Mr Cooper Group Inc (COOP)

[Billiam_2]

The FC is huge. It puts the FDIC and JPM up against the wall, hard! I think WMI is purposely clouding the issue of assets, remember the only thing they are reporting currently is cash and cash equivalents. I also think they have their creditors on their side, aligned against FDIC and JPM. JPM doesn't know what it owns. I feel confident there is negotiations going on between the two parties for a buyout. That is the only logical solution for JPM and FDIC. It solves the FC problem and the asset ownership problem. As more TARP money comes available I see a buyout as a real possibility. If not WMI comes out of BK on 9/30/09. And I certainly believe that they have enough assets for a substancial recovery, meaning both commons and preferreds are in tact. Remember, WMI the holding company cannot just arbitraily wipe out shares, they would have to prove to the judge that they truly have no assets left.Also, remember that all of their debt is not currently due. That is the gamble and I believe the assets are there.
1. $4.4B cash
2. $20B NOL, spend 7 of that to see an immediate recovery from the IRS of $2B of previous years taxes.
3. Real Estate, value TBD
4. Securities, value TBD

WMI reported in their initial BK filing, $32B in assets and $8B in debts. Even if the assets get erased by 50% we are still in a great position.

JPM arguments are baseless. What the FDIC gave them was the banking business. That is all the FDIC has control over. WMI is the holding company. A holding company does just what it's name implies. It holds all of the assets, cash included. The holding company is the one that reports to the IRS all of the profits and losses of all of it's subsideries. WAMU the bank was only one of the many subsideries of WMI the holding company.