There is a big difference between Bear and WAMU. In the case of Bear, they bought the whole company and are therefore legally liable for whatever evil deeds Bear did. In the case of WAMU, they bought the deposits (liabilities) and the loans (assets), but not the company. So, they really don't have much of a case for the WAMU stuff, which will probably have to be litigated against WAMU alone.
Not sure if WAMU suit will have any immediate affect but it seems similar to the Bear Stearns situation. Market has had a nice run and probably needs a breather so I sold JPM today at the close (45.36).. Also I recall JPM has often dropped during the period between x-dividend date and earnings. I will buy back before earnings since JPM always seems to beat estimates. Otherwise with a forward P/E of 8 JPM looks like a long term buy/hold with a conservative price target of 49. Other variables to consider while trading are the dividend increase and stock buyback occuring during the first quarter. JPM traders might try to drop the price so they can buy them back cheap. Short term sell, long term buy. Good luck trading.
JPM is getting kicked for Wamu mortgage lawsuit even though FDIC asked JPM to take over WAMU. JPM and FDIC may have to finally disclose what JPM bought thru FDIC. How dumb JD and SB have to be? Did they realize the legal repercussions when they decided over a drink and dance to simply take over a solvent bank with minor mortgage loan problem? Now this man JD is on the short list for treasury secretary. He could not manage his own company with trading losses and now all these lawsuits that he refuses to settle like an honorable thief will do when caught. JPM has been hiding behind the Delaware court of bankruptcy instead of settling with the WAMU shareholders who have lost everything due to acts of these two idiots.