Replies to post #94711 on Mr Cooper Group Inc fka COOP

[Jestiron]

It seems to me after watching some of these links provided by others that when the collapse started, the cash that was being loaned between banks stopped flowing. These loans were being leveraged causing higher levels of risk/exposure. I believe some banks (favored by good ole' boys network) were told that something massive was unfolding and then stopped covering these bank-to-bank loans for a multitude of reasons (some probably fictitious). Many banks...even the mega banks who held limited cash found themselves over leveraged...and banks that had cash reserves (Tier1) were not over leveraged became the victims to offset this shortage in cash of these "favored" banks . IMO, it is no mistake that Lehman and WAMU find themselves in this position...they had serious cash available..

When the banks stopped working together because of the unraveling of the CDO debacle and the subprime mess,...our problems were compounded 1000-fold.

Thats my take. Jestir.

[Lawrence 147]

You hit the nail square on the head. You are correct JPM and the FED both nee big $$$$$. This all started when unemployment started to rise. Think about it with SSI already running dry and unemployment rising where was all the money to come from to cover all those SSI checks being mailed out. The money would not come from the unemployed now would it. The housing bubble was about to burst wide open and that effects everything. Consumer goods appliances and yes even automobile sales. Unemployment would become the next problem and that would mean a reduction in revenues we now know of up to maybe beyond 25%. There is no lock box for those funds and the majority of the profits from the use of those funds fall into the coffers of JPM. All the jobs being shifted over seas and the 12 to 20 million undocumented workers in the country have bled the Social Security system dry and the funds are not being replaced only used.

[fsshon]

I could not agree with more! JPM and FDIC colluded to take the $$$$ that was sitting in WMBfsb. FDIC through the OTS was able to find out that WMBfsb was sitting on a "boatload" of cash and when it came time to make it happen. They were able to use the media to believe there was "run on the bank" which allowed them to use their power to take all of the banking and private operations of WMI. Where are the other bidders, they are being kept quiet under threat from the FDIC.

THJMW has said it is within her power to determine what is the property of the estate. I have confidence she will do this and also in the process SCOLD the FDIC for over-stepping their powers and pushing their will on a bank holding company that was solvent. If JPM can not prove that WMB had a run on it [we used Iron Mountian], then it wil not be hard for WEIL to prove that the FDIC perputated the biggest bank fraud in history. If the public finds out the FDIC has the power to do this overnight to a solvent banking operation, the investors will leave financial stocks in droves and cause a huge collpase in the economy. A 500 point sell-off in the DOW will be nothing, the industry would suffer its largest drop ever because the risk will now outweigh the reward and you know as an investor when that happens, it is better to "cut the ties [money] that binds!"

~Fish~