Replies to post #573960 on Mr Cooper Group Inc (COOP)

[goodietime]

"This is an “absolute priority” scheme, under which dividends on claims are paid pro rata in each class, but no distribution may be made on claims in a lower priority class unless all claims in the higher priority class have been paid in full."

???

I thought Class 12 was not all paid up, even though Class 16 was getting payments?

I believe Class 12 allowed/WANTED this, in order to 'stay in control'.

But it doesn't look like the FDIC even imagined this would happen??

[ron_66271]

Raju, You Don't Own Any WMB (WAMU) Stock.

WMI owns that One Share of WMB (WAMU). The 'Equity Interest' of WMB was abandoned to the FDIC. You own shares in WMI.

WMI is a Holding Company, not a Bank Holding Company (depository institution holding company) and the reason why this was a 5AT and not a true seizure. WMI sued the FDIC for $305 Billion regarding "WMB and it's assets". WMI then became a 'willing seller' of WMB on our terms. When "the Final Payment" to WMI from the FDIC for "WMB and it's assets" happens, then that One share of WMB owned by WMI will become inactive. When the payment is made, we will see if "Willful Misconduct" was enforced.

All WMB Notes have JPM symbols. Therefore the WMB Notes are NOT a claim against the Estate. The FDIC is only using their 'house' terminology to describe their actions. Like 'the failed bank' or 'WAMU failed'. This FDIC response proves their canned 'house' terminology. Oops 5AT.

Your assumption is correct. The ticker for stock issued by Washington Mutual Bank (WAMU) should still be active as long as the receivership of the failed bank is still active and not terminated. Unfortunately, there’s no way to predict or know how much longer the receivership will remain active. In most cases, a receivership will last an average of 3 to 10 years before all of its assets are liquidated, the impediments are resolved, and the receivership is finally terminated. Once that happens, the tickers for your stock ownership in WAMU should cease. Bear in mind, though, that WAMU was a very large institution, and it may still take several years before the receivership is finally terminated and closed.

Of course, the likelihood of receiving any recovery on your shares of stock in WAMU is extremely low. That’s because there remains a priority for payment on claims of the receivership, and stockholders are last in line to receive any payment on their claims. Specifically, under federal law establishing depositor preference, 12 U.S.C. § 1821(d)(11), the statutory order of priority for the payment of dividends on claims against an institution in receivership is as follows:

(i) Administrative expenses of the Receiver;

(ii) Any deposit liability of the institution;

(iii) Any other general or senior liability of the institution (which is not a liability described in clause (iv) or (v));

(iv) Any obligation subordinated to depositors;

(v) Any obligation to shareholders or members arising as a result of their status as shareholders or members (including any depository institution holding company or any shareholder or creditor of such company).

This is an “absolute priority” scheme, under which dividends on claims are paid pro rata in each class, but no distribution may be made on claims in a lower priority class unless all claims in the higher priority class have been paid in full. Thus, where amounts realized from liquidation of the failed depository institution’s assets are insufficient to satisfy administrative expenses and deposit liabilities in full, there will be no distribution on claims in the general unsecured claimant class or any lower priority classes.