With respect to your theory, I know for a fact that IRS rules and regulations attribute stock ownership of a child to a parent and a subsidiary to a parent corporation, and I am almost certain the sec has such rules as well. So I don't think JPM will buy up the stock directly before any announcement to buy out the holding company. My theory is this. JPM's desire to settle is partly motivated by the necessity to make amends or make whole the stockholders of WMI who also were/are/will be customers of JPM whether it be Bill Gates, the chinese, hedge funds, old money, etc. Those that need to be compensated have been advised to acquire the stock at bargain prices with a gentlemans understanding that it will be sold to JPM in the future at a cerain price. If necessary the fed, which is authorized to intervene in the markets and is never audited, may be utilized to acquire some of the parent holding company shares. WHen the deal is announced it looks like JPM is once again the "savior" to correct an injustice, and pay fair market value, but in the end JPM will have ended up with WMI for just the cost to appease its friends and customers and perhaps members of congress who vote for an fdic appropriation. Those of us who hold tightly will be paid $12 plus, but most of the shares will be acquired on the sly for much less imho.