Replies to post #197181 on Mr Cooper Group Inc (COOP)

[Gmenfan]

Gotta love this stuff!!

F. The Debtors’ Investigation Of Potential Claims And Causes Of Action.
29. Approximately one year ago, based in large part on the allegations against JPMC
raised in an action commenced by third parties in Texas state court (the “Texas Action”), the
Debtors filed a motion seeking Rule 2004 discovery of JPMC. [Docket No. 974]. In the Texas
Action, stakeholders of WMI and WMB sought the recovery of billions of dollars from JPMC,
alleging, among other matters, that:
{D0175689.1 }17
• JPMC executed a premeditated plan to damage two of Debtor WMI’s most
valuable assets – WMB and WMB fsb – so as to facilitate a distressed sale of the
assets to the detriment of the Debtors’ estates.
• JPMC engaged in “sham negotiations” with WMI to elicit confidential
information, which information JPMC is alleged to have misused in violation of
confidentiality restrictions.
• JPMC leaked false information to news media, which incited the “run” on WMI
by depositors that eventually served as the justification for regulators to seize and
sell the assets to JPMC.
• JPMC coerced the FDIC and OTS into facilitating the sale of WMB to JPMC at a
“fire sale” price, including by dictating the bidding procedures so as to prevent a
value-maximizing, competitive process.
• JPMC misused access to government regulators to gain a competitive advantage
and wrongfully influence government policy and actions with respect to WMI.

[speculator777]

Here is shere Rosen is toast. EOM

5. But, the Disclosure Statement fails to explain why, after spending nearly a year
and a half in chapter 11 and incurring significant professional fees, the Debtors suddenly chose to
throw up their hands and abandon the effort to maximize stakeholder recoveries. The Disclosure
Statement fails to explain what factors the Debtors considered before agreeing to compromise
potentially valuable rights of the estates and, importantly, critical rights of non-Debtors against
other non-Debtors. As such, the Disclosure Statement fails its primary purpose -- providing
stakeholders with adequate information to consider the Plan and the compromises set forth
therein. And, notwithstanding the Debtors’ anticipated invocation of the “business judgment
rule to gloss over the deficiencies of their disclosure and the proposed settlement, stakeholders
are not required to “take the Debtors’ word for it.” Rather, under Bankruptcy Code Section 1125
and applicable case law, the Court and stakeholders are entitled to receive, in connection with the
solicitation of stakeholder votes, an explanation of the Debtors’ surrender -- information critical
to an informed assessment of the Plan.

[JohnnyWinter]

You have to love how most people only bring up the claims WMI has against JPMC/FDIC while they fail to bring up the MEGA-BILLIONS in claims the other parties have against WMI in the other proceedings.

People act like they are shocked that the parties have reached a settlement and that WMI is giving up billions, but they shouldn't be shocked as WMI is not in as strong a position as many claimed they were in for the last 19 months.

Reality sucks doesn't it???????????

[speculator777]

The TPS is really bringing the heat. The right heat to shoot this MF'n POS POR down.

[JohnnyWinter]

"14. On April 13 and 16, 2010, public hearings before the Senate Committee on
Homeland Security and Governmental Affairs – Permanent Subcommittee on Investigations (the
“Senate Subcommittee”) indicated that, in the years leading up to WMB’s collapse, there had
been an unprecedented break-down in oversight, both within the bank and with respect to the
government agencies charged with regulating WMB, potentially resulting in: (a) unchecked
reckless business practices at WMB; and (b) massive fraud in WMB’s loan underwriting and
origination functions.
15. The alleged fraud involved actions ranging from concealment of significant
internal controls issues to actual forgery of loan documentation. The alleged reckless business
practices centered on the Debtors’ pursuit of profits at the expense of sound judgment, including
through: (a) concentration of WMB’s loan origination efforts in high-risk products such as
“stated income” or “liar loans” (where applicants’ incomes are not verified) and “option ARM
loans” (where borrowers are allowed to choose payments not even covering the monthly interest
expense, thereby causing the loan balance to grow each month); (b) directing appraisal
assignments to firms that would consistently deliver appraisals supporting the requested loan,
notwithstanding the actual value of the property; and (c) concentration of origination efforts in
certain states (e.g., Florida and California) where property values were known to be appreciating more quickly than in other parts of the country, thereby disguising the problems that would come
to roost when property values leveled off and borrowers found themselves unable to sell the
property or afford the mortgage payments."

Nice.