Mr Cooper Group Inc fka COOP

[hotmeat]

"So in the CFO quarterly report, the FDIC said for other banks (and it will apply to WAMU since the assets were not sold yet at the time of the report):"

No it won't. The document excludes WAMU assets as stated. In addition an FDIC employee directly involved in the seizure of WMB testified that the yet to be seen 118 pg WMB P&AA contained special provisions that had never been used prior or used since. IMO, the standard Receivership model would not apply at all.




"Since JPM only retained assets from WMB and if we get any small chunk of it, it is a bonus, isn't it? Since our main money will come from WMI and WMB assets that are securitized, or in safe harbor? Is that right?"

We are owed nothing from JPM, only the FDIC for any possible seized WMI assets (unlikely) and WMB/SPE assets held in SH that WMI may hold Beneficial Interests in. I contend again that JPM, as the current parent of WMB could be entitled to a percentage of any SPE SH assets, just as they shared the WAMU tax returns with WMI.




"And is it possible that after the FDIC retained 40B of assets supposedly from WMB, it may find out later that some belong to WMI and some have SPE owned by WMI and so it found out that it didn't retain enough money to pay its claims such as the bondholders and therefore the FDIC dragged its feet until today by not allowing WMILT to pay escrow markers by using the employee claims as dam holder?"

This is imo a huge stretch. If the $40B or even $26B are assets, there would be ample cash to pay Bonds. These valuations were from 2008 during the crisis, in 2018 the economy is strong so this scenario is unlikely. If however we have read this $40B wrongly and it is actually the deficit from JPM writing-down the value of WMB's $299B in assets then yes, Bonds, DB and Equity will receive nothing (Scenario 3). The figures do match up, which is alarming!!!




WMB total assets of $298.8B - Assets acquired by JPM $258.6B = $40.2B write-down by JPM, supporting Scenario 3.

To be fair however those same figures also correspond to the alternative which supports Scenario 2 where Equity receives ~$10B.

To be determined!!!