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You're right in numbers, I'm not detailed in numbers. I am trying to say that JPM is best candidate to buy WMI. Other candidates are equal, JPM and FDIC get release as a plus. Moreover, we don't have to wait any investors to buy out WMI. It may take times....who knows when. On the other hands, commons will be satisfied with good numbers.
Personally, I don't think that Willingham is willing to accept $1.62/share. At least, he is looking somewhere in $8.00/share as originally offerd byn JPM before BK. 1.7B shares x ($4-1.62) = $4B which is JPM paying its release and FDICs. Then, old common gets another $4/share in WRMMC to hold on NOLs, which costs JPM nothing. IMHO
HAPPY ENDING,
GO WAMU................
Once we found new investors for NOLs, and every class get the wishes. P and K are going to paied at FV or closed to FV.
I think that Susman is pushing JPM to buy out WMI. JPM could be the best candidate to do so. JPM will gain as follows plus release and get FDIC off the hooks.
1) Additional 3.5B to buy out preferrds.
2) Additional 1B to other claims and gap between A and L.
3 $4 per old common shares and $4 per share in WRMMC.
Or, total 12B from the pockets.
In return, JPM gets
1) 5B in NOL.
2) 2.8B in tax return.
3) drop visa, boli/coli....
Or, totally gain 8B.
In other words, 4B will settle everything. Why not...
Yes, we have no idea of the converting ratio. I hope/guess IMHO, preferrds keep the way it is in WRMMC, and old commons get LTW.
It's also possible as I mentioned before. In any rate, P and K will not get $$$$ after we are out of BK.
So, that is the reason that Susman and Welligham are going after JPM and FDIC. Otherwise, 1 million share doesn't means anything in the new company, and Susman could be better off for other cases.
The only compensation is to get JPM and FDIC from EC's viewpoints.
BRING US JUSTICE AND AMERICAN VALUE.
GO WAMU....
Agreed, P is going to be a new P in WRMMC with the same terms and condition.
Possibly, new P and K are issued at the same FV and shares in WRMMC w/non-cumulative dividents.
I don't think so. EC will get FDIC and JPM to pay more than $1.88B.
I feel that SS will start the real war against JPM and FDIC in DC courts after the reunion between HFs and EC.
EC doesn't care SJ of $4B anymore. EC knew that JMW is favorable to JPM, and she wishes to use our money(4B) to exchange JPM's release. EC will immediately jump to DC court after regaining the control of board.
It means no release to JPM and FDIC. Then, WRMMC will have the cash flow problems unless some investors put out money for NOLs. Under these circumstances, EC will do the following:
1) Using its limited cash resource pays out only secured creditors.
2) Susman takes contigent fee as he is doing for Thornburg Mortgage (old name)'s case to against bunch of banks. Susman can have two battle fileds by using the same information. He maximizes his utilities.
3) Only unsecured, subordinated debts (H) are converted to both preferrable and common stocks in MRMMC. The HFs will have minor controls. It may get coupon or deferrable coupon.
4) P and K are convered to new commons plus possible minor ownership in preferralbe stocks in order to save cash. It could be changed until EC quickly find investors before PORv7 confirmation.
5) All new commons will get LTW if EC win in DC courts.
6) Still long way to go and we'll get big rewards.
Its IMHO
You must know the answer yourself. Please tell us. TIA
Agreed 1000%
In any rate, I still welcome you back. Your opinions give me the thoughts from a different angle.
I feel you will be back after the pps dropped badly on Friday. You'll buy much cheaper than $5.00. Even you lost again, but your post earning will well enough to cover it. Right?
Thank you very much for your assistance. Hoping one day to meet you in LVS if we are going to have a celebrating party there for WAMU.
I have 1000 old GM notes, and have been converted on April 21, 2011 as follows:
89 shares of common stock
87 shares of warrant A w/market value about $22.00
87 shares of warrant B w/market value about $18.00
I need your help because I am not familiar with these warrants. How does it work? Appreciate your assistance.
excellent analysis as you always do. thanks a lot.
I think you're right. Is that also the reason NOLs go to new GM in lieu of MTLLQ? TIA
just sent IMO to your email.
I'm new holder of H, and far behind the scene. Stupid question: how does JFR work vs another rate (I guess market rate????, not so sure). TIA
I'm holding "H". Assuming Hedgies had inside trading, JMW is definitely going to punish them as you said. Question: am i going to be affected, and in what degree? TIA.
Thanks for the info.
You're right. But, I don't think 2Fs sell any packaged debts. That is the reason that I ask Kellyco to blame Lehman, and other banks about mortgage back securities, which has nothing to do with 2Fs.
I told Kellyco that 2Fs only sell notes, not mortgage back securities to the public. We were talking about China. I said China only bought notes not securities.
May you clarify it?
Please read #17666 carefully. He answered your confusions.
Notes and bonds have cusip numbers. But notes and bonds are not equities. Again, they are debts. EOM
That is exact what I told Kellyco. US Treasury don't have to guarantee 2Fs but will bail out them.
Now you're talking. They are debts, not equities.
It's Accounting 101.
KELLYCO, Again and again. Don't compare apple/orange. Fredie and fannie do not sell securities. Go blaming those banks, LEHMAN........etc. Your discussion doesn't help here because here is Freddie board. You could do your debate in other boards, such as Lehmq,lehjq......etc.
You are right here. Mortgage backed securities are very complicated instruments. I believe those securities are sold by the private institutions packaging NOTES with something else.
I think Freddie and Fannie only sell notes not securities. Can you name some? I would go out and buy it.
You should note that US Treasury will jump in in case of any problems. REMEMBER, this is the second largest financial markets beside Treasury Bonds.
Regardless what you say, those two guys only sell mortgage backed "NOTES" to the markets. THAT IS.
In general, security could mean "equity" but not happened here. Please study those two guys by-law and "101".
No, he is completely wrong. He is a MM. Pump and dump it. Nothing gain extra here. The only assets they have are mortgage payment. So many foreclosures are out there and in a up trend. Actually, they are in a bad positions ever. The only reason that they are there is because US government injected tax payer's money.
We are speculating here. Hoping one institution w/a lot of private investors will take over after the government scale down those two guys. THAT IT. We now hope the stock price is better than $0.15 instead of going to BK court. In any rate, government won't let them go BK due to the they are holding the second large financial market.
The questions is back : Can the new institution save previous owners ass, including pref. and commons? Yes or no. I don't pump it, but I will sell common to exchange pref because the latter has a slight chances.
On the Y board, one article mentioned some pref. are the same claiming level as government's money. Remember AIG, government will swap her money (=pref. stocks) for common stocks. That is people's hope. Commons, I don't know........... like AIG's common, I doubt. AIG can survive itself, but not those two guys. New investors mean commons are wiped out, like New GM.
Again, nothing has been increased in equities or so. That's pumper's game.
Don't pump it. Only notes issued by them are worth it. We just speculate the pref and commons because we are hoping some private sectors will take them over after government scaled down them.
Mortgage back securities are notes not equity. Notes are short terms of bonds. No doubt, notes are debts. Even government does not legally guarantee the notes, but government will inject money to it like it happened during 2008 because it is the second largest financial markets. Government can't let it down. It will be worst than banking defaults.
Basicallty, to make thing simple. Banks sold the mortgage payment to them, they issue the notes to sell to the investors. All banks and fannie mae and freddie mac to do is to collect the difference in a very small amount as profit.
You want to know more about it, please refer to FMCC's by-law.
I'm holding both common and preferrable since Sept/2008. You are probably a MM, making it high and dump it quick.
Either you can call note or bond which are sold by FMCC. They are debts, and definitely not the equity. They are guaranteed.
It could be a sign resulting recent ups. But, definitely not because of Chinese gov bought bonds.
Not really. Bond is bond. Also, those bonds are guaranteed by the Dept of Treasury. Don't think Chinese gov. will be that stupid to buy something are not guaranteed.
It is guaranteed by the Dept of Treasury.
It is guaranteed by the Dept of Treasury.