Replies to post #13204 on Washington Mutual Preferred fka WAMPQ

[Lawrence 147]

I am not saying they will and I am not saying they won’t. This is a BK stock like no other, It could be part of the settlement. Just depends on how bad JD wants to stay out of jail. There are still a lot of things that can happen in very unexpected ways. I do feel things are about to heat up.

[Billiam_2]

Read the prospectus. The preferred's are in default. They must be paid in cash, full face value or have the divy's caught up and reinstated. If the settlement is a stock swap then the divy's will have to be paid. Much cheaper for JPM to simply pay the divy's and issue new stock than come up with the cash and pay them off. I think the divy's will go to the holder of record at the time of reinstatement.