Mr Cooper Group Inc (COOP)

[mordicai]

When Walrath rules on Summary Judgment on March 4th in favor of WMI, she will have decided that the $4 billion is a deposit of WMI and that JPM has to turn it over to WMI. JPM and FDIC were arguing that it was a capital contribution. FDIC then filed its motion to lift the automatic stay in the event it is ruled a deposit. The fdic believes it has the power under paragraph 9 of its Purchase And Sale Agreement with JPM, to prevent JPM from paying out the deposit presumably for the benefit of the receivership. But WMI is not responsible to pay the debts of the receivership, it wasn't a party to this contract, and such action would be unconstitutional. Walrath has already indicated she is not going to pierce the corporate veil. Moreover, the fdic in its motion still hasn't exercised its so called right under the P & A. The bankruptcy court is not going to lift the automatic stay. Otherwise , she could have ruled at the last hearing because even if the fdic wasn't there, it wouldn't appeal something it won.

As to fraudulent conveyance proof, if walrath rules in wmi favor, it was the property of wmi and JPM didn't buy it with the other assets for 1.88 billion so no it wouldn't prove it. If she ruled in favor of it being a capital contribution, then it would show the purchase price was not at fair liquidated value to say the least. A fraudulent conveyance, doesn't necessarily mean fraud was involved, it just means the conveyance was made without adequate consideration which in turn defrauds the creditors from being paid.

Anyway, I can't believe people can pay dimes for dollars even today. As you know , I have always stated that this has to be settled before the $4 billion bargaining chip is taken away from JPM and FDIC. This is the weekend for settlement imho.