From Ihub board :

The future of WMB bondholders 3/9 100p With the reported developments in the Texas Action that the case will be more closely defined to be the WMB bondholders versus JPM/FDIC, it might be a good time to shift the WMB bondholders completely out of Delaware so that each case can move forward with greater focus.

As a reminder, the Texas Action is the case which accuses JPM of planting moles and other covert actions to damage Wamu and obtain it cheaply through a conspiracy to use the FDIC-Receivership and defraud stockholders and bondholders of their due. Since that case began, WMI bondholders (important difference from WMB bondholders) -- WMI bondholders have made their recovery of approximately 100% of their investment from the bondmarket on confidence that WMI will manage to repay all debt obligations. WMI is reported to have contacted the stockholders in the Texas Action to request they do not proceed there for an explanation that is not made fully clear to me. I think that it involves a solution for shareholders similar to the bondholders in that the WMI shareholders (WAMUQ, WAMKQ, WAMPQ) will recover their losses from the market when WMI recovers sufficient finances through such means as settlement, litigation, tax refunds, and NOLs.

WMB bondholders joined the WMI bankruptcy on the side of JPM looking to claim some part of the bank deposits making similar allegations as JPM that the deposits were in some way not deposits. So far, WMB bondholders have not pierced the corporate veil between WMB and WMI and it appears that there is no future for WMB bondholders to receive anything in the WMI bankruptcy.

This would be a good time and probably good justification to fully show the WMB bondholders the door in the WMI case in Delaware. Removing them would streamline each case with fewer parties wanting to make submissions and comments on each repetition of FIRREA before the judge added the refrain of "Frivolous". Rating :