Mr Cooper Group Inc (COOP)

[grandetourismo]

Keep in mind the ploy used in the take over of WaMU.

As I recall there was no insolvency issue with WaMu. The take over was merely a contrived event between the FDIC and JPM. Once the dust settles, I think we will see that the protocol used for failed banks does not apply here. IMO, WMI/WaMu will be made whole (at least for accounting purposes) and that number will be used to calculate the settlement. In this case because the bank did not actually fail, the NOL benefit will be left in tact.


"Conclusion
Whether one is involved in a reorganization of a troubled corporation in or outside of bankruptcy, or is contemplating the acquisition of a corporation with NOLs, significant analysis and planning needs to be conducted to determine the amount of NOLs that can actually be used by the corporation. In some situations, good planning opportunities may be available, but more often the advice of the tax professionals will mainly aid in damage control. Still, given the relative high value of NOLs and other tax attributes of a severely troubled corporation, the value of timely tax advice in this area can’t be understated."