If i were MW, I could understand from where your worry comes. He will use litigation money as his own bank. In this case, he definitely looks ugly.
I'm thinking a large picture. If I were MW, what would I do different asto BR (the big liar)?
1) Go after JPM and FDIC for more than 20B
Spending all the time and efforts, and only get severl bucks return. It doesn't make any sense for MW.
2) No release to JPM and FDIC as BR did.
Give up $4B(our money). We knew JMW is favorable to JPM. But, MW will not accept to use our money in exchange of their release. MW will ask for SJ immediately from JMW. Most likely, JMW will deny it. Then, who cares?
3) Without $4B, WMI2 immediately gets into cash problems for fighting with JPM shortly.
Susman will take 20% contingent fee as he is doing in Thornburg Mortgage's BK case. No extra efforts for Susman does it for WMI2 since he is using/doing the similar information/technics with TM's case.
4) Without money, MW could not pay FV to Preferd stocks.
All K and P will resume its status in WMI2. The same FV and terms. MW still can hold dividents for maximum 20 consecutive periods without payment. He would do so, not piss off all pref. stock holders (= coverting to commons and 10-20% of FV). Let the market deciding its value after any investors to buy NOLs, and resuem dividents.....Why piss off holders at this moments?
5)BR is a liar, don't trust his words that preferrd is coverted to commons. He wants everyone to sell it, or confusing the markets.
However, "H" is in a different case. H will be coverted into pref and common stocks in order to save payment of 74% FV, and HFs need commons to be minor partners = to take the residual value of WMI (= all hidden assets).
My point is that Pref stocks will not coverted into commons. It will remain its previous position in WMI2 but without dividents for a while.
6)All commons will have LTW.
It's IMHO. Thanks. See you in Vegas.
