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Could be. But, perhaps, this whole issue will be resolved among the big Wamu and WMI creditors, the big WMI shareholders, JPM and the FDIC.
It's a good point! I just think it will take some more time to sort out what to do with WMI and Wamu debt.
As to the layoffs in the banks that were helped or bailed-out, I don't understand why the US government did not condition it to the maintainance of their employees?Why don't they cut salaries and benefits of the CEOs, CFOs and others alike?
Be polite and productive!
What a discussion! Someone posted old news and people don't stop talking about it!
Even in Zambia financial institutions have backup information in, at least, two locations!
I had mentioned that expansion of the definition of eligible buyers of assets of failed banks.
One thing that may be proposed to creditors of Wamu and WMI ( including bondholders, notehoders, preferreds and etc. )is the conversion of their credits into equity. Perhaps, with that, an acceptable solution will be found.
Thak you! Amen.
Do TPG and other insiders have preferred or common shares?
Several things. Quality and liquidity of assets being good, renegotiation of debts, the acquisition of a bank operation by WMI and, ultimately, a buyout at a price above U$$1 dollar per share.
I think this whole situation will have to be resolved to the stisfaction of all parties involved which, naturally, will have to make concessions. These negotiations will take a while.
It is interesting. Thank you.
I am not a US lawyer. I am just an foreign lawyer but still can tell that the attached is a rather poorly written petition.
I do not think this document will be material to the proceedings It is, however, very interesting to see everything that is filed before the court andI I thank you for posting this document.
Actually, what is happening is that the real investors who bought WMI's stok before bank's seizure are having the chance to reduce their avarage price of acquisition.
On the one hand this is bad because it reduces the price JPM will pay for WMI's share,s but on the other hand it will make such an offer more likely.
What I said is just a possibility, but could be the case.
Do you think that, depending on the definition of Qualified Institution, as mentioned in the attached article, WMI may be able to buy bank assets of a failed bank and resume activities?
Does anyone think that this is a possible way to settle this issue? If so, how to accomodate Wamu bank's creditor's?
http://www.bloomberg.com/apps/news?pid=20601087&sid=acrAx7aHTPwU&refer=home
Silly. In these times anything is possible!
Could be. WMI hired Shearman & Sterling as litigation tax lawyer.
In this crazy environmet where one federal agency ( the FED ) injects money in certain institutions and others ( the IRS ) try to collect any alleged debt from others, you have a messy situation.
We'll see. WMI has good lawyers....
You could be right. I don't know if it would be a Chinese bank, but a foreign bank willing to open a bank in the US might be interested in WMI.
Naturally, it would have to make sense from a financial and legal point of view. In addition, the Federal Reserve woud have to help by incentivizing or determining that those who want to open a banking business in the US, had to it by acquiring companies such as WMI.
We'll see!!
It is woth taking a look at Marketwatch analyses, below:http://www.marketwatch.com/tools/quotes/snapshot.asp?symb=WAMUQ&sid=5337
Thank you!
Thank you!
Yes, probably she's an idiot. Do you know what the judge ruled?
I did basically the same. I think we lost opportunities because they came just after we suffered losses. I think we got afraid!
Hope this WMI will make up for our losses.
I totally agree!
On the other hand, it does not change the fact that a deal is likely being structured.
It's amazing!!!! This Sheila Bair said at Bloomberg news, days after the seizure of Wamu Bank, that banks in the US were a good buy.
First she's supposed to be a regulator and not a stok analyst. Secondly, how can anyone say that, and state tha US banks have no adequate reserves!
i don't know how this woman is not being investigated! Well, perhaps she is!?
My average price for WMI common is US$ 1.8. Do you guys see a full recovery for it?
Look, they will hire Shearman & Sterling to work on it. No doubt WMI wants to take proper care of that, and the other parties involved did not object.
The only thing is that federal trustees have comments.
No, it doesn't. An investor shouldn't run the risk of being short in this stok. An investor should focus on the broader picture and wait to make real money here!
For those like me who invested before and after Wamu bank seuzure, this postponement is good news. It indicates a possibility of a buyout that can only happen after negotiations are finalized.
As to variations of 1, 2 or 3 cents on WMI's share price, well it is indifferent to me and to any other person that can be called investor.
If TPG sold its shares, who bought it?
As WMI stated in its bankruptcy filing that TPG hd more than 5% of its capital, don't they have to update it if this participation falls below 5%. I think so.
I understand that if this participation goes higher than 5%, nothing has to be said as the filing already said that TPG had more than 5%, but I don't understand the opposite.
Well, in the US the only thing that makes sense is money!
There are several signs of a negotiation involving WMI and JPM. These include the hiring of top lawyers by WMI, the rescue of Citi today that creates a strange precedent and the innaction of Wamu Bank's creditors.
Just one more comment. I don't thik the US can comment anymore on the practices that are adopted in China towards its stok markets. Actually, Chinese authorities are much more candid than the US. It's amazing!!!!!!!!!!!!
If there is a guarantee from WMI, it is included in the stated US$ 8.2 Bi. As to the US$ 1.9 Bi, well the federal trustee for WMI has a compulsory obligation to fight for it. Are they doing that?
If yes, then this discussion will be long. If not, it is because there is a negotiation going on.
Yes, I do. From a legal point of view, it is inconcievable that the FDIC can keep the US$1.9 Bi.
You cnnot seize a bank, pay nothing to the owner, and ressell the bank on the same dayfor US$ 1.9 Bi. It doesn't make sense, even in America of these days.
If the brand Wamu belongs to WMI and, as we know, JPM is using this brand, this is one more indication of a deal between WMI and JPM.
Cash is US$ 6.3 Bi and it is woth its face value. Debt is US$8.2 Bi. The difference is US$ 1.9 Bi.
It means that the rest of the assets have to cover the US$ 1.9 Bi gap and the balance is equity of the ompany, to be distributed to sharehoders, in case of liquidation.
Estate is the term you use when you have a bankrupt company. What draw my attention in this filing was that item 9, saying something about distrubuting WMI's assets to ceditors.
Does it imply a liquidation of the company?
How's that?
You've got a good point! It's just that if FDIC seizes Citi and noone assumes its obligations, then we'll have an ARMAGEDON in the financial markets.
I think a solution for Citi will be found, I just don't no what it'll be.
Another interesting point.
As unsecured creditors of Wamu Bank were left with no debtor ( they would depend on suing JPM and FDIC which, although likely to be successful would be time consuming and expensive ), I think they would be inclined to renegotiate their credit.
Does it make sense?
Agreed. That's what make more sense.
Does anyone have a view on Shearman & Sterling being chosen as WMI's counsel? As far as I understand, it means that WMI and JPM are not fighting, otherwise Shearman would refuse representing WMI.
This law firm would not put itself in a conflict situation with JPM.
Any thoughts?
I don't think Citi will fail. However, at the moment things are not normal and investors will be extremely cautious, selling Citi shares and withdrawing money from there.
As Citi is so big, I think a solution will come up. But, again, it doesn't mean that there won't be a lot of stress!