First, if JPM doesn't kick real cash in and no investors for NOLs, we wouldn't see A>L. Then, preferrds will compete with commons in WMI2 for the residual values.
However, EC dropped depos and appeal "fair and reasonable" in appellate courts, it could mean JPM kicks $$ (small or big fish) to exchange release. The most convenient way that JPM can do is to give up the tax refund and take care TPS at its side. I think then preferrds will get upto 80% FV, and commons' value will be determined by market price upon IPO.
I fully agree with you, let EC separate common and preferrds. That is a clean cut. We never see any problems related to conversion from one to the others.
Appreciate your comments, TIA.
