One item that hasn't been discussed on the boards is that it is possible MP could buy out the remaining shares of FBC and take the bank private. This would eliminate the issues with the NYSE delisting and a reverse split which would keep them listed. With nearly a billion shares outstanding and MP probably owning closer to 90% of the bank now, buying out the remaining shareholders for 80 cents (the initial rescue price) or even a bit more would be a drop in the bucket. They've dumped $350M (rescue 1) and $300M (rescue 2) into the bank. I think the float is something in the neighborhood of 80M shares...this has gotten a bit muddy because of the "May Investors" pre-MP (a smaller rescue attempt) and the prior execs. Anyhow, doing this, MP could do with the bank as they please without SEC involvement and any shareholder complaints. It might cost an additional $64M or so if they bought the remainder at say, 80 cents. Just a thought.
>> That's a good thought, but why not take this course of action before a price offering? <<
The bank hasn't turned the corner yet. Why not wait for things to get worse, let it delist from the exchange...then "bail out" the shareholders at 50 or 60 cents. Remember this...MatlinPatterson is not the friend of shareholders. They are here to make money and nothing more. They are the equivalent of Gordon Gekko, i.e., private equity. They are maximizing profits for their clients, not Flagstar shareholders...unless they just happen to overlap. We'll see what happens...it was only a thought. GLTA.