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I don"t think it is like the payment of dividends!
Understood! Thank you!
Can you elaborate a bit more on this possible cash settlement with money distributed to shareholders?
I'm very optimistic. I also think that the worst case scenario is still very rewarding!
But don"t we have to divide the new company with preferred shareholders and then make these US$ 5 Bireally woth by selling the new company or making it profitable?
I think your argument is fine, but the US$ 2.94 shouldn't be, perhaps, US 1.00?
From CNBC. It is pathetic!
Getty Images
The Federal Reserve released an avalanche of files Thursday detailing—for the first time ever—its loans to banks under its emergency funding facility known as the “discount window.”
But investors and bank customers won’t find it very useful.
The disclosure came in the form of computer disks handed to reporters in Washington, DC. Those disks contained nearly 900 PDF files that must be individually opened and read. The files include tables with loans made by the Fed, as well as emails between Federal Reserve officials. The disks aren’t searchable and the Fed didn’t include an index.
The release of the data in such a user-unfriendly manner is reminiscent of the way Goldman Sachs dumped tens of thousands of documents on the Financial Crisis Inquiry Commission. The commissioners publicly scolded the investment bank for the document “dump.”
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The Fed has long kept the identities of borrowers a closely guarded secret. The Fed argued that naming borrowers would discourage banks from borrowing under the window—which the Fed believes is an important source of stability for banks during periods of financial stress.
Thursday’s release was ordered by the federal courts after Bloomberg and Fox News brought the Fed to court over the issue of disclosure.
Going forward, Dodd-Frank requires the Fed to release the names of discount-window borrowers—but only after a two-year delay. That means the information will always be old. Investors and customers of banks will not know which institutions borrowed from the discount window until long after the fact.
We’ll have a more complete historical record—but investors hoping for more transparency about the health of banks will have to look elsewhere.
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TOPICS:Regulations | Federal Reserve | Wall Street | Banking
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COMMENTS
Str8Talk | Mar 31, 2011 01:15 PM ET
Did anyone ever think the FED would comply with the Supreme Court ruling in a honest manner?
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schoolsout | Mar 31, 2011 01:16 PM ET
Meanwhile, CEO of WalMart tells Americans to brace for severe inflation while Bernanke tells everyone inflation is a figment of their imagination.
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Str8Talk | Mar 31, 2011 01:17 PM ET
The FED just like GS (Blankfein supposed G-ds work) does NOT play by any normal rule of law.
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Str8Talk | Mar 31, 2011 01:19 PM ET
The FED was created at a secret bankers meeting in 1913 and has been the cause behind the $US Dollars now being valued at 3¢ in 1913 buying power.
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It's funny! I remember Morningstar report saying, just before Wamu's failure, that it would survive.
These guys' are a joke!!!!
He's just a lawyer!
Wamu is on the same side as the FDIC and JPM!? How can Wamu win over them?
The impression I have is that there are so many variables that apply to the preferreds, including their potential conversion into commons, that the market is pricing them at the same level...
I think it's easier to understand what may hapen with the common shares, at their current price. Anyway, we'll see!
I think a sale of assets of WMI or a change of its control, may entail different conversion into common shares rules.
THANK YOU!
HOWEVER, THE MARKET IS PRICING COMMONS AND PREFERREDS AT THE SAME LEVEL.
Well, preferreds coud be contible into commons at WMI's discretion or even be redeemable at market value? Anyone reviewed the documentation that created preferreds?
Apparently, the market is treting the commons and the preferreds the same way!?
See interesting article below.
http://www.marketwatch.com/story/the-wamu-conspiracy-gets-life-2010-09-28
If WMI knows it will lose, an extension of time is good!
Item 65, page 20 of the Preliminary Report.
The Examiner says US$ 32 Bi.
US$ 32 Billion NOL recognized by the Examiner! Sounds relevant!
Shocking!!!
Again, don't know if this is new, but the last paragraphs are interesting
http://www.reuters.com/article/idUSTRE66J3X020100720http://www.reuters.com/article/idUSTRE66J3X020100720
I don't know if this article was posted before. Anyway, isn't the last paragraphs very interesting!?
http://www.reuters.com/article/idUSTRE66J3X020100720
That's correct!
WMU just didn't have the political influence others, such as Citi, had.
Apart from that, no real difference.
That would be fraud! Apparently, a common practice these days!
You have an excellent point. I am afraid someone is being compensated in a way we do not see!!!
Eventually, with all amounts due to WMI already received, they can liquidate the company and distribute the proceeds thereof.
This TPG probably has already been compensated by JPM for its losses!!! I wouldn't expect any help from them...
It is hard to understand this WMB bondholders issue They wil only accept the proposed deal if they do not have any rights to receive money form WMI.
On the other hand, why should WMI make any direct or indirect payments ( through ) the FDIC to them?
This alne should be enough for the proposed deal to be rejected by the judgel!!!!
Anyone knows whether EC lawyers can appeal to a higher court in case the judge rules that the proosed deal is acceptable?
Do you know if the preferreds are included in the US$ 8Bi or so of WMI's liabilities or they are in addition to that?
Thank you!
It's amazing that this Rosen and everyone else that were supposed to defend WMI are being paid with the company's money and not bondholders money!!! In the end, WMI shareholders are paying Weill!!!
Did you hear anything in Obama's speech today indicating that WMI could have a positive outcome?
When a well paid US lawyer doesn't write a lot, it's because he doesn't have what to say!!
Don't waste your time with this claim. Anyone can sue anyone for any amount.....
This just doesn't make sense!
Sorry, but we are the ones that can dump the rest of the world!!!
They signed a MOU with OTS. The content of it will eventually emerge!!!
I don't think there is any substitute for the US Dollar!!! This idea is absurd!!!
Remember Wamu signed a Memorandum of Understanding with the OTS 15 days or so before the seizure, providing for guidelines for the functioning of Wamu in the next years!!!!!
Sorry for jumping into your discusson.
Perhasps it was one of the things Wells Fargo wanted to avoid when they bought Wachovia and all affiliated companies ( parent, subsidiaries and sibbling companies )!