Mr Cooper Group Inc (COOP)

[7nech]

2.3 Shareholder Equity
Figure 12 is an image of JPM’s Shareholder Equity stacked by WAMU’s shareholder equity by year and quarter. At the end of Q2 of 2008, WAMU had a Shareholder Equity of $26B dollars. If we remove goodwill ($7.2B) from assets, then WAMU had assets in excess of liabilities of $18.8B. This number in itself exemplifies the absurdity of Rosen’s comments in court about WMI being hopelessly insolvent after stating that there was in excess of $100B in claims. How does a company with tangible assets in excess of liabilities by $18.8B magically have over $100B in claims after a chapter 11 filing? The only plausible explanation is that many of the claims are bogus and wildly inflated.
It should be noted again that JPM also purchased Bear Sterns in Q2 of 2008 and Bear Sterns had approximately $11.9B in shareholder equity as of their last filing in Q1 of 2008. Clearly JPM benefited from the purchase of WAMU assets and Bear Sterns as illustrated from the jump of JPMs shareholder equity from $133B in Q2 of 2008 to $166.9B in Q4 of 2008. The reader can decide for themselves if this is unjust enrichment or not.