Mr Cooper Group Inc (COOP)

[remmy]

Catz, when looking at the numbers, the EC shouldn't get anything unless the hedgies voluntarily give them something, right? So what's their incentive? I see one biggie.

Judge Mary said the EC has colorable claims to sue the hedge funds after this whole affair. The way I see it, if the EC gets $0, there's about 100% chance they'll sue. If the hedgies want to avoid a lawsuit, therefore, they know they'll have to offer more than $0 to get that benefit.

I know they have deep pockets and in a long term fight they have the advantage, but that misses the point of a settlement. People don't settle just because they fear losing or lack the resources to fight. They usually settle if the settlement is cheaper than the litigation costs.

Therefore, it makes perfect sense to me that the hedgies throw the EC a bone. Doing this will also make the judge happier with them for trying. For these reasons, I've always thought a new, higher settlement offer was likely.

I know we want to analyze this case to death in a black and white, logical manner. But if this was a regular case, POR6 would have been approved and the EC would have gotten $0. But in defiance of precedence, it was not approved as you know. Therefore, a little psychology might show us the way on this one.

Doubt you'll agree with me on this. But I wanted to throw out a counterpoint.