Replies to post #4963 on Washington Mutual Preferred fka WAMPQ

[Jestiron]

So you are saying that only the shares purchased PRE-BK (and not sold since) have value after a "default event" has occurred??

I read previously that a "default event" locks the liquidation preference value in at face value ($1,000). Many versions of what can happen. If what you are suggesting is true, why wouldn't the WAMPQ shares just cease trading all together?? Halted? They would be locked out instead of being able to trade to newbies after the BK.

Your post suggests that holders of pre-bankruptcy WAMPQ shares, sold them AFTER the bankruptcy (to me) made money not only off that sale, but will also have rights to face value of the shares?!

Does't add up to me,..however, I am no attorney either.

I don't know the answer here, but it seems to me that the SHARE is what holds the value, regardless of when it is SOLD,...or bought.

[WG1mil]

How or when would we know if there was in fact a default event? would it be on the 8-k? Or it for sure did not happen because trading was not halted?

[waman1]

MAN!!! Did you ever get that one messed up. You are totally wrong, sorry to say. You Mixed a default event AND an exchange event. Which BOTH happened but for different reasons and with TOTALLY 2 different results. The exchange event happened on the date you specified but ONLY applies to conversion of institutional issues to depository issues. The default event was triggered by the chap 11 filing and prevents conversion of PQs into commons and requires liquidation prices to be full par. There are more considerations involved but Im in a hurry so I just gave the basics.