Mr Cooper Group Inc (COOP)

[jerrylev]

Safe Harbor or not. the FDIC had the authority to retain any WAMU assets to exclude from the 1.9B initial sale to JPM. It needs to retain sufficient assets to cover the payment to the bondholders and possibly other claims it is obligated to pay. So if the FDIC didn't retain enough assets in 2008 then it is a big problem. On the flip side if they have retained sufficiently then why don't they just pay off the bondholders a long time ago? The trusts that backed the bonds are well known and it is not like the remaining WAMU assets. DB was forced to settle for a fraction of what they asked for although I am not sure if they are actually paid yet. Why? Did they ask more than they are owed or is there not sufficient money to pay them?

POR 7 clearly said that tranche 6 cannot be paid until tranche 5 and above are paid. And so if tranche 5 is not paid yet then we cannot expect tranche 6 to be paid no matter if it is SH assets or WMI assets or...