Mr Cooper Group Inc (COOP)

[Polemarchos_Megas]

from the examiner report:

JPMC's Opp'n to MSJ at 24-28, Turnover Action (July 24, 2009), Dkt. No. 102. JPMC asserts that increasing
the Master Note was inconsistent with Project Fillmore, which was the effort to reduce the overcapitalization of
FSB. Id. at 27-28; JPMC's Suppl. Opp'n to MSJ at 27, Turnover Action (Sept. 11, 2009), Dkt. No. 156; see also
Debtors' App. to MSJ at A115-A116, Turnover Action (May 19, 2009), Dkt. No. 16. In order for FSB to meet the
federally mandated qualified thrift lender ("QTL") test, 65 percent of FSB's assets needed to be in qualified thrift WMBassets (i.e., real estate-related investments). JPMC's App. to Suppl. Opp'n to MSJ at B1079 (Logan Dep. 220:10- 17), Turnover Action (Sept. 11, 2009), Dkt. No. 157; Logan Interview. FSB's compliance with the QTL test was closely monitored at the end of the month. JPMC's App. to Suppl. Opp'n to MSJ at B1079-B1080 (Logan Dep. 220:10-223:7), Turnover Action (Sept. 11, 2009), Dkt. No. 157; JPMC's App. to Opp'n to MSJ at B92-B94, Turnover Action (July 24, 2009), Dkt. No. 103. In the months preceding the Petition Date, the Washington Mutual treasury group proposed to decapitalize FSB. Debtors' App. to MSJ at A15-A16 Of 38), Turnover Action (May 19, 2009), Dkt. No. 16. On at least four occasions, Washington Mutual management had decreased the amount due to FSB from WMB per the Master Note and increased the amount FSB had on deposit at WMB. JPMC's App. to Suppl. Opp'n to MSJ at B1080 (Logan Dep. 223:8-19), Turnover Action (Sept. 11, 2009), Dkt. No. 157; Logan Interview.


Ms. Logan explained that the increase in the Master Note associated with the $3.67 billion transfer was capital effect neutral, and that it did not adversely affect Project Fillmore. JPMC's App. to Suppl. Opp'n to MSJ at B1051-B1052 (Logan Dep. 108:16-112:10), Tw-nover Action (Sept. 11, 2009), Dkt. No. 157; Logan Interview; see also Debtors' App. to MSJ at A115-Al21, Turnover Action (May 19, 2009), Dkt. No. 16.


http://madblab.com/post/fdic-report-wmbfsb-had-no-assets


http://madblab.com/post/tag/wmbfsb