Replies to post #29384 on Washington Mutual Preferred fka WAMPQ

[Bluzie2]

In theory, if there was a merger between WMI and another bank, with 50% ownership by WMI's current shareholders and debtors, then the NOLs could be preserved. The reality is probably a good bit more complicated than that, though. Certainly no way just to buy NOLs.

[marayatano]

I understand what you are saying about the change in ownership, but another entity can take over the ENTIRE newly emerged WMI entity and utilize the carry forwards and NOLs.

Also, the re-organized entity was alleged to be in the re-insurance business, not banking.

remember, the new entity will not have to pay taxes for about 20 years forward. That money that was suppose to be directed to the IRS, belong to the first line in equity, preferreds.

If there was not carry forwards/NOLs, the money would have gone to the IRS.

imo