Replies to post #491779 on Mr Cooper Group Inc (COOP)

[$27]

"Liabilties at Inception-Unproven"....272billion
Pardon me for interrupting your conversation...just wanted to point that out, TIA

[UncleBo]

Excellent post, Justice and simple math...


I might add the so called "net assets" of 26.4B were outright construed were plugged into the 40B figure because...they JPM/FDIC didn't know how the assets would perform in reality. I know that JPM said we wrote them down by 31B. However, nobody wants to talk that this number was really a Mark To Market at the time. We have have seen a very, very different number for the actual loss or write down as provided with the filings of DBNTC with the CA probate court 17.7B.

So if we do this 26.4B-17.7B = 8.7B is the real "net assets", close to one one posit as THJMW said.

What is also important is that these "assets" were actually income stream from ABS and they cannot be sold so the more interesting question is the accumulated interest from those as AZ has pointed out multiple times. That does not belong to JPM and there is plenty for everyone. Finally, from the whole shebang there are still "assets" in those trusts which issued the ABS although less than 8% at this point IMO and as we saw in the DB case. This is nothing to scoff at...

Uncle Bo

P.S. Pay attention also to the footnote - the asset related equity adjustments CAN BE REVERSED!!!

[CBA09]

Ref: The solution lies within the "Inception Balance Sheet" and the $40.2B "asset - related equity adjustments."

Comment:

Classic example of GAAP miss-appropriation at its finest. A $ 40.2 B entry to create insolvency.

Inception Balance = Solvency of WMB ( Positive Equity - $ 26.4 B ).

Then - $ 40.2B impairment adjustment.

Current Balance = Insolvency of WMB ( Negative Equity $ 19.4 B ).

What I find interesting:

Notation of Unproven Liabilities -$ 272.3 B. Why!!! Any first year accountant understands that Liabilities are the easiest to prove or disprove.


This has me scratching my head. As liabilities are what is owed to outsiders and can be vouched via source documents.

Why?!!? Then can there can be in the "Current Balance":

1) Asset "Impairment" Adjustment of $ 40.2B which is based on estimations,

BUT

2) "No" Liability Adjustment which is based on hard material evidence.

Little doubt in my mind - Dubious GAAP application.