Mr Cooper Group Inc (COOP)

[Split T]

General Discussion - WMILT and Escrows / WMI Assets that the WMILT had no jurisdiction over
IMO...I decided to start a new topic because this is important to point out since there is some major confusion.


Bankruptcy process of Chapter 11 cases of WMI and WMIIC:

1) Judge Walrath repeatedly stated that non-banking bankruptcy remote assets were not allowed into the bankruptcy proceedings

2) What are the non-banking bankruptcy remote assets?

a) legacy WMI shareholders own the beneficial interests to $101.9 billion original face amount of securitized loans into MBS Trusts (the current value is potentially between $800 billion to $827 billion)

*Long Beach Mortgage (which securitized $165 billion into MBS Trusts) was a non-banking subsidiary. In fact, the regulator for Long Beach Mortgage was not the FDIC or OTS but rather the State of California, thus the FDIC had no jurisdiction over Long Beach Mortgage

**FDIC has stated explicitly that the securitized loans in MBS Trusts are isolated from the jurisdiction of the FDIC

b) real estate (unknown value)

c) mineral rights (unknown value)

d) other miscellaneous assets

3) FDIC LIBOR litigation potential settlement proceeds ($400 billion claim against defendant banks, potential payout to WMI is unknown)

4) There was a press release as of September 25, 2008 that explicitly stated that the FDIC did not seize (or transfer to JPMC) any WMI non-banking assets.

Per joint press release by JPMC and FDIC on September 25, 2008:

https://www.sec.gov/Archives/edgar/data/19617/000119312508201638/dex991.htm

" New York, Sept. 25, 2008 – JPMorgan Chase & Co. (NYSE: JPM) tonight announced it has acquired all deposits, assets and certain liabilities of Washington Mutual's banking operations from the Federal Deposit Insurance Corporation (FDIC), effective immediately. Excluded from the transaction are the senior unsecured debt, subordinated debt, and preferred stock of Washington Mutual's banks. JPMorgan Chase will not be acquiring any assets or liabilities of the banks' parent holding company (WM) or the holding company's non-bank subsidiaries. As part of this transaction, JPMorgan Chase will make a payment of approximately $1.9 billion to the FDIC."

5) The WMILT only has jurisdiction over bankruptcy estate assets, not any non-banking bankruptcy remote assets

]Courtesy of dmdmd1