Replies to post #134874 on Mr Cooper Group Inc (COOP)

[byrddog]

WOW, that's a great question!!! It would be difficult to even get in the ballpark until we find out more about the reorg plan itself. If there is an emergence from bankruptcy with the intent on resuming banking, then it will add significant value to commons in that the $'s not used to buy the securities back could be leveraged to generate income to offset the long term cost. I think it's to early to speculate what the reog plan will detail. But that type of scenario could be possible.

[fixedops]

I dont think it would change the commons at all. It would just save JPM from paying out liquid cash for the Ps and Ks. The commons would still go off a percentage of book value. imo

[Dragynn]

The commons converted to JPM commons on a one-to-one basis, we all sell in the 40.00's, the stock takes a hit anyway due to the dilution, then we all use our gigantic proceeds from our sales, to massively short the ever-loving bejeesus outta JPM, thus crashing them big-time and causing the largest bear-raid in history. This causes a massive run on deposits as customers get wind of JPM's shaky financial situation, the FDIC steps in and seizes them because they are a significant risk to the system, and sells them to Goldman for a penny on the dollar.

That would be karma of the finest sort.

[sidedraft]

Got some spare time, there is supposed to be unredacted stuff in here:

http://assets.bizjournals.com/cms_media/seattle/pdf/JPMorgan%20combined%20PDF.pdf

Kirsten says, "Unlike public records we received from federal banking regulators through the Freedom of Information Act for this series, these documents were not blacked out."

http://www.bizjournals.com/seattle/blog/2009/12/the_fight_for_wamu_documents.html


Kirsten's article from today:

http://seattle.bizjournals.com/seattle/blog/2010/01/jpmorgan_chases_internal_documents.html

[fsshon]

THE UST wants all classes at the EC table. he sent out 10 letters to each class for a total of 30 letters. That tells me that this is going to be one big EC!

We would need to go line by line in the legal (Contract) language of the preferreds. Can JPM even convert the P series preferreds, if so, then what penalty would they need to pay to do so? how much back divies are owed? if P preferreds are allowed to be converted, would JPM request that the P's maturity date be extended for a couple more years? If so what penalty would be required by the owners of the preferreds to allow their conversion in this manner.

Jest what are the penalties for the conversion? I know the language of the K's allows no conversion and they mature real soon. So they are out of the equation. Now the language could be modified if a majority of their owners agree to a modification (MAYBE).. Legal Contract language is usually "cut and dried" to modify it, would take the court's approval. It would be easier for JPM to just payoff the K's. Assume the P's and payout the commons.

~Fish~

[dannoninvest]

cannot pay a settlement/fines/damages with a stock swap. only way a stock swap can happen is if wamu agrees to jpm buying wamu out at a higher price. extrememly unlikely with all that jpm has put wamu through. wamu would have many more bidders that probably would not even offer a stock swap..