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To: batman10023 who wrote (334)	3/1/2012 5:19:44 PM
From: Covenant	Read Replies (1) \| Respond to of 3249

Re: CASH i think they raise capital. This has been my concern for a while. CASH will need to raise capital in 2013 or 2014 if MPS continues growing at the same pace. An interest rate change would reverse OCI, reducing book value, and make the date sooner. But Helicopter Ben has signaled this will not be coming before 2014. Exposure to interest changes may have been reduced, depending on what was done with the Ginnie Mae sales proceeds.

To: batman10023 who wrote (334)	3/1/2012 5:32:31 PM
From: Spin.	1 Recommendation Read Replies (1) \| Respond to of 3249

re cash:ots vs occ the upside on point 3 is CASH being allowed to reintroduce iadavance product on the cards in line with WFC/UBS prepaid programs. ots banned the programs occ seems to think they are fine. point 3 - yes i modeled 8-8.5% ratios requirement back during the day when it looked like OTS was going to force the raise vs earnouts. The need another ~15MM for the 8% to be hit after taking into account the Q2 GNMA sale. point 5 - agree its a threat. its happening at the moment. Also gov and WMT etc prefer ubs/wfc programs. point 7 - which is why it always sells cheap. Until the FIDC overhang and t1/rwa ratio is resolved your upside is capped. The cant earn 15MM quickly - also the MPS deposit growth is capped go forward to internal capital generation to keep the 8% ratio in line. Best think would be for occ to allow iAdvance back. If you call the CEO again id drill into that as UBS/WFC are allowed to offer this. Spin