Mr Cooper Group Inc (COOP)

[p_chen]

Is it possible that the Fed gives JPM another round of bailout?

Suppose WMI, JPM/FDIC arrive agreement on the settlement. JPM and FDIC will share the compensation amount by percentage. WMI merges with JPM. With that said, the compensation from JPM will be kept in JPM because of the merger.

Now, FDIC needs to pay its part. How much? If that's the case, I guess it's tens of billions. Part of the compensation is used to pay off bondholders(recovery ratio has been negotiated) and non-covertible preferreds. The leftover will go to WMI (JPM). It's a net inflow of cash to JPM. The WMI WAMPQ will be coverted to WAMUQ, and WAMUQ will be converted to JPM commons in a ratio of 3:1 / 4:1. JPM common will be slightly diluted as the net inflow of cash from FDIC.

So things get fixed. Truths get hided, OTS/FDIC are protected, and JPM gets sort of bailout money. This is okay to me as I mind to see this event brings up another wave of mess. Just me guess.