Replies to post #461672 on Mr Cooper Group Inc fka COOP

[JusticeWillWin]

CBA09, please don't be too focused on the point that the $40.2 bln. (not 42.2 as you wrote!) were subtracted from the real estate mortgages. That was not my main point, I only think it is interesting that the difference is exactly the $151 bln.

(If you don't know that number you can have a look at a previous post http://investorshub.advfn.com/boards/read_msg.aspx?message_id=120602020)

And I wouldn't go as far and say the 40.2 bln. must come back (remember, this number contains also the total liabilities, as you can see in the text below the screenshot)

My main point is that these asset-related equity "adjustments", which are usually for adjustments(!) only, in this case "adjust" (are the sum) the complete(!) equity (100% !!!) and the total liabilities.

So I've made a new screenshot to point that out, and made some calcualtions below:



For a balance sheet there is the rule:

Total Assets = Total Liabilities + (Shareholder's) Equity

or

Total Assets = Total Liabilities + Net Assets

For the receivership assets you have to add the $1.888 bln. premium.

Total Assets = Total Liabilities + Net Assets + Premium

and subtract the "adjustments" (which in this case is the complete(!) equity (or net assets) AND the total liabilities)

Total Assets = Total Liabilities + Net Assets + Premium - Asset-related equity adjustments

So the term equates to this simple form:

Total Assets = Premium (+ a few other dollars, but not noteworthy)

The question is, what does it mean exactly?
Did the 26 bln. in equity go poof?
Or were they donated to JPMC completely for free?
Or were they transferred to JPMC completely, but they still have to pay for it (book value in P&AA...)?
Or does the FDIC somehow keep assets of about 26 bln. that justifies this calculation?

boarddork - Certificate Income


Yes - FDIC has no right to keep assets from a true asset sale from a securitzation transaction. That is why, I believe the 42.2B was removed from the Real Estate Mortgage Line item.

To further reflect insulation / protection of assets both WMIIC and WMI filed to distance their assets from creditors of each other and likewise WMB. It is not uncommon for a court to try to reclassify sale transactions as merely financing agreements. Thus the double protection with both WMIIC and WMI filing.

As for Certificate Income, I believe all SPE's that meet true sales criteria hold a bundle of cash not belonging to WMB but ultimately due to WMI. And because status of these transactions are bankruptcy remote FDIC holds no repudiation powers over them.

[onco]

If this is true. Why have they not flowed to us long ago?? Ie what will be the trigger point ?.