... W3R, yes that is 100% correct ...
The following is based on my own DD, Study and Research, of this entire WaMu deal, and is posted as my own conclusions and opinions ... and ... the reasons that I remain heavily invested ... escrow markers, ... subordinated debt, ... and shares in WMIH-Corp
Equity participants, referred to as retail shareholders, were never supposed to be involved ... nor, were they ever expected to be included in the final WaMa Plan approved result and a reorganized company (newco) ...
Had WaMu actually accepted any of the earlier 2008 bids submitted in the $8.00 (ish) range prior to the seizure for purchase ? ... The shareholders, equity, common shareholders, would have received the benefit of a buy out' ... When Paulson said to WaMu ? ... You should have accepted JPM's offer ? ... again, complete and total bull cr@p ... again, the shareholders, equity would have benefited as the true owners of the company ... which wasn't planned nor wanted to be the end result' ...
Nope, this was about big value and was set from the beginning, ... The TWO bankruptcys, WMIIC and WMI, were designed to lock it all down within the protection of a Delaware Chapter 11, and had the ability to secure the values of WaMu for a future tense and Plan approved reorganized company ...
Remember , the time line and sequence of events, ... 2008 - The FDIC was in deep trouble and so was JPM, ... the word was out regarding the WaMu filing on the horizon, as is revealed in Citi's, Sept 17th press release, ... we all obviously know what happened next, ...
So, ... after the Sept 2008 seizure ? ... The FDIC could breath a much needed sigh of relief, and JPM easily paid a 1% administration fee for access to the WaMu 189 billion dollar deposit base' and the immediate availability to service the massive WaMu loan file for six full years without interruption ...
... So, the Plan is ultimately approved, which allowed JPM the timeline of the P&AA's unfettered access through 9/25/2014 and the releasing equity participants were included' ...
So, Are the Deep Pockets still here and do they still expect their original plan for the reorganized company to come full circle ? ... You betcha' ... It just took a bit longer than originally expected, and now there are some releasing equity participants to share with' ... That' shouldn't be a problem though, there should be plenty to go around ...
Lawyers and Hedge Funs always win, ... except this time ? for those that released ? This one time ? In my opinion this will work out just fine' for those that listened and received their transitional shares and escrow tracking markers ...
AZ
