Don Fishback

WaMu Buyout: JPM's Analysis Helps Treasury Projections

Common shareholders own the holding company WM. The holding company sold WMB -- Washington Mutual Bank. It's gone. It deal was an asset swap. JPM got the bank in exchange for taking on the toxic loans. As a common shareholder in WM, you have shares in a holding company that owes bondholders a bucket load of money. But the company doesn't have any assets anymore. They gave them all to JPM. So you're out of luck. So are the bondholders.

My biggest concern now is that this doesn't turn into an another breaking of the buck in a money market fund, which could really turn into a nightmare.