Mr Cooper Group Inc (COOP)

[wwhatthe]

About WMI and WMB and their Distinct Assets … Just a little Research and all IMHO…

Two sets of assets.

There are WMI assets used in the bankruptcy…
and there are WMI assets at the FDIC…
There are only these two sets of assets… (or, sources for a recovery)

All IMHO…
WMI filed for bankruptcy with $32.9 Billion Dollars in assets and with $8 Billion Dollars in Debt… These assets are part of the WMI’s WMB corporate structure, which is $307 Billion Dollars in total assets… (this is source 1.)

The FDIC seized WMI’s, WMB’s corporate structure… (the $307 Billion Dollars in assets).
This includes the $32.9 Billion Dollars in assets… which are the assets at the FDIC-R.
These assets, ($307 Billion Dollars in assets) were seized and cannot be used in the bankruptcy…


The assets used in the bankruptcy are from the nonbank subsidiary’s assets, about $7.3 Billion Dollars in assets. (this is source 2.)

The nonbank subsidiary’s assets, have all been liquidated and the money was used to pay the noteholders and creditors… so, there are no more nonbank subsidiary’s assets.


So… we have WMB’s corporate structure assets, that are at the FDIC. (this is one set of assets, source 1.)
and we had nonbank subsidiary’s assets, used in the bankruptcy… now $0 are left. (this is one set of assets, source 2.)

Here’s my point…
Some will take the $32.9 Billion in assets and subtract $8 Billion in Debt to get $24.9 Billion in assets/cash… (which is true and straightforward)

If… You are going after the $24.9 Billion in assets/cash… then you are going after the assets at the FDIC. (source 1.)

This $24.9 Billion Dollars in assets/cash, are the assets at the FDIC-R, minus the debt... which is part of the WMB’s corporate structure, $307 Billion Dollars, that was seized by the FDIC.

Ask yourself, where is the $24.9 Billion in assets/cash? … your answer should be, at the FDIC.

So…
If you are going after the $24.9 Billion Dollars in assets/cash, at the FDIC…
Then you’re also going after the $307 Billion Dollars in assets/cash, at the FDIC…
Because you’re going after your WMB’s corporate structure.
(which is $307 Billion Dollars in assets).

There are only two sets of assets… nonbank subsidiary’s assets and WMB’s corporate assets.

At this point, the nonbank subsidiary’s assets are at $0…

So, if you believe $10 Billion or $24.9 Billion or $307 Billion is coming back… It’s coming back from the WMB’s corporate structure assets at the FDIC. (source 1.)


The LIQUIDATING TRUST has been trying to explain that there are two entities and two sets of Distinct Assets… WMI and WMB…
Both owned by the debtors… which is “WMI” or all of us, collectively.

This quote is from the…
REPLY OF WMI LIQUIDATING TRUST IN SUPPORT OF APPLICATION
FOR AN ORDER… …AUTHORIZING, …CLOSING of THE CHAPTER 11 CASES OF
WASHINGTON MUTUAL, INC. AND WMI INVESTMENT CORP. (Link at bottom)

Quote,
4. WMI and WMB Were Distinct Entities with Distinct Assets

Washington Mutual, Inc. is incorporated in the state of Washington and is a savings and loan holding company. It owns two banking subsidiaries, Washington Mutual Bank ("WMB") and Washington Mutual Bank fsb ("WMBfsb"), as well as numerous nonbank subsidiaries.
Unquote.

So, from the above excerpt…
Washington Mutual, Inc. (WMI), or YOU/we the Debtors… are the owners of Washington Mutual Bank ("WMB") and Washington Mutual Bank fsb ("WMBfsb") and the numerous nonbank subsidiaries.
These are all the WMI estate’s assets.

In other words, you own the WMI Estate assets…
you own WMB, WMBfsb and the nonbank subsidiaries… these are all the assets.

Your nonbank subsidiaries assets were turned into cash and you paid off your debt… (which was money owed to the noteholders and creditors) …

Your WMB and WMBfsb assets were seized by the FDIC and you were forced to sell them to JPMC…
The FDIC has the cash from that sale. This cash belongs to WMI (You).

The WMI Estate is equal to the WMB’s corporate structure ($307 Billion) … plus, the WMI’s Non-Banking corporate structure (about $7.3 Billion).
Which is $314.3 Billion Dollars…

The total WMI corporate structure is separated into two part’s…
(these are the “Distinct Entities”)
There’s the WMI-Bank corporate structure and the WMI Non-Banking corporate structure.

Just a note…
You cannot take seized-WMI-Bank corporate assets (for example, MBS) and place them with the WMI Non-Banking corporate assets, then use them in the bankruptcy, because they are separate Entities with separate assets. And that money would have ended up going to the creditors.

So… we have bank assets and non-bank assets…

Washington Mutual Bank ("WMB") and Washington Mutual Bank fsb ("WMBfsb")
Is WMI’s Bank corporate structure… its $307 Billion Dollars in assets and was seized by the FDIC and sold to JPMC (or turned in to cash).
these assets cannot be used in the bankruptcies, this includes the $32.9 Billion in assets at the FDIC-R.

The nonbank subsidiaries, are WMI’s Non-Banking corporate structure, about $7.3 Billion Dollars in assets… these are the bankruptcy assets, which are used in the bankruptcy.

They are two distinct Entities with distinct Assets.

The FDIC seized WMI’s, WMB’s corporate structure…

This left WMI, (the Debtors) with the Non-Banking corporate structure (about $7.3 Billion Dollars in assets)

Up to this point, we’ve only seen the WMI’s Non-Banking corporate structure… about $7.3 Billion Dollars in assets…
these are the assets used in the bankruptcy and so… there are now $0 assets left in source 2…

What about the WMB’s corporate structure assets? (source 1.)

This next excerpt, has been stated several times by the liquidating trust… please note the reference to the “possible future distributions” from the FDIC and the FDIC-R.

From…
WMI Liquidating Trust to Initiate Final Distribution and Wind-Down of Operations
(link at Bottom)

Quote…
As previously disclosed, however, former positions represented by such Escrow Markers or Escrow CUSIPs are not entitled to receive any distributions under the terms of the Plan and they do not, in and of themselves, represent an entitlement to any possible future distributions from the Trust, Reorganized WMI or the Federal Deposit Insurance Corporation (either in its corporate capacity or as the receiver for Washington Mutual Bank), as the case may be.
Unquote.

The “FDIC” was noted here as a possible source, for a future distribution… (source 1.)

IMHO…
The $32.9 Billion in assets, would be at the receiver for Washington Mutual Bank…
and the rest of the assets would be at the FDIC corporate.

So…
Now that our WMI’s Non-Banking corporate assets were liquidated and used to pay off our debt… and there’s no more Non-Banking corporate assets left…

Now…
We go after our, WMB’s corporate assets at the FDIC ($307 Billion Dollars in assets).

I believe part of the winding down of the liquidating trust is to reconcile with the FDIC…

Which would bring the $307 Billion Dollars in cash to the liquidating trust…
Then the liquidating trust, can issue LTI’s to the common and preferred shareholders…

Aka…
Part B… Annex C… Tranche 6.

What I’m trying to say is, if there is anything coming back, its coming back from the FDIC.

Just my thoughts on THE END.

All IMHO and GLTA…

Stay safe… Stay healthy

Jiminy…
Jiminy Christmas…

Just my opinion, research and curiosity…
Not intended to serve as a basis for investment in any security of any issuer. GLTA

REPLY OF WMI LIQUIDATING TRUST IN SUPPORT OF APPLICATION
WMI Liquidating Trust to Initiate Final Distribution and Wind-Down of Operations