YIKES!
WRONG AGAIN.
You're taking ONE unique example, of 1 specific MBS Trust. Nobody said anything about deadbeat mortgage borrowers. Those instances are too marginal.
There were 99 Trusts managed by Deutsche Bank alone. With 165 billion in value.
Firstly, 80+ billion are repaid/refinanced (by JPM most probably).
You know how a repayment works? You repay a debt. Borrowers gives money to the original investors.
You know how a refinancing works? Another financial institution (JPM) gives money to the investors to put the loan on their balance sheet.
To whom pays the borrowers/JPM pay money? To the original investors. Who are they? Clearly not the investors who settled in a class action for 69 million. They got their share taken care of.
What is left? 80+ billion in repayments to original investors minus the 69 million which got settled in a class action.
Another 20+ billion in liquidation proceeds, proceeds JPM doesn't have legal entitlement to. To whom do these proceeds belong to? The original investors.
69 million is settled in a class action to a group of investors. The rest goes to whom?
JPM? No, they don't own or have an economic interest in the MBS Trust (only servicer which they receive a fee for remember, off balance sheet and all).
Deutsche bank? No, they don't have legal right to get money only a fee as Trustee.
The only party left in the DB case concerning the 165 billion in trusts is the FDIC, successor in interest of WMI/WMIIC.
Roughly 100 billion will come back to FDIC. FDIC will deduct 17.5 billion in costs (including bondholders, general unsecured claimants, 645 million settlement with JPM and the 3B DB settlement).
Leaves roughly 82 billion to be divided among equity. 75/25 split or not, that's a heap of money.
The unliquidated portion (30+ billion) goes to WMIH, because of the link with WMIIC (both a subsidiary of WMI LT and WMIH).
Last friday we all as (indirect) beneficiaries got the green light from our Trustee to receive capital.
And if anyone has a better idea to whom this 100+ billion belongs to (other than the FDIC, as succesor in interest of WMI(IC), I would gladly ask that person to point out WHO these "investors" are and why these investors were not at the hearing last friday or were taken in on the class action which was settled for 69 million (marginal compared to 100+ billion in repayments/liquidations). Or were they lurking in the shadows (pun intended)?
You are all welcome, and I wish you all a HLCE.
Both WMIH and escrows are GOLDEN.
