Washington Mutual Preferred fka WAMPQ

[steved_45]

The gov't can always do whatever it wants. They will always have the ultimate bargaining position over US firms and now maybe even foreign firms (BP). I took a lot of heat yesterday on the U board but I really feel that the FDIC can force JPM to pay a higher price.

I personally think this will get settled where JPM assumes the pref's and pays somewhere b/t $2 (the last price before FDIC seizure) and $5 (a reasonable "take-under" price that's b/t their previous offer--$8--and WaMu's last share price). A take-under price would be reasonable b/c of TPG's take-under cash infusion only paying $8 when the shares were trading between $10.50-11/share.

Assuming the pref's would actually bolster JPM's assets so it wouldn't be too detrimental to shareholders. The only issue I can see would be that either the P's or the K's (I don't remember) have already "expired" and face value should have been returned to shareholders. Also, assuming the pref's would mean that JPM would need to reinstate the dividends and possibly pay divy's that are in arrears.

AIMO and open to criticism over JPM's possible assumption of pref's. My payout to U's scenario is purely speculative that I didn't even believe was possible until getting JH and now seeing a possible 3B in claims dropped.

Steve