Mr Cooper Group Inc (COOP)

[grandetourismo]

I figured out who is shorting WaMu.

The Fed.

The Fed just issued it's first of New Monthly Reports on Rescue Programs and stated that they made a profit of $4.5 billion on its $1.1 trillion in expanded holdings of U.S. government and other securities just during the first quarter of 2009.

Just being facetious about the Fed shorting WaMu although I suppose it's possible, what I really wanted to do is draw attention to the size of the profits the Federal Reserve managed to skim off banks and paper they own including banks like WaMu in the first quarter of a very bad year for everyone else. Does the Federal Reserve have an interest in owning as much bank as it can beg borrow or steal? Yes.

Look where almost 8 billion dollars in the Fed's coffers came from during 1Q 2009.

http://www.foxbusiness.com/story/markets/fed-issues-new-monthly-reports-rescue-programs/

"A Fed official said the report is intended to assure people that the Fed is a “careful steward” of its resources and that all borrowings by financial firms in its new programs are “more than adequately covered” by collateral.

Among other items in the report for June, the Fed disclosed that in the first quarter of 2009, it had:

--earned a profit of $4.5 billion on its $1.1 trillion in expanded holdings of U.S. government and other securities

--earned a profit of $1.2 billion on its multiple loan and liquidity programs

--earned a profit of $2.1 billion on its special facility for commercial paper liquidity"


They paid out too some $5.3 billion but that is debt they bought and is aside of the profiteering angle of the FED. I would like to know more about the profiteering side of the Federal Reserve and how they control liquidity of the markets.

I see where Bernanke says he is behind the push for disclosure by the FED, maybe since the Federal Reserve is a privately owned bank, Geitner can publish a list of the FEDs Executive salaries and bonuses like he wants to do with the other private banks of which WaMu would be on the list.

It would be interesting to see who the big shots are with their hands on the American pie.