I have no idea. But in my mind, legacy WMI interests payable to those who released, exists 'legally' behind multiple incorporated Delaware veils, outside of 1) Bankruptcy and 2) the FDIC.
The BK had to end first, to remove the liability taint and stench of that battle between equity and creditors.... to determine who ends up with the legacy interests.
These DE trusts managing legacy interests, don't report to the old BK court, as the judge saw and ruled on them years ago for what they were...untouchable to WMI creditors, and the FDIC. So they went into standby mode while the WMI estate was fought over for 10 years - how can they pay the quarterly residuals, when the beneficiary hasn't been awarded, and the legal contests continue (no-thanks to bop for delaying us for another year +)
These DE trust dont report to the FDIC because the FDIC has no jurisdiction. No bank holding company is stupid enough to place all their assets in one corporate basket called WAMU, whereby the FDIC could theoretically seize everything one day. How could any bank raise capital/debt if creditors knew all your collatoral was first dibs to the FDIC? Literally zero banks in the world keep their assets within the banks corporate entity. The FDIC literally only oversees the WAMU bank and its meager assets.
WMI - now trading as COOP, with one (reported as of yet) major subsidiary called Mr Cooper, was/is just a PASSIVE recipient of the DE trusts. However, during BK there is nothing to receive or report as the DE trusts are in standby mode. "hide the sausage" in plain sight for those who see. Old WMI 10-Ks pre 2008 always told the truth regarding trust income....and that truth didn't go extinct, it went into standby mode.
WMI (COOP) at the moment......has no control of the DE trusts - WMI (trading as COOP) only had/has control of itself and ending the BK....as the only means to receive these 'on ice during BK' assets. Those who released will receive their share of the associated trusts accumulated/ing income, as WMI (trading as COOP) with the official end of BK and the WMILT, can once again 10 + years later...be reunited with its passive income - stand by mode 10 year holdings go to those who released. Ongoing future passive income benefits all current WMI (COOP) holders going forward.
1) Now that the BK and the WMILT is hours from being DOA, WMI trading as COOP will have to acknowledge the 'legacy interests' from old WMI, held apart from BK proceedings. There is no way around this. Maybe it'll take another quarter to report, as anything happening now is mid Q1. I expect to see something Q2 at the latest....Maybe it'll all be blended and folded into a new M&A ?
2) FDIC has no grip over WMI, only WMI's banking subs (WAMU). Whatever banking related assets remain, without seeing the 'complete' PAA, I've always figured the FDIC would find a way to absorb any minimal WAMU bank asset residuals into a loss, so that the history of WAMU story line stays intact....'largest failed bank'... (not).
