JPMorgan Wamu Deal

cszulc · Sep 25, 2008

THIS DEAL IS ABSOLUTELY BULLSHIT!

JPMorgan gets its hands on all assets, branches, deposit bases for a mere reported $1 billion and equity and debtholders GET NOTHING???? This is what CNBC is reporting (Faber).

I believe there will be a WM-shareholder-led huge class action lawsuit against JPMorgan right now. Although I am not a WM shareholder (or JPM), this absolutely bullshit of JPMorgan always gets the best of everything including BSC at low price, WM at ZERO, who knows whats next??? I'd rather see the Fed takeover Wamu and make it into a nation-run bank.

newguy05 · Sep 25, 2008

it's fdic's decision to pass wamu to jpm.

have fun sueing the feds....

aeliodon · Sep 25, 2008

Japan already tried this - big banks with shit assets buying small banks with shit assets - everyone in denial.

forsalenyc · Sep 25, 2008

what exactly is a FDIC seizure? Where does that $1B go? I thought bond holders > preferred stocks > common stock holders get paid in that order. if none of these guys get their money, where does that $1B go?

cszulc · Sep 25, 2008

Quote from forsalenyc:

what exactly is a FDIC seizure? Where does that $1B go? I thought bond holders > preferred stocks > common stock holders get paid in that order. if none of these guys get their money, where does that $1B go?

FDIC insurance fund maybe??

Random.Capital · Sep 25, 2008

Quote from cszulc:
debtholders GET NOTHING????

That cannot be true. You can't wipe out debtholders without going through bankruptcy. Well, if you're the government you can do anything, but such an action would bring instant lawsuits.

The conf call starts in ~10 minutes, actual details should be pouring out shortly.

JRworldwide · Sep 25, 2008

Does the deal and the Bear Sterns deal make JPM a complete powerhouse going forward (whenever the mess starts to clear)?

It seems JP has done a amazing job at scooping up assets & deposits on the real cheap.

abducens · Sep 25, 2008

Was jpm forced to take wm or did they just lay in wait till the fdic grabbed it?

poyayan · Sep 25, 2008

No one see this?

This is a replay of Japan and JPMorgan Chase is betting all or nothing.

If there is a bailout, it will be one of the few surviving banks left and become a big winner.

If there is no bailout, with or without WM will not change the fact the JPMorgan Chase is fu*ked.

Trad'nUp · Sep 25, 2008

Quote from abducens:

Was jpm forced to take wm or did they just lay in wait till the fdic grabbed it?

It sounds like it was an orchestrated deal with the feds pulling things together. I could be wrong.

This sucks like nothing I've ever seen......