Mr Cooper Group Inc (COOP)

[jerrylev]

Dmd, great DD. One small disagreement but important one, is that assets are not the same as cash.

For instance 300B assets are not equivalents to 300B cash but perhaps valued at 10% plus or minus some delta depending on the quality.

For instance a supermarket that has a few billions of meat and produce is not the same as an electronics company with a few hundreds of millions of electronics or a software company that has a few millions of PC.

I have no idea on how to valuate mortgage assets but you get the point.

The other thing is due to the corruption of the FDIC, they can sell a lot to JPM for 1.9B. Nobody knows exactly what was included in the 1.9B price tag because the PAA has a lot of redactments.


"If one believes that a Final Payment from JPMC needs to compensate for the mortgage loans, then JMPC would have to pay $301.828063 billion less $1.9 billion (Initial payment from the Purchase & Assumption Agreement)"


But I like this part and I think it will be closer to what we can be paid:

"JPM claimed on their 2009 annual report that they acquired $264 billion of WAMU assets as of 25Sep2008." Thus $350 billion - $264 billion = $ 86 billion (residual in FDIC-R)

3) Now, if we assume that $86 billion is controlled by the FDIC-R:

$86 billion - $14 billion (WMB Bondholders' claim) - $2.3 billion (DB settlement) - $35.77 billion (WMI beneficial interests in MBS Trusts which are bankruptcy remote) = $33.93 billion