To the WAMU longs and observers,
Have some questions.
First, I hold both a substantial amount of U shares and some P shares. I've been in for several months, and I am very much intrigued by the legal proceedings involved with this situation, having been embroiled in court battles with a corporation and some other aholes who have tried to rip me off in the past. Yes, sometimes the courts do work, but it can be a lot of hard work, and often those around you wonder if it is all worth the effort. Justice must be fought for and upheld, though, or the system ultimately fails.
So, to my main focus ...
My ex-wife knows that I am invested in WAMUQ and WAMPQ, and last week she was quite interested in getting in on the action. She was ready to buy in on Monday, but finally sprung some stuff on me that was a result of a conversation she had this past weekend. Some friend of a friend is an investment manager and manages funds for a number of clients, claiming 200 to 300 percent return, mostly from investing in blue chips like Intel, Costco, Amazon, etc.
Well, she got around to asking him about WAMUQ, considering she was about to invest some money in WAMUQ on Monday. The guy told her several things, which I am highly doubtful about, but I wanted some feedback about his comments from members of this group.
He told her he did some DD on WAMUQ and felt that it was a 100 to 1 shot that the commons would get anything, and he thought that it would be luck if the preferreds were tossed some crumbs.
He told her:
1. The entire financial system is corrupt (which is probably true).
2. The "WAMU Execs" would pay themselves millions in compensation before this case is over, essentially bleeding money that could go to the equity shareholders.
3. That the bondholders would suck up anything that might be awarded, leaving equity barren.
4. That JPM would spend billions defending themselves because of their level of corruption and greed.
My ex knows that I have strong opinions about this BK case/situation, and that I have been lurking/observing/following the boards at IHub and Yahoo for quite a while now and feel that the judge would not have let this case get this far if there was nothing in sight for equity. Key dates have passed and progress has been made. Team Susman would not have been assembled and would not be in hot pursuit of justice and payola if there wasn't a good chance for recovery (A>L). What JPM says or does is not the ultimate decision -- it's up to the courts.
So, now, she is not investing in WAMUQ or the preferreds. She tells me she is worried that I will lose a big chunk of money (yes, she still worries about me a bit and is concerned about my welfare). I told her that key dates are coming up and those milestones should paint a clearer picture as to where this is all heading.
What say the longs here? Is this adviser/manager full of crap, or does he have some valid points? Can any more equity be bled without clawback/rollback? Aren't the bondholders limited to only a certain amount of compensation?
I am holding until September 7, for sure. I don't know or can I be sure that the examiner investigations will scare up a reasonable settlement offer before the September 7 report, but I am willing to wait it out. Any and all feedback is truly appreciated at this point.
Of course, if there is a settlement, it will be the biggest "I told you so" among my friends and ex. And, of course, if nothing gets paid to equity, then I will be looked on as the biggest fool.
Lastly, thanks to all the supporters who have gone to the hearings and made observations and reported back to the rest of us. I would really like to attend, but I am on the west coast and it is not easy for me to travel to DE. However, one day soon I just might attend, and I am sure it will be quite an experience. And thanks to all who have posted the unbelievable amount of research and well-founded opinions here. This is -- as one poster put it -- truly "Law 101." It is quite an intriguing, exciting and unbelievable legal case, and I hope it ends up being one for the history/record books.
Peace and best wishes to all (even the bashers).
Chessman
AI
