Replies to post #543309 on Mr Cooper Group Inc fka COOP

[goodietime]

"- FDIC simply said that it took a 299B bank into receivership which is true

- FDIC does not say clearly what it did after that, but we already know that it sold a good chunk to JPM for merely 1.9B."


Question: So, if one actually believes that 'most' of 299B was sold for a mere 1.8B, as you suggest, WHY was it EXCLUDED from the FDIC Report???

What facts are they (FDIC) reluctant to report?

[SamuraiProgrammer]

Well, you are not one of the ones I am not talking to... :)

You are probably a programmer as shown in your ID

Yes. In fact, I wrote a couple of accounting packages back in the day when it was normal for mid sized companies to have custom software for that.

Just from looking at 299B, those are assets and not cash and assets have liabilities and so 299B may be worth at the most 10% or even much less such as 5%.

The $299B in assets are balanced by some number of deposits (which are usually the largest class of liabilities for a bank). Trying to determine net worth from just assets is, indeed, impossible.

- Now in the 259B assets that were sold to JPM, there can be assets belonging to WMI, or were safe harbor or were securitized and they were seized and sold by mistake but the amount cannot be huge.

I can't argue with this other than to say what I think happened is FDIC sold JPM assets (loans) and liabilities (deposits) for $1.9B. What I think happened is JPM took possession of assets above and beyond what they were supposed to such as the corporate HQ (rumored to be owned by WMI and not WMB) and the art collection (ditto). I don't believe those are included in the $299B announced by FDIC. (IF someone can show me with documentation that is wrong, I am open to seeing the information)

All in all, we can only count on the remaining of 40B of assets retained by FDIC after FDIC has paid the bondholders plus whatever are SH, securitized in the other 259B, which cannot be huge like in the hundreds of billions.

This statement I disagree with. There are assets of WMI that were not supposed to be seized by FDIC. These are the fabled 'safe harbor' assets. During court, there was a lot of argument about FIRREA. My understanding is that the judge refused to allow FDIC to pierce the 'corporate veil' using FIRREA as the excuse.

If safe harbor assets were taken, they will need to be returned. However, I don't believe that all (or even the majority) of safe harbor assets were taken by JPM. This was the entire purpose of WMI filing bankruptcy... to prevent those assets from being swept up by FDIC and JPM. (IMO)


again...

All in all, we can only count on the remaining of 40B of assets retained by FDIC after FDIC has paid the bondholders

I can sort of agree with this statement if it ends with the words 'to come back from FDIC'. If those assets have been performing for these 10 years, we should also be able to count on those profits. On the other hand, I am sure FDIC will have some handwavium accounting magic to show how we don't get any of that.

This is why I am all about the bankruptcy remote safe harbor assets.

I hope I am right.