Replies to post #390946 on Mr Cooper Group Inc fka COOP

[PickStocks]

I bet Blair did not put this in her book.


if you go back and read it you will see the toxic cdo were from bear sterns, wamu yes had bad mortgages but not what it seems....more to come out very soon.....also jpm was selling what was not theirs to begin with.....remember jpm was involved with madoff's ponzi scheme.....also wamu is not what brought freddie mac and fannie may to their knees....it begain long before that....

The Profit JPM made from bear sterns and wamu out weighs the the penalties almost 20 to 1.......

Again one criminal charge is all we need and the walls come tumbling down.....sooner than later.....

[PickStocks]

This is why we may see criminal charges, then things start to tumble......

[Donotunderstand]

Bull

I assume u know but the DOJ is saying

If you have toxic or ccc bonds - go ahead and market - that is cool

If you have great bonds or AA bonds - go ahead and market - that is cool

What is not cool - what is viewed by the DOJ as illegal

Knowing that your bonds are ccc or lower and marketing them as AA

So - as said by the DOJ - the ccc value or level of quality is not the issue - the issue - the criminality - is selling them as much higher grade bonds - (and then arguing that the buyer can know - which has been shown to be bullsheet)*

In the Weeds for those who follow bonds

It is now accepted that the seller of MBS paper always has an advantage over the buyer - even if the buyer sets terms like the first 10% loss is called Tranch 1 and Tranch 1 is absorbed by the seller

The seller can still package (e.g. dump 50% crap in a few) in such a way as to not incur many Tranc 1 costs and when they do absorb 10% then kill the buyer with a 40% loss