When we talk about a PPS of 4 for the Q's we are assuming that at current prices, all preferred shares will be paid in full, and the ROI would be equal for everybody regardless of the risk that has been taken please look on the right side.
So, would Susman be happy under this situation?
On a different perceptive, back in 2008, JPM offered 8PPS or 7B$ After that, TPG came in with 7.5B$ taking the number of shares to 1.75B. So to equate the equation JPM should put at least 14.5B$ or 8.3$/sh.
Base on the MOR, and knowing the deficiencies is currently showing, we have at least 4.6B$ more in Tax return and a substantial Carry forward. We assume to have 1B$ in claims against WMI.
With this said, and assuming Cayman has NOT to be paid, we are in 7.44PPS. But someone has to pay Cayman, and assume for one moment WMI will have to do it so the PPS will fall to 5.1$.
In addition, I strongly believe that FDIC and JPM did something wrong. (value?) Also to consider is the WMB value of assets size, cash on hand we are forgetting about, etc.
So the question is what figure would be a compromise for all the parties to exit this mess?
If OTC, Treasury and so the Gov is in the mess, paying +/- 20B$ would not be the end of the world for them, and I believe that JPM is trying that way. It happens that it is not so easy to force the decision.
With this said, and getting 20B$, rather than 14.5B$ mentioned above, we would be back to a Q's PPS of 8.3, a number that I believe Susman would agree upon.
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