Replies to post #528479 on Mr Cooper Group Inc (COOP)

[jerrylev]

Re: The only way I see Libor case paying out significantly for WMI is if we directly held a bunch of derivatives based on Libor that would have paid us the cash necessary during the bank run period and thus saving us from takeover.

Nope. The settlement is used to pay a bunch of government agencies and not to the victims directly.

Let's call this a dead theory just like the S4V theory.

The 13B settlement was for bad mortgages.

https://www.reuters.com/article/us-jpmorgan-settlement/jpmorgan-agrees-13-billion-settlement-with-u-s-over-bad-mortgages-idUSBRE9AI0OA20131120?irpc=932

The government called the settlement the largest in U.S. history, but the deal is really several rolled into one. It includes a $4 billion consumer relief package, and a $4 billion settlement with the Federal Housing Finance Agency, which oversees government mortgage financing companies Fannie Mae and Freddie Mac.

Of the $4 billion consumer relief package, at least $1.5 billion will go toward loans the bank is forgiving. As much as $500 million will go to change the terms of loans to lower monthly payments.

The remaining $2 billion will be for assorted purposes, including new loans for low- and moderate-income borrowers in areas that have been hard-hit by the housing crisis and for demolition of abandoned homes.

Of the $13 billion settlement, $4 billion is for the consumer relief package, $4 billion is for the FHFA deal, and $5 billion is for a civil penalty to the Justice Department and claims from other state and federal government entities.