Mr Cooper Group Inc (COOP)

[hotmeat]

There are a few possible scenarios to this issue, all based on the FDIC accounting method used to, IMO, portray the WMB Receivership as being insolvent. I will assume the assets were quoted at market value ie $1 quoted = $1 value. See post# 518718 for reference.



Scenario 1: The Asset-Related Equity Adjustment (A-REA) is comprised of $40.2B in assets ($26.4B + $13.8B). There are $16.2B in total allowed claims which would leave $24B ($40.2B - $16.2B) for equity if the LT is entitled to 100% of those assets...the ideal outcome!



Scenario 2: The FDIC recorded the A-REA as a deficit solely to conceal that $26.4B of the total $40.2B was an actual asset (-$26.4B + -$13.8B = -$40.2B ). Here the $26.4B asset - the total claim of $16.2B = $10.2B for Equity...an acceptable outcome!



Scenario 3: The A-REA is an actual deficit created when JPM wrote down the value of the WMB $299B portfolio by $40.2B, thus WMB assets valued at ~$258.8B were acquired by JPM from the FDIC in 2008. This leaves $0.00 for Noteholders, DB and Equity...we are idiots! :)