Its not a smoking screen or shield from class action from own shareholders.
If this board is right with all its DD, then there will be a class action from its own shareholders. If lehman hits b4 wamu, then there may not be enough money to cover both. They can cover one, NOT two cases of these size. JPM may need to go into BK or partner with TDBANK, not a US bank due to concentration issues. No US bank can save it! Thanks, FINREG. I wrote this long ago, west coast will go to TDBANK, JPM cant handle the legal liabilities from its own actions during 2008.
Soon, real soon, I dont know when. We will get more info on 12/1 from the FED on its loans- loans to other central banks. The Bear Stearns loan will mature and JPM will need to finance that transaction on its own without Government money. They have never given a date on this, but it cant be forever! Their shareholders will take a massive dilution on completion of the $25 billion new paper. They wont be happy.
Then combine Lehman claims and WaMu claims...JPM is finished.
The one good thing WaMuer have going for us. The Examiner report will happen before lehman and before the loan comes due.
JPM Class action absolutely! Shields: none exist.....
On a side note: Congress may use JPM as "a see we didnt save it, NO bailout."
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