Washington Mutual Preferred fka WAMPQ

[marayatano]

A little more explanation:

If preferreds are converted to commons, that mean that there was not enough money/assets to distribute to commons and preffereds were impaired.

If WMI intends to reorganize, you won't have an entity with only preffereds and no commons. Therefore preferreds convert to common and take control of the organized entity, ie, orignal commons toast and new common issued in exchange for original preferreds.

This is just an example. I am not saying this will happen.

imo