Mr Cooper Group Inc (COOP)

[SlyOne]

Know thy enemy!

If the current settlement is approved Washington Mutual would surrender the majority of its projected tax refunds and all of its litigation assets in return for a speedy end to the last nineteen months of protracted legal wrangling. While such would be advantageous for WaMu’s bondholders, who are on track to receive 100 cents on the dollar, equity would be completely wiped out.

The senior WMI bondholder get 100 cent on the dollar. Yes, but they also get back interest. Their bonds are freely tradeable at or above par. So, every day the settlement is delayed the ROI is reduced. I dont know when they started trading at par. Would be nice to check. A guess would be December 2009.

So, why stick around? One reason and one reason only. They want shares in the newly formed company thats it. Otherwise, they would sell and move to another investment. So, we as equity holders must know this and stop this. They want the shares.

According to the examiners filing. The Goldman Sachs recommendation was to buy bonds and buy CDS (credit default swaps). Well, BOARD, we need to figure out if they did just that. The bondholders would have gotten paid on the insurance, CDS, now they will get paid in BK.