Mr Cooper Group Inc (COOP)

[bankjob]

rwdutch,

I posted that because some have said that the FDIC is recouping funds to plug a multi-billion dollar hole in WAMU’s balance sheet. If that were the case, then the FDIC would not be able to post that the resolution of WAMU through the P&A Agreement was completed at no cost to the Deposit Insurance Fund.

Following the FDIC’s statement, the question arises about why the Receivership is still open if assets and other expected returns don’t exist and are not anticipated. And yes, LIBOR lawsuits against the big banks are currently outstanding.

The reality is the FDIC considered WAMU a failed bank due to a run on deposits and so called concern about its loan portfolio. However, according to the signed letter (dated 9/25/08) presented by WAMU regarding its plan to raise capital and boost liquidity, it had 0 derivative exposure and had a Tier 1 ratio of 8.9% prior to its plan of action, which made it a VERY well-capitalized bank (failed bank?). The bottom line is Project West could not become a reality unless the FDIC forced it. The only failure was the FDIC’s and other regulatory bodies in so many ways, and the use of the phrase “failed bank” to this day is a travesty, an injustice, and an outright twisting of the truth about WAMU’s financial position, especially in comparison to what JPM’s was at that time. That is my position as supported by the above.