Replies to post #72691 on Mr Cooper Group Inc (COOP)

[Texan77]

Covered Financial Institutions
The financial companies that would be subject to resolution powers under the Act (each, a
“Covered Institution”) include the following U.S. organized entities:


Bank holding companies and savings and loan holding companies (each as
defined in the FDI Act);
• Financial holding companies (as defined in the Bank Holding Company Act of
1956);
• Holding companies that hold an insurance company or registered broker-dealer;
• Any subsidiary of the above other than a subsidiary that is (i) an FDIC-insured
depository institution, or subsidiary thereof, (ii) a registered broker-dealer or (iii)
an insurance company; and
• Holding companies that hold a futures commission merchant or commodity pool
operator.
Notably, hedge funds and private equity funds could be subject to the Act’s resolution
powers if, due to their equity interest in a relevant financial company (such as a registered
broker-dealer or an insurance company), they could be characterized as a “holding
company” of such company. While the Act does not apply to either holding companies or
subsidiaries organized outside the U.S., a U.S.-organized intermediate holding company
(and its relevant U.S. subsidiaries) would be subject to the Act. For example, a U.S.
subsidiary of a foreign-organized holding company would be covered by the Act if the
subsidiary held a registered broker-dealer or a domestic insurance company.
Currently, most Covered Institutions are subject to the provisions of the U.S. Bankruptcy
Code. However, once subject to the Act, such Covered Institutions would be ineligible for
liquidation or reorganization under the Bankruptcy Code.
Grounds for