WMI estate has 2 areas of separate and great value:
1) Actual mortgages. The $240B mortgages held in portfolio (BOOK VALUE), that were 'rented' or 'pledged' to various trusts like DB, USbank, LaSalle, etc, until the securitizations that used these as TEMPORARY collateral, wound down over time through refinance, foreclosure, pay downs, etc. Eventually over the prescribed time of each prospectus, the securitization collateral ball & chain is removed, and these mortgages held in portfolio, whatever is left, are free for the WMI estate to exploit. Any mortgages held in portfolio converted to cash, is owed in cash, to the WMI estate.
2) Actual strip cert participation income. Per SEC regulations, and to qualify as "true sales" even though selling to itself, WMI participated in securitization schemes by selling to itself all phases of the securitization until a "true sale" had occurred and the originator, was 'corporate veiled' from the actual income participation cert strips. SEC requires 25% minimum in-house certificate retention, as its believed to keep the securitization scheme 'honest' as they are invested as much as any other buyer of the securities. And again, I believe WMI held much more than 25%. I'd bet there's at least $60B + just in these (including 10 years interest)
(Remember, per Reuters last year, JPM just offered up MB securities for sale (based largely on cherry picked WMI loans) where JPM is retaining 90% of the income participation certificates.)
I posted where to find in WMI's 10-ks from 2005-2007, where they made an average $5B minimum from securitizations. That's number 2) above. Now factor in 1) above.......$240B in either liquidated CASH from 9/2008 => now, and any unliquidated mortgages still performing.
Compound interest didn't stop ticking in 2008.......We are not dealing with a 2008 snapshot in time. Compound Interest is the 8th wonder of the world....
Now, how do $151B in deposit liabilities factor in versus what JPM got? $240B + $60 B minus deposit liability = $151B
