Asset sale - very common in bankruptcy. It is called purchasing the assets, but not obs, of a company. The lawsuit will go nowhere. They have no leg to stand on in this kind of structure
True, I hate class action lawsuits, but WM is not receiving the proceeds from the purchase, as far as it looks right now.
The house of Morgan has always been a powerhouse - that's the only reason they are able to do what they are doing now. Still long Morgan.
Have I been living under a rock????? A clip from the OTS web-site released tonight: "Pressure on WaMu intensified in the last three months as market conditions worsened. An outflow of deposits began on September 15, 2008, totaling $16.7 billion. With insufficient liquidity to meet its obligations, WaMu was in an unsafe and unsound condition to transact business. The OTS closed the institution and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. The FDIC held the bidding process that resulted in the acquisition by JPMorgan Chase." http://www.ots.treas.gov/?p=PressReleases&ContentRecord_id=9c306c81-1e0b-8562-eb0c-fed5429a3a56 I feel like an idiot for asking, but when the the OTS close WAMU and appoint FDIC receiver? Then hold a bidding process? Tonight? :eek:
JPM said on the conference call that they had lots of time to look over everything. The rumors of a WaMu deal have been rampant for some time - I suspect OTS/FDIC didn't pull the trigger on the actual receivership until the last moment, and let the look-over process start well in advance with the understanding of all parties that the company was Dead Man Walking.
JPM is more than happy to step on some necks. as I recall WM solicited bids a few weeks ago but received none.
That's what I assumed, but what I guess I can't swallow, is that they had the books open that much, and WAMU was at this point and no one knew outside their doors. Seems hard to understand how that isn't disclosed. All the talk that the "bail out" had them waiting to see what it wound mean and if it would give them another breath to breathe. Then again, I know there's a lot more for me to learn than what I know. It could be a lot worse in that I had a relatively small position of only 700 shares. The down side is I shouldn't have held it in the account that I did. It should have been in another account that can take the hit much easier. That's my fault.