Mr Cooper Group Inc (COOP)

[LuckyPanda]

Simple. FDIC sold the bank (WMB) without its income stream for $1.8 bil... absolutely legal because bank had no income stream. The income stream is the 2.9% interest margin (profit matgin) on the $300 billion loan portfolio that the parent company WMI held...which is now shielded behind safe harbor. Although WMB got all the deposit base (liability) and most of the principle balance of the $300 billion loan portfolio (assets), it didnt get the 2.9% profit margin on the performance of those loans. -- which belongs contractually to MBSs that the bank sponsered and to the parebt WMI holding company (now escrow).

WMI had to declare bankruptcy because once the bank (WMB) was sold, it no longer had access to the profit income stream of $300 billion loan portfolio to service its corporate debt. Per long standing agreements with FDIC, the loan portfolio is shielded behind safe harbor protection to ensure its solvency (to ensure safety of bank deposit base) when the bank was seized. Hence, WMI had to declare bankruptcy because of lack of liquidity (even though it still owned a very large proit machine behind the safe harbor shield).

Fortunately, the shareholders somehow survived the bankruptcy with all creditors almost completely paid without needing money from the piggy bank behind safe harbor.

Once DB probate final distribution is approved on June 16, FDIC-R can finally resolve the bank case and shut down. Only then, will we be able to break that piggy bank behind safe harbor. a very, bery, very large piggy bank getting stuffed with $9 billion of profits a year for the last 9 years..

I'm feeling very very lucky this summer!