Not necessarily. As you already know, this is a court of equity, not a court of law - and accordingly, Judge Walrath's decision to spare the bondholders might be a classic case of judicial posturing. By refusing to dismiss the bondholders' claims, WMI is forced to show that it was solvent, well-capitalized, and wrongfully seized - thereby throwing the FDIC and JPM under the bus and theoretically bringing them closer to a serious settlement.
I hope this encourages the parties to speed up any/all negotiations as it will only get worse for JPM/FDIC from here - especially if and when the Judge grants the EC's motion for summary judgment and allows us to have our shareholder meeting.
