Replies to post #415664 on Mr Cooper Group Inc (COOP)

[fsshon]

It is simple. In the old days Banks and Government agencies put large amounts of money in other banks to help them grow and "park their money."

Now rhat the new Fed Requirements are coming into play the large banks (such a Chase) do not want funds parked in their bank that they can not borrow against or use for banking purposes.

Remember. Deposits are not the banks money they are liabilities and liabilities on one side of the balance sheet affect the capital req of the new Fed Standards.

This is why they are off-balance. Jpm was allowing money to be parked in their bank, but now with new fed capital req/FDIC fees standards there is no benefit to them for this, so they moved that money out of the on-blance to the off-balance to avoid all the fees and scrutiny.

Cheers
Blue

P.S. I think Bk/Exdimer have done a great job of explaining MBS to this board. Now lets get on to to who WMIH will acquire.