Washington Mutual Preferred fka WAMPQ

[steved_45]

JPM has dozens of tax attorneys working for them. Don't you think Dimon would have consulted w/them before a major acquisition? Why do you think the POR gives some of the NOL's to JPM?

Answer: JPM purchased w/the expectations that they would get some if not all of the NOL's making up for the small amount that they paid. So for "free" they got exposure to the West Coast and picked up billions in deposits.

Acquisitions are valued based on future cash flows and current/future tax consequences based on portfolio write downs.

JPM took a huge risk assuming WaMu b/c WaMu's assets should have never existed-like a Bernie Madoff ponzi scheme.

In my opinion, JPM was forced to pay as much as they did for WaMu to satisfy the consideration element of the statute of frauds. But I'm probably the only one who thinks this so take it for what it is.