Replies to post #29380 on Washington Mutual Preferred fka WAMPQ

[Mik3k]

"TPG did this with their loss on WMI stocks as a write down. In the event WMI stock recovers, TPG write up the assets. (There was a article of some sort)."

Is this true? Then why would WMI need to abandon WMB stock and not just write it down and retain ownership of the shares?

Perhaps a backdoor way to grant the FDIC releases by abandoning the stock rather than writing it down?

[steved_45]

I understand everything you've been saying. The problem is that WMI has to do it on its own in order for anyone to benefit from the tax attributes. If a new ownership change occurs (GS or another outside investor) or the business model changes from the previous entity's, then the NOL's will be lost.

The bank will have to reemerge as a bank and participate in a significantly similar type of trade or business that it participated in the past in order to offset future profits.

To be realistic, the vast majority of people (including the examiner) don't think it will ever be able to earn that type of money again in order to take advantage of all of the NOL's. There's already 37+BB in NOL's. Another 5+BB doesn't really do anything. The new WMI would literally have to start from scratch, hire thousands of employees, and do all this w/o a significant change of ownership. Fat chance of that ever happening.

The conversation started with a GS type entity buying WMI in order to profit from the NOL's. Not legally possible. Way too much pump and wishful thinking going on.