Clarification about preferred claims pool:
I have been told on good authority by someone who confirmed with debtors' counsel that the preferred stocks sometimes referred to as the Caymens are being treated as though an exchange event occurred. This means that these series of preferred stocks with an aggregate principle value of $4B are being treated as though they were converted into equivalent series of WMI preferred stocks, so that the pool of WMI preferred claims is $7.4B, not the $3.4B it would otherwise be if only WAMPQ and WAMKQ comprised it. The collateral that the Caymens had laid claim to prior to the conversion to holding company preferred stock will be contributed to JPM. The MORs that WMI has issued discuss the issue of the Caymens in Note 1 with the following caveat: "Because of these unresolved issues, WMI has not yet reflected the Conditional Exchange and/or its attendant transactions on its financial statements, including any possible interests (direct or indirect, contingent or otherwise) in the Securities and the assets, as the case may be, of Washington Mutual Preferred Funding LLC."
