Washington Mutual: WAMPQ und WAMKQ.

JPM WManalystpresentation von 09/25/2008.

 

files.shareholder.com/downloads/ONE/416710485x0x236634/b5a3d70a-28ac-4148-8966-71b18408c8c3/JPM_WManalystpresentation.pdf

... wollen die Pref`s denn da auf einmal hin? ;)

Investors suing Washington Mutual Inc., the former owner of the biggest U.S. bank to fail, won certification as a class-action case of their suit alleging shoddy lending practices.

Shareholders who lost money on stock purchased from October 2005 to July 2008 can proceed with claims under a single lawsuit, U.S. District Judge Marsha Pechman in Seattle ruled Tuesday, according to court documents. The judge appointed the New York-based law firm Bernstein Litowitz Berger & Grossmann to lead the plaintiffs' case.

The lawsuit consolidates more than 20 cases filed against Washington Mutual that claim the bank secretly lowered lending standards, artificially inflated home-price appraisals and failed to disclose its deteriorating financial condition when the loans began to fail.

John Wolfe, an attorney representing Washington Mutual defendants, didn't immediately return a voice-mail message seeking comment.

The named plaintiffs in the case include Ontario Teachers' Pension Plan Board, the largest single-profession pension plan in Canada, and four other pension groups, according to court documents.

They seek to represent tens of thousands of shareholders who lost money on three types of preferred stock purchased between October 2005 and July 2008 and certain securities offered by the bank in 2006 and 2007.

The shareholders argued the case should be granted class-action status because their claims are typical of what other investors experienced and are based on common legal issues.

WaMu filed for bankruptcy Sept. 26, 2008, the day after its banking unit was taken over by regulators and sold to JPMorgan Chase for $1.9 billion. Before it failed, Washington Mutual Bank had more than 2,200 branches and $188 billion in deposits.

Pechman ruled Sept. 28 that a separate federal shareholder lawsuit in Seattle claiming the bank misled purchasers of $10.8 billion in mortgage-backed securities could proceed.

Separately, WaMu said Wednesday the Internal Revenue Service has paid it $4.77 billion of an expected tax refund of up to $5.8 billion. A proposed agreement on dividing that money between WaMu, JPMorgan Chase and the FDIC requires approval by various parties to WaMu's bankruptcy case

.seattletimes.nwsource.com/html/businesstechnology/2013154427_wamu14.html

The several years it usually takes--and the attorneys' fees accumulated over those many years--is what often eats up a good percentage of the "per share" settlement any court grants.

Usually the court decision and final settlement notice itself will lay out the total award of the court, and how much is expected to be absorbed by attorneys' fees. The notice indicates that the final amount you receive may vary from the exact amount, because it's dependent on all members of the class returning their paperwork/proofs. It usually includes a line that says if ALL members of the class file their paperwork properly, that you are "expected" to receive $x.xx per share.

This way you can decide whether the amount you'll actually receive warrants filling out all the paperwork.

det

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The Preferreds Will Be The Final Battleground

 

The debtors' have stopped their POR waterfall right above the preferreds. They have attempted recently to insert the Caymans and WMB bondholders as higher priorities above the preferreds but that will not fly in BK court.

In fact their attempt to insert the WMB bondholders above the preferreds indicates to me they know there is too much money in the estate to try and keep preferreds below face value so they used this transparent scheme to divert money from the preferreds.

I have felt for the last 12 months that the battle will come down between the EC and the debtors over how much the preferreds will get paid. If they are made whole and commons are in the money then the debtors are out and equity takes over the company and the litigation.WGM is out and the scumbag allaince of the FDIC, JPM and the vulture hedge funds come squarely into Susman's gunsights.

If the debtors can manage to pay anything less than face for the preferreds then the commons are cancelled and the debtors retain control of the reorganized company. If the commons get even a dime after the preferreds are paid then the EC wins.

Make no mistake about it. This is a high stakes battle not only in terms of financial reward/loss but also in terms of potential criminal charges against those who are currently committing bankruptcy fraud.

It is imperative for Susman and the EC to make sure the preferreds gat paid off 100% because if they do not I am afraid enough of the preferreds are in weak hands that they would approve the debtors POR to cancel commons if they offer even 40% of face.

I personally think that the EC is aware of this and are prepared to counter any attempt by the debtors to do an end run via the prefferred voting block.

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