Mr Cooper Group Inc (COOP)

[JusticeWillWin]

And to verify my post...

From the FDIC: https://www.fdic.gov/bank/historical/managing/history1-02.pdf

PDF page 5:

Bid Submission

After all bidders have completed due diligence, bidders submit their proposals to the FDIC. Ideally, they will submit proposals 12 to 15 days before the closing, but they often submit them as close as 6 or 7 days before closing. All bids, including those that do not conform to the FDIC’s previously identified resolution methods (referred to as nonconforming bids), are evaluated and compared with one another and with the FDIC’s estimated cost of liquidation to determine the least cost resolution.
A bid has two parts: One amount, called the premium, is for the franchise value of the failed institution’s deposits; the second amount is what the bidder is willing to pay for the institution’s assets to be acquired. The first figure generally represents the bidder’s perception of the value of the customer base; the second amount reflects the bidder’s perception of the imbedded losses and the level of risk associated with the assets. (6)

Footnote 6:

6. The latter figure results in a net payment from the FDIC to the acquirer. For example, if the acquirer assumes responsibility for $100 in deposits and views the assets with a book value of $100 as being worth $80, then the acquirer will expect a $20 payment from the FDIC to make up the difference.

In WaMu's P&A there was only one combined value as I've explained already (IMO the FDIC improved their process and split it up into two separate values in 2009 or 2010), but have a second closer look at the FDIC's bid form for WaMu:

So for what is the $1.88 bln.? Right, it is only the PREMIUM for "All Deposits" (and the franchise value) as explained in the quote above! And is it coincidence that it is quite exactly 1% of the $188.3 bln. total deposit according to the OTS Fact Sheet?!?



JMO