Replies to post #24652 on Washington Mutual Preferred fka WAMPQ

[steved_45]

Yes b/c commons are subordinate to all other claims. I'm pretty sure JPM assumed all of Bear Stearns pref's but you might want to double check that. I don't know how much "a little money" is to you, but it would make more sense to establish a decent position in the pref's then buy commons as a hedge in case there really is a $20 offer--Which I highly doubt imo.

A lot on the P board think commons will see somewhere between $2-$4 making pref's worth more. But on the U board most posters are talking $15 minimum. I'm pretty sure if JPM had to pay out $50BB they would just declare bankruptcy and this whole saga would be like "The Rainmaker" where no one gets paid. AIMO