Mr Cooper Group Inc (COOP)

[hfields]

Nice post Relentless. I like this one especially from that thread...

Re: Wamu prayer for relief in 5/29 lawsuit 6-Jun-09 10:51 pm

It's true that they are a "shadow bank" in that they no longer have any banking divisions, but they - being WMI, the holding company - are employing the #1 bk law firm in the nation and I think we should do at least a little investigation into this matter rather than dismissing it out of hand.

I have looked into the $4 billion cash question, and despite our team's claim that it was a 'capital contribution' to Wamu bank, all of the paperwork shows that it was a regular deposit account, just like you or I would have. Heck, they have even been getting monthly statements just like we get (except our don't show balances in the billions of dollars).

But what if it was a capital contribution and thus belongs to us? Then look at the numbers: we paid $1.9 billion and got $4 billion in cash (plus 2200 branches, plus ~$180 billion in deposits, plus 5000 ATMs, plus...). What has me concerned is that this is clearly unbalanced, just considering the cash alone. Then there are our recent financial statements recognizing negative goodwill from acquiring Wamu, and the recent reports that we wrote down the Wamu loan portfolio by $30 billion in Sept, but now we're looking at realizing a $29 billion "gain" over the life of those loans. If this is true then the writedown was a bookeeping sham.

I'm just saying that there are some aspects here that I now think warrant our looking into. Yes there are obnoxious Wamu loser investors, but that shouldn't stop us from doing our DD on this situation because this whole mess could significantly impact our share price.