Mr Cooper Group Inc (COOP)

[ptolomeo]

I need help understanding something about the $72.8 billion loan portfolio that JPM bought (*cough**cough*) from WAMU (via FDIC receivership).


JPM now has $72.8 billion portfolio of loans. They claim those are terrible bad performing loans. Let's say all of them quit paying (worst case scenario).

Let's say the assets and properties seized and auctioned by JPM now recover ONLY 10% of their value (worst of worsts case scenarios). JPM gets through auctions $7 billions out of $72.8 billions.

Can anyone explain me what did JPM exactly loose? To my understanding, they got those $72.8 billion of loan portfolios FOR FREE (or for the $1.88 billion they had bidded to the FDIC if you want to say so).

To my understanding, I think WAMU is the one that lost those $72.8 billion loan portfolio without a just compensation. JPM is in a win win scenario to my shortsighted eyes.

Can anyone elaborate a bit?

TIA