WAMUQ -- Your Guide to Early Retirement

[bobmarley]

Anyone's thoughts on what they think (not hope) will transpire at Thursday's hearing?

I'm of the opinion that the SJ will be denied on the basis of the presence of a "material fact" and the gigantic amount of money at issue. The matter will be racked for a trial to take place in February or early May, in order to adjudicate the matter in time to formulate the plan (which is due by March 28th). I certainly think that Weil will win at that point. This would probably not be a bad outcome, as it will subdue the PPS, giving everyone more opportunities to buy at great prices.

I also think that the judge will deny the motion to disband the EC, and even more importantly, deny any attempt to muzzle it with a $250,000 fee cap. I don't think, however, that such rulings would affect the PPS, so again, we'd all have more buying opportunities at reasonable prices for the next month or two.

Happy to hear anyone's thoughts on the matters.

Jah Guide
Bob Marley

 

[bobmarley]

A correction my Brudren. My post above says "May". It should read "March".

Also, could a newbie like me please have someone explain why the 41 million naked shorts are such a big deal in this play? The debtor has over 1.8 billion share O/S. Why does a mere 41 million naked shorts cause such discussion on the various boards? I could understand it if the PPS was $35.00, but .167? Big deal.

What am I missing please?

Thanks

 

[plowboy]

What is this I see -- that they are going to have courrt at 10:30 am on Friday. Two back to back court dates, Thrusday and Friday. Could this be the beginning of the end? I would like to have someones opinion. Thanks

 

[PeterGriffin]

The motion to disband the EC was denied, which is obviously good news for people holding WAMU stock. I may be in the minority, but I don't think that ruling is going to create a price spike tomorrow. If it does, I think it would be a perfect time to take some profits off the table as this case could go on for a very long time.

 

[UltF]

http://www.reuters.com/article/idUSWEN928720100128?type=marketsNews

Judge won't disband WaMu equity committee
Thu Jan 28, 2010 5:45pm EST

Stocks

Washington Mutual, Inc.
WAMUQ.PK
$0.17
-0.00-1.69%
1:59pm CST

WILMINGTON, Del., Jan 28 (Reuters) - A bankruptcy judge on Thursday denied a request by Washington Mutual Inc (WAMUQ.PK) to disband a committee to represent shareholders in the case.

Judge Mary Walrath also denied a request to cap the committee's expenses, which are paid by the company, at $250,000. (Reporting by Tom Hals; editing by Carol Bishopric)

 

[UltF]

Reuters: UPDATE 2-WaMu shareholders get their voice in bankruptcy
www.reuters.com/article/idUSN2813570420100129?type=marketsNews

Shareholders to get unified role in bankruptcy

* Culminates year-long campaign by shareholders

(Adds judge refuses to expand investigation against JPMorgan)

By Tom Hals

WILMINGTON, Del, Jan 28 (Reuters) - Shareholders of Washington Mutual Inc (WAMUQ.PK) will have a voice in the company's bankruptcy after a judge refused on Thursday to disband their committee, which Washington Mutual said would complicate the case.

The U.S. Trustee, who plays an oversight role in bankruptcy, appointed the committee earlier this month after being petitioned by 3,500 shareholders. The company immediately asked the court to disband it.

The committee will be able to speak with a unified voice and hire professionals, who would be paid by the company.

Washington Mutual has said since it filed for bankruptcy in 2008 that it is hopelessly insolvent, and therefore there is no need for an official committees of shareholders.

"Evidence that debt and equity are still trading ... establishes that at least the market thinks the debt is not hopelessly insolvent," said Judge Mary Walrath.

She also denied a request to cap the committee's expenses at $250,000.

Much of the value of the company depends on the outcome of various legal disputes surrounding the government's seizure of the company's banking operations during the depth of the financial crisis in 2008.

Brian Rosen of Weil, Gotshal & Manges, which represents Washington Mutual, said there was little need for an equity committee until the outstanding lawsuits are settled. "That's when the equity committee should come into being."

Gregory Cross of Venable, which represents the equity committee, pointed out that the additional cost for the equity committee would be minimal for the company, which already pays for the work of 19 sets of professionals. "But one more is the straw that breaks the camels back?"

The hearing attracted an overflow crowd, drawing shareholders -- from as far away as California and Seattle, where Washington Mutual is based -- who have organized themselves over the past year through message boards and websites.

"There's no settlement or outcome that will have validity for the people in this courtroom, or the 3,500 who wrote to the Trustee, without a committee," said Cross.

Walrath also denied a request by Washington Mutual to expand an investigation of claims it may have against JPMorgan & Co (JPM.N).

The company wanted to subpoena the Federal Deposit Insurance Corp, the Securities and Exchange Commission, Standard & Poor's rating agency and several others for information regarding the events leading to the seizure of Washington Mutual's banking operations.

Walrath has already compelled JPMorgan, which bought the seized bank for $1.9 billion, to provide documents.

"Issuing subpoenas against dozens of other parties just goes too far," she said.

A separate agenda item about the return of a deposit was postponed to Feb. 5.

The case is In re Washington Mutual Inc, U.S. , District of Delaware, No. 08-12229.

(Reporting by Tom Hals; Editing by Phil Berlowitz)

 

[DeathEatsaCracker]

Sell this rally?

 

[UltF]

I don't know haha last time when WAMPQ rallied from 27 to 34 I sold and the next day it went to 110. I bought back in at 82 and don't want the same thing to happen. I'll let you know if I sell so you can load up for a huge run lol

 

[UltF]

Possible big news regarding WAHUQ
(Which I sold at 7.50 before it went to 24 in the next 3 weeks lol)

http://www.kccllc.net/documents/0812229/0812229100128000000000011.pdf

Some are claiming this means WAHUQ will without a doubt be paid 33 and change AND back dividends of .67 or so per share per quarter. There were no trades in first hour so I thought halt... but then trades started going through and I bought 50 something shares at 24.50 (ask). The document doesn't state it in plain enough words to satisfy me, so it may just be an official agreement on what the price will be IF there is money.

 

[kuwlness]

Sell this rally?

US Markets are in a sell all rallies attitude. I flipped some around .206, re-bought at .196 ... seems to be holding up well.

Dont even know what the big pop was about today, I dont follow the story closely enough, too distracted with other things. Just know one of these days I'm gonna wake up and wonder why my account grew immensely. Then I'll know a settlement happened.

@)

 

[DeathEatsaCracker]

I'm up 27% since I bought it. I think I'll sell half and wait for it to go back down.

 

[kuwlness]

I'm up 27% since I bought it. I think I'll sell half and wait for it to go back down.

27%, not bad. Im up 100% in my core position from .10, but I've flipped my trading shares so many times, thru good and bad, I dont know what my profits are anymore.

In it to win it or lose it all.

 

[snoop]

Bankruptcy judge rejects WaMu subpoena request

Delaware bankruptcy judge rejects request from WaMu for document subpoenas




WILMINGTON, Del. (AP) -- A Delaware bankruptcy judge on Thursday denied <ygg:entity ref="#uvOl0HT73BGcQT93XWfsEA" id="t3">Washington Mutual</ygg:entity> Inc.'s request to force government regulators and others to turn over documents related to the 2008 collapse of <ygg:entity ref="#uvOl0HT73BGcQT93XWfsEA" id="t4">Washington Mutual</ygg:entity> Bank.


<!-- Article Related Media --> In a court filing last month, the bank holding company asked the court to direct the handing over of documents and the examination of witnesses from a host of regulatory bodies, ratings agencies, banks and other entities.
Some, including the <ygg:entity ref="#xtR5JNw43RGue9xXXWfsEA" id="t5">Federal Reserve</ygg:entity> and Treasury Department, agreed to turn over at least some records, but the Federal Deposit Insurance Corp. objected to WaMu's request.


The FDIC seized <ygg:entity ref="#uvOl0HT73BGcQT93XWfsEA" id="t6">Washington Mutual</ygg:entity> bank, a Seattle-based savings and loan with about $307 billion in assets, in <ygg:entity ref="#uD0_t9Cf3RGxu_yv6g9BMg" id="t7">September</ygg:entity> 2008. It then sold it to <ygg:entity ref="#RttB0HT73BGcQT93XWfsEA" id="t8">JPMorgan Chase</ygg:entity> & Co. for $1.9 billion, a price that <ygg:entity ref="#uvOl0HT73BGcQT93XWfsEA" id="t9">Washington Mutual</ygg:entity> claims was much too low.


<ygg:entity ref="#uvOl0HT73BGcQT93XWfsEA" id="t10">Washington Mutual</ygg:entity> sought the records as part of an effort to investigate potential business tort claims based on alleged misconduct by <ygg:entity ref="#RttB0HT73BGcQT93XWfsEA" id="t11">JPMorgan Chase</ygg:entity>. <ygg:entity ref="#uvOl0HT73BGcQT93XWfsEA" id="t12">Washington Mutual</ygg:entity> stakeholders allege in a Texas lawsuit that JPMorgan engineered a plan to damage <ygg:entity ref="#uvOl0HT73BGcQT93XWfsEA" id="t13">Washington Mutual</ygg:entity>'s banking subsidiaries so it could buy them on the cheap.


<ygg:entity ref="#uvOl0HT73BGcQT93XWfsEA" id="t14">Washington Mutual</ygg:entity> and JPMorgan now are battling over billions of dollars in disputed deposit assets, with both of them claiming ownership. A separate lawsuit filed by <ygg:entity ref="#uvOl0HT73BGcQT93XWfsEA" id="t15">Washington Mutual</ygg:entity> against the FDIC is on hold in federal court in Washington, D.C.


Last year, Delaware bankruptcy judge Mary Walrath allowed <ygg:entity ref="#uvOl0HT73BGcQT93XWfsEA" id="t16">Washington Mutual</ygg:entity> to examine records of JPMorgan, but she ruled Thursday that the company had not met its burden of showing that subpoenas for third-party records and witnesses were warranted.


"Quite frankly, I think issuing subpoenas against dozens of third parties just goes too far," Walrath said.


The judge also suggested that <ygg:entity ref="#uvOl0HT73BGcQT93XWfsEA" id="t17">Washington Mutual</ygg:entity> was trying "an end run" around discovery rules to get documents from the FDIC that might bolster its claims in the Washington, D.C. lawsuit. That lawsuit argues among other things that if WaMu's assets had been liquidated properly by the FDIC in receivership, they would have been worth more than $1.9 billion.


In another ruling Thursday, Walrath denied <ygg:entity ref="#uvOl0HT73BGcQT93XWfsEA" id="t18">Washington Mutual</ygg:entity>'s request to disband a committee of equity security holders that was appointed by the U.S. trustee in the case.


Attorneys for <ygg:entity ref="#uvOl0HT73BGcQT93XWfsEA" id="t19">Washington Mutual</ygg:entity> and its committee of unsecured creditors argued that they were adequately representing the interests of the equity holders. They said the equity committee was unnecessary and would add nothing to litigation efforts aimed at maximizing the value of the bankruptcy estate.


But Walrath said there was no evidence to suggest that the trustee abused her discretion or acted improperly in appointing the equity holders committee, which consists mostly of holders of preferred stock.


Walrath also said the fact that <ygg:entity ref="#uvOl0HT73BGcQT93XWfsEA" id="t20">Washington Mutual</ygg:entity>'s debt and equity is still being traded suggests that the market does not believe WaMu is "hopelessly insolvent."


"I think that at this point, it is appropriate to have the equity represented in this case," she said.

 

[kuwlness]

I havent been following the story as closely as I used to, but after watching L2 late in the day I knew something was up and added another 20k at .206 at the end of the day. Might gap and run tomorrow, I have no idea what's fueling this rally other than the upcoming court dates.

I've also heard the EC is supposed to be confirmed on Friday. Anyone else following this more closely that can update the board with a brief run-down so we dont have to scour the i-hub mess? Plz & Thx

 

[guitarjosh]

EC was approved Friday. This Friday is about the 4 billion.

 

[kuwlness]

Nice slow climb here, not flipping any more until I get a better idea of why all the volume and lack of selling over the last few days.

 

[tunit213]

Check out this video guys, pretty interesting http://www.youtube.com/watch?v=IeXtCiU2IeA.

I think its a combo of what is going on in court, and the technical side of the chart, seemed to be a big resistance at .215. Big day this Friday.

 

[PeterGriffin]

This stock cracks me up. I didn't expect a huge spike after the EC was approved, but I thought it would go up more than a penny. I was wrong. Now a few days later it's up 4 cents? This stock never goes up leading up to a court date (at least not in the last few months). Maybe somebody knows something?

 

[tunit213]

I agree with you, can never get it right. Its because things need to get done before the March 30th deadline. If they dont settle before then it looks like they will go to trial. Interesting stuff.

 

[kuwlness]

WaMuuuuuuuuuuuuu @)