**I think if a settlement was announced say $4 for commons, full for preferreds there isn't one person on this board who would be disappointed, lol. If you are a post-seizure holder and you were upset with a deal like that, well that's just pure greed.
There is a notion that post-seizure buyers, who never owned the stock before, technically (and this may be unpopluar) 'deserve' nothing. Why should I who bought preferreds at under $5 'deserve' $1000 per share? Because I'm a smart investor, lol? Yet, here is the explanation why post-seizure now 'deserve' to get paid:
Post-seizure buyers were not hurt by anything, however we are investors in a company. All post-seizure should be PROUD of the fact you recognized a huge opportunity here, and had the wherewithal to buy.
Pre-seizure holders? That's a very different story. They were devastated by the machinations of what occurred in 2008. They were screwed royally by JPM/FDIC, and again by WMI/Weil who is supposed to be looking out for their best interest.
Now Pre-seizure holders may be very upset with $4 a share. Especially those poor employees who sold out last Spring at the behest of JPM.
Post-seizure holders are also 'owners' of WMI. Where post-seizure holders were screwed over was on March 12. Our 'representation' to bring back assets to 'our' company gave them away.
Weil/Rosen are the vultures. They have sucked the life out of WMI at every turn and tried to give away the meat on our carcass to the lions instead of fighting with us for what is 'ours' now.
Post-seizure buyers recognized an opportunity to 'own' a piece of a company (WMI) which in their opinion was far undervalued. No one who bought this stock after 9/26/2008 paid more than 70 cents. No one who bought preferreds after 9/26/2008 paid more than 11% of face value.
Let me get to the meat of the issue:
Post-seizure buyers 'deserve' to get paid because of the foundations of capitalism; You buy a stock because the company is supposed to take your money and work to increase its value, therefore increasing the value of your stock. Post-seizure buyers have invested in the company who was supposed to be fighting to return your assets. WMI, the company, you bought shares in, was supposed to be working for YOU, not for JPM/FDIC's benefit.
And there in lies the conundrum. You invested in a company, it doesn't matter that they were in BK; the company is actively working against the shareholders interest. WMI through Weil should be fighting for every penny out there, and returning value to the OWNERS of the company. Instead they are trying to give it away, so that they can get rich on the assets left over.
It would be as if I bought Ford stock, and the company announced they are giving away all future profits to Honda. Imagine the outrage.
This is not different. Now, we have to hope the examiner finds enough evidence to support equity's position here. The UST, Susman law firm, and Walrath obviously feel there was enough here to instate an EC, and an examiner; and where's theres smoke, there is usually fire. Obviously the noteholders are getting concerned about equity's power.
All current holders of WMI classes deserve to get paid. How much they deserve is the question, and ultimately what the EC will have to negotiate. But Claw said it well, a 'settlement' is just that - a compromise. Mike W owns 1 million shares at .20. You don't think he wouldn't take $4 or even $2 now rather than wait years to possibly get more?
Ask yourself that question. I can have 3.8 MILLION dollars right now. Or I can wait years for an uncertain outcome.
