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JPM stocks are falling because of Citibank. Any reasonable investor understands that the effect of Citi's failure would be disastrous!!!
And Alan Fishman?
What do you make of item 9, when they talk about distributing assets of WMI to its creditors? Does it sound that the liquidation of the company will take place?
People should also pay attention that, according to another court filing, WMI wants to hire Shearman & Sterling as a tax counsel. This laws firm would never work in a case where a conflict with JPM could happen. They also would not work on something that is not really substantial.
What do you make of these two things?
Seeing what is happening with Citi, maybe the seizure of Wamu Bank was not so bad for WMI. At least WMI got rid of a lot of debt and kept some good assets.
I think a buyout from JPM still makes a lot of sense. It though takes some time to negotiate. I think it should occur before Obama's innauguration.
If a buyout does not occur, I still think there is significant value for WMI, but the matter can take a couple of years to come to a solution.
Could reopen Alcatraz. This Pauson said that the FED did not have the authority to save Lehman ( correct). Did they have to save AIG ( found a way )?
What does Bernanke say? Don't know if Bernanke is articulate enough to explain what he is doing!
I think in the ende, America will succeed and very good years will come. The adoption of the the measures you suggested is essential!
This idiot SheilaBair and others destroyed the confidence of any investor in any US institution.
You, in America, keep saying that helping institutions with problems is socialism, but when it comes to AIG whose fall could have destroyed Goldman Sachs, things are different. You have to be coherent!!!
At this point, either your government gives a guarantee to all deposits in the US or Citi will fall and take all other banks together. Letting people short selling bank stoks is pathetic!!!! Hope your government will, at least, keep things in existence until the next President has the chance to do something.
By the way, perhaps now WMI is healthier than many institutions that have not yet gone under!!!
FDIC is running the risk of being sued by Bank's creditors because the seizure of Wamu Bank and sale to JPM, the way they did, made impossible for these creditors to get repaid.
Naturally, FDIC wants a solution that eliminates this risk.
Why Bank's creditors have not yet sued JPM and the FDIC for the debt that was not assumed by JPM? The reasonable explanation is that all parties are negotiating!
Thank you.
I understand they took the Bank's secured debt. The Bank's unsecured debt , around US$ 14 Bi I guess, was not taken.
JPM and FDIC are, however, very likely to be sued by Bank's creditors in connection with this debt. If Bank's creditors haven't done that yet, they may all be negotiating.
So you know the name of the companies being investigated?
Alan Fishnan continues with WMI?
Can anyone list the outside counsels working for WMI?
Good news is that the FDIC and its Chairwoman are busy. Bad news is that they are busy with a behemoth that may fall and cause a disaster.
How stupid it was to leave Lehman and Wamu fall!! It eroded investors, savers, everyone's confidence.
In the end, I think the wonderful foundations of the US will prevail and things shall get much better. Point is how the authorities will deal with situation now!?
From a foreigner's point of view, an equitative resolution of WMI's situation would help. Otherwise, the impression is that JPM and others can really do whatever they want.
Unsecured creditor is a very broad category. It just means a creditor that does not have a direct recourse against assets of the debtor or other person, in case of a default.
Secured creditor is a creditor that lent money and received a guarantee over certain assets, such as for example, a pledge over a comapany's equipments.
Among the unsecured creditors, there are several layers with different priority in case of a liquidation of a company.
No, I don't.
Not as good as this one. Possibly, other cars will be available in the future....In any case, JPM will come back for the key....
This situation is different! There is a deal that is half done. JPM took a car and apparently forgot to take the key that cannot be duplicated....
Agreed!!!
JPM is in an interesting position. It is very unlikely to benefit from the NOL and is running the risk of being sued by Wamu Bank's creditors for its debt, since JPM acquired substantially all assets of the Bank.
It probably would make sense for JPM to buy WMI. Naturally, this involves a verification of WMI's assets and liabilities and negotiations with creditors that are represented by trustees, such as BNY. This takes some time.
Curious!
This document contains the express recognition that the NOL belongs to WMI. In addition to that, any transfer of comommon stocks and other securities that are convertible into common stocks are contingent upon WMI's approval.
Only the transfer of securities in excess of a certain threshhold, as determined in the attached documents is subject to such approval.
So far, the documents that have been filed before the Court, the recogniion by JPM that the US$ 4.4 Bi and the NOL belong to WMI, the lack of legal actions by the interested parties including the creditors of WMI and the banks and the presence of Alan Fishnan as CEO of WMI, can indicate that JPM and WMI are negotiating the acquisition of WMI stocks.
It is even possible that a MOU has already been executed, subject to the conclusion of negotiations and the obtaining of all necessary approvals. All that is speculation, but at this point this explanation makes more sense than any other.
By the way, if WMI's assets- deb ratio is a fraud, your country will no longer be a viable destination for investments!
Or a merger with another company could be proposed. Who knows? After all, TPG is supposed to be good at identifying good investments.
Best thing is to keep following the court filings and try to figure out what is behind them.
Intelligent thinking!
Yeah, just 99% of WMI's shares were not sold today!!!
So am I. So far, the mere fact that the company stated that assets are greater than liabilty, suggests there is equity left.
I invested before and after the seizure of Wamu and will wait to see what happens.
Only if you are selling now....
The new president should naturally get rid of anyone involved with the current federal administration. Maybe there are exceptions but, obviously, those are just very few and exceptional cases.
Only US lawyers and accountants can correctly evaluate it. In any case, it is an asset that, at least, will be disputed by the parties involved and shall weigh in the resolution of this whole situation.
This matter will be resolved behind closed doors among WMI's large shareholders, JPM, regulators and their respective lawyers.
Another point. Bank's debt is not an obligation of WMI. It is more likely that it ends up being JPM's debt, as it acquired substantially all assets of Wamu bank.
Aren't these taxes attached to the repossessed properties?
It is necessary to read the offering documentation of the preferred shares. The conditions for their repayment or redemption are there.
In the event of a bankruptcy, as is the case, the legal opinions that were issued in connection with the placement of the preferred shares, should contain qualifications to the effect that the terms and conditions thereunder should be construed in light of the bankruptcy procedures.
So, I do not think it is possible to anticipate what will happen with the preferred shares without, at leaset, reviewing their issuance documentation.