Mr Cooper Group Inc fka COOP

[cashgrinder]

i am heavily invested in Wamu (200k shares) as most of you but dont get overboard with thinking there is a golden light ahead.

Some of these prices you are mentioning are just fantasy world.

I spoke to a friends father who is a partner at one of the many firms representing WAMU in both there suits, Ch 11, and FDIC... I am not willing to mention any names or even the firm he represents but will summarize what i was told in confidence. He is not specifically working on the case but spoke with another partner about this situation.

1st... Suing the FDIC is a no win battle. When you sue them it needs to go in front of the Supreme Court and that would take years. Could be 8-10 years so really thats not a realisitc option. In addition even if there is wrongdoing which is really hard to prove there will likley be little left after law claims. The FDIC lawyers are on salary and there goal is to extend it as far out and as long and grueling as possible. WAMU etc is represented by multiple firms billing as much as 600-800 an hour and you can only imagine the bill for 8 years worth of work. This is not really something to get excited about no matter how crooked or not things happened. Everything i read says there was wrong doing and shady stuff that happened in the last stages of WAMU but proving that in court is very tough.

2nd... The best hope is for an outright settlement by JPM with them deciding that they want to assume all WAMU's assets at a specific price. They conceed the certain price to take over full control of the holding company and all assets associated with the firm. The prices some people are throwing out are not even close. In most cases it would be around the last day of trading. If it went to a full jury or court they would have big trouble getting JPM to pay more then the firm could have been bought for. More then the investors (shareholders believed the firm was worth). I dont have handy the last price but i believe it was a 1.00 or a little over before the FDIC came in and swooped them up. So that is one of the best outcomes if this were to go through full trial. In addition there would be a lot of expenses associated with this and it could be carried out and delayed several years. Best case is the judge decides ona certain mutliple of the last day's trading price. He cited another example of a case where this happened with a bank about 10 years ago. They were taken over and they felt they were more and they got a judgement of there last trading day. JPM is trying to get this as cheap as possible. With enough pressure on Dixon and board they will decide to settle this and move on. IN my opinion they know they stole this company and feel there is no proof of it.

3rd.. As you know commons are last priority. We are all hopefull there will be money left over to pay us but we never know. This is a risk everyone involved is willing to take.

So overall there is an uphill fight with all this. I am hopeful we will get a settlement sometime but i dont have a timeframe on it. I just want to be realistic to those who think 12-24 a share and tell them there is no chance of this happening. If we get a 1.50 a share settlement that will be a hell of a return on your investment. Lets cross our fingers and hope for more.

If anyone has specific questions I am happy to ask. I dont know how much he will tell me on anything though.