Mr Cooper Group Inc fka COOP

[Dmdmd2020]

This is what I posted on boardpost.net the past couple of days.

https://www.boardpost.net/forum/index.php?topic=11931.msg232211#msg232211


"Since we have exactly 17 days until the expiration of the 21 day stay (November 06, 2018), I decided to read Kirsten Grind’s book “The Lost Bank”

Excerpt from page 235:

“The private equity proposals began to roll in. Oak Hill Capital Partners and Blackstone Management Associates sent in a joint, nonbinding bid for $2.5 billion in capital, at $8 a share. The consortium pointed out that it would need to be paired with another private equity firm to make the investment large enough to help the bank.”
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The founder and biggest investor in Oak Hill Capital Partners is Robert Bass, Bonderman’s old boss.

https://en.m.wikipedia.org/wiki/Oak_Hill_Capital_Partners

“Notable investors

Robert Bass, who was an early investor in leveraged buyouts in the 1980s and employed David Bonderman and Jim Coulter the founders of Texas Pacific Group, is the lead investor in Oak Hill Capital Partners.”

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IMO...my conclusions as of October 20, 2018:

1) Robert Bass, owner of American Savings and Bonderman’s boss when WMI bought American Savings circa 1996, also wanted to buy WMB in April 2008.

2) Robert Bass also knew the massive WMI owned beneficial interests in MBS Trusts since at least 1996 when Bonderman initially sat on WMI’s BOD.

3) To give you context to the scale of securitizations, WMI subsidiaries originated about $1.8479 trillion in loans from 2000 to 2008.

Per PDF page 149 of 646 from the 2010 Congressional Subcommittee hearing:

https://www.hsgac.senate.gov/imo/media/doc/PSI%20REPORT%20-%20Wall%20Street%20&%20the%20Financial%20Crisis-Anatomy%20of%20a%20Financial%20Collapse%20(FINAL%205-10-11).pdf


“The amount and variety of the loans that WaMu sold to the GSEs fluctuated over time. For example, the following chart, which is taken from data compiled by Insider Mortgage Finance, presents the total dollar volume of loans sold by Wamu to Fannie and Freddie from 2000 until 2008 when a Wamu was sold, as well as the percentage those loans represented compared to Wamu’s total loan originations.”

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IMO...my calculations from the chart:

Total sold to Freddie Mac = $124.4 billion

Total sold to Fannie Mae = $380.1 billion

Total to GSEs = $124.4 billion + $380.1 billion = $504.5 billion

Total percentage of total WaMu Orginations sold to GSEs = 27.3%

Thus

$504.5 billion / X = 27.3 / 100

X = $1.8479 trillion total loans originated by WMI subsidiaries from 2000-2008


4) WMI subsidiaries securitized $692 billion from 2000-2008

5) WMI was coveted by the whole financial world, including those who knew all the numbers like Robert Bass

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Per Kristen Grind's book, "The Lost Bank..."

Page 333:

"The FDIC filed a federal lawsuit against Killinger, Rotella, and David Schneider, alleging that the bank lost billions of dollars on bad mortgage loans because of their negligence. The FDIC asked for $900 million from the three executives, a startling sum of money, particularly because the FDIC's deposit insurance fund wasn't used when WAMU failed. The FDIC also named Linda Killinger and Rotella's wife of thirty years, Esther, in the suit, claiming the wives aided their husbands in defrauding creditors. The Killingers had moved their homes in Seattle and Palm Desert into irrevocable trusts in August 2008, less than two months before the bank failed. The Rotellas did the same with their house in New York, although earlier in 2008, at about the time that WaMu had rasied capital and appeared in better condition.....

In December 2011, Killinger, Rotella, and Schneider settled with the FDIC for $64 million, a small fraction of what the government agency initially sought. The payout would come not from the executives themselves, but rather from their insurance policies through WaMu. The settlement amount, as The Wall Street Journal pointed out, was still among the largest since the financial crisis.
"

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IMO...my conclusions as of October 22, 2018:


1) Stephen Rotella and David Schneider, along with Killinger knew that if seizure was imminent in 2008, even after the $7.5 billion cash infusion (April 2008) by TPG et. al., they had to protect their personal properties (i.e. houses), therfore they put their houses under irrevocable trusts in 2008, before the seizure (September 25, 2008).

2) Rotella and Schneider are still one of the ex-employees that are still trying to get their "golden parachutes" paid by the WMILT, but the FDIC won't let the settlement payments go through due to FDIC regulations, which doesn't allow any "golden parachute" payments to be paid from a "covered company" (which WMILT is considered a "covered company" according to the FDIC).


3) IMO...The appeals by the ex-employees is futile.

4) I find it interesting...that the one employee, David Beck (Executive Vice President in charge of WaMu’s Capital Markets Division. Mr. Beck reported to the President of WaMu’s Home Loans Division, David Schneider) is not one of the ex-employees that are listed as a plaintiff for getting paid through "golden parachute" contracts.

David Beck is the employee that stated in the 2010 Congressional Subcommittee hearings, that WMI retained more than just the residual/equity tranches in MBS Trusts.

David Beck is the one employee who would know the exact amount of value that WMI Escrow Marker Holders would get back by virtue of bankruptcy remote ownership of beneficial interest in certificate participation in MBS Trusts created by WMI subsidiares."