Mr Cooper Group Inc (COOP)

[Dmdmd2020]

Large Green,

IMO...Of course the Underwriters knew which Class was going to yield the most. The underwriters want to make the most money (as do all investors) from their claims.

Per Docket #10666 filed on September 14, 2012 (WMILT filed to disallow Underwriters’ claims):

http://www.kccllc.net/wamu/document/0812229120914000000000006

PDF page 21 of 553:

“Conclusion

WHEREFORE, WMILT respectfully requests that the Court enter an order substantially in the form attached hereto, disallowing the Claims in their entirety and granting such other and further relief as is just and proper.“

__________________________

IMO...conclusions as of March 05, 2019:

1) WMILT wanted to disallow all of the Underwriters’ claims as of September 14, 2012.

2) On March 28, 2013, Stipulated Settlement of $72 million uncapped Equity Class 19 Claim.

3) What forced WMILT to settle?

My answer: the underwriters could have prolonged the litigation for decades, the insiders who were controlling the WMILT didn’t want to wait for their recoveries, so WMILT decided to give the Underwriters an Equity Class Claim instead of a capped creditor Class 18 Claim.

4) The Underwriters could have settled for a Class 22 Claim but instead settled for a Class 19 claim (because, IMO, they knew that it would yield the most recoveries).

As I’ve stated before, the Underwriters have written many MBS for many failed banks in the past and they know the exact recoveries they will yield. Keep in mind that Goldman Sachs and Morgan Stanley had all the insider information because they were hired by WMI in early September 2008 to sell off the whole company.

So as always, draw your own conclusions!