You guys have to realize the banks are gone. They will not unwind the deal it will break JPM and it is what is now considered systemic so that just will not happen. WMI was taken to shore up JPM plain and simple. They were the best of the worst, with the greatest possibility of saving JPM, which has happened. JPM will not loose the accounts and most likely not loose any of the assets they latched on to. Yes there are most likely others in the mix, but the FDIC could not bail out JPM from its follies and they needed to shore it up somehow, so they stole a bank, the best of the bad and gave it to JPM with a considerable amount of write-offs. If the FDIC has to pay then so be it but JPM just can not loose too much in the deal or they will be in the same place we are i.e. bankruptcy. That just will not be allowed, yes WMI has a very strong case, as there was very much criminality and incompetence going on. Think about the scrivener’s error given for not having the schedule 3.2a in the P&A agreement. Think about waving the rules. There is much to cove up and it will never see the light of day.
Look at the PPS we are still thought of as fools buying this POS bankrupt stock. If it were such a good thing every one would be buying at face value minus 10 to 25 % if nothing else just to collect on the dividends.
So where is our value? Some are turning this stock into a considerable amount of money by trading it, some are buying and holding for the big payoff. We don’t know if they will settle in the near term or if it will take years in court, but in the end JPM will have all of WMI. Right now it is just a matter of making the numbers line up to where WMI is made as whole as is possible and JPM does not loose too much or can recover quickly. JPM will have it because that is what they need to survive, but in the end WMI must be made whole.
This mess determines weather the U.S. will ever be able to borrow money from any one ever again, it will determine if investors will ever buy stocks in any company again knowing that the government can just come in and grab it.
It is true this mess started under the Bush administration but the Obama administration has done nothing to solve it. I tell you this it does not matter who started it, or who will fix it. What does matter is that it gets fixed, as expeditiously as is possible, the economy will not move with out the loss of confidence being restored. It is a funny thing about money if it is only on paper you have still lost it and can not invest it. But you can generally replace it over time, but some time confidence can never be restored.
Oh and by the way don’t count on the Texas action, their complaint is not ripe, you will see. It was used as a tool to force discovery.
By ripe I mean actual damages can not be determined until WMI is canceled. If this mess settles any where close to what they had invested and they are paid out any where close to that amount then no damages were incurred and the case is moot. There fore it could be thrown out at any time without prejudice.
All of this is just my opinion of course.
AI
