Thx! I finally sat down to read the latest 10-K filing this morning. I was struck how the word "Consolidated" was used often by both WMIH and it's auditing accounting firm, to define the degree of complete/ incompleteness of the audit and the filings.
Using consolidated so specifically, alluded that the opposite could be true as well. So I looked it up to see if Unconsolidated Subsidiarys do exist, and they do,. It's quite common.
To me, there's no reason to think that's not the hide-the-sausage game they have played amongst themselves to date...
Something to think about.... Unconsolidated Subs are used to hide liability so as not to reflect poorly on your Consolidated Books. DTC tracking marker value owed to those who released, is a future liability at some point in the future, against legacy assets returning to the old debtor after BK. And maybe WMIH/KKR is using as collatoral for Merger/Acquistions, this asset pool that largely(at the moment until disbursed) belongs to those who released. Certainly it had to have been the virtual collatoral fagainst loans for WMIH to Acquire Nationstar. SO I'd bet its still 100% being withheld for this future acquisition purpose...maybe until WMIH's balance sheet after growing Nationstar is strong enough to borrow on it own, without using any unconsolidated subs as collatoral.
Even if WMIH controls < 20% compared to legacy who released, they could be playing fast and loose with usage of it for growing COOP while they can, at our expense. If a person sells a house for $2M, that had a private mortgage note for $1.5M......that person could delay repaying that note just long enough to qualify for buying their next new home and mortgage.....so it looked like they had $2M in cash, when in fact they only had $500k.
The longer they hide it from us as an Unconsolidated subsidiary asset, the longer they get to use it. It's like free gas for the estate attorney's cars, when we the heirs haven't been told yet that what we actually inherited, is a gas station. All we got was a letter verifying inheritance rights to the estate after the specifics gets sorted out.
We just need to blow the doors open, and light a fire!
