Replies to post #702323 on Mr Cooper Group Inc (COOP)

[lodas]

I won't speculate on these numbers being thrown around...this is better left up to accountants...what I will say is what is documented on the Feb 2012 MOR handed to the court... it states (20.7) Billion in Shareholders RE LOSS......so, here are some questions?...where did it go?... Did it go?... how can a company remove 20.7 billion dollars off of a Balance Sheet, and not tell the IRS about it?...where are the footnotes about this removal, and subsequent transaction of this 20.7 billion dollars?.... where is the money trail?...IMO, it can't be done legally in GAAP accounting...especially in a chapter 11 bankruptcy, where the whole focus is about Asset minus Liabilities to restructure the company...so here you have a company remove (20.7) Billion from the loss column, then pay 6.9 billion to creditors to satisfy claims to exit bankruptcy, so where did they get 6.9 billion dollars, if they showed a negative 20.7 billion LOSS????????....Ron says they bought a T-Bill with the 20.7 Billion, then where is the money trail... the accountants do not show a plus entry on the balance sheet handed to the judge for 20.7 billion dollars removed and buying a T-Bill.... no one in that courtroom challenged that 20.7 billion dollar removal from the balance sheet.... that is fact....Lodas

[xoom]

MB
I am sure one cannot deny the following :
On September 25, 2008, Washington Mutual Bank was closed by the Office of Thrift Supervision and the Federal Deposit Insurance Corporation was named receiver. Subsequent to the closure, JPMorgan Chase acquired the assets and most of the liabilities, including covered bonds and other secured debt, of Washington Mutual Bank from the FDIC as Receiver for Washington Mutual Bank." 

vs the current version on the FDIC Receivership website ( note: it skips the above underlined part where it CLARIFIED the liabilities assumed- covered bonds & secured debt) :

" On September 25, 2008, the Federal Deposit Insurance Corporation (“FDIC”) was appointed the Receiver (“Receiver”) of Washington Mutual Bank ("WAMU"). The Receiver transferred substantially all WAMU's assets and liabilities to JPMorgan Chase Bank, N.A. ("JPMC") pursuant to a Purchase and Assumption Agreement dated September 25, 2008 - PDF("P&A Agreement"). WAMU, which was the largest failure of an insured depository institution in the history of the FDIC, had $307 billion assets, $188 billion deposits, and over 2,300 branches in fifteen states when it failed. The resolution of WAMU through the P&A Agreement was completed at no cost to the Deposit Insurance Fund."

(1) Those that keep POINTING out JPM "paying" only $ 1.88 B for WMB because of the $ 272 B listed liability on the Receivership Inception balance sheet are wrong SIMPLY BECAUSE WMB's liability were PRIMARILY made up  in the form of deposits of $188.3 billion, and owed $82.9 billion to the Federal Home Loan Bank.

And from the PA & A:

" WHEREAS, the Assuming Bank desires to purchase substantially all of the assets and assume all deposit and substantially all other liabilities of the Failed Bank on the terms and conditions set fort in this Agreement; and "

==> Meaning JPM assumed $ 271.2 B of WMB's liability and the REST we remember:

"The Assuming Bank has submitted to the Receiver a positive bid of $1,888,000,000.00 for the Assets purchased and Liabilities Assumed hereunder (the "Bid Amount"). On the Payment Date, the Assuming Bank will pay to the Corporation, or the Corporation will pay to the Assuming Bank, as the case may be, the Initial Payment, together with interest on such amount (if the Payment Date is not the day following the day of Bank Closing) from and including the day following Bank Closing to and including the day preceding the Payment Date at the Settlement Interest Rate."

Therefore, WMI/DST already received/collected from the Receivership as a Secured Creditor( as reminded in the WMB abandonment letter) to the tune of at least $ 271.2 B + whatever PREMIUM WMB fsb fetched as JPM BOUGHT 100% of the WMB fsb stock from the Receivership and NOT the "stated" book value of WMB fsb.

We simpletons haven’t seen it, yet