Mr Cooper Group Inc (COOP)

[dam]

I agree. The FDIC had to make a choice. They were afraid of WAMU failing, so they got together with JPM who they knew was game and did the deal -- they took the chance that they'd have to insure $310bn of deposits off the table while at the same time giving JPM lifeblood to keep them well capitalized. JPM got the juice and got into a lot of markets it had wanted. While I think their fears about WAMU's stability were misplaced, that was the decision they made and the markets felt the consequences.

And, it only had to put down $1.9bn UP FRONT to do it.

FDIC made a decision in a crunch. I think they and JPM knew it was going to come back eventually, but if they could delay it long enough, what's $10, $20bn when you're out of crisis and have had time for the market to heal?

I don't think the FDIC will be made to pay any reparations. I think JPM will either have to hand over assets to WMI or provide reasonable payment with interest and potentially damages. I said up-front, because I fathom the reason JPM has *SO* MUCH cash right now is that they're expecting to "finish paying" with a nice settlement.

Settlement does seem most likely to me. Something nice and quiet for JPM and FDIC, and the creditors get paid, shareholders get at least some equity.

Note: I hold both P's and U's.