Mr Cooper Group Inc fka COOP

[steved_45]

I hope that's true but one thing that scares me is Bank of America's recent settlement for $150MM to shareholders for not disclosing Merryl's 8BB loss and several hundred more million dollars paid in bonuses to Merryl execs even though shareholders took a much bigger hit to the tune of 20x that amount based on market cap. So, it could be possible that the judge says JPM cuased 10BB in damage but will only have to pay a small percentage of that to WaMu shareholders. Yes, I know it's not the exact same facts but the outcome is what I'm more concerned with based on JPM's realistic inability to just shell out 20BB to WaMu shareholders. IMO, if JPM was found to be responsible for over 20BB in damage, I think they would just declare BK. I have not run a scenario on what their tier 1 capital ratio would be if they paid out 20BB in cash, but I assume it would decrease substantially.

The more I think about this, the more lawsuits I'm picturing (class actions by both WaMu and JPM shareholders, SEC, possibly FDIC, TPG, etc.) being filed and consequently the longer this mess will take to get sorted out if the examiner says that JPM is liable for WaMu's collapse. Now I know why JPM has 1BB stashed for a legal fund--and they're probably fully expecting it to increase over time paid by the WaMu portfolio...