Penny
How could the FDIC cancel common shares in WAMU? They have no legal or constitutional right to seize holding companies. Does anyone have the language for the new bill that funds the FDIC? Penny might have a point. I remember reading somewhere that the FDIC would be given the right to seize holding companies if they deemed them insolvent. However in our case.
1. 4.4B is being held in a bank account at JPM that belongs to WMI. It should be ruled on soon and returned to the righful depositor [WMI].
2. 20B carry forward NOL (Net Operating Loss) that WMI has would have to be canceled. Why would you cancel common shares and wipe a 20B loss that could mean big bucks on tax day? Also the N.O.L. is a carry forward loss, so you can still carry it forward. Commons if worth $8 PPS are only 13.6B there is still another 6.4 bill to go.. Not even in the cards !!! IMHO..
3. 6B tax return is due to WMI from the IRS (I heard)...
4. Lawsuit against FDIC Could potentially be worth $30-$40B..
5. Lawsuit value against JPM is unknown and potentially could hurt that company tremendously. Need to put this one to bed!
6. WMI is supposed to come out of BK in Mid June. It is now mid May.. Not very far away. Have we seen any restructuring news yet? I think the 20th is a very important date for all parties and you know the priniciples in WMI are just watching the clock and waiting! Go WMI, Weil and Quinn. No Mercy !!
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