Washington Mutual Mortgage Reinsurance, Inc. - stock holders won in this major bankruptcy case.
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Of course they do. Until regulation is updated to protect all citizens, not just the corporate owners, the financial industry will not take off again.
There is too much data on the books and in the open now to show that regulations must be put in place.
In opinion, this was a big mistake, first made by politicians who simply didn't have the guts and leadership qualities to tackle the run away financial industry. Then the "bankers" who didn't remember their college education in macro economics.
All financial leverage in the U.S. comes back to the residential home real estate notes.
This is where the low interest rates and sub prime loans undermined a sustainable economy. Holding companies are owned by the same people who run the mortgage departments that promoted, and I do mean, PROMOTED the subprime loans.
For those who have been watching this stock for months, this is not news. Thanks for saying it though.
Something I learned in the last few months is the MM signals.
Search this board for "mm signals" and you will see posts with them.
I want to write but should not, for all that is worth saying has been said by Shakespeare!
I'll think about that while I'm at the gym this morning here in Seattle. I want to pin most of this on Hank Paulson and Sheila Bair for facilitating the seize and "sale".
JPM is predictable. But the FDIC and the Treasury had a duty to the citizens.
I think he is confident that the FDIC is going to carry most of the cost of the settlement and that the eventual price JPM is forced to pay will be manageable for JPM. That's my opinion based on what I heard on the entire conference call.
He may be mistaken. But he can avoid be wrong by settling soon.
JPM paid 1.9 billion for WMB and they now "own" them.
There is litigation underway regarding the final cost but not about whether they own them or not.
Yeah, they are stubborn. It's principalities in high places, no doubt. WMI is stubborn too. Fair is fair but between bankers
who knows what that is?
lol
An MM is sticking an ASK below the bids. This is new to me.
3.5 million shares traded in the first 10 mins today.
It looks like it is going to gap up a little.
Yep. I agree.
Accusations? Accusations? They are only accusations because they are stated in court filings. The statements are true but they will not be ruled on by the judicial system and backed by the full force of the law until the court proceedings are over.
I don't expect the process to play out in court. It is clearly to the benefit of JPM to settle without admitting guilt.
These "accusations" are simply called accusations because they have not been proven in a court of law. But, anyone with a half a brain can see the truth in the facts at hand. Do the DD by reading of the cover page of this board.
Asks are going up and up.
Not necessarily. Fri closed down a little bit and volume dropped off too.
My L2 is showing an opening in line with the close with some pressure going up based a number of higher asks.
There is that phone call interview with Dimon and Mayo at 11 am Eastern. Dimon may something that effects the price of the stock. He may, and he may not. Litigation is underway and this call is not a forum for a big announcement so I don't expect him to say something that effects the stock price.
Hey Goforthebet, Thanks for sharing that article about Buffet.
I'm listening to him talk on TV right now. I like that he is so easily amused and laughs easily. He would be fun to work with as long as one keeps one's balance sheet honest!
That's the problem with the banks. Did you see the article about the Enronization of America on Seeking Alpha? I posted the link here on Sunday morning. The reporter says the banks that posted profits simply eliminated the months in which they had biggest losses in their tally! This is honesty? This is America?
This is a balance sheet? This is sewage.
Now, don't get me wrong, I want banks to be working but let's get real. If the banks are not in the black then we need to be honest about it.
Buffet is a fast becoming a dinosaur but the fundamentals of investing in consumables and running a tight ship will always be a good business.
The news station producers are simply afraid.
Afraid to say anything about anyone that might get them in some trouble... this is not journalism.
I enjoyed "State Of Play" the movie recently. Now there's some journalism.
Yep. Programming is at an all time low quality.
Thanks Diamond.
Just to add some clarity to the language here:
"WaMu said in court documents that if the claims in the Texas suit turn out to be true, JPMorgan could be held responsible for the "destruction" of the parent company and the "total losses suffered by its creditors and shareholders."
For those investors who are considering putting hard earned money into WAMUQ, note that the word "could" above means that if the court decides that the charges are in fact fact, then JPM would be required to pay large damages because they are, in fact, responsible for the losses realized by WMB creditors and shareholders. Well, there is no doubt in anyone's mind that JPM wanted to buy, tried to buy, and was not allowed to buy WMB. It is also a fact that JPM, as well as many other corporations "do whatever it takes" to achieve their desired growth through mergers and acquisitions. It is also true that there was a systematic strategy to gain retail banking market share by JPM as stated by Mr. Dimon leading up to the time that he made the offer of $8 per share for WMB a year ago.
Put this simple equation together and one can see that the word "could" is only conditional upon the court's decision to agree to allow for the investigation, an agreement due May 20th. So, from an investor's point of view, it is a simple step from "could" to "when".
When JPM is found responsible for the huge damages realized by tens of thousands of investors, employees, and communities nationwide who worked with WMB daily for the last century, then JPM will be required to pay large damages for their misbehavior. Ahead of being found guilty of these charges their lawyers have been working for months with the WMI lawyers to come to a mutually beneficial solution. The middle ground in the negotiations is found because both sides agree that the OTS/FDIC dragged them both through the mud puddle of a very messy seizure and sale.
In a nutshell, JPM has no way out but to settle up and pay out large. This inevitable outcome is reflected in the the WAMUQ, WAMKQ, and WAMPQ stock today.
The "delays" further implicate JPM in virtueless business practices, as seen in the writing of their own attorneys as submitted in the ludicrous legal filings they have provided the public record so far in this case; JPM vs FDIC.
There might be some whores there.
From that article:
"The International Money Laundering Abatement and Financial Anti-Terrorism Act of 2001 makes it illegal for a bank to accept funds it knows, or has reason to believe, were derived from fraud. In addition, it's obliged to report its suspicions to authorities. A tangle of federal and state agencies could investigate such potential banking duplicity, but for national banks like JPMorgan Chase the first overseer is the Department of the Treasury's Office of the Comptroller of Currency."
Now let's see, just how many huge law suits and investigations does JPM managers want to juggle at one time.
I'm thinking they may not want to keep this WMI thing alive for much longer with pressure like this warming up.
What bad press! My oh my.
I think the price of WAMUQ is going to go up. Yes, I do.
Washington Mutual Inc is a bank stock with immense value simply based on the fact that they are suing JPM on very solid grounds.
If I just found this board and knew nothing else but that WAMUQ might benefit from the suit it would be a worthwhile bet based on the first few pages of the last two legal filings on behalf of WMI.
This is very simple stuff at this point. It's easy to over complicate it after being involved for months, but again, even if I just found out about it today, it's a no-brainer.
Get in or be left behind on some of the hottest trading action this century so far.
imho
True. The plaintiffs have no defense. That fact is clear in the minds of intelligent, large buyers. That means that buyers will be on board Monday. They may hold back until after the Dimon interview but undoubtedly see the writing on the wall now.
Investors invest when the odds are on their side. Right?
How exactly are the odds against WAMUQ ? What are the reasons that the price will not go beyond .18 on Monday?
I'm am not an experienced trade analyst. I'm going to offer another layer of data to consider for those new here.
I understand that technical analysis is based on facts and figures, charts and graphs in and of the past. Based on past performance a stock may or may not do this, that, or the other thing. I understand that stocks trade in ranges.
All that being as it is, this stock is unusual. If one looks at the chart from November, it has clearly been controlled by thousands of small buys at or near the bid over and over again because the MMs probably, (and I say probably as a hedge against being absolutely wrong but at least partially correct), are being managed by someone; NITE ownership, to keep the value down during the negotiation phase of the suit and purchase and sale struggle. It is not in JPM's best interest to see a high value on this stock.
So, though the future price of this stock is constrained to a range and the next resistance is .18 and then a gap to about a $1, the future price of this stock is totally up in the air because the past price does not have a bearing on the outcome of the negotiations at hand. If a settlement is announced the stock may stop trading. Those in are in and those out are out.
That is a completely different consideration then typical technical analysis and so pricing may not reflect resistance or the gap but simply the demand by large money who have read the suit filed Friday and are going to be in at any price on Monday. IMHO.
A Sunday read:
http://seekingalpha.com/article/134863-financial-elites-and-the-enronization-of-america-part-i?source=article_lb_articles
Though it doesn't mention WAMU / JPM by name it is talking about the banking industry.
Seth, it's late. give a guy a break.
Washington Mutual Inc's law suit against FDIC and JPM is a focal point for lots citizen angst.
I think it is, of course. I noticed they are charging large for non-working travel time.
I think I'm going to spend a few years and study for the bar exam here in WA.
I want to keep my mind sharp while my bod wanes a bit.
With the grey hairs coming on I'll have the look needed to get the big bucks!
I'm 6'4" and though I used to run, my lower back and knees just couldn't take it after I was about 37. At my best I averaged 7 min 20 sec per mile in 7K race in Boulder; the Boulder Boulder.
I think it was a 7k.
Marathons? ... forget about it!
I did some serious sh i t though: logging in B.C. and WA, professional fishing in WA waters and AK, years of other manual labor.
I hope we can meet someday.
That's logical; JPM is not going to self-destruct and they will respect Weil's efforts.
Buyout is imminent, imho too.
whoa dog! a marathon!
I'll stick with a few trips to the gym each week!
I was reading this in more detail earlier today, finally, and I realized that these are the tort charges that Mordicai was hoping would be filed, I think. Bigger monetary damages are on their way if this gets signed.
Also, I like the mention of the "fishing trip" nature of the document investigations. The plaintiffs can just look around for anything that might be relevant to their search for stuff done by JPM/Paulson/ et al.
I hope this gets signed by the judge soon.
Now, it's either a settlement or a broom stick up the arse of the defendants.
It occurred to me that even after all the great lawyer work, the JPM managers and owners don't have to take the lawyers' advice. That may be the downfall of JPM.
I can do Aruba!
My lips are sealed. lol
I like Hanalei Bay or down the road to the end there on North end of Kauai.
Gotta line up the right babe for the trip though.
You also rock! lol
as does this stock and Weil!
That filing document on Friday is like music to my aging ears and soulful heart. Someone with a law degree is going after their own kind in the business.
I'm seriously thinking about studying for the bar exam here in WA.
If anyone can offer resources for that I am all ears. PM or email me at netzoneguide@yahoo.com