The fact that FDIC paid JPM $645 million for JPM's indemnification claims pretty much indicates no further payment is coming from JPM. Otherwise, the $645 million would have been used as an offset against anything due from JPM to the receivership imo.
A reading of paragraph 7 from LT recent motion would indicate nothing will be coming to equity because the word creditor (instead of equity) is used.
"However, WMILT believes that entry of the Revised Proposed Order is necessary to ensure that there is not a further deterioration to recoveries for other creditors due to not making distributions to holders of allowed claims and thus permitting additional interest to accrue on their claims and diminishing or eliminating the recoveries which may be made to creditors lower in the waterfall."
The allowed subordinated claims are what is at risk of diminishing. If anything were coming to equity, the allowed subordinated claims would still be getting 100% of their claims. Equity gets the left overs whatever it is it is...nothing diminishes. However, one could argue that the "WMILT believes" language could provide Rosen a pass for lying if equity does end up with something .
I believe it was the first monthly operating report of the LT that showed the LT received $450 million from Wells Fargo which became the successor trustee for the Capital Trust which the reorganized debtor explicitly retained ownership of in the POR. Imo Recovery for equity is dependent on anything now being left in this trust, and the reorganized debtor being required to turn it over to the LT. The POR does state the reorganized debtor is not to make any money off the common stock of that trust, but what about other ownership interests? Still a possibility that Coop ends up owning it imo.
