Mr Cooper Group Inc fka COOP

[Desperado90]

Am responding to the fact that you said WAMU was looking to raise capital from TPG and Banco Santanda.

Nothing here is WARM and FUZZY. Anytime a bank goes out to raise money, it does not mean that the bank is in trouble. It could mean in WAMU's case that they can hedge an asset to cash (Example Trust Preferred Securities) while they continue using their ability as a bank to leverage the new dollars appropriately.

Example: $8B from TPG could be leveraged conservatively at 10:1 to create $80B worth of Assets. Thats the way most of this bank grow and if the assets are sound, the returns at a conservative 5%/yr ($4B) would be used to pay back the investor and invest in other assets.

Thats why it is critical for you to see that they seized their credit card business too. The credit card business is one of the most profitable business in America. The average interest rate is about 12% and you will notice from my example about leverage that $80B in credit card loans at 10% return could easily make a bank profitable and solvent for a long time even at 8-10% default rate.

GLTY.