Mr Cooper Group Inc (COOP)

[wwhatthe]

Part 1 of 2… Just a little Research and all IMHO…

While we’re waiting… how about some real numbers…

It’s a long post, but I think you’ll find it interesting, that with $1,938,458,840 in Cash and Investments… WAMU made $ 5,398,620 in interest in the first 98 days… and an additional $790,786 in Income as well…

Total - Liquidation Revenues $ 6,189,406… in the first 98 days.
Total Cash and Investments, $ 1,942,656,004… For Period Ending: December 31, 2008…

This Document is from the FDIC Corporation.
This is the “ $ 299 billion Dollars in assets that the FDIC was referring to when they said…

”Excludes WAMU with total assets of $299 billion and zero estimated losses to the DIF” (Deposit Insurance Fund)

I’m going to post this in two parts…

Some believe this document is fake… I believe this document and the numbers… are to complicated to be fake… So I believe it’s genuine and from the FDIC.


FOR INTERNAL USE ONLY

WASHINGTON MUTUAL BANK
Fund Number: 10015
Statement of Assets & Liabilities in Liquidation (unaudited)
(Rounded in Dollars)

For Period Ending: December 31, 2008…
There are 3 pages to this document… this is page 1…(link at Bottom)

All IMHO…
This is a report of the current status from a specific Date: 09/25/2008 to December 31, 2008. Which is 3 months and 6 days… or the first 98 days…

When they run this report… it gives them all of the pertinent information available for that period. This information generates the Current Balance in the Cash and Investment account, $ 1,942,656,004

From the top of page 1… (Link at Bottom)
Statement of Assets & Liabilities in Liquidation (unaudited)

Assets
Cash and Investments, $ 1,942,656,004

The cash is stored here…
It’s cash on hand and cash in short term investments… like treasury bills and other low risk investments… (I believe this is what Alvarez & Marsal is managing) this is from the first 98 days… $ 1,942,656,004

Any money discovered… is recorded… then it’s moved to the Cash and Investments account to generate interest/income for the WAMU Estate.

This money is then used to pay all the liabilities and Liquidation Expenses…

All IMHO…
This is where the numbers came from… $ 1,942,656,004

Notice that there are only three parts that make up the $ 1,942,656,004

We have…
The $1,888,000,000 from JPMC… it’s been received and recorded.
The $ 50,458,840 it’s allocated to the liability… so it’s been received and recorded.
The $ 4,197,164 from the Liquidation Revenue… it’s been received and recorded.

Total $ 1,942,656,004… this is the total amount in the Cash and Investments account at this point in time… For Period Ending: December 31, 2008…

Assets
Cash and Investments, $ 1,942,656,004

This is how all the numbers come together… and what they mean…

The Initial Payment (paid by JPMC)…
I talk about this in my post # 429824 (link at Bottom)

Bid Amount = $1,888,000,000.00
Required Payment = $50,000,000.00

Initial Payment = Bid Amount + Required Payment
$1,938,000,000.00 = $1,888,000,000.00 + $50,000,000.00

The FDIC is working on behalf of the WAMU Estate.
On 9/25/2008, JPMC paid $1,888,000,000 Dollars to the FDIC for the Deposits and servicing rights… and also paid $50,000,000 Dollar for the Administrative Liabilities at Inception… the administrative fee is to get the liquidation process up and running,
Any amount after the $50,000,000 Dollar is WAMU’s responsibility…

Initially, the Administrative Liabilities came to be $ 50,458,840. The FDIC received $50,000,000 from JPMC… So… either the $50,000,000 was adjusted up to $ 50,458,840 or WAMU paid $458,840 Dollars… Either way the $ 50,458,840 is there at the FDIC…

Transactions are recorded when cash is received or disbursed.

The Cash…
In order to record a transaction the cash has to be physically there at the FDIC, So… the FDIC has to receive a check or wire transfer… then the cash Asset is recorded…

26.4 Billion Dollars in Assets that are in liquidation is not a complete transaction and is not recorded. The Assets have to be liquidated and turned in to cash. The cash has to be wired to the FDIC… only when the cash is received by the FDIC is the transaction recorded…

Then the cash is moved to the Cash and Investments account to generate interest/income for the WAMU Estate.

The liabilities…
Some liabilities have to be paid up front, some are paid at the end of the liquidation…

The liabilities that have to be paid up front are paid with the income generated from the Cash and Investments account…like Liquidation Expenses from Operations.

The liabilities that are paid at the end of the liquidation… have to have money allocated to them in order to be recorded… like the Administrative Liabilities at Inception $ 50,458,840. This liability is recorded, because the FDIC received $ 50,458,840 Dollars for that liability…
But this liability is paid at the end of the liquidation… so the $ 50,458,840 is stored in the Cash and Investments account generating interest/income for the WAMU Estate.

For example…
Liabilities (Note 5)
Administrative Liabilities
Accounts/Notes Payable $817,363
Suspense/Escrow Accounts $49,252,013
Due to FDIC for Service - Billed Expenses $386,083
Due to FDIC for Borrowed Funds $3,381
Estimated Litigation Losses - Probable (Note 7)
Other Contingent Liabilities
Subtotal - Administrative Liabilities $ 50,458,840

The FDIC received $ 50,458,840… This amount is part of the, $ 1,942,656,004 in the Cash and Investment account generating interest… so this liability is received and recorded…

The liquidation…
Normally you would take the total Assets and subtract the total liabilities to get the company’s equity… but in liquidation the company no longer exists… it’s bankrupt

So…in a liquidation you take an inventory of all the Assets and all the liabilities…
Then you take the total amount of Assets… and add… the total liabilities

Instead of a balance sheet and income statement… A Statement of Net Assets in Liquidation and Statement of Changes in Net Assets in Liquidation is used…

For example, from the bottom of page 1
Total Liabilities and Net Assets/(Deficit) $ 1,942,656,004
This section adds up the Total Liabilities and Net Assets…

This is because in liquidation the liabilities have to be paid in advanced or have to have cash money allocated to it in order for it to be recorded.

So when you add all the Assets and liabilities… you’re adding the cash money from the Assets… plus the cash money from the prepaid liabilities… and all the cash money allocated to the unpaid liabilities… This would be all the available cash money in the liquidation…

Then at the end of the liquidation… you pay all the liabilities with the money that has been allocated to that liability…

Which would include contractual obligations to the creditors (Tranche one through Tranche five), or Class 1 through Class 18… the money allocated to these liabilities would be coming from the cash money in WAMU’s cash Bank account’s plus cash from the run off notes and tax returns. An estimated amount of $13.8 Billion in liabilities.

At this point in time 09/25/2008 to December 31, 2008… These liabilities aren’t recorded yet… they’re listed as Liabilities at Inception – Unproven… These would stay Unproven until the liabilities have become Allowed Claims or have been proven and settled in court…
Then it’s recorded as received and then recorded as they’re disbursed…

(In the Prepared Statement from MARY F. WALRATH U.S. BANKRUPTCY JUDGE she said the settlement amount is “about $7 Billion Dollars”… and so, it turned out not to be the Unproven estimated amount of $13.8 Billion Dollars)…

The Transactions are recorded when cash is received.

For example,
The $ 1,888,000,000 has been received from JPMC… It’s been recorded.
So…the $ 1,888,000,000 has been sent to the Cash and Investments account,

The $ 50,458,840 has been received and is allocated to the Administrative Liabilities … so it’s been recorded.

This liability is not paid until the end of the liquidation … so this money is stored in the Cash and Investments account generating interest/income…

So when you add Assets and liabilities your adding the $1,888,000,000 cash Asset to the $ 50,458,840 cash allocated to the Administrative Liabilities.

Which is $1,888,000,000 plus $ 50,458,840 equal to $1,938,458,840.
Currently at this point in time, 09/25/2008 the Cash and Investments account holds $1,938,458,840… (We start off with these two items.)

In a scenario where the $ 50,458,840 in cash is not at the FDIC… it would not be allocated to the liability and the liability is not recorded… the liability is an unproven liability. So… in this scenario there would only be the $1,888,000,000 Billion Dollar cash Asset… in the Cash and Investments account…

So the Cash and Investments account includes the $1,888,000,000 and the $ 50,458,840 which equals to $1,938,458,840 Billion Dollars.

So… as of now, on 9/25/2008 there are two items in the Cash and Investments account.
The $1,938,458,840 is stored in the Cash and Investments account generating interest…

The income…
This interest is income… or Liquidation Revenue for the WAMU Liquidation…
So any new Administrative Liabilities can then be paid from this income…

If we go to page 2…

Liquidation Revenues
Interest on Cash and Investments $ 5,398,620.

Interest and Late Fee Income on:
Securities 0
Consumer Loans 0
Commercial Loans 0
Real Estate Mortgages 0
Other Assets and Judgments 0
Recoveries from Charged-Off Assets 0
Professional Liability / Litigation Recoveries 0
Other Miscellaneous Income $790,786

Total - Liquidation Revenues $ 6,189,406

So with $1,938,458,840 Dollars in the Investments account… WAMU made $ 5,398,620.in interest in the first 98 days…(maybe someone can figure out the interest rate for the first 98 days)… there’s also an additional Miscellaneous Income of $790,786, which totals out to $ 6,189,406

Any liabilities or Liquidation Expenses after the first $ 50,458,840 Dollar is paid from the interest or income generated from WAMU’s Cash and Investments account…

At this point in time, The FDIC had an additional $ 1,992,242 in Expenses. These Expenses are paid in advance using the Liquidation Revenue or interest from the $1,938,458,840

From page 2… these are new Expenses after the first $ 50,458,840…

Total Liquidation Expenses $ 1,992,242

So if we take Liquidation Revenues $ 6,189,406 and subtract the new Liquidation Expenses $ 1,992,242 we get… Net Income of the Liquidation $ 4,197,164

The $ 4,197,164 is what’s left over after paying the new Liquidation Expenses.

This $ 4,197,164 is cash money and will be recorded and stored in the Cash and Investments accounts in order to generate new interest/income…

So now… For Period Ending: December 31, 2008… there are three items in the Cash and Investments account.

We have…
The $1,888,000,000 from JPMC… it’s been received and recorded.
The $ 50,458,840 it’s allocated to the liability… so it’s been received and recorded.
The $ 4,197,164 from the Liquidation Revenue… it’s been received and recorded.

If we add the Assets and the liabilities… that’s been received and recorded
$1,888,000,000 plus $ 50,458,840 plus $ 4,197,164 equals $ 1,942,656,004

We get… Total Liabilities and Net Assets/(Deficit) $ 1,942,656,004
Which is also the Total amount of cash in the Cash and Investments account, $ 1,942,656,004

All IMHO…
The term (Deficit) means if the amount has parentheses around it, it’s a deficiency…
A deficiency is not a Debt, it’s an Asset known to exist but are Unrecorded, like operating expenses, losses and writing off of Assets like depreciation and amortization…

Which are realized in the future through tax returns. These amounts are assets deemed discovered, but are not yet received. These amounts are estimated then reviewed and restated… it’s only those amounts with a parentheses around it, that are deficiency. They’re reversed when they are recognized… a – $40.2 Billion Dollar Asset (Deficit/deficiency), will reverse and become a +$40.2 Billion Dollar Asset. When the cash from the transaction is received and recorded. ALL IMHO…

(Our end results)
Assets
Cash and Investments, $ 1,942,656,004

So… The total cash from the “Total Liabilities and Net Assets, $ 1,942,656,004 “ is sent to the “Cash and Investments account, $ 1,942,656,004”

Only money that is physically there at the FDIC is in the Cash and Investments account.

That is where the numbers came from… $ 1,942,656,004

So… the whole purpose of this document… is to report what is recorded in cash received… and what is allocated to liabilities… and to report… the current balance in the Cash and Investments account.

I believe this document and the numbers are genuine and from the FDIC…
No one would fake this document… and include the $ 4,197,164 from the Liquidation Revenue… and the $ 458,840 from the $ 50,458,840 in Administrative Liabilities
Which all totals out to the, $ 1,942,656,004


End of part 1 of 2…

All IMHO…

Stay safe… Stay healthy

GLTA…

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

Statement of Assets & Liabilities in Liquidation (unaudited)
The Initial Payment (paid by JPMC)… my post # 429824