Mr Cooper Group Inc (COOP)

[LuckyPanda]

Big money did not agree to POR7 hoping for future LIBOR litigation win. That seems very unlikely.

Facts:

1) We know for a fact that the securitization mechanism of loans into SPVs by WMB would not have allowed it to hold retained interests in the securities under WMB. They would have to be under WMI or its subsidiaries.

2) We also know for a fact that JPM and FDIC stated that they only bought WMB assets.

Unknown:
1) Can LT legally deny off book assets the way they did last Thursday? Are they using some clever legal jargon? It seems really unlikely that they can back off their "no assets" denials once remote bankruptcy assets show up.

2) Can the remote bankruptcy return to the estate without passing through WMILT? That also seems unlikely. If it does then will escrow markers still matter? Wouldnt the returning assets go to all shareholders on record via DTC as of the share cancellation date in Feb 2012?

3) Is it possible the assets simply return to COOP? Also very unlikely with all the dilution the hedgies allowed with WMIH/COOP merger. But I wont rule that F you possibility. May be the hedgies didnt get diluted with their back door holding through KKR stake.

With the denial last Thursday by the LT, I think it is apparent that big money is planning to screw retail. How exactly, I do not know yet but I think we need to figure it out to head it off.