandAssumptionAgreementprovidesthat theAssumingBankdoesnotassumeliabilityforclaimsfor paymentorothermonetaryreliefthathavebeenormayinthe futurebeassertedbyborrowers.Suchliabilitiesareintendedto remainliabilitiesoftheFDICasreceiverofWashingtonMutual. Werecognize,however,thatcertainborrowersmayattemptto assertlenderliabilityclaimsagainsttheAssumingBank.We believe,basedontheprovisionsof thePurchaseandAssumption Agreement,thatsuchclaimsarelikelytobefoundtobeliabilities of thereceiverandnotof theAssumingBank.However,neither theFDICinitsCorporateCapacity,norasReceiverofthefailed institution,warrantssucharesultorindemnifiestheAssuming Bankagainstanylossesitmaysuffer asaresultof theassertion of such claims against it. 12.How doI findout whowon,howmanybidswerereceivedandthe amount of thebids? Highly Confidential Highly Confidential Answer:Informationaboutthewinningbidwillbeavailableinthe FDIC'spressreleaseimmediatelyafterclosing.Anyotherbid informationisavailablethroughtheFreedomofInformationAct. Youcanmake a FOIA request fromFDIC.gov. Page 3 of 4 FDIC 00036 FDIC 31890 Answer:Thebank'sinterestsandobligationsassociatedwiththe off-balance sheet credit cardportfolio andmortgage securitizations passtotheacquirer.Onlycontractsandobligationsremainingin the receivership are subject torepudiationpowers. 10.Canyouprovidegreater clarityonwhether thereisadeferredtax asset at the thriftlevel,andif so,woulditpass to theacquirer? Answer:If thereisa deferred taxasset atthe thriftlevel , itrelates totheentityitself andcannotpassinapurchaseandassumption transaction tothe acquirer. 11.Thereisa number of classactionandotherlenderliability matters broughtbyborrowersorthatmaybeassertedbyborrowers againstWashingtonMutual.WouldtheAssumingBankbe required toassume theseliabilities? Answer:ThePurchaseandAssumptionAgreementprovidesthat theAssumingBankdoesnotassumeliabilityforclaimsfor paymentorothermonetaryreliefthathavebeenormayinthe futurebeassertedbyborrowers.Suchliabilitiesareintendedto remainliabilitiesoftheFDICasreceiverofWashingtonMutual. Werecognize,however,thatcertainborrowersmayattemptto assertlenderliabilityclaimsagainsttheAssumingBank.We believe,basedontheprovisionsof thePurchaseandAssumption Agreement,thatsuchclaimsarelikelytobefoundtobeliabilities of thereceiverandnotof theAssumingBank.However,neither theFDICinitsCorporateCapacity,norasReceiverofthefailed institution,warrantssucharesultorindemnifiestheAssuming Bankagainstanylossesitmaysuffer asaresultof theassertion of such claims against it. 12.How doI findout whowon,howmanybidswerereceivedandthe amount of thebids? Highly Confidential Highly Confidential Answer:Informationaboutthewinningbidwillbeavailableinthe FDIC'spressreleaseimmediatelyafterclosing.Anyotherbid informationisavailablethroughtheFreedomofInformationAct. Youcanmake a FOIA request fromFDIC.gov. Page 3 of 4 FDIC 00036 FDIC 31890 Return13.Howareuninsureddepositorstreatedinaninsureddepositonly transaction? Answer:Theacquiringbankreceivestheinsuredportionofan uninsureddepositor'saccount.Insomeinstances,theFDICwill fundapercentageof theuninsuredportion(advancedividend)to thedepositor aswell.AReceivershipCertificatewillbeissuedto any depositor for theunfunded amount of their deposit(s). 14.Aredeposits valuedinany way?Dotheyplaya roleintheFDIC's cost test? Answer:DepositsarenotvaluedbytheFDIC;however,the uninsuredportiondoesplaya roleinthecosttest.TheFDICwill compare"alldeposits"bidstothe"insureddeposits"bidsandthe costof adepositpayout.An"alldeposits"bidwillbemorecostly thananinsureddepositsbid,becauseintheinsureddepositsbid orthedepositpayout,theuninsureddepositorsshare(withthe FDIC)intheultimatelossesexperiencedonloansandother assetsliquidated by theFDIC as Receiver. 15.What arethespecificbidevaluationmechanicsof theFDIC'scost test? Answer:TheFDIC'sleastcosttestcalculationsareconsidered proprietary andarenot offered tobidders. 16.Whatiftheassumingbank'sattorneysareuncomfortablewiththe languagecontainedinthePurchase&AssumptionAgreements? Is the finalagreement language negotiable? Highly Confidential Highly Confidential Answer:NothePurchase&Assumptionagreementlanguageis not negotiable. Page 4 of 4 FDIC 00037 FDIC 31891 13.Howareuninsureddepositorstreatedinaninsureddepositonly transaction? Answer:Theacquiringbankreceivestheinsuredportionofan uninsureddepositor'saccount.Insomeinstances,theFDICwill fundapercentageof theuninsuredportion(advancedividend)to thedepositor aswell.AReceivershipCertificatewillbeissuedto any depositor for theunfunded amount of their deposit(s). 14.Aredeposits valuedinany way?Dotheyplaya roleintheFDIC's cost test? Answer:DepositsarenotvaluedbytheFDIC;however,the uninsuredportiondoesplayaroleinthecosttest.TheFDICwill compare"alldeposits"bidstothe"insureddeposits"bidsandthe costof adepositpayout.An"alldeposits"bidwillbemorecostly thananinsureddepositsbid,becauseintheinsureddepositsbid orthedepositpayout,theuninsureddepositorsshare(withthe FDIC)intheultimatelossesexperiencedonloansandother assetsliquidated by theFDIC as Receiver. 15.What arethespecificbidevaluationmechanicsof theFDIC'scost test? Answer:TheFDIC'sleastcosttestcalculationsareconsidered proprietary andarenot offered tobidders. 16.Whatiftheassumingbank'sattorneysareuncomfortablewiththe languagecontainedinthePurchase&AssumptionAgreements? Is the finalagreement language negotiable? Highly Confidential Highly Confidential Answer:NothePurchase&Assumptionagreementlanguageis not negotiable. Page 4 of 4 FDIC 00037 FDIC 31891 ReturnFDIC Institution Sales Frequently Asked Questions Achangewasmadeto#8toconformtotheP&AAgreements already posted to the Intralinks site. 1.HowwillFHLBAdvancesbetreatedintheproposedtransaction? Willtheacquirer assume the advances at the existing rates without penalty or adjustment,and take thecorrespondingassets? Answer:BidsshouldbesubmittedassumingthatallFHLB advanceswillbeassumedwithoutpenaltyoradjustment.All assetspledgedtosecuretheadvanceswillconveyinthe transaction. 2.HowwilltheUndrawnLinesbetreatedintheproposed transaction?WilltheFDICuseitspowerstoallowtheacquirer to cut off undrawnlines of credit inthehome equity portfolio? Answer:Allassetsandloanfundingobligationswillpasstothe acquirer inthe transaction. 3.HowwilltheREITpreferredandassociatedassetsbetreatedin theproposedtransaction?CantheRE ITpreferredbetreated sim ilarlywiththetrustpreferred,andleftbehindwiththe associatedassets supporting theRE IT preferred? Answer:TheREITpreferredshareswillnotbeassumedinthe transaction.However,theassociatedassetswillpasstothe acquirer. 4.HowwilltheCoveredBondsbetreatedintheproposed transaction?Willthecoveredbondsandassociatedassetspass tothe acquirer,similar to theFHLB Advances? Answer:Allsecuredliabilities,includingthecoveredbonds,and associatedassets willpass tothe acquirer. 5.HowwilltheRepurchaseAgreements(Repos)betreatedinthe proposedtransaction?Willtherepurchaseobligationsand associatedassets pass to the acquirer? Highly Confidential Highly Confidential Page1 of 4 FDIC 00034 FDIC 31888 FDIC Institution Sales Frequently Asked Questions Achangewasmadeto#8toconformtotheP&AAgreements already posted to the Intralinks site. 1.HowwillFHLBAdvancesbetreatedintheproposedtransaction? Willtheacquirer assume the advances at the existing rates without penalty or adjustment,and take thecorrespondingassets? Answer:BidsshouldbesubmittedassumingthatallFHLB advanceswillbeassumedwithoutpenaltyoradjustment.All assetspledgedtosecuretheadvanceswillconveyinthe transaction. 2.HowwilltheUndrawnLinesbetreatedintheproposed transaction?WilltheFDICuseitspowerstoallowtheacquirer to cut off undrawnlines of credit inthehome equity portfolio? Answer:Allassetsandloanfundingobligationswillpasstothe acquirer inthe transaction. 3.HowwilltheREITpreferredandassociatedassetsbetreatedin theproposedtransaction?CantheRE ITpreferredbetreated sim ilarlywiththetrustpreferred,andleftbehindwiththe associatedassets supporting theRE IT preferred? Answer:TheREITpreferredshareswillnotbeassumedinthe transaction.However,theassociatedassetswillpasstothe acquirer. 4.HowwilltheCoveredBondsbetreatedintheproposed transaction?Willthecoveredbondsandassociatedassetspass tothe acquirer, similar to theFHLB Advances? Answer:Allsecuredliabilities,includingthecoveredbonds,and associatedassets willpass tothe acquirer. 5.HowwilltheRepurchaseAgreements(Repos)betreatedinthe proposedtransaction?Willtherepurchaseobligationsand associatedassets pass to the acquirer? Highly Confidential Highly Confidential Page1 of 4 FDIC 00034 FDIC 31888 ReturnAnswer:AllReposandassociatedassetswillpasstothe acquirer. 6.HowwilltheUtahsubsidiarybetreatedintheproposed transaction?WouldtheFDICbewillingtousethecross guaranteeliabilityorsomeotherauthoritytoplacetheUtah subsidiaryintoreceivershiptoeliminatecontingentliabilitiesand facilitateintegration?CantheFDICprovidemoreinformation regarding thisinstitution,particularly onnondeposit liabilities? Answer:TheUtahsubsidiary willpasstotheacquirer asagoing concernand willnot be placedinto receivership. 7.WilltheFDICprovideadditionaltimeinordertoacceptorreject leasesandothercontracts?Giventhecomplexityofthetarget, wouldtheFDICbewillingtoallowtheacquirertodetermine whethertoaffirmorrepudiatecontractsclosertothe180day period theFDIC would enjoy for thispower instead of 90 days? Answer:Althoughwepreferthatmostagreementsbereviewed within90 days,theFDICasreceiver willwork withtheacquirer on a case-by-casebasis for up to fivemonths followingthe acquisition todeterminewhethertoaffirmorrepudiateleasesandother contracts retainedinreceivership. 8.Whatareyourexpectationsaboutthetreatmentof employeesin connectionwiththetransaction?Whatisthelengthof timeduring whichwe wouldneedtodecide whether or not tohireemployees? Willtherebeanopportunity to use receivershippowers tooptimize pension and other benefit plans? Answer:Employeesofthebankwillpasstotheacquirer.The receivershipwillretainindividual-specificemploymentcontracts. Anybenefit plans to whichthebankisa party willberetained by theReceiver intransactions 4 and5. 9.Aretheoff-balancesheetcreditcardportfolioandmortgage securitizationsincludedinthetransaction?Doyouexpectthe acquirertoassumetheservicingobligations?If therearepricing issuesassociatedwiththecontracts(e.g.,thepricingis disadvantageoustotheassuminginstitution),canwetake advantage of theFDIC's repudiationpowers to effect a repricing? Highly Confidential Highly Confidential Page 2 of 4 FDIC 00035 FDIC 31889 Answer:AllReposandassociatedassetswillpasstothe acquirer. 6.HowwilltheUtahsubsidiarybetreatedintheproposed transaction?WouldtheFDICbewillingtousethecross guaranteeliabilityorsomeotherauthoritytoplacetheUtah subsidiaryintoreceivershiptoeliminatecontingentliabilitiesand facilitateintegration?CantheFDICprovidemoreinformation regarding thisinstitution,particularly onnondeposit liabilities? Answer:TheUtahsubsidiary willpasstotheacquirer asagoing concernand willnot be placedinto receivership. 7.WilltheFDICprovideadditionaltimeinordertoacceptorreject leasesandothercontracts?Giventhecomplexityofthetarget, wouldtheFDICbewillingtoallowtheacquirertodetermine whethertoaffirmorrepudiatecontractsclosertothe180day period theFDIC would enjoy for thispower instead of 90 days? Answer:Althoughwepreferthatmostagreementsbereviewed within90 days,theFDICasreceiver willwork withtheacquirer on a case-by-casebasis for up to fivemonths followingthe acquisition todeterminewhethertoaffirmorrepudiateleasesandother contracts retainedinreceivership. 8.Whatareyourexpectationsaboutthetreatmentof employeesin connectionwiththetransaction?Whatisthelengthof timeduring whichwe wouldneedtodecide whether or not tohireemployees? Willtherebeanopportunity to use receivershippowers tooptimize pension and other benefit plans? Answer:Employeesofthebankwillpasstotheacquirer.The receivershipwillretainindividual-specificemploymentcontracts. Anybenefit plans to whichthebankisa party willberetained by theReceiver intransactions 4 and5. 9.Aretheoff-balancesheetcreditcardportfolioandmortgage securitizationsincludedinthetransaction?Doyouexpectthe acquirertoassumetheservicingobligations?If therearepricing issuesassociatedwiththecontracts(e.g.,thepricingis disadvantageoustotheassuminginstitution),canwetake advantage of theFDIC's repudiationpowers to effect a repricing? Highly Confidential Highly Confidential Page 2 of 4 FDIC 00035 FDIC 31889 ReturnAnswer:Thebank'sinterestsandobligationsassociatedwiththe off-balance sheet credit cardportfolio andmortgage securitizations passtotheacquirer.Onlycontractsandobligationsremainingin the receivership are subject torepudiationpowers. 10.Canyouprovidegreater clarityonwhether thereisadeferredtax asset at the thriftlevel,andif so,woulditpass to theacquirer? Answer:If thereisa deferred taxasset at the thriftlevel , itrelates totheentityitself andcannotpassinapurchaseandassumption transaction tothe acquirer. 11.Thereisa number of classactionandotherlenderliability matters broughtbyborrowersorthatmaybeassertedbyborrowers againstWashingtonMutual.WouldtheAssumingBankbe required toassume theseliabilities? Answer:ThePurchaseandAssumptionAgreementprovidesthat theAssumingBankdoesnotassumeliabilityforclaimsfor paymentorothermonetaryreliefthathavebeenormayinthe futurebeassertedbyborrowers.Suchliabilitiesareintendedto remainliabilitiesoftheFDICasreceiverofWashingtonMutual. Werecognize,however,thatcertainborrowersmayattemptto assertlenderliabilityclaimsagainsttheAssumingBank.We believe,basedontheprovisionsof thePurchaseandAssumption Agreement,thatsuchclaimsarelikelytobefoundtobeliabilities of thereceiverandnotof theAssumingBank.However,neither theFDICinitsCorporateCapacity,norasReceiverofthefailed institution,warrantssucharesultorindemnifiestheAssuming Bankagainstanylossesitmaysuffer asaresultof theassertion of such claims against it. 12.How doI findout whowon,howmanybidswerereceivedandthe amount of thebids? Highly Confidential Highly Confidential Answer:Informationaboutthewinningbidwillbeavailableinthe FDIC'spressreleaseimmediatelyafterclosing.Anyotherbid informationisavailablethroughtheFreedomofInformationAct. Youcanmake a FOIA request fromFDIC.gov. Page 3 of 4 FDIC 00036 FDIC 31890 Answer:Thebank'sinterestsandobligationsassociatedwiththe off-balance sheet credit cardportfolio andmortgage securitizations passtotheacquirer.Onlycontractsandobligationsremainingin the receivership are subject torepudiationpowers. 10.Canyouprovidegreater clarityonwhether thereisadeferredtax asset at the thriftlevel,andif so,woulditpass to theacquirer? Answer:If thereisa deferred taxasset atthe thriftlevel , itrelates totheentityitself andcannotpassinapurchaseandassumption transaction tothe acquirer. 11.Thereisa number of classactionandotherlenderliability matters broughtbyborrowersorthatmaybeassertedbyborrowers againstWashingtonMutual.WouldtheAssumingBankbe required toassume theseliabilities? Answer:ThePurchaseandAssumptionAgreementprovidesthat theAssumingBankdoesnotassumeliabilityforclaimsfor paymentorothermonetaryreliefthathavebeenormayinthe futurebeassertedbyborrowers.Suchliabilitiesareintendedto remainliabilitiesoftheFDICasreceiverofWashingtonMutual. Werecognize,however,thatcertainborrowersmayattemptto assertlenderliabilityclaimsagainsttheAssumingBank.We believe,basedontheprovisionsof thePurchaseandAssumption Agreement,thatsuchclaimsarelikelytobefoundtobeliabilities of thereceiverandnotof theAssumingBank.However,neither theFDICinitsCorporateCapacity,norasReceiverofthefailed institution,warrantssucharesultorindemnifiestheAssuming Bankagainstanylossesitmaysuffer asaresultof theassertion of such claims against it. 12.How doI findout whowon,howmanybidswerereceivedandthe amount of thebids? Highly Confidential Highly Confidential Answer:Informationaboutthewinningbidwillbeavailableinthe FDIC'spressreleaseimmediatelyafterclosing.Anyotherbid informationisavailablethroughtheFreedomofInformationAct. Youcanmake a FOIA request fromFDIC.gov. Page 3 of 4 FDIC 00036 FDIC 31890 Return13.Howareuninsureddepositorstreatedinaninsureddepositonly transaction? Answer:Theacquiringbankreceivestheinsuredportionofan uninsureddepositor'saccount.Insomeinstances,theFDICwill fundapercentageof theuninsuredportion(advancedividend)to thedepositor aswell.AReceivershipCertificatewillbeissuedto any depositor for theunfunded amount of their deposit(s). 14.Aredeposits valuedinany way?Dotheyplaya roleintheFDIC's cost test? Answer:DepositsarenotvaluedbytheFDIC;however,the uninsuredportiondoesplaya roleinthecosttest.TheFDICwill compare"alldeposits"bidstothe"insureddeposits"bidsandthe costof adepositpayout.An"alldeposits"bidwillbemorecostly thananinsureddepositsbid,becauseintheinsureddepositsbid orthedepositpayout,theuninsureddepositorsshare(withthe FDIC)intheultimatelossesexperiencedonloansandother assetsliquidated by theFDIC as Receiver. 15.What arethespecificbidevaluationmechanicsof theFDIC'scost test? Answer:TheFDIC'sleastcosttestcalculationsareconsidered proprietary andarenot offered tobidders. 16.Whatiftheassumingbank'sattorneysareuncomfortablewiththe languagecontainedinthePurchase&AssumptionAgreements? Is the finalagreement language negotiable? Highly Confidential Highly Confidential Answer:NothePurchase&Assumptionagreementlanguageis not negotiable. Page 4 of 4 FDIC 00037 FDIC 31891 13.Howareuninsureddepositorstreatedinaninsureddepositonly transaction? Answer:Theacquiringbankreceivestheinsuredportionofan uninsureddepositor'saccount.Insomeinstances,theFDICwill fundapercentageof theuninsuredportion(advancedividend)to thedepositor aswell.AReceivershipCertificatewillbeissuedto any depositor for theunfunded amount of their deposit(s). 14.Aredeposits valuedinany way?Dotheyplaya roleintheFDIC's cost test? Answer:DepositsarenotvaluedbytheFDIC;however,the uninsuredportiondoesplayaroleinthecosttest.TheFDICwill compare"alldeposits"bidstothe"insureddeposits"bidsandthe costof adepositpayout.An"alldeposits"bidwillbemorecostly thananinsureddepositsbid,becauseintheinsureddepositsbid orthedepositpayout,theuninsureddepositorsshare(withthe FDIC)intheultimatelossesexperiencedonloansandother assetsliquidated by theFDIC as Receiver. 15.What arethespecificbidevaluationmechanicsof theFDIC'scost test? Answer:TheFDIC'sleastcosttestcalculationsareconsidered proprietary andarenot offered tobidders. 16.Whatiftheassumingbank'sattorneysareuncomfortablewiththe languagecontainedinthePurchase&AssumptionAgreements? Is the finalagreement language negotiable? Highly Confidential Highly Confidential Answer:NothePurchase&Assumptionagreementlanguageis not negotiable. 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OnlyReturnRBAvgBalSheetIRViewAverageBalance$inmillionsAssets1HorneEquityLoansAndLinesOfCredit2SmallBusinessLoans3RBOtherAssetsCashlEquiviotherloans4PMLoans5TotalAssetsLiabilitiesEquities6NonInterestCheckingexclSB7InterestCheckingexclSB8SmallBusinessDeposits9PlatinumChecking10MoneyMarketAccountsexclSB11RatinumSavings12OnlineIBD13TimeDeposits14OtherDeposits15TotalDepositsRB16TotalEndingDepositsRB17PMAvgDepositsLoanSpread18HomeEquityLoansAndLinesofCredit19SmallBusinessLoansDepositSpread20SmallBusinessDeposits21PlatirumChecking22FlatinumSavings23TimeDeposits24TotalDepositsIQ107Q407ActAct531466023810651359102309960100597835321650381550881734017242466437857806949328094231486530126492351115821793449468574903489627935143843142556147243143585187176197186465501414213128072234357257174076234Q1013Est61810145798997908315224917704354894262134417450126104219512667786145354147672182181506354271201078230Q108VarianceVariancevsPlanvsPlanQ407Q10760670=1139157286641449998393102383396133179997914444921514152354105Z83912789176553538946721217167121287743404964477941432441091910901414044113bps60bps`VariancefromQ407toQ108E% Averagedepositsincrease20drivenbyMMSduetonewpricingtiersTimeduetoJanMarCDpromos$9BinFebmaturitiespartiallyoffsetbyPlatinumrunoff% DepositspreadnarrowsduetodeclineinFTPrates3MLIBORdown169bpsto334vscostofdepositsdown3bpsto278VariancefromQ107toQ108E% Averagedepositsup11MMSgrowth68ofPlatinumrunoffTimeOnlinedrivenbyaccountgrowthandratepromos% SmallBusinessdepositsincrease21duetoratepromosandSBHHgrowthup24to759K1Homeequitybalances16higherduetoslowerprepaymentsPMloanbalancescontinuerunoffAsof12131107NaninterestCheckingSBOnlinecombinedgrow24YYm494623641021371116416716201271804738480026732111227701624223481492243 735bps7bps11bps5bpsHIGHLY CONFIDENTIALRestricted For Use in Connection with Plan Confirmation OnlyReturnConfidential TreatmentRequestedbyJPMCHIGHLY CONFIDENTIALRestricted For Use in Connection with Plan Confirmation OnlyConfidcntial TrcatmclIIRequcstcd b)' JPMCJPMEX00006885Confidcntial TrcatmclIIRequcstcd b)' JPMCJPMEX00006885 ReturnVolumeRateMetricsIFundedVolume$BRetailWholesaleConsumerDirectOtherTotaI2CrossSellVolume$MHomeEquityFCSFRBLCPortfolioMods3GrossGainonSalebpsPrimeConformingFixedHybrid4PermUnsaleable$MEOMUnsaleableofTotalWarehousesFullyLoadedFTEavg6InvestorUPB$BAvgOwnedUPB$BAvg7PayoffCPRHybridOptionArmHomeEquityServiceFeeGrossWtdAvgbps9HFIDelinquencyPrimeunits30+Subprime$30+ActualsVarianceBIWSep07Oct07Nov07Dec07Jan08PMPlan292825231330353328191114131013020202030172797264468506965884432046856606216444593406105734018086542391148466383711380655246120102143923296810510270o7129521280912549120611133045445044844644417117417617817710512311912811120019718218814010011098847846464645455756583435238262284305316NormalizedunsaleableexcludingspecialitemssuchasFirstMagnusloans10040905030602180323918540730833 818 17312 1174806101071150% ProductionvolumesnegativelyimpactedbyOdysseyIIactionsinDecemberRetailandWholesalevolumeslowerduetoweakapplicationvolumesinDecemberConsumerDirectvolumeshigherduetoincreasedmodificationsinlowerinterestrateenvironment% CrosssellvolumeunfavorableonlowerBLCvolumePlanassumesahighermixofBLCloansactualshavehigherRLCmixcurrentlyunderreview% FTEhigherasOdysseyIIactionswerereflectedinplancountsbutdonotimpactactualcountsuntilfollowingmonth% PermUnsaleableincreaseduetolagbetweenupdatestounderwritingguidelinesandrevisionstoagencyguidelines2008OnlyrrHIGHLY CONFIDENTIALRestricted For Use in Connection with Plan Confirmation OnlyReturnProductivityCustomerMetricsActualSep07Oct07Nov07Dec07Jan081TotalRevenueperfundedloanbpsRetail213194162175192Wholesale115153617478ConsumerDirect1591571631531472TotalDirectCPLbpsRetail198204178222225Wholesale7060546474ConsumerDirect7563648362ServicingCPL$perloanNonDefaultCPL4344414854DefaultCPL3538415952TotalCPL7882831071064ComplianceMetricsComplianceRequirementswitherrorratesabovetolerance1816HMDADataFieldswitherrorratesabovetoleranceZt433VarianceBIWPMPlantMeasuresthenumberofrequirementsthatareaboveestablishederrorrateriskthresholdsofthe131productionrelatedregulatoryrequirementsreportedquarterlyYearend2008target=10tz3Metricindicateshowmanyareabovedesignatederrorratetolerancesofthe23fieldstestedontheHMDAloanapplicatorregisterYearend2008target=25 9 10HomeLoansLoyaltyScoreRetailChannelLoyaltyScoreWholesaleChannelLoyaltyScoreServicingLoyaltyScoreServicingSpeedtoAnswersecsConsumerDirectAbandonmentRate2008TargetSep07Oct07555253665858464950474224876020ActualsVarianceBIWNov07Dec07Jan08PMTarget53545134585563535043446751448140442391821701695rJanuaryvsPlanRetailrevenueunfavorablelargelyduetoa$2Mchargeforrepurchasedloansduetorepsandwarrantyviolations% ConsumerDirectrevenueunfavorableduetohighermixofmodificationsandlowermodificationgainrateWholesaleCPLunfavorableduetoODIIbenefitspersonnelandoccupcostsincorrectlyincludedinJanPlanandlowervolume% ConsumerDirectCPLfavorableduetohighervolumecausedbyinterestratedeclineandhighermodifications% ServicingNonDefaultCPLunfavorableduetounplannedpayrolltaxesonincentivesYEbillingstatementstrueupandhigherthanplannedBOtaxesPMvarianceduetohigherBOtaxesyearendbillingstatementstrueupandmeritincreases% SpeedtoAnswerunfavorableduetohighervolumeincallsrelatedtolowerinterestratesannouncementofHopeNowAlliancesandgeneralcallsonrefisandmodsAlsohighercallson1098sduetodelayinmailings2008ManagementBusinessReviewWaftInternalUseIHIGHLY CONFIDENTIALRestricted For Use in Connection with Plan Confirmation OnlyReturnProductionVolume1inmillionsActActPlanVarianceBWJan08Dec07Jan08Dec07PlanProductionvolumesnegativelyiLoansOriginatedforSaleimpactedbyOdyssey11actionsforminC2670295834382887682 3gonFixed228024251769145511inDecember4HybridARM3905331669143127900005OptionARM6Other018401840% ModificationsfavorabletoPlan7CRARepurchases018401840duetothelowerinterestrate8TotalOriginatedforSale267031423438472768environment91oLoansOriginatedforInvestment11Other9927193172612Fixed12310191213HybridARM67169101025714OptionARM2071835163isNonConforming183730341419119741716Fixed28423214517HybridARM66415926529271218OptionARM79382343034519HomeEquity22044432562395220MortgagePlus5417316211921Modifications80840128340752522TotalOriginatedforInvestment19363305151313694212324TotalProduction4605644749501842IncludesBLCandFCwithoutHEloansasfollowsBLC409FC50673769021121642649362Includeslineincreases12E1OnlyConfidentialHIGHLY CONFIDENTIALRestricted For Use in Connection with Plan Confirmation OnlyReturnDirectNoninterestExpenseDetailJanuary$inmillions1Salaries2IncentivesandCommissions3Benefits4TempHelpsOriginationAppraisalFeesoTotalCompIBenefits7OccupancysEquipment9TelecommInfoServicesoForeclosedAssetsExpense11AdvertisingAndPromotion12PostageExpressMailCourier13ProfessionalFees14TravelTraining15LoanExpenses16OutsidePrintingandOtherSvs17InsuranceExpense1sOperatingLossesNet19OfficeSupplies20OtherExpenses21TotalbeforeDeferred22DeferredExpenseFAS9123TotalDirectExpensesJanVariancebwActual153142PlanPM152271110112195111201222341300221827C5p271815IIIIIF111111LI R1011111CurrentMonthvsPlanSalariesflatasOdysseyIIbenefitswereassumedtooccurearlierinplanareoffsetby$3MsweepofretentionbonusexpenseincurredinDectocorp% Equipmentloweras$2MofpreviouslyaccruedwriteoffsdidnotoccurForeclosurecostsunfavorableduetohigherlossesonsubsequentREOwritedownsandrecognitionofcorpadvancesnotinplan% ProfessionalfeesfavorableduetocreditsreceivedonHomeEquitycardsetupsfromMasterCard% Otherunfavorabledueto$5Mrepocounterpartylossesandunmetplanchallenges% DeferredexpenseunfavorableduetolowerdeferralratesandvolumeCurrentMonthvsPriorMonthSalariesfavorablelargelyduetoOdysseyIIreductionsand$3MsweepofretentionbonusexpenseaccruedinDectocorp% Incentivesunfavorabledueto$11MreductiontoleadershipbonusaccrualrecordedinDecand$7MdealerconduitreductioninDecoffsetby$9MduetolowervolumeandreductionstoincentiveplansBenefitshigheronpayrolltaxresetandleadershipbonuspayoutinJanOccupancyloweron$6MsiteclosurecostsinDecand$2MOdysseyIIreductionsinJan% Equipmentloweras$2Mofpreviouslyaccruedwriteoffsdidnotoccur% Foreclosurecostsfavorableon$26Mcorpadvancelossesand$5MonchargesforHEloansover180daysdelqbothinDecLoanexpenselowerdueinpartto$2MlowervolumeRetailandNDSOtherservicesfavorabledueto$2MunderbilledGHRfeespaidinDecInsuranceExpdecreasedueto$11MquarterlyMIreinsurancereservetrueupinDec% OtherfavorableduetoGoodwillwriteoffof$1775MinDec% Deferredexpenseloweronlowervolumeandlowerdeferralrates 13HIGHLY CONFIDENTIALRestricted For Use in Connection with Plan Confirmation OnlyReturnBalanceSheetAverageandEOPIlJLillytiJanVarianceIncUDecSinBillionsActIPMIPlanInvestmentSecuritiesRetainedInterest02$00$00TradingSecuritiesWCC0502O2InvestmentsInsurancelOlher040D00InvestmentsMSRHedgeRelated000005TotalInvestmentSecuritiesto0207LoansHeldForSaleOptionARM00HybridARM06Fixed26MBF05LoansHeldForSaleWMMSCTotalLoansHeldforSale3$LoansHeldforInvestmentSubprimeMortgageChannel185SingleFamilyResidentialMortgage321HomeEquityLoansLinesOfCredit01Other06AllowanceforLoanLosses07TotalLoansHeldforInvestment506OtherAssetsMortgageServicingRights58CashEquivalentsCash03GoodwillServicingReceivablesDerivatives35ForeclosedAssets07AccruedIntReceivables05OtherAssetsAll04TotalOtherAssets111TotalAssets666Deposits52OtherLiabilitiesBorrowedFunds00TaxesPayable00AccountsPayable03DerivativesLiab05OtherLiabilitiesOther04TotalOtherLiabilities13TotalLiabilities66EconomicCapital25I00D10005050001204ton$0511000503000800$03170305110601030205D1011209$22$25$001$02JanVarianceIncDecActPMPlan$02$00$000401010400000005100105010001040106270005030400D0360601182LOA32409260106000607000050704205705090201010360707070500020700051130106$665$00$204809210000110603000407D406040101140902$621$18$23nlananlaDCurrentMonthvsPriorMonth% LoansHeldForSalelowerduetoreductioninMBFportfolio% LoansHeldForInvestmenthigherduetoretentionofnewSFRproductionnetofpayoffsandamortization% GoodwillloweronwriteoffinDecember% Derivativeshigherduetopositiongainscausedbyinterestratevolatility% Depositsloweron$700MtransfertoChaseanddecreasedloanpayoffsCurrentMonthvsPlanLoansHeldForInvestmentisbelowplanduetolowerthanplan4thquarteradditions% Derivativeshigherduetopositiongainscausedbyinterestratevolatility% Depositsloweron$700MtransfertoChaseanddecreasedloanpayoffsHIGHLY CONFIDENTIALRestricted For Use in Connection with Plan Confirmation OnlyReturnCapitalMarketsGainonSaleJanuaryPrimConforming7Fixed2Hybrid3OplinnARM4ToteConforming5TotalPrimeNonConarmingsTotIPrImPrimeConforming5319I7169690858087Fixed2566227821848Hybrid5775368039OptionARM10TotalConforming11fatalPrimeNonConTorrning12ToteiPrimePrimConforming13Fixed14Hybrid15OptionARM16TotalPrimeConforming17Tot41PrimeNonConformingPrimeConforming18