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All equity is at risk of a write down --- and then maybe JPS will do better in a 30 year court battle
We will see what the GOV decides to do ---- and IMO the warrants may save equity !!
GOV does not need to squash equity ---- when it has 4B shares via Warrants AND WILL WANT A HIGH PRICE PER SHARE AS IT SELLS THOSE 4 BILLION OFF.. WRITING OFF THE SP VALUE (LP) PUTS THE GSEs IN POSITIVE CAPITAL TERRITORY - MASSIVELY INCREASING THE PRICE PER SHARE THEY CAN GET WITH THEIR 4B . WE - THE OTHER BILLION - RIDE ALONG FOR A $25 PRICE PER SHARE
There were no loans
As per GAAP per Treasury - all cash - 300B - is classified and booked as dividends
Do not shoot the messenger
It is amazing Wall street journal or other financial news channels or newspapers did not publish about this while a newspaper in one of the poorest country did recognize the theft by corrupt USA government.
You are giving way too much credence to the 52 reader base blog
Then they wanted the rest of the world to invest in corrupt USA!
As you said, “if you look at it from 2007 is unfair, involved accounting fraud and government deception” …
why not be a good citizen write about it publish it on your seeking alpha? Explain to us what’s unfair, accounting fraud, government deception. If seeking alpha want let you publish it at least post it on this board.
Actually jps are fine with wherever commons end up so long as it is not zero. The reason jps do not own commons is because they lack security based on a spspa monetization scenario. Sure that scenario if you look at it from 2007 is unfair, involved accounting fraud and government deception — but the courts are with the government and so that is a tough reality to reconcile i suppose for people who think the world is fair. Good luck bud
No, because getting along with the KTCarneyCorkerShell game gang is for them to get PAR, commons to go to 10c, every dilution theft known to man happens to commons and is somehow ok or legal in their puny little minds, then there is an IPO where they convert to commons for pennies on a dollar and Commons somehow through years of fantasy and receivership like events, it goes to 100 and they become rich while commons all go broke. All this cooked up years ago while they lose case after case in court with their laser focus on greed and screw everyone else cause facts of how it all happened and how its occasionally declared unconstitutional yet never used in any cases right up to SCOTUS.
Quote: “ making the SPS "disappear", which is never going to happen.”
Oh, so you’re a Prophet now.
Warriors! Can’t we all just get along?
JP, SP, Commons, liquidation, conversion, and let’s not forget the “Secret Plan”, the list of analogies goes on & on. Nothing has happened in 15+ years! So, until then, Can’t we all just get along? The ONLY one winning for the last 15+ years is the Gov
-Boat
did you not sell off and go away? Why are you still lurking here?
Someone just reposted an oldie:
News outlets in Bangladesh recognize our government swindle while the media and politicians in this bastion of democracy hide under their beds in fear of exposing the truth!https://t.co/Yv8nahhhDq
— Guido da Costa Pereira (@GuidoPerei) August 18, 2023
AND --- if that is the total dilution --- I vote my shares or take that price --- in a heartbeat
Due the math on the investment at 10% per year - and we have not paid it off
common and or JPS
the threat is - again IMO -- not a dilution due to WTS --- which leaves JPS ok - cost no cash - and common are likely worth 25 post such "mild dilution"
the threat to F and F - be it JPS or Common is the overhang "obligation" GOV can want -- in any form - of over 200B in LP/SP
sorry - but as always I think the JPS have some added "protection" -- but we have seen the world of F and F is not reality - so do not count on anything REAL as 100%
why would capital level increase when SP is removed via conversion to other equity ?
Warrant monetization brings immediate injunction and will immediately bring attn to the court warrants are null and void once the 10% payback agreement was satisfied…
$400x24months to FTHB will be paid by GSE in exchange of warrants
1. SPS to be writen off because SPS+10%+$30B extra already paid.
2. Extra $30B will be used towards LOC of $300B for next 10 years.
3. Returned warrants to GSE to be used towards payment of $400 per month for next 24 months to FTHB and starter homesellers as proposed in the SOTU. Blame congress for not doing so as proposed in SOTU.
4. GSE raise capital using 50% of warrants; that's 40% dilution.
5. Big announcement may be on Memorial day or Independence Day.
Per the GOV
It was not a loan with interest
Per the GOV
it was an equity investment in senior preferred stock and per the GOV every penny sent from F and F to Treasury has been a dividend
Thus - per the GOV - nothing is paid back
It may be the loved KT - or ? --- but apparently the GOV shows the value at about 85% of face - or I think 170B across F and F --- owed to them
Do not shoot the messenger ---- I believe that the GOV can call it investment not loan and dividend not interest but but but I believe that at their wish Treasury can call it paid off - given the $ amount of cash sent to Treasury -- no math.
I tend to agree here. The commons are a gamble on write down. Which i think is a bet on warrant monetization to fund housing
others can point it out - with specifics
but in some report - annual routine or special - the GOV (Treasury) does note in a footnote that they can not forgive the SP stock
IMO that is a "GOV" decision not written in a law ---- and I do believe the GOV can decide (without Congress) to declare the SP value paid !!
others might have that footnote reference
Actually, two of his bosses had just been attacked.
Right so no need to sell warrants
Beware of Guido always posting false information.
Now repeating once again the repurchase of the Warrant, when he saw that one of his bosses was being attacked in this board (Timothy Howard, Pagliara and Bryndon Fisher).
He mistakes the exercise price for the value of the Warrant (I mention the Warrant value at the end of the comment).
He can't understand the text that he is reading, because the Treasury press release talks about
If he wants to compare Fan & Fred
to banks, let him
Quit comparing FnF with the banks, will ya?
FnF are congressionally-chartered private corporations with their own bailout mechanism to finance their operations (either buying Debt or Equity) as a last resort, in the same section (Purposes of the Charter) with their Public Mission that made them take on more credit risk and not properly compensated, with the authority of Treasury to purchase obligations at a rate that takes into consideration the Treasury yields, as of the end of the month preceding the purchase (subsection c)
There is not "govt backstop of the real estate market" or Govt Implicit Gtee on MBS, as stated by the plaintiff Joshua Angel in this board a few days ago, but a UST backup of FnF upon "capital deficiency" (SPSPA), that is, negative Net Worth (watch the chart with Freddie Mac below to see how it played out)
The law professor Nielson, SCOTUS-appointed amicus representing the FHFA in the important case Collins, spotted it right away.
The hedge fund managers that you know, forgot to pay him off.
I have it that
FNMA will end close the week at $1.72
FMCC will close the week at $1.57
Oh wow. What’s the plan for this week Captain TightCoil ? Will we visit the moon ? Or will it be a crappy week ?
FNF repaid the un-needed loans.
Jps chart best ive seen in years. Moving higher now
Cool the gov sold airline warrants & people acting like because of that we should be worried about the. Doing the same to us! But my question was going to be did the airlines also pay back all their loans? Because I believed FNF paid their loan! Are there any scenarios where the gov cancels warrants? Or is this a falacy!
Decent week up 7%! Slow and steady gains building momentum!🚀
My advice to people like you is to quit watching CNN/MSNBC and start watching your pocket book. The party that spends the most/sends the most overseas is the party that's bankrupting you. Figure it out. Always vote for your wealth, not freebies and vote buying for others.
Is it written aNywhere that it will not be done or ever considered as an option/solution?
Fight, Fight, Fight
Fight to Right the Wrong done to Shareholders
Fight to make it Right
I still can't find the spreadsheet with the breakdown of the warrant repurchase program. Attached is an article that summarizes the proceeds from buybacks and auctions in early 2010.
https://www.reuters.com/article/idUSN20148970/
since I believe it is legal for Treasury to declare the SPS paid - then selling it for 1B (huge discount) to F and F would be legal
but is that approach written anywhere ?
all the articles I have read said its very hard to turn office space to rental or condo. For one thing there is way too high a ratio of space without windows. People want windows in their rooms. The economics are not easy to pencil out. In Chicago private and city money are trying to convert four major large commercial buildings to housing. It should be interesting to see how they do it
prices are supply and demand
years of insane crazy low 3-4 percent mortgages - held by owners of many houses - keeps them from offering their houses for sale. A strong (yes inflation but jobs and wage growth) economy keeps the demand high - relative to this reduced supply - even at 7% (which in historical sense is not that high)
If Treasury agrees that FnF have paid down the SPS, Treasury still owes them over $30 billion in overpayment of the 10% dividend.
I am not greedy and securities law is securities law
GOV - Treasury has every ACCOUNTING right (not moral right of common sense right) to call every penny sent from F and F to Treasury a dividend. As such in an accounting sense - the GOV can always claim all of their "investment" still belongs to them and is not paid down
IMO - the GOV can declare the investment paid down --- it just can -- AS IT IS the investor and the investor can say - you owe me nothing. DONE.
At that point I am not in a hurry to look a gift horse in the mouth. WTS and a few Billion are weights on our shoulders that still leave us that day - with at least $20 a share.
Again - GOV can argue in any court that we - equity owe them a fortune. I want - wish - hope - they call it paid off - but that is for them to do for political or economy reasons
And in what hiding spot can we find the SEC in all of this?
"the President has clearly stated that his objective is to dispose of the government's investments in individual companies as quickly as is practicable.”
See, the trick is in that last part "as quickly as is practicable". That time never has nor never will arrive.
"“The exercise price was set at the average of the stock price during the 20 day period preceding the day that Treasury granted preliminary approval to participate in the CPP program”
Why not just make the exercise price ZERO since the 100,000 shares/dollar was so terminally, laughably ridiculous. I would have bought Fannie Mae myself if the government would have sold at their so-called "exercise price".
All info is controlled these days
Paid for hire info only is allowed for the tbtf narrative to win aka steal more $ from shareholders
Agree for the most part. But why would he remove my post about the warrant repurchase. If it doesn't apply, he could just comment on it.
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