Replies to post #35259 on Washington Mutual Preferred fka WAMPQ

[Poor_But_Happy]

I actually prefer to be well informed ;-)

What got me interested in this was seeing the P/K PPS ratio trading opposite with what had happened with CIT. I originally thought something weird was going on, but it now makes sense after seeing the "Fundamental change" provision. With CIT, the preferreds with the optional conversion traded higher than the non-convertible preferreds before and during BK. With WAMU, it looks like the market is spooked over this provision.

To go further, it looks like the WAMU prospectus is horribly written, especially the fundamental change section. Who has the option to convert? Is it mandatory? What happens to the shares if the shares are not converted?

Here is a comparison to a better written prospectus (citi) that discusses the fundamental change in detail:
http://www.wikinvest.com/stock/Citigroup_%28C%29/Conversion_Fundamental_Change

But someone mentioned that it was already decided by the judge. Was it ruled that this fundamental change provision is inconsequential?