Mr Cooper Group Inc (COOP)

[ron_66271]

More 2008 Derivative Market Meltdown Details.

BS;
Bear Stearns was a major holder of ABS/RMBS CERTS/Notes that were insured by Derivative Contracts.

JPM wrote 57% of the market. Therefore JPM was greatly exposed to make large loss claims back to BS.
JPM slow paid BS that made BS cash short. JPM forced/bought BS, so therefore JPM paid JPM for the ABS/RMBS losses.

Lehman’s;
JPM and Lehman’s had an ongoing agreement that JPM would cover Lehman’s Mark to Market for the night so Lehman’s could close their books.
On September 14th, JPM didn’t have any money to cover Lehman’s M2M. Therefore Lehman’s could not close their books and had to file for Bankruptcy.
Lehman’s also held a large portfolio of ABS/RMBS. Now locked up in LIBOR Litigation.

WaMu;
WaMu was a super originator of ABS/RMBS that JPM would need to cover the losses as the insurer.
According to the FDIC WaMu originated $1.5 Trillion in RMBS.
Again JPM forced the payment recipient into LIBOR litigation due to JPM LIBOR Currency manipulation.



Time to cook dinner,
Ron