Washington Mutual Preferred fka WAMPQ

[steved_45]

Seth, when I say that WaMu never had a book value of more than $50BB, the book value would have encompassed the total aggregate value of WaMu including all of its subsidiaries. In order for WaMu to have been SEC compliant when releasing its balance sheet info along with its other financial information, it would have had to include all of its subsidiaries. I'm sure at the time of the takeover, some of the subs were insolvent, some worth a substantial amount, and the majority worth less than we think (because of the market conditions at the time of the takeover).

IMO, the thing that we have going against us is the timing of the takeover. IMO, I look at the WaMu takeover as a gov't taking where in order for the gov't to take a public piece of property, it must compensate based on the fair market value. Unfortunately for us, at the time of the taking, prices were spiraling downward at an unprecedented pace (which is why WaMu didn't have the cash to cover the mark-to-market write downs of its loans).

Like Catz, I feel that the examiner is going to give a range of the fmv values of the subs according to certain market scenarios and conditions.

The best we can do is hope that the examiner did a thorough job investigating the value of all these assets and that the examiner recommends that the tax refunds stay with the holding company. On paper, I feel that the pref's should be made whole or very close to it but not knowing the unknown factors is what worries me.