Replies to post #437785 on Mr Cooper Group Inc (COOP)

[Boris the Spider]

Something will be happening any day.

Everything is now in place and I believe we will see a major announcement in the next couple months, but could be ANY DAY. IMO.

Trust me. You know I've been right before......

[fwh3334zeke]

Thank you AZ a very complete analysis of the situation.

[hotmeat]

For arguments sake let's assume that WMI actually had 10's of Billions in assets that JPM didn't get and the FDIC were holding in safe harbor. Does anyone actually believe that the lawyers for the debtors would have openly acknowledged the existence of these assets to the public in it's bankruptcy filings??? I find this thought so utterly amusing, yet apparently this is what many here keep posturing, that the filings show "nothing" so there is "nothing".

If this was some ordinary "run of the mill" bankruptcy case, I would accept things at it's face value...but it isn't as most here realize. The Debtors lawyers did their "JOB", protecting the estate from outside claimants (equity in particular) using totally legal manoeuvres.

[hotmeat]

AZ could you share your thoughts on this post by mordacai? I was initially sceptical but upon further reading there is some validity to what he's posturing.....




"I recently came across an FDIC memo written by the then Director of the Division of Resolutions and Receiverships concerning the Safe Harbor Rule which explains what "legal isolation" means. At page 6 speaking about the 2000 12 C.F.R. Sec 360.6 (which is applicable to the washington mutual bank case) it states "To satisfy the legal isolation condition, the transferred financial asset must have been presumptively placed beyond the reach of the transferor, its creditors, a bankruptcy trustee, or in the case of an IDI insured depository institution, the FDIC as conservator or receiver."
www.kattenlaw.com/files/upload/FDIC_Memo_Safe_Harbor.pdf
see also https://www.fdic.gov/regulations/laws/federal/00TreatFA.pdf[t][/t]

So the residential mortgage backed securities were not only put beyond the reach of the debtors bankruptcy estate but were also put beyond the reach of the FDIC as receiver for washington mutual bank. These securities were not part of the bankruptcy estate, so why or how would the liquidation trust end up with any of the residuals?Where in the plan does it provide the liquidation trust receives any non bankruptcy estate assets? Moreover, since legal isolation puts them beyond the reach of fdic as the receiver and thereby the creditors of the receivership, who ends up with any residuals. IMO it will be to the reorganized debtors free and clear of all liens maybe even fdic administrative costs.
This explains why the rmbs are not accounted for in the recievership. It explains why the rmbs are not accounted for in the bankruptcy estate. It explains why the theory of buying liquidating trusts assets for stock is absurd despite the fact that the liquidating trust expressly prohibits it. And if you believe that substantial residuals exist, then the stock price of wmih is seriously undervalued by the market."

[W3Research]

AZC, You also want to give your Two Cents on the Post by Mordicai that said it was maybe possible for Assets to bypass WMILT and go directly to WMIH?