There is an asset/equity, chained at the hip, ownership component to legacy assets. We are waiting on WMIH, imo, who needs us (legacy interests) more than we need them, to equitably address these safe harbored values that we co-own together. Shares for whichever value/cash/assets...in some form.
DB was trustee - aka the manager. The servicer, like Nationstar - is collector and disperser of funds to participating investors. The past 10 years of income, liquidation, principle, interest, etc.....was unable to be dispersed to participation income owners like legacy WMI and other private investors like hedge/equity funds, due to safe harbor triggered by receivership and bankruptcy, which put those assets in temporary time out.
WMIH, the re-org'd WMI, is free to "pursue" those retained assets Rosen spoke about. WMIH and NSM, both know its our money NSM is holding, but if WMIH collects it today from the safe harbor 'lost-n-found', then shareholders have to be addressed and lets face it........who wouldn't take all that money and run, lol. I would. But if WMIH takes their time, and stalls, rather than immediately collect it for our mutual benefit, then they have more time and money to leverage bigger deals I think. Rather than WMIH just demanding back our assets in NSM custody, we can pick up the nations largest servicer to boot, because chances are, Legacy WMI is NSM biggest client. If we pull our safe harbor assets out and future servicing rights - and what does NSM have left other than a massively deflated balloon? I think we/WMIH had all the leverage in this situation - hence WMIH, a seemingly 'nothing burger', buys outright NSM and remains the surviving entity?
I'm keeping a close watch on this merger with NSM, as are a few others. If legacy interests are not addressed by WMIH in due time, then retail needs to go pitchfork again.
WMIH is the delay now I believe, primarily due to strategic inaction of collection. Another variant of hide the sausage. After/thru this merger, I cant see how WMIH can legally take possession through the NSM merger, and leverage our shared legacy assets, without working a deal for our interests in legacy WMI.
It's not the LT nor the FDIC getting in the way imo of pursuing safe harbor collections, .....its WMIH.
Remember 1),2) - the $%^ sandwich bandied about the message boards:
1) The LT does not have control over legacy assets such as those from the DB probate. The LT only controls those few "certain" residual assets from the WMI bankruptcy. There will be scant little remaining.
2) The FDIC does not have control over legacy assets such as those from the DB probate. The FDIC only controls those few "certain" residual assets from the WMBank receivership. There will be little to zero remaining.
3) Safe Harbored assets. a la Side bags of chips, zipped up into hermetically sealed Special Purpose Entities, iron clad protection as Delaware corporations.
Forget the crappy sandwich, take the chips !!