Sterling ....agreed , and thanks . There are so many variables to the WAMU case that could expedite their re-organization , even to the point of rescinding the Chapter 11 application IF Congress would re-capitalize the Bank and the FDIC seizure was revoked .
It is critical to note that WAMU was viable and was well capitalize with billions of dollars in CASH despite the $1.6 billion ' run on the bank ' . The FDIC's reasoning that WAMU would run OUT of liquid cash if the run on the bank continued was extremely pre-mature in view of Congress's imminent BAILOUT plan to " capitalize " banks .
If the Chapter 11 goes to full re-organization it will be at that time the Judge will rule on the common and preferred equity , and under BK Laws the common holders always come last in ANY BK .
As your Law Firm contacts confirm , it is pre-mature to presume anything at this early juncture .
One whiff of Congressional involvement in the FDIC seizure and colluded sale of WAMU's Bank Accounts to JPM and the stock will go parabolic ....IMO .
Renee
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