Mr Cooper Group Inc (COOP)

[rramirez82]

I think there are two issues with moving forward with the Rule 2004 Examination: (1.) whether uncovering such evidence as the type you described will substantially and materially diminish JPM's bargaining power in any settlement negotiations; and (2.) whether WMI would be bound to disclose any evidence of criminal activity uncovered by the Rule 2004 Examination to the SEC.

The first issue is very simple -- YES, because WMI would have very little incentive to "bargain" with JPM when the likelihood of a landslide judgment in WMI's favor is so high (assuming the evidence is there, of course).

The second issue is a bit more complicated. My instincts would tell me that the criminal activity should be reported (when in doubt, disclose -- lol) to the SEC, but I may be wrong. I'm not quite sure and I would have to research that to confirm. If my instincts are correct and WMI would have to disclose, JPM would not be able to settle simply to avoid the criminal liability.