Mr Cooper Group Inc fka COOP

[dm57]

From Bopfan - 2 minutes ago - opinions please????


From the news releases Matt and others have supplied it looks like the FDIC has scaled down its request to $100 billion. This isn't good news but probably Dodd told Bair that $500 billion would be out of the question in the current environment.

I say it isn't good news because WMI isn't the only problem out there (someone else just mentioned a large short position against Citigroup), and this money is going to have to go around.

Weil will be realistic. If it knows the FDIC can only come up with $20 billion (for example) through this credit line increase, it must ask WMI whether it is willing to take this money or fight on to a judgment?

Between JPM and the FDIC I have no fear for the preferreds, but commons should scale back expectations based on the FDIC's reduced resources.