WaMu’s securitized mortgages were “legally isolated” and out of the reach of the FDIC’s Receivership. Hence, “Nemo dat quod non habet” (One cannot give what one does not have).

If any doubt remains as to whether the FDIC Receiver ever obtained beneficial rights to any mortgage loan securitized by Washington Mutual Bank, you need to look no further than the FDIC’s own clarification on the subject within its “Rules & Regulations.” First as an example, let us review the...