As I have said before, this is gonna be quite interesting. With JP taking over "most" of everything, that includes their loan portfolio as well and all the sub prime crap. What's left over theoretically
aint "toxic" stuff.
The bankruptcy is pretty much a procedural step, since the sieze, and had to be done, it doesn't affect the common stock YET, it will affect it IF they come out of bankruptcy.
Right now, if you're holding WM stock, come Monday, it will change to something with a Q, but it's tradeable, and it will trade. If and when they come OUT of bankruptcy, this stock will be dissolved, hence worthless, and new stock will be issued, so watch out for them coming OUT of bankruptcy, not filing one (although I doubt that will happen anytime soon).
To complicate matters further the WM stock is "supposed" to have a huge short position, so we just might get a dead cat bounce (just like LEH, it went up 300% in just one day, and eventually hit .40, and I don't think it's still done).
I'm certainly not advocating buying this stock at this point, it is dangerous as hell, but hey, when there's blood in the streets.....