Mr Cooper Group Inc (COOP)

[Lincolns2Jacksons]

FDIC isn't invincible afterall? Found on google from newspaper back in 2002:

"The Federal Deposit Insurance Corp (FDIC) agreed to pay $90 million to settle allegations it gave out high-interest subprime mortgages to unqualified borrowers, the Wall Street Journal reported.

The payment settles a lawsuit brought by Beal Bank SSB, which purchased thousands of the FDIC-originated mortgages in 2001 and 2002, the paper said.

Plano, Texas-based Beal had claimed the borrowers defaulted at alarmingly high rates due to the FDIC's poor oversight of lending practices at failed Superior Bank, which the regulator seized in 2001.

The FDIC continued to run the Illinois-based national subprime mortgage lender for months, making new loans, as it looked for a buyer.

Beal sued the FDIC in October 2002, seeking to recover damages arising from the regulator's alleged breaches of contract regarding subprime mortgage portfolios the bank bought from it.

The settlement was reached in December but wasn't publicly announced, the Journal said, adding both sides confirmed the settlement amount.

The FDIC and Beal Bank could not be immediately reached by Reuters for comment. (Reporting by Ratul Ray Chaudhuri in Bangalore; Editing by David Holmes) "