- Sep
- 29
- 2008
- 9:15 AM
WaMu Suspended; Rule 48 in Effect
- By: Ray Pellecchia
- File Under: NYSE
This NYSE Regulation press release announces that we're suspending WaMu common stock and two preferred issues. Sorry we said on Friday that we would open WaMu for one trade that day; we spoke too soon. The press release explains:
NYSE Regulation determined that these securities are no longer suitable for trading in light of the September 25, 2008 news announcements regarding the fact that JP Morgan Chase & Co. has acquired all the deposits, assets, and certain liabilities of the Company’s banking operations in a transaction facilitated by the Federal Deposit Insurance Corporation (FDIC), effective immediately. Excluded from the transaction are the senior unsecured debt, subordinated debt and preferred stock of the Company’s banks. In making its determination,
NYSE Regulation also considered the substantial reduction in the scope of the Company’s operations as a result of this transaction and the uncertainty regarding its effect on the Company’s equityholders.
In addition, NYSE Regulation also noted the Company’s subsequent filing for Chapter 11 protection in the US Bankruptcy Court in Wilmington, Delaware.
Lastly, NYSE Regulation considered the abnormally low price of the Company’s common stock in pre-market trading on September 26, 2008, with trades as low as $0.15 prior to the regulatory trading halt in the Company’s securities at the NYSE market open.
Separately, Rule 48 will be in effect again today on NYSE, meaning that pre-opening indications are not required.
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Comments
Halting trading is a serious interference in the free market. A temporary halt to disseminate information is fair and reasonable. An extended halt borders on bad faith. Wamu should begin trading again - if not on NYSE then OTC. Continuation of a "no trade" period hurts eveyone's confidence in capital markets.
by Michael Blair on September 29, 2008 10:12 AM
Michael -- Friday's halt was unusual in it length, but further clarification was needed as to the company's suitability for continued listing. Now that the review is complete and the issues are suspended, the issues indeed can be traded over-the-counter. Thanks for writing.
by Ray Pellecchia on September 29, 2008 10:29 AM
What happens to the investors who own stocks in WaMU...do they get wipped out completely or itis poosible to get back some of the money which was invested in WaMu.
by Concerned Investor on September 29, 2008 2:02 PM
CI -- It is possible that the shares might continue to trade on an over-the-counter basis, but I don't have further information beyond our press release.
by Ray Pellecchia on September 29, 2008 2:38 PM
Is this the time to buy if you have money that can be invested for 12 months?
by Misty on September 29, 2008 5:00 PM
Misty -- As a matter of policy, NYSE doesn't give investment advice. It wouldn't be appropriate for the company that operates the market to make such recommendations. My only suggestion is to seek guidance from a trusted investment advisor. Thanks for writing.
by Ray Pellecchia on September 29, 2008 5:40 PM
WAMU is an example of why we need this bailout.
by daniel evan opheim on September 29, 2008 5:52 PM
How long will this be in effect? I have talked to my stock broker and he does not seem to have any more knowledge than I do. This is especially upsetting to a retired person on a limited income. It wiped out my entire investment with a tiny exception. Now we don't know what will happen. Will WAMU be traded as Morgan Chase since they own the banking end of things now?
by Sandra Woods on November 2, 2008 1:11 PM
Sandra -- I'm sorry, but Washington Mutual is no longer traded on NYSE. The stock trades over-the-counter; the ticker symbol is WAMUQ.
by Ray Pellecchia on November 3, 2008 7:53 AM
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