Mr Cooper Group Inc (COOP)

[RajuSondh]

You can read here FDIC response:

From: Grieser, Donald G. <[e-mail]>
Sent: Thursday, July 1, 2021 10:20 AM
To: [e-mail]>
Subject: RE: [EXTERNAL MESSAGE] 10015 Washington Mutual Bank - Inquiry Regarding Receivership Closure

Mr. Sondh –



Any reference to “WMI” pertains to Washington Mutual, Inc., which is the holding company for Washington Mutual Bank.



Please be advised that the FDIC as Receiver for Washington Mutual Bank is NOT responsible for handling any of the affairs of the failed bank’s holding company, Washington Mutual, Inc. Consequently, if you are a stockholder with shares of stock in Washington Mutual, Inc., you will need to contact the source which is handling the bankruptcy of the holding company. The link to that source for further assistance is www.kccllc.net/wamu.



As a side note, there was no publicly-owned stock in Washington Mutual Bank. Rather, all shares of stock issued by the bank were owned by its holding company, Washington Mutual, Inc. In addition, you should know that there is a priority for payment of claims for bank receiverships, as established by law. Specifically, the order of payment of claims against the receivership of a bank is as follows:



1. Depositor claims

2. Unsecured general creditor claims and senior bondholder claims

3. Subordinated bondholder claims

4. Stockholder claims



According to statute, the priority of payment dictates that each higher level of claim (as listed above) must be paid IN FULL before the next priority level can begin to receive any payments on their claims. Currently, the receivership for Washington Mutual Bank has paid the depositor claims in full, and it has paid the unsecured general creditors and senior bondholders 22.159% of their claims to date. Unfortunately, the financial condition of the receivership is extremely poor, and it is unlikely that the unsecured general creditor claims and the senior bondholder claims will be fully satisfied. This means that anyone holding subordinated bonds will likely receive NOTHING for their allowed claims, and the holding company (Washington Mutual, Inc.) as the sole stockholder of the bank will likely receive NOTHING for its stock ownership in the bank as well. [NOTE: Please note that the key word here is “likely” because there is always the chance (however remote) that a financial “windfall” may improve the financial condition of the receivership.]



The bankruptcy proceedings for the holding company (Washington Mutual, Inc.) will likely remain “open” and unresolved until the receivership of Washington Mutual Bank has been terminated. Until then, it is unknown (however unlikely) whether any payments can be made by the receivership toward the stockholder claim of the holding company.



We regret that the receivership of Washington Mutual Bank has lasted as long as it has. Most receiverships of failed financial institutions will typically last (on average) for a total of only 3 to 10 years in duration before they are completely terminated. However, Washington Mutual Bank was the largest financial institution to fail in U.S. history, and it’s still a very active receivership even to this day. In fact, the receivership is still receiving claims and currently has several impediments (mostly defensive litigation) that must be resolved before any efforts can be made to terminate it. Any termination of the receivership, by the way, probably won’t happen for at least another 5 to 10 years if we’re fortunate.



I hope you find this information useful, and we wish you the best of luck in any recovery for your stock from the holding company.



Respectfully,



Donald G. Grieser

Senior Claims Administration Analyst

Division of Resolutions & Receiverships

Federal Deposit Insurance Corporation

Email: [e-mail]

Work: [phone]

Cell: [phone]



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