Mr Cooper Group Inc (COOP)

[JohnnyWinter]

"THEY DIDNT ABSORB CRAP IN LIABILITIES!!! FACT!!!

You're incorrect. On a bank's balance sheet deposits are a liability. JPM took over all deposits / liabilities of Wamu.

What I did say was,


Quote:
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JPM did the government and the US taxpayers a favor by absorbing the losses.
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JPM has had to continue to increase their loan loss reserves for the assets / loans that were on Wamu's balance sheet.

That is a fact.

The firm also set aside less in reserves to cover expected loan losses than in the past. It still has on hand more than $39 billion, or 5.6 percent of total loans, but that represents a decrease from previous quarters. The company said it put aside $2.3 billion in litigation reserves, which includes funds for mortgage-related lawsuits.

http://www.washingtonpost.com/wp-dyn/content/article/2010/04/14/AR2010041400981.html

As was pointed out in the senate hearings

From 2000 to 2007, WaMu and an affiliate, the Long Beach Mortgage Company, packaged and sold at least $77 billion in subprime mortgages, the panel found. It sold or securitized an even greater amount in adjustable-rate mortgages, or A.R.M.’s.

By 2006, WaMu’s internal records show, it was one of the country’s largest originators of “option A.R.M.” loans.

That all came to an end the next year, when the housing market teetered. By the middle of 2007, WaMu shut down Long Beach; by the end of the year, a Long Beach employee was charged with taking kickbacks to process fraudulent or substandard loans.

The documents revealed an extensive pattern of lax underwriting and fraudulent lending that inevitably led to delinquency and foreclosure.

For example, one internal investigation found high rates of “confirmed fraud” in two top loan-producing offices in southern California. But the subcommittee said that “no steps were taken to address the problems, and no investors who purchased loans originated by these offices were notified.” "

http://www.nytimes.com/2010/04/13/business/13wamu.html?pagewanted=print



"Well there is at least $77B of the supposed $300B in assets at Wamu. All junk.[/b] "


Courtesy of BullNBear52 :


http://investorshub.advfn.com/boards/read_msg.aspx?message_id=50327234