Speaking of JPM. I was just informed that JPM morgan issued stock 2 days ago to raise 15B in capital(need confirmation on this). There it is, I have been saying all along that JPM was going to convert the commons, pay off all prefered and settle with TPG. We are getting close, the 15B in stock capital can be viewed too different ways. IMHO JPM is buying WMI and the terms are done. Look at the 8K for WMI, $7.63 PPS is the value of the commons. So expect somewhere in the neighborhood and vista it has nothing to do with a penny stock, it has to do with the justice system in about 10 days (UH-OH for JPM/FDIC)... So here is how I see it
1. JPM issued 425M in stock to pay off commons.
2 JPM issued 425M in stock to convert the commons, The stock is sitting in treeasury waiting to be issued.
3. JPM is going to pay off all prefs with back div of 7.75% interest on the P's that will be paid for share when buyout is executed. AL P's K' H's paid at face value with back interest paid.
4. JPM will settle the lawsuit in Texas with the insurance companies by issuing new corporate bonds in their name for the insurance companies and paying all legal fees that were necessary to bring the suit.
5. JPM will own the lawsuit against them in Delaware, so they
can cancel it and settle the legal fess.
6. JPM will now own the FDIC suit and can recoup the original investment of 15B that it incurred in a (next day) settlement of the lawsuit with the FDIC. In exchange for JPM bailing out the FDIC, they will have dibs on the next big or geographically local bank they want after FDIC seizes it.
7. JPM will buy back all common shares of WMI holders if they want to sell, roughtly 10% of the stock will be returned on average 90% will be retained by new holders of JPM stock for tax purposes and future divis.
8. JPM will announce probably after close of business this Friday or at the latest next Friday that a settlement has been reached and deal is done. One statement. To maximize the investment potential in our purchase of WAMU banks, we found it necessary to acquire the holding company and its assets. (20B N.O.L., 4B in cash 6B tax refund)[Would you spend 12-15B to get this?]to make sure our shareholders investments are intact.
9. FDIC will have dodged a bullet and owe JPM a favor.
10. WE all go away happy.
Good Luck
Dates to look for.
15th Friday after close look for PR's
20th is Texas case. that want's criminal investigation, so that needs to be settled by then
21st Delaware BK rulling
I think the JPM Delaware case is on May 24th (not sure)
MAY24th is th day all WAMU becomes Chase (it's over then)
If I am not mistaken and Biz or Jackson [maybe bop knows something] can help out here, is there a ruling tomorrow n the JPM holding 4B in and needing to turn it over to WMI immediately. Let's hope so and if there is a delay that is a signal that the talks are moving along. There is only 2 reasons to delay this, request of counsel to delay on the basis that the parties are negotiating a full settlement and it is not necessary for the court to rule at this time.
2. Someone got to the judge and made them delay using some needing to be researched precedent or prior ruling.
This would apply to all the dates in court in the next 2 weeks. I say GLTYA and I'll see you on the other side..
FISH!
