Mr Cooper Group Inc (COOP)

[rramirez82]

This was an excellent post and I especially loved your analogy, which I referenced below.

If a thief steals a brand new lexus off the dealer's lot. Recklessly crashes into 7 other vehicles, kills 3 people in the process and ultimately destroys the stolen lexus. I honestly believe that any court in existence would award damages to the dealership in the amount, not less than, the full value of the car at the time it was stolen, not it's current value. Furthermore, all the additional claims associated with the theft will be the responsibility of the thief, not the owner of the car.

WMI-Weil's motion to disband the EC confirmed the rumors of the parties seeking to leave equity out of the settlement. I suspect TPG/Bonderman may have something to do with this. Moreover, it may be the reason the shorts haven't fully covered yet - because they're anticipating the cancellation of equity to let them off the hook. People must keep in mind that the $50B in claims referenced in WMI-Weil's reply (filed last night) is not - as Byrd referenced in his post - WMI's responsibility. JPM and the FDIC will have to deal with that, which is exactly why Weil has never brought those claims up until now.

Another point, which I believe Mary and Vivian addressed on the Yahoo! forums, is the fact that Weil contradicted itself on the issue of its representation of equity holders. In WMI-Weil's motion to disband, Weil argued that there is no need for the formation of an EC because equity holders are already adequately represented by the debtors (WMI). Then, in a swift about-face, argues in its reply that equity is seeking a recovery (or a "gift" as they artfully stated) that the debtors will not. IMO, we already know they're not seeking the same recovery because the WMI-Weil is solely seeking to appease the bondholders in a settlement, while the EC wants to get the full value of the estate (creditors, equity and all). Accordingly, since WMI is not seeking the same relief, then it is not representing the EC's interests and the EC should be allowed to represent itself.

Thank God for the U.S. Trustee and the EC. When this is all over and justice is served, I will thank them from the bottom of my heart and remain indebted to them forever as my life and the lives of my family and friends will be forever changed as a result of their efforts. Lets hope Judge Walrath sees past the smoke and mirrors and realizes that she needs to act if the law is to be followed and justice is to be served.