is making moves.
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Thats the reason JPM filed its Notice of Divestiture of Jurisdiction. Its looking to stay the bankruptcy proceedings pending a decision on JPM's Motion for Leave to Appeal. This was obviously a strategic (albeit desperate) move to buy more time as well as a temporary shield from adverse rulings from Judge Walrath. I'm curious to see how Judge Walrath will address this on Friday.
The agenda has been posted on PACER. Interestingly enough, JPM's Notice of Divestiture of Jurisdiction is the last item on the schedule -- I would love to hear the dialogue between JPM's counsel and Judge Walrath on that one.
I never said they were...but technically, a Motion to Approve Settlement between the parties would go on the calendar for a particular hearing date. It wouldn't be the first time that happened in this case -- look at the settlement of the employee savings plan for reference.
Well, JPM has certainly insulted Judge Walrath by undermining and questioning her judgment. However, Judge Walrath may not (and will not) allow her subjective feelings affect her ability to make an objective decision on any matter concerning the case. This isn't to say she won't be more lenient with WMI or less lenient with JPM when the opportunity presents itself, it just means she can't decide against JPM simply because they insulted her.
Friday is an omnibus hearing before Judge Walrath in the Delaware Bankruptcy Court. No one said anything about a settlement on Friday.
I sure hope so..
This was by far the best day on the market (though not in the courtroom) that we've had in a year. Lets see what the next few days bring us!
the shake isn't over.. hold on tight.
I'm not worried about whether Judge Sleet will make the right decision because I have no doubt in my mind that he will follow the prevailing third circuit (higher court) authority which clearly holds that FIRREA does not apply in this case.
Sleet would have to go off and try to depart from the clearly established precedent and adopt new law to decide against us, and his decision would be overturned in the the Court of Appeals for the Third Circuit if he were to do so. Sleet would be risking his career at this point because this is a clearly settled issue of law within his jurisdiction. I highly doubt he would even think about going down that road.
I'm not sure about the time constraints (if any) to decide a motion in his jurisdiction, but I'll certainly try to look it up today.
I agree, which is why I believe JPM's latest move was sure to provoke the fair judge. This was a really cheap move and the mere action supports the notion that JPM knows what is coming.
I think Judge Walrath's hands are tied until Judge Sleet denies JPM's Motion for Leave to Appeal. However, once that happens, this will all be over as I suspect JPM and the FDIC will settle immediately therafter. Lets just hope Judge Sleet issues a decision soon.
Ok, so I took a brief look at JPM's Notice of Divestiture of Jurisdiction and it seems to me as though JPM is essentially trying to stay any/all decisions within the adversary proceedings pending a decision on its Motion for Leave to Appeal. Moreover, I suspect JPM is holding dearly to its FIRREA theory so as to avoid potential sanctions for frivolous and/or meritless claims. I highly doubt S&C has any belief that its FIRREA theory will yield JPM a favorable result -- on the contrary, I think the whole thing is a strategic move to buy them more time. JPM is very concerned with the likelihood of more unfavorable decisions coming down from Judge Walrath, and it may have expected one soon. Remember that the Motions to Dismiss and for Summary Judgment are still on the table.
JPM is going to continue gasping for air, but it is sinking fast. An adverse decision from Judge Sleet denying JPM's Motion for Leave to Appeal would be the straw that breaks the camel's back.
Indeed. I'll be back online later to read through JPM's Notice of Divestiture and post my thoughts thereafter. I have to get some more reading done for this week's classes.
I think JPM's appeal to the Delaware District Court is its last hope of having this case removed to another court...and as we already know, JPM doesn't meet the standard of law to have an appeal decided in its favor, let alone heard at all.
Lets just sit back and see how much excitement this next week brings.
Has anyone noticed how reminiscent this week's activity is of the movement we had back in March/April before JPM filed the action against us and parties were undergoing actual settlement negotiations?
We shot from $0.05 to 0.12 over the course of a few days.
Doubtful, but I'm sure its been considered and discussed. Weil & Co. have a fiduciary obligation to the estate, not to WMI shareholders (although WMI shareholders would be indirect beneficiaries of any settlement proceeds). If Weil & Co. come across a securities violation, they would be bound to disclose those violations to the SEC and quite possibly the Attorney General. I imagine if any manipulation is traced to JPM and reported thereafter, it might put a damper on settlement negotiations. IMO, Weil is looking at this from the long-term perspective, not from the short-term daytrader's perspective. Keep that in mind.
As much as I hope you're right, I don't think we've been halted. There seems to be some kind of systemic failure on the pinksheets right now -- I just checked a few others (SPNG, etc.) and they're experiencing the same "halt" issues.
I'm showing the last trade in Frankfurt for 10:37 EST.
http://finance.yahoo.com/q/ta?s=WMI.F&t=5d&l=on&z=m&q=l&p=&a=&c=
Ok, we're up 9.48% (roughly $0.186) in Frankfurt. NITE is holding us down stateside.
We're up 5.7% in Franfurt. I'm wondering whether JPM's TARP warrant repayment and subsequent dividend issuance has anything to do with it.
I'm definitely trying.
My collegue was on vacation last week so I was stuck with 50% more work in the office. Also, my classes have been pretty intense this semester -- tax law, trusts & estates and administrative law -- so there has been lots of reading over the weekends.
No worries. I'm still checking the boards and filings regularly.
Haha, I thought you would appreciate that.
Thats a joke. There is no way WMI will screw common stockholders (retail and institutional alike) if assets exceed liabilities.
Yeah, I saw...I'm not surprised. I imagine WMI is demanding quite a bit of compensation in its prayer for relief.
Oh, and it appears as though WMI and JPM served their requests for production of documents this week -- the discovery game may be starting. I suspect that each party will have around twenty or thirty days thereafter to produce documents/objections.
Fish, great analogy but don't forget about the trademark infringement claims -- while they repossessed your TV entertainment center and took all of your belongings, they also decided to use your email accounts and passport to book an all-expense paid vacation to Hawaii with the profitable proceeds they had left over after selling your stuff.
The motion to strike was in opposition to WMI's evidence supporting its claim to the $4.4B. It wasn't in opposition to the validity of the deposit itself. I believe JPM cited a number of arguments challenging the validity of the deposit -- alot of them were based on allegations of fraud -- but most/all of the arguments seem to fail in light of WMI's arguments and evidence in support (i.e., Logan's affidavit). I suppose Ms. Logan's deposition transcript will also be entered as evidence here too.
Uzual -- see my last post.
Well, the basis of JPM's motion was the fact that JPM wasn't afforded the opportunity to depose Ms. Logan. Since WMI allowed Logan to be deposed, JPM's motion no longer had any merit and would have surely been dismissed as a matter of law anyway.
I'm thinking that JPM simply withdrew the Motion to Strike as a courtesy to the Judge (cleans up her docket), WMI (saves them the trouble of arguing against the motion) and itself (saves JPMC money on arguing a meritless claim).
I agree and its leaving me at an eerie standstill. The next few weeks are going to tell us quite a bit -- from contractual implications of the 1-year anniversary to the potential short covering after long-term capital gains set in -- and hopefully we'll see this wind down closer to settlement.
Do we have any updates on R.2004 discovery? Has JPM started to produce documents on a "rolling basis" as agreed?
Great reply, thanks XOM.
I'm going to look into hedging some of this into an IRA. Hopefully my broker will be able to help me with the process. Thanks for taking the time to explain, very much appreciated!
I actually managed to get my father on board with WAMUQ and he purchased his shares via his 401k, so he will be benefiting from long-term capital gains one way or another.
I am vested via my brokerage account and my holdings won't begin to benefit from long-term capital gains for a few more months. Given the significant difference between standard income tax and capital gains, I would want to hold off on cashing out until the capital gains sets in (if at all possible, of course).
I thought about the stock swap implications, which would certainly work -- but I'm not sure how to handle a cash settlement.
When you say it would be put in my account, are you saying that the shares would reflect the post-cash offer value or would the funds in my brokerage reflect the post-cash offer value?
Finance Question
Hey guys, I have a quick finance question that I'm hoping someone could answer for me.
If WMI settles before I reach the one-year mark on WAMUQ holdings, would it be possible for me to hold my position (i.e., not cash out) until I reach the one-year mark to obtain the capital gains tax benefit? Is there any danger in doing so (i.e., common stock cancellation at some point after settlement)?
I would not want to roll my investment into an IRA, though I know that would be an option. Are there any other financial instruments or investment strategies available for this to happen?
I apologize if this is an elementary question, but I can't seem to find the answer anywhere. Thanks in advance!
I'm heading out to class, so keep me informed as to whats posted and I'll try to take a look when I get back home around 11:45PM EST.
Good luck to all and go WAMU!!
PR, I can't tell if you're being sarcastic or serious. Can you elaborate how you've ascertained this to be fact?
We already bought and we're already in the game.
Jerle is right. If your "leak" was valid, the preferreds would be going through the roof right now -- as would commons.
Support your posts with some kind of basis or just don't post at all.
Now I remember that post.
Huh? What is your source?
Please elaborate.
A stock swap would give TPG way too much control of JPM. I think its going to be a cash deal too and I sure hope it happens soon.