Mr Cooper Group Inc (COOP)

[Dmdmd2020]

LuckyPanda,

I am of the belief that underwriters (Morgan Stanley, Credit Suisse, Goldman Sachs) are not in the financial world just to break even. They are in the business of making as much money as possible!

The underwriters agreed to the stipulation on March 23, 2013 (about a year after WMI Ch. 11 emergence on March 19, 2012). Therefore, IMO...the underwriters knew exactly what they were going to get back from Class 18, as opposed to Class 19. They opted for Class 19, because they would get a bigger recovery. Don’t you think if they thought that Class 22 would get a bigger recovery they would have negotiated for a Class 22 claim instead of Class 19?

To be clear, IMO...the underwriters are expecting a lot more than just breaking even, and Class 19 was their best option!