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Perhaps because of setoff fears. On the other hand, could be part of a deal with JPM that might be negotiated!
It is said on a footnote that the assets listed are only cash and cash equivalents.
WMI is not a subsidiary of the Bank. You ca argue, depending on the definition used in the agreement, that they are affiliated companies!
I think WMI is trying to force JPM to buy WMI shares, since they seem to be laying the grounds for a big discussion of Asets and Liabilities of the Bank and WMI.
This discussion can be very damaging for JPM!
At a first glance it seems that WMI is saying that its assets, other than cash, are so comingled with the bank's assets, that they are not able to give any figures.
Any thoughts at this time?
You are more optimistic. First you expected it to be cancelled in March!
But he doesn't appreciate the Chairwoman of the FDIC and the IRS US$ 10.2 Bi tax claim against WMI was made before he took office.
Don't you think those facts are positive?
It's either a war or an agreement coming!
Well, if JPM buys WMI shares quickly and also closes the deal quickly, yes. Otherwise, it will take longer.
I agree. But maybe now they will have to worry about common shareholders, or it will be difficult to have private investors investing in US banks.
We are coming to a point where the government will force JPM to sttle this issue in a descent manner, before one more scandal will emerge and permanently damage ivestor's confidence.
The article below is interesting. Shows that the FDIC is reviewing its procedures to sell banking assets.
http://www.bloomberg.com/apps/news?pid=20601087&sid=awl91Djc2.jQ&refer=home
How can preferreds survive the common stocks?
I think the small volume is a good sign for those who expect to make real money with WMI!
Maybe whether JPM will buy WMI shares will depend on what their lawyers tell them.
It is very strange that the IRS made their claim for US$ 10 Bi in the last days of the last administration!
I guess the point is that the government of the United States has treated institutions and their shareholders differently. I do not see how this will not serve as the basis for enoumous legal actions at some point in the future?
I understand that a bank that is insolvent can fail, but with the rescue of Citi, BOFA, Wells Fargo, Goldman, Morgan Stanley, ,JPM and etc. , it is not admissible that WM could have failed as a result of liquidity problems.
This gives grounds for seizable losses and damages to be sought through legal action and I do not see why WMI will not follow this path, unless a satisfactory settlement occurs.
It will be great if at the end of the financial meltdown there is still anything to socialize!
In any case, your country is changing rapidilly.
No. What I'm saying is that the IRS, to be consistent with their claim, should procure the reversal of the sale of WMB assets or the freezing of such assets.
Thus, if there is not a comprehensive settlement for this whole thing, JPM may end up in a very difficult position.
By the way, I bought WMI shares before and after the seizure of the bank and never saw any disclosure of any significant taxes that could be due and unpaid. If indeed there is such a huge debt, then SEC,FDIC,FED, OTC, WMI auditors should be sued!!!!
It's on Bloomberg news web page.
I agree with you. I just think that JPM should be very concerned because the IRS, at least as a preventive meausure, should fook for the annulment of the sale of WM Bank assets or the freezing of such assets.
A public attoney should do the same in the interest of US taxpayers.
It seems to me that JPM is in a very uncomfortable position!!!!!!
If WMI indeed owes more than US$12 Bi in taxes, is it not reasonable to expect that the IRS or a public attorney will procure the annulment of the sale of WM Bank to JPM?
I understand that the FDIC may have the authority to seize WM Bank if it lacks liquidity, but I do not understand how they can sell it to JPM for peanuts, when WMI allegedly has an enourmous fical debt!
Any thoughts?
I agree with you. However, it seems that at the NOL will end up being much smaller than previously expected.
In any case, let's see. Thank you very much for your answer!
Why great news?
It is very lilely. However, even with that JPM should be far from controlling WMI.
It is interesting. If WMI shares are sold under a liquidation or whatever process, then JPM may have to deal with several other entities, including vulture funds.
This should be one extra incentive for JPM buying WMI's shares. Any thoughts?
According to Sullivan & Cromwell's web page, they are litigation lawyers.
Sullivan & Cromwell's petition to the court mentions that it is too soon for any litigation. In my opinion, it indicates that JPM is willing to negotiate.
Well, WMI says it has more money to receive from the IRS than it has to pay. It is just that the US$ 2.3 Bi is the amount claimed by the IRS.
However, the net amount that WMI claims could be greater than the US$ 2.3 Bi. We'll see!!!
In my opinion, because the interested parties are still talking and the US$ 4.4 billion is part of it.
I think the amount mentioned is the IRS claim and not a possible refund.
If Shearman & Sterling is still representing WMI, there is no fight with JPM. Do you know if this is the case?
What I read is a transcription from the Wall Street Journal. Have you seen it?
I have seen news, not in the US but in a local paper in my country, that the new administration is going to revisit the case of banks that failed before government help. Have you heard anything?
We'll see.
Looks like they are working on an agreement with all parties involved, leaving the doors open for anything including a liquidation.
Perhaps the piece that is still missing is the resolution of the tax issues that may create a significant asset to WMI. With that, WMI will have a clear value and an arrangement to the satifaction of all parties can be made.
Not sure. If this was the case, then Shearman & Sterling would not be representing WMI. They would not be in a conflict situation with JPM.
Thanks!
Thanks!
Thank you! Do you think that because there is, after confirmation by Senate, a new Secretary of Treasury the NOL issue has a greater likelyhood to be resolved quickly?
Can you clarify to me if the IRS is subordinted to the US Treasury and consequenly to Timothy Geithner? Thank you!!!
I think the timing will be mainly determined by Shearman & Sterling's work on the fiscal front. When this is ready, WMI will have a clear value and may be negotiated with JPM or any other party that may be interested.