WAMUQ -- Your Guide to Early Retirement

[kuwlness]

A possible outcome from someone that's close with BK cases:


"Ok, you heard it here first...

JPM is trying every possible thing to stall this to get things in their favor (change of venue, more stalling, favorable Judge).

This will continue to rise the rest of the week to around $0.95 where it will meet stiff resistance. The $1.00 mark is probably going to be a serious psychological mark with everyone wondering how a bk co can be worth $1.7 billion +!

JPM/WMI probably already have an agreement in place so long as things don't go in JPM's favor the next few days. I believe there is already a settlement "in case" WMI gets the $4.4 billion & JPM is denied appeal. I think we will find this out Friday when The Honorable Judge Waldrath finds for WMI in the $4.4 billion & also tax refunds due. Not sure if we will hear from Judge Sleet prior to this, but...

JPM/WMI will then announce in court after a brief recess that they have come to terms for JPM to buy the whole of WMI for full face + back dividends for preferreds to be converted to JPM preferreds and 3 to 1 on the commons. I believe the FDIC will throw in $15 billion in cash to JPM in regards of any help with future losses.

There you go... This is my opinion of how it will turn around & I am definately ready to see my account grow!"



He had previously said this:

"JPM offering a 90 day restricted 3:1 swap for WamuQ's and converting P's, K's, Notes/Bonds to JPM.

FDIC in return providing a kickback of $15 billion to JPM for the losses they will substain due to "Wamu's horrible lending practices" of which we really know they weren't much worse than anyone else!

WamuQ's get $15/share while preferreds and notes/bonds go to JPM. This will allow JPM to keep the $4.4 billion cash, give them an extra $15 billion from the FDIC, and everyone will be happy but the honest taxpayers footing the bill, of which isn't it always that way?

This way, the FDIC helped JPM get the banks they wanted, the assets they wanted, minus the liabilities they didn't want. JPM got clean pick of their takings, WamuQ shareholders that stuck it out or bought in will be happy, and the FDIC will take the biggest hit."

 

[guitarjosh]

So what do you think the odds are of this going JPM's way?

 

[kuwlness]

So what do you think the odds are of this going JPM's way?

The return of the $4B in deposits JPIG stole from WaMu: 100%


WaMu lawyers winning a settlement: 80-90%


Get the popcorn @) and make sure you're on the right side of the fan when the sh!t finally hits. It's gonna get exciting. : )

 

[lax_gunman]

Morning fellas, let's see what today has to offer. If anyone finds anymore articles or media coverage show all plz. Today can't be as good as yest can it?

 

[AndOne]

Judging from WMI.F in Frankfurt barring some developing news coming out todaythat WAMUQ might come down a bit today. Hopefully it doesn't follow suit but at least if it does the people who sold some off yesterday might have a reentry point today. Lets see what happens!

 

[kuwlness]

Judging from WMI.F in Frankfurt barring some developing news coming out todaythat WAMUQ might come down a bit today. Hopefully it doesn't follow suit but at least if it does the people who sold some off yesterday might have a reentry point today. Lets see what happens!

Getting sold down on light-medium volume, but I'm seeing some major buys coming in 400k+ buys, so that's good. Not worried about near-term PPS fluctuation, especially if the big boys are coming out to play, you gotta expect more manipulation when they're around. Just dont get caught with stop losses and buy on the dip, I am.

 

[FadeMeToWin]

FDIC Appeal

From a friend:

By Hilary Russ
Law360, New York (September 21, 2009) -- The Federal Deposit Insurance
Corp. has filed an appeal brief over a bankruptcy court's denial of
motions to stay or dismiss two adversary cases in Washington Mutual
Inc.'s Chapter 11 proceedings, seeking a determination on whether the
bankruptcy court overstepped its bounds. <?xml:namespace prefix = o ns = "urn:schemas-microsoft-comfficeffice" /><o></o>
As the receiver in WaMu's Chapter 11, the FDIC on Friday filed its
brief in the U.S. District Court for the District of Delaware, arguing
that the bankruptcy court should not have denied two motions to stay
or dismiss the adversary proceedings. <o></o>
In June, the FDIC and JPMorgan Chase NA fired back against WaMu in
their feud over which court should hear the adversary proceedings,
which concern the control of assets that include $4 billion in demand
deposits. <o></o>
JPMorgan and the FDIC claimed that a district court should have
jurisdiction over the adversary cases because substantial questions of
federal law exist in the conflicts. <o></o>
Citing questions raised under the Financial Institutions Reform,
Recovery and Enforcement Act, which governs failed banking
institutions, JPMorgan asked the bankruptcy court to either withdraw
the cases to the U.S. District Court for the District of Delaware or
transfer them to the U.S. District Court for the <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-comffice:smarttags" /><st1:State><st1lace>District of Columbia</st1lace></st1:State>,
where WaMu has launched a suit against the FDIC. <o></o>
“Granting permissive withdrawal and a subsequent motion to transfer is
the only manner in which the intertwined issues in the adversary
proceedings and the D.C. action can be adjudicated uniformly and
comprehensively without the risk of conflicting determinations,” the
memorandum said. <o></o>
WaMu argued that denying the FDIC's motions would help to expedite the
bankruptcy process, with the debtor and its creditors “badly in need
of their cash deposits” to formulate a viable Chapter 11 restructuring
plan. <o></o>
JPMorgan launched the first adversary case at issue on March 24,
seeking a declaration that it is the rightful owner of certain WaMu
assets, including $4 billion in core capital, $3.7 billion in deposit
credit and $234 million in tax benefits, as well as intellectual
property, Visa Inc. shares and employee benefit funds. That suit named
the FDIC as an interpleader defendant. <o></o>
WaMu fired back on April 27 with an adversary proceeding of its own,
seeking $4 billion in cash held in the deposit accounts of subsidiary
Washington Mutual Bank at the time the bank was seized and sold by the
FDIC to JPMorgan for $1.9 billion. <o></o>
In its appeal, the FDIC presents two main questions it wants resolved
by the district court. <o></o>
First, whether the bankruptcy court erred in asserting that it had
jurisdiction in the adversary cases, according to the brief. <o></o>
Second, whether the bankruptcy court was wrong to let the adversary
cases proceed “despite the pendency of an earlier-filed district court
action in which the debtors raised substantially identical claims
against the FDIC-receiver,” the brief said. <o></o>
If the appeals aren't certified for direct appeal to the U.S. Court of
Appeals for the Third Circuit, the orders from the bankruptcy court
should be reversed and the adversary cases should be dismissed for
lack of jurisdiction or stayed until WaMu's case against the FDIC is
resolved, the brief said. <o></o>
WaMu sued the FDIC in late March in an attempt to recover $6.5 million
in capital contributions, $4 billion in preferred securities and $3
billion in tax refunds related to the $1.9 billion sale. <o></o>
The financial giant filed for Chapter 11 on <st1:date Month="9" Day="26" Year="2008">Sept. 26, 2008</st1:date>, citing
approximately $33 billion in total assets and $8.2 billion in debts. <o></o>
WaMu is represented by Elliott Greenleaf and Quinn Emanuel Urquhart
Oliver & Hedges LLP. <o></o>
The FDIC is represented by Young Conaway Stargatt & Taylor LLP. <o></o>
JPMorgan is represented by Landis Rath & Cobb LLP and Sullivan &
Cromwell LLP. <o></o>
The appeal is Federal Deposit Insurance Corp. v. Washington Mutual
Inc., case number <st1:time Hour="13" Minute="9">1:09</st1:time>-cv-00616-GMS, in the U.S. District Court for
the District of Delaware. <o></o>
The bankruptcy case is In re: Washington Mutual Inc., case number
08-12229, in the U.S. Bankruptcy Court for the District of Delaware. <o></o>

 

[kuwlness]

More Food for Thought - from Y board

"JPM Grasping at Straws... 22-Sep-09 08:31 am
Last Friday, JPM filed its "Notice of Divestiture Pending Appeals" in each of the adversary proceedings.

http://www.kccllc.net/documents/0812229/...

The notice provides arguments that are so strained that they might actually be bumping the stock price since their smell of desperation seems incompatible with a major banking institution like JPM unless...they were truly desperate. Page after page of JPM lawyers insisting that bankruptcy court no longer has jurisdiction over the case because JPM doesn't like the court's decisions and wants another court to decide. The most significant part is on pdf p10 (doc p8): "FIRREA provides an exclusive insolvency regime for bank failures. Congress drafted FIRREA expressly to divest all courts, except for two specified under the statute, of jurisdiction to hear claims relating to the assets of failed banks for the actions of receivers for failed banks."

The problem here, for JPM, is that neither the assets of any failed bank nor the actions of any receiver are at issue. No, JPM, the issues concern the assets of Washington Mutual Inc., the "debtor", and in case you are unaware, Washington Mutual Inc is not, and never was, a "bank."



And from a former "Bankruptcy Lawyer" (might be, but then again, it is the internet lol):

"I read JPM's answer to WMI's claims, and just wanted to point out that JPM's defense (theory) is that WMI holds the trademark as a constructive trust for JPM. A constructive trust is an equitable rememby to compel a person who unfairly holds a property interest to convey such interest to the rightful owner. WMI owns the trademarks, patents, etc, outright and there is nothing unfair about holding on to it. So in other words JPM has no defense and WMI will prevail on their claims for billions for infringement."

 

[OnWisconsin]

what do you make of the drop today? typical profit taking from yesterday? looking to get back in, but will probably hold off until tomorrow....

 

[kuwlness]

what do you make of the drop today? typical profit taking from yesterday? looking to get back in, but will probably hold off until tomorrow....

I think it's profit taking from the day traders that either got in Friday or early Monday. It went up 7 days in a row I believe, maybe more, and I think yesterday's run of 60% was a little overdone.

I added earlier in the low .33s, and will add in the mid-.32s if it goes that low. .32 seems to be strong support. But regardless, all of these shares are cheap to me since I believe we'll be seeing dollars soon.

 

[OnWisconsin]

yeah, you're right, it's bounced nicely off .32 twice today....

 

[cashgrinder]

seems hard to explain this big of a drop this close to the year Anniv. Serious manipulation going on. Could be manipulation ahead of a settlement to get people to sell or could be just a bogus run up yesterday. who knows. Guess only time will tell.

in for the long haul..

 

[SpreadDestroyerr]

There will NEVER be any justice against JPM or GS. Their tentacles run way too deep. They ARE the govt. They along with BCS run the show worldwide and are flat out untouchable! Good luck!

 

[kuwlness]

We bounced off the 200-day SMA and moved up quickly. .25 was the must-hold support level, and honestly, the only real support level we had. Hope everyone held strong and didn't get shaken out ... back up to high .28s now.

 

[AndOne]

My hunch is that it will work its way back up to .325 before close. We'll see.

 

[kuwlness]

Today's action is the result of too many day traders making a quick profit. I'm in it for one thing, either a court decision or settlement. This daily up and down is meaningless. As quickly as it went to .40, it can go down to .20 and back up again. But that is irrelevant to those who are holding for a settlement, you just have to ignore the PPS fluctuations like I've said countless times.


We close over .30 IMHO

 

[brembo]

I only wish some of my earlier trades had settled today... I would have loved to have purchased more down at .25-.26! This has been an awesome ride

 

[guitarjosh]

Bought 11,000 shares @ .27 today...

 

[brembo]

Bought 11,000 shares @ .27 today...

Nice pick-up! I ran out of funding around .303... once I saw it dip down to .25, I slumped in my seat a bit. It didn't last very long though... I'm in this until that gavel drops @)

 

[AndOne]

Looks like I was way off. Oh well. Let's get to Friday and see what happens.