Mr Cooper Group Inc (COOP)

[JusticeWillWin]

Purchase Premium IS NOT Purchase Price ==> proof

"Purchase Premium" never was and is not the same as the "Purchase Price"

Otherwise this sentence would NOT MAKE ANY SENSE:

http://www.upi.com/Archives/1986/03/28/Failure-leads-to-first-branch-bank-in-Kansas/9954512370000/

'Silver Lake Bank will pay the FDIC a $15,000 purchase premium and will purchase certain of the First State Bank's failed loans and other assets for $3.8 million,' said FDIC spokesman Bill Olcheski in Washington.

Also look at all these old newspaper articles from the 80's:

https://news.google.com/newspapers?nid=1817&dat=19860511&id=S0cuAAAAIBAJ&sjid=hKUEAAAAIBAJ&pg=7235,3395300&hl=de
https://news.google.com/newspapers?nid=1817&dat=19870218&id=NV0pAAAAIBAJ&sjid=16UEAAAAIBAJ&pg=5779,5716923&hl=de
https://news.google.com/newspapers?nid=1310&dat=19870911&id=VeZVAAAAIBAJ&sjid=gOEDAAAAIBAJ&pg=5556,2336707&hl=de
https://news.google.com/newspapers?nid=861&dat=19860228&id=pY1HAAAAIBAJ&sjid=Wn8MAAAAIBAJ&pg=1213,132822&hl=de
https://news.google.com/newspapers?nid=861&dat=19890310&id=Z-daAAAAIBAJ&sjid=boAMAAAAIBAJ&pg=6755,1981483&hl=de
https://news.google.com/newspapers?nid=861&dat=19880811&id=eLxdAAAAIBAJ&sjid=Gl4NAAAAIBAJ&pg=6972,2541006&hl=de
https://news.google.com/newspapers?nid=1917&dat=19860809&id=7g8hAAAAIBAJ&sjid=bnIFAAAAIBAJ&pg=3767,2476124&hl=de
https://news.google.com/newspapers?nid=1755&dat=20081101&id=ovEeAAAAIBAJ&sjid=DoUEAAAAIBAJ&pg=6684,195237&hl=de

They say: "...will assume about X million in deposits and has agreed to pay a purchase premium of Y. ... it will also purchase assets for Z million..."

I just don't see why the FDIC should have changed the meaning of "Purchase Premium" over the years...

The only difference in a "Whole Bank" P&AA is that the acquirer cannot pick some assets but aggrees TO PURCHASE the "Whole Bank"'s assets (for BOOK VALUE(!) as in Schedule 3.2 of the WaMu P&AA) IMO

And:

Bids to the FDIC usually include assumptions of deposits, with or without deposit premiums. During 2008–2011, most resolutions have included no deposit premium. Assets are purchased generally based upon their book value at the date of the failed bank's closure.

http://www.lexology.com/library/detail.aspx?g=f5d69704-2d57-4063-9ed1-f0bcc7d8a27a



Now have a closer look at the WaMu bid form again:



Purchase Premium != Purchase Price