Mr Cooper Group Inc (COOP)

[Dragynn]

Why did the banks debt not transfer with it when it went to receivership?

That's the 50 billion dollar question my friend. That is part of the heart of this case, it all boils down to two things in general IMO. 1. An improper seizure 2. An improper sale

The FDIC press release about the sale:
http://www.fdic.gov/news/news/press/2008/pr08085.html

"JPMorgan Chase acquired the assets, assumed the qualified financial contracts and made a payment of $1.9 billion. Claims by equity, subordinated and senior debt holders were not acquired."

Why the heck not? How are you going to put up what is supposed to be a "failed" bank for sale, and allow someone to cherry-pick only the good stuff?

This is part of what is wrong with the system, the FDIC only exists allegedly to insure and protect depositors, and that they can do, but someone other than they and the OTS needed to have been involved here, because in the larger picture, thousands of investors were wiped out, jobs lost, and the entire U.S. economy brought to the brink of cataclysm by an inept knee-jerk move by a lesser bureaucrat.