Washington Mutual Preferred fka WAMPQ

[Chiron]

If it was 'known' that commons were to receive a payout - preferreds should trade near face value. No plan is going to be even considered for commons unless preferreds are paid in full, or very close to it.

Remember the hedge fund on the EC owns 15,000 PQs. They are not going to see Willingham become a multi-millionaire again and take too much of a hit themselves. I truly believe the only reason commons are up was because there was no PR from Rosen this morning about the FDIC signing on. Trust if they do - commons will tank hard, because the MM's will take advantage of the situation.

We've seen Rosen's BS long enough to know if anyone can get that FDIC signature today - it will be him. Doesn't mean anything as I'm sure the DS will be denied, but it will be a psychological blow and the market will react. I feel if he had the signature he would PR it to hurt the market. The guy just hates equity for whatever reason.