Replies to post #563592 on Mr Cooper Group Inc fka COOP

[ron_66271]

HM, again PIERS Are Done. EOM.

[wamugold]

GeeeZZZ, the Billions are hidden behind curtain #3!!

Quote:
"Where are the BILLIONS and Trust assets backing the Capital Trust you all have been harping about forever?"

[Donotunderstand]

while the crisis just about killed them

trust preferreds were a tax dodge construct

instead of issuing preferred stock with dividends that are not pre tax expense

the company set up a TRUST - new company

That company issued out with a prospectus based IPO - only preferred shares in the TRUST (trust preferreds)

Buyers of these instruments owned the trust (there was no common )

The trust collected the money from the IPO of shares and bought bonds from the parent company

final buyers of the IPO issued preferred shares in the TRUST - got dividends but company paid interest (tax deductible) to the trust

whether these paper instruments were equity like a preferred stock or debentures because they owned bonds of the real issuing company was not clear

the courts in various cases - involving CH11 and the like (waterfalls elsewhere) said bonds -- but the lowest most junior bond