Mr Cooper Group Inc (COOP)

[WithCatz]

Unfortunately the law allowed for the OTS to seize WMB and deliver it to the FDIC receiver. No compensation for that is due, or ever was. That's what the law is. Subsequently the FDIC sold "substantially all" of WMB to JPM.

It is "theory" that there are residual WMI assets at JPM. However, the POR/DS document exactly what WMI assets are at JPM - and that's basically a small amount of H. F. Ahmanson & Co. loans held at the WMI, not WMB level -- those loans originating pre 1998. The POR/DS documents those as the sole WMI assets at JPM for JPM to service, and remit those funds to WMI (now WMILT as successor in interest)

Assets that are at JPM that they want to "turn back in" to the FDIC, or were not part of "substantially all" of WMB -- are liquidated to follow the FDIC pecking order in waterfall. The waterfall begins with something like $3b of WMB Junior Bonds.

Do I think the laws are wrong, and JPM exploited the situation. Absolutely.

Did it happen? Yup.

...Catz