WM -> JPM? When?

August 11, 2010 1:13 PM

Will my shares of Washinton Mutual (WM) stock ever be converted to Chase (JPM)?
posted by Rash to Work & Money (6 answers total)

I found this article.
posted by lee at 1:23 PM on August 11, 2010

Probably not. You can attempt to sell it for whatever it's currently worth, which most people do to just take a capital loss for tax reasons - 'tax loss harvesting.' Eventually it will just disappear from your account.
posted by uaudio at 1:25 PM on August 11, 2010

Best answer: Probably never. WaMu is in bankruptcy (it was siezed and assets given to Chase) and stockholders are pretty much the last to get paid. If you ever do see money, it probably won't be in the form of JPM stock.
posted by birdherder at 1:32 PM on August 11, 2010

Best answer: Nope. JPM didn't buy WAMU equity, just assets.

Some smart investors bought zombie WAMU stock after it filed for bankruptcy because they believe the assets that the FDIC left behind are worth more than the remain liabilities. That was a while ago though, so I don't know if that thesis has run its course or not.

There's a hotline number listed on bankruptcy docket website.
posted by mullacc at 2:09 PM on August 11, 2010

Er...looks like the zombie WAMU thesis has indeed run its course. This press release says that the plan of reorganization contemplates the cancellation of the common stock. Looks like some unsecured creditors and equity holders are objecting to that plan, but it doesn't appear that those "smart" investors I mentioned are among them. Those guys were probably buying the debt for the most part.
posted by mullacc at 2:18 PM on August 11, 2010

Best answer: You got jacked in a big way, and it looks like there's not going to be any justice on this one. Sorry. :(
posted by wierdo at 7:37 PM on August 11, 2010