Mr Cooper Group Inc (COOP)

[jerrylev]

It sounds like the FDIC is corrupted and wants to cover up something by destroying records...

But you have to understand the position of the FDIC...

Every year, the FDIC seized several dozens of banks and some banks are as huge as WAMU. And so the FDIC does not have the resources and time to sort out which assets belong to which trust and who was the owner, etc. etc.

It just take a broad approach and say that if a bank is seized then all of its assets are either sold or returned to the claimants in the waterfall order and the primary responsibility of the FDIC is to protect the depositors because this is the main engine behind banking. People need to feel safe depositing their paycheck and social security check and whatever money they have in banks.

So in the case of WAMU, the FDIC retained 40B from the seizure and sale of WMB and will pay the claimants first before paying the shareholders. Then for WMI and the SH and securitized assets it cannot seize, then all of them go to the WMILT liquidation trust which will sell everything too and the proceed will be returned to those who signed release.

Nobody has the time to sort out which trust managed which assets which used to belong to who.