InvestorsHub Logo
Followers 75
Posts 8706
Boards Moderated 0
Alias Born 06/05/2014

Re: sharing4u post# 489583

Friday, 09/29/2017 7:57:15 AM

Friday, September 29, 2017 7:57:15 AM

Post# of 726800
That's also not totally correct. The FDIC has/had $2.76B in total assets. They write "after paying JPMC in full", which means, the $645M went to JPMC directly, leaving $2.76B - 0.645B = 2.115B

Then they pay 95% and keep 15%

The 95% are 2.115B * 0.95 = 2.00B, so they keep $115M in the receivership (for additional expenses).

The priority of claims according to

www.fdic.gov/bank/historical/managing/history1-10.pdf

is

1. Administrative expenses of the receiver;

2. Deposit liabilities and general creditor claims;

3. Subordinated debt claims;

4. Federal income taxes; and

5. Stockholder claims

JPMC's $645M are priority 1, then follow the general creditor claims (priority 2), and the remaining part of the $2.00B is shared "pro rata" among senior unsecured claims (priority 3)

"After paying JPMC in full, the Receiver made an interim dividend distribution on September 26, 2017, on all approved senior unsecured claims of the receivership, including the claims of DBNTC,..."

and

"...The allowed senior unsecured creditors shared equally (on a pro rata basis) in this distribution...."

Your post:

Many wrote that the payment for the "settlement of DBNTC-JPMC- FDIC"
did not work out with the maths under the scenario that FDICR only has $2.76B.

"allowed claim of DBNTC" was $3.07B but according to distribution to similar case study relating to "compensation" with claims in the same industry (RMBS), the statistics was found to be around 11% to the claims:

$3.07B x 0.11 =$337.7M paid by FDIC-R to DBNTC

There was nothing wrong with the maths.

FDICR used only 95% of $2.76B for the recent dividens:$2.622B. There are still $138M left to cover other expenses.


=====> Just my personal opinion, no investment advice!
=====> I am long WMIH

Volume:
Day Range:
Bid:
Ask:
Last Trade Time:
Total Trades:
  • 1D
  • 1M
  • 3M
  • 6M
  • 1Y
  • 5Y
Recent COOP News