Mr Cooper Group Inc (COOP)

[wwhatthe]

About the $1.9 Billion Dollars… Just a little Research and all IMHO…

A payment, or not a payment.
(this comes up every now and then)

Some believe the FDIC sold WMI’s, WMB’s assets to JPMorgan Chase for $1.9 Billion Dollars…
and WMI, will only receive $1.9 Billion Dollars for WMB and all its assets.

It’s been answered many times…

But…
Some answers are more convincing when they come from the source,
In this case, JPMorgan Chase themselves…

What I mean is …
When JPMorgan Chase themselves, says the $1.9 Billion Dollars is a payment, then it is a payment.

This is directly from a JPMorgan Chase News release, dated Sept. 25, 2008. (link at Bottom)
(I separated the statement into 4 parts, so that it can be read easier, It’s still word per word from JPMorgan Chase.)

Quote …
New York, Sept. 25, 2008 – JPMorgan Chase & Co. (NYSE: JPM) tonight announced it has acquired all deposits, assets and certain liabilities of Washington Mutual’s banking operations from the Federal Deposit Insurance Corporation (FDIC), effective immediately.

Excluded from the transaction are the senior unsecured debt, subordinated debt, and preferred stock of Washington Mutual’s banks.

JPMorgan Chase will not be acquiring any assets or liabilities of the banks’ parent holding company (WM) or the holding company’s non-bank subsidiaries.

As part of this transaction, JPMorgan Chase will make a payment of approximately $1.9 billion to the FDIC.

Unquote.

Obviously. This last part of the statement, clearly says, it’s a payment …

“As part of this transaction, JPMorgan Chase will make a payment of approximately $1.9 billion to the FDIC. “


This statement is from JPMorgan Chase themselves… so yes, it’s a payment.
It’s the “Initial Payment” at inception (09/25/2008)

The “Initial Payment” is explained in the
PURCHASE AND ASSUMPTION AGREEMENT

And…
We can see the $1.9 Billion Dollar payment on the,
WASHINGTON MUTUAL BANK Inception document Date: 09/25/2008

Also, from JPMorgan Chase themselves…
January 13, 2010.
JPMC states…
With the acquisition, we purchased approximately $240 billion of mortgage and mortgage related assets…

So, on 09/25/2008 there’s the “Initial Payment” and on January 13, 2010 there’s the mention of the purchase of approximately $240 billion of mortgage and mortgage related assets.

So, if this is a payment… (and it is.)
Then it’s a payment for WMI’s, WMB’s assets…

The FDIC seized WMB’s assets… ($307 Billion in assets) and sold them to JPMorgan Chase.
These assets are not used in the bankruptcy.

So…
If this $1.9 billion, is only a payment…
And old shareholders haven’t received any of this cash yet…

Then we’re still waiting for the FDIC to reconcile with the WMILT, (assets - Liabilities)
And whatever is left over, goes back to WMI shareholders.

Continued on my next Post…

All IMHO and GLTA…

Stay safe… Stay healthy

Jiminy…
Jiminy Christmas…

Just my opinion, research and curiosity…
Not intended to serve as a basis for investment in any security of any issuer. GLTA

JPMorgan Chase News release, dated Sept. 25, 2008