Replies to post #728455 on Mr Cooper Group Inc (COOP)

[UpTickMeA$AP]

Am I reading this wrong?

Its flagship product, the option adjustable-rate mortgage, originated $42.6 billion in 2006 alone; WaMu then securitized these loans into derivatives (selling $115 billion that year, as well) and sold them to investment banks as well as to government-sponsored enterprises like Fannie Mae and Freddie Mac.

https://www.thestreet.com/personal-finance/what-happened-to-washington-mutual#:~:text=Its%20flagship%20product%2C%20the%20option,Fannie%20Mae%20and%20Freddie%20Mac.

[ron_66271]

It Was the Responsibility of the Trustees,

To Insure the Notes with derivatives contracts as mandated in the Prospectus for the notes.

Insure = Derivative contract (CDS, CMO…) to cover the notes losses.
Please see LIBOR Litigation.

Not WaMu to responsibility to acquire derivatives contracts for insurance on the securities offered.

DB is the Trustee for many WaMu Notes. The list is significant.
The California litigation!
The losses reported were 11.9%.

In 2008, JPM wrote 57% of the Derivative Market.
According to the US Treasury, the Residential mortgage market was $13 Trillion for 2007.
Not all residential mortgages were in trusts/notes but most were.
Plus think about all the Commercial Trusts?

Simple Math Time;
13,000Bx.57x.119= $881.79 Billion.

Derivatives are naked Options.

JPM was TOTALLY BANKRUPT.



Ron