Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Five days before the failure, Washington Mutual executives expected a $10 billion offer from Banco Santander to buy an 80% stake, according to people familiar with the situation. But the Spanish bank's board decided against the idea. The FDIC launched an auction for the thrift, which J.P. Morgan won with a $1.88 billion bid.
I didnt know about this.
This is exactly what Jamie Dimon and the Banco Santander CEO discussed at lunch, remember that email?
This is getting ugly.
Re: Tier 1 ratio as of June 30, 2008
WaMu: "For example, as of June 30, 2008, the
Company’s Tier I ratio, the ratio of the Company’s core equity to its core assets, had
increased to 8.44%." (Killinger's PSI statement, p. 15 )
JPMC: 9.2% (JPMC earnings release)
It is old news from September 25th 2008.
This is why i am invested in this stock.
The emails from JPM "RE: Project WEST" tell that JPM projected a Tier 1 capital ratio of WaMu higher than the Tier 1 capital ratio of JPMC at the end of 2008!
Well capitalized after 2 bank runs, mind!
So excited to tune into the hearing tomorrow...
This is why we are here.
Nice for sure to see the big blocks buying at the ask again. eom
Excellent read!
"You should have settled with WMI in spring 2009 and you should do it now. Things could get a lot more difficult for you."
This is gonna be thrilling in one way or the other.
You need a local counsel to appear in court. Bienenstock is from New York, thats where Ashby and Geddes come in. They are our Delaware counsel.
No, they are barred from trading.
Who initiated this joinder?
That waterfall analysis should be made sticky. Thanks for the Link!
He will be busy as a bee preparing for that meeting.
Bienenstock= german for beehive
=)
If she is bending over backwards for the bondholders to pressure a settlement, she will give the ec the relief they requested.
what they try to do is kick us out and find the value afterwards.
This is truly disgusting. This answer was expected, but to see this in writing makes you wanna throw up. The BOD and WGM should face civil and criminal charges for pulling that stunt which they call "proposed settlement".
I for one think that this ruling shows how THJMW thinks and acts:
In a considerate and deliberate way. She could have easily dismissed these claims but she kept the door open for now.
I find that very reassuring given the fact that the shareholders are still waiting to get in the money.
The Order referring to Judy Lui is already granted:
http://www.kccllc.net/documents/0812229/0812229100406000000000011.pdf
Well...there seems to be more (buying) interest in wamuq than yesterday. eom
He brought Judy Liu with him, a former partner at WGM as well.
I think we are in excellent shape here.
a little bit of green: +2.38%
0.129 EUR ~ $0.173
As for Solomon: I am relucant to give any kudo's to this group. Let's see their work first. BIG QUESTION: WIll they give max valuation or low-ball valuation while seeking to be the investment bankers to WMI after it exits BK. My guess is the latter. Everyone here is bullish on PJS. I am not! Once an investment banker always an investment banker. They are self interested parties looking for their fees regardless of the pain caused to long-term shareholders.
There are some really great efforts to be seen regarding the shareholder letters.
Like this one:
http://www.kccllc.net/documents/0812229/0812229100405000000000043.pdf
He even enclosed a doctor's certificate!
Or this german fellow:
http://www.kccllc.net/documents/0812229/0812229100405000000000089.pdf
With Bienenstock added to this we've finally got a full blown hollywood-type of story here. Biggest bank heist in history with former co-worker turning competitors in a legal battle about greed, fraud and deceit with a classic David vs. Goliath scenario.
I wonder when the love story comes into this. =)
Ashby and Geddes are our local counsel, whereas Venable is our general counsel.
At least thats how i understand it.
I just dont know how Dewey LLP fits into this picture.
But when did they hire Martin J. Bienenstock of Dewey & Leboeuf LLP?
These are awesome news!
We got a heck of team here.
Because he was bold when everybody else panicked. eom
No, its the SJ for the shareholder meeting.
Its unclear, if THJMW will rule on the $4B because the matter is stayed so far. But i expect the EC to raise its voice over this matter in one way or the other.
Well...looks like we got Solomon, at least no timely objections. That counts for something.
Cool, no objection received for EC motion for SJ.
EDIT: And no objections regarding employment of Solomon!
Hedge fund manager paycheck: $4 billion
money.cnn.com/2010/04/01/markets/hedge_fund_manager_pay/
He owns Appaloosa, one of the senior debt owners of WMI.
www.kccllc.net/documents/0812229/0812229100331000000000061.pdf
Is that remark at the bottom of the letter from the author or is it a statement from THJW?
Just wondering... =)
With the future NOLs WMI wont be liquidated. Its just too much money to be missed. The question is if they really gonna cancel the commons. My bet is that they wont.
You're right if we are talking about absolute numbers.
But considering the return on invest the commons might do better than the prefs.
Example:
Wamkq: invest at $1, Sold at $25, Return 2,500%
wamuq: invest at $ 0.2, sold at $8, return 4,000%.
So...yes, the commons have to do really good to outrun the invest compared to the prefs.
Thats why i got both.
Pacer is swamped with Letters from shareholders. Incredible. Must be the same amount as yesterday.
My SWAG would be that they used the LIBOR to calculate the interest.
But we are not talking about interbanking lending here (thats what the LIBOR is for). This is about lost profit for WMI, meaning they have to take the interest rate which WMI could have gained by lending or investing the §4B.
Anyhoo, the interest rate is ridicously low. But i think Venable and Solomon will put a different price tag to that position.
Yes, they are a nice hedge to investing in commons.
Concering the return on the commons my math tells me the same: Any number above $4 would mean a better return than the prefs.
Hi rainbow,
we are talking about an interest on $4B.
Lets say its 1% per annum. That would be 40 Million $ interest a year. That equals roughly 3,3 Million interest per month.
And not $421,472.
On the other hand, if the JPM stock price declined before or on the Effective Date, we would benefit by getting more shares.
February MOR
From Y
Well I'm only on page 7 but interesting to see just how close we really are
Washington Mutual Inc
- Assets $6,928,030,786
- Debts $8,296,819,086
- Short ($1,368,788,300)
WMI Investment Corp
- Assets $921,852,736
- Debts $25,375
- Over $921,827,005
So according to this A<L by only $446,961,295 (Less then a half a billion)
- This is not including the NOLS however.
So by these numbers + the NOL's (already agreed upon with JPM/FDIC) does this not put prefferds well into the money?
Then If we are to get the full NOLS that we are rightfully owed, and the newly realized tax carry forwards, then this should more then cover the prefferds and give reason not to cancel common. Then when WMI remerges from bk, (With a new BOD) and some cash, little to no debt, and still have the lawsuits pending, We might make out quite well.
Of course that is only my initial interpretation of this report, and I am not an accountant.
In my opinion the WAMKQs are not lagging behind.
Both are equal if it comes to liquidation preference and WAMPQs are trading at 4,4% of face value and WAMKQs are trading at 4.6% of face value.
Therefore WAMKQs are still the better deal. Even more so compared to the WAMUQs.