Mr Cooper Group Inc (COOP)

[fsshon]

Bair jumped the gun, because she was being lead to the dance by Jamie Dimon. He wanted WAMU so bad, he was willing to play the "wolf in sheep’s clothing" as early as July 08. He worked Bair from the start. This might be the exact reason why we do not have a settlement. Some on this board feel it is the FDIC who are dragging their feet on this one. This may very well be true. If THJMW rules for WMI in regards to SJ on Mar 8th, it will be a nail in the coffin of the FDIC. To prove Fraudulent Conveyance, all WMI has to do is prove the FDIC seized a solvent bank. JPM has since Aug 09 released information that proves WMB was a solvent institution at the time of seizure “ at no time on or before seizure was WMB insolvent” their exact words. WMI proved to the OTS as part of their forward progress plan in early Sept that they were a solvent institution that met the well-capitalized standards set by the FDIC. They were given a clean bill and told by the OTS that they could move forward; no report necessary until late Oct.
FDIC did not like this and Bair kept calling Fishman and telling him he needed to either sell the banks by end of the month (Sept) or face the consequences of a distressed sale by the FDIC. FDIC did not even believe their own regulator (OTS). They felt that since Jamie Dimon of JPM was feeding them the info that OTS did not have, that they knew best. Bair rail-roaded Reiche (forcing him to seize WMB and give it to her) , Dimon rail-roaded Bair (forcing her to sell WMB and all of its subs to her for nothing, while absorbing all the risks) the deal of the century for JPM! On Sept 22nd . An executive of JPM sent a letter to the FDIC asking them to get some confidential info for them from WMi, The letter explained that WMI was not willing to give it to them unless Charlie Scharf called Fishman and told him why they needed it . The letter was requesting the FDIC use their channels to get the info. This shows collusion right here, the FDIC is not supposed to be communicating with banks this way, the auction process had not even been announced yet. But here we have an executive of JPM asking the FDIC to get them confidential info. Here is an excerpt from a discovery motion from WMI..
Moreover, JPMC's Rule 2004 Discovery indicates that JPMC held meetings with Regulators
in 2008 concerning Washington Mutual and made presentations regarding Washington Mutual
that included sensitive Washington Mutual information. Prior to JPMC submitting its March 31,
2008 bid to acquire WMI's business, JPMC discussed the potential acquisition with regulators
and sought government assistance in a deal.”
This info shows that JPM was giving confidential info to regulators at the same time they were bidding for WAMU. IMO “ They bid low, expecting WMI to turn down their bid, so they could figure out where they were in terms of a counter-offer, but they never received a counter-offer. As early as July Discovery documents show that JPM was budgeting 14Bill for equity in a new offering. That pencils out to the $8 plus X 1.7 Bil for TPG and its investors. When JPM bid in March, they bid $8 PPS for WMI, which at the time the o/s was only ??900m shares. Which in July worked out to them needing to increase bid to cover TPG /investors 7.2 Bil injection plus 10% interest and still give shareholders original $8 PPS. The best upside for JPM would be get WAMU as a distressed asset sale through the FDIC and they did everything they could to make sure that happened. They wanted to wipe out equity from the start and did a presentation in July to the FDIC to show how it was a better deal for both.
We all like to beat up on Bair for falling into the JPM trap and moving the ball forward for them. Yep, Paulson even talks about Bair and WAMU in his book “on the brink” He mentions how WAMU’s number was only 2800 in July but up to 5700 plus in Sept, so Sheila decided to seize and sale them to “the chief” who had been focused on them for some time now. [ I do not know what he is referring to, but would love to know] I will explore this more once I read his damn book. Now suppose Sheila actually allowed herself and her staff to fall into a trap. What if Jamie Dimon pulled a fast one on the FDIC and now has them backed up into a corner. What move would Clarke be recommending for his client to make that will help them save face and get Dimon in the process? I will project the answers to these questions in my theory which I will post next.

It is now time for the board to come together and figure out what the next steps are and why we are still here. My theory is next.

~Fish~