Mr Cooper Group Inc (COOP)

[JusticeWillWin]

$1.88 bln. only for adjustment and franchise value!

Yes, the bid amount of $1.88 bln. was considered as premium. This premium bid value (or discount if negative) is only an up- (oder down-) adjustment (I called it "offset" yesterday) for the book value of equity (of the failed bank) to (fair) market value (date of resolution) and also includes the "franchise value" (the brand, the business network/connections and so on... link to its definition below!) of the failed bank according to the following 2 docs.

Both from same author and almost the same content, but I think the first one is from 2008 and the second one is a rework. Better read the older one up to page 20! It perfectly explains the cost calculation for the FDIC, what the "premium" bid means and much more!

Also search for "franchise value" within the docs!

Thanks to Jestiron for this one (be careful, quotation is not allowed according to the first page) from 2008:
https://www.fdic.gov/bank/analytical/cfr/2008/oct/CFR_SS_2008_Bennett.pdf

And thanks to investorhub123 for this one (IMO reworked 2008 version from 2014):
https://www.fdic.gov/bank/analytical/cfr/2014/wp2014/WP_2014_04.pdf

Also read his post:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=115621223

Definition of franchise value:
http://beginnersinvest.about.com/cs/investing101/a/111102a.htm

BTW, that also leads me to the conclusion that the shares in the NEWCO were only the "icing on the cake" we received for the IT allegations against AAOC and has nothing to do with the resolution process of the FDIC (which still has NOT finished yet IMO).