Replies to post #20200 on Washington Mutual Preferred fka WAMPQ

[rockie101]

mordicai...call the judge and put a little bug in her ear...lol

Do you think she doesn't see the points you just made ?

[HROLLER]

When she made her decision, she did mention the class action suit, in which the WMBNH pointed out, that states that executives were making false and misleading statements when a statement was released showing that Wamu was well capitalized and had plenty of liquidity before the seizure. We all know Wamu was well capitalized and had plenty of liquidity. So basically she didn't want the WMBNH to get screwed because of the actions taken by the FDIC and JPM. This pressures JPM and the FDIC to make a settlement that includes all parties or else she will have a hearing if Wamu was solvent and liquid and rule. As for equity, our EC will be determining the value of the assets that were fraudulently conveyed. This will be a win, win for all parties involved.

[seth06]

You know more than I that's for sure, but my take on it is that she had no alternative as by being a "security" by definition they did have a legal claim if and only if the FDIC did not exercise their right first to make the claim, which would not be in their best interest IMO, therefore hjmw had to leave the door open for them regardless if the claim has any chance of success, which imo has no chance. All in all I would say the box was just made smaller that circles the FDIC and jpm with their own maneuvers...great day for wamu shareholders...aimo

[rainbow1111]

But didn't WMI know in advance that seizure was coming evidenced by the nearly instantaneous (next day) filing of the bankrutcy petition? It seems to me that it would take some time to prepare the petition. Or, they had it on the shelf "just in case"?

The timing of the bankruptcy petition just one day after seizure always puzzled me. Thoughts?

[rramirez82]

Not necessarily. As you already know, this is a court of equity, not a court of law - and accordingly, Judge Walrath's decision to spare the bondholders might be a classic case of judicial posturing. By refusing to dismiss the bondholders' claims, WMI is forced to show that it was solvent, well-capitalized, and wrongfully seized - thereby throwing the FDIC and JPM under the bus and theoretically bringing them closer to a serious settlement.

I hope this encourages the parties to speed up any/all negotiations as it will only get worse for JPM/FDIC from here - especially if and when the Judge grants the EC's motion for summary judgment and allows us to have our shareholder meeting.