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“Under the proposal, preferred shareholders of Fannie and Freddie could be made whole or close to it, depending on the final outlines of the transition, the people said. But common shareholders may not fare as well, they said. Whether and how shareholders get compensated in the transition to the new system is still an open question. Investors in the companies include several prominent hedge funds.” Common will go up from here. Just a question as to how high. Not pre conservatorship levels though and definitely not 1,000.
Are the prices on the pref up today? What happened?
Are the 3 common pumpers still calling 1000?
Not a recco
Corker's incentive - pride and $$$.
Mnuchin told him that he'd act administratively to restore GSEs which would make Corker look like an idiot. Knowing this and that wind down/replacement was difficult politically, Corker switched his tune... and likely investing millions in GSE preferred shares while doing so.
Wake up. It's crystal clear.
Good signs today and alot goin on in the hearings that feel really positive
Preferred pump and dump... except I'll be dumping near $25 and $50 par value.
Yes! This is what a preferred share pump and dump looks like.
It's okay, this is what rotation looks like on otc. You're witnessing history here.
GSE LEMMINGS doing what they do - OVER REACTING ...
FEAR & GREED
LOOK at the BIG PICTURE - not the misperceptions of the LEMMINGS
FACT - the GSEs ARE NOT GOING ANYWHERE
NO PLAN has been Adopted ... DETAILS HAVE NOT BEEN DECIDED
BIG PICTURE - they are finally GOING to GET GSEs OUT of GOVT CONTROL
what is the common FACT ? ... the GSEs ARE HERE TO STAY !
RECAP and RELEASE !
imo- BOTH Common and PREFERRED will BENEFIT HUGE
arguing about which is better is irrelevant & A WASTE of TIME
Stop! Pure fiction thag this point. The senators are not discussing the average joe plan.
Yeah. We are all just fumbling around in the dark. Maybe I will bump into Cindy Crawford, though..
I didn't hold this for six years to sell now! All or nothing! BOOM!!!
Watch them dump the commons to scare out the weak feeble hands.
Fine, I'll say it. Gap gap gap gap gap gap gap.
Hey Navycmdr, any concern on your part that the common shares really isn’t getting much “love”?
Do you think the common is still on the path to prosperity?
Thanks in advance
On my board the eps regularly moves and it up from the all time low. It is at 145 up from 140.5 that held almost all last week also up
What incentive would Corker have to preserve the GSEs, much less help the preferred? He's retiring as well and not up for reelection lol. This is the same guy who said he wouldn't help hedge funds and his animosity to them was one of the reasons he wouldn't be in favor of recap and release.
There's no bill. Nothing's under discussion. Congress leaves in less than two weeks. I call BS.
Plus you're talking about a March deadline at most.
Preferred shares are also non cumulative meaning GSEs can pay out dividends when they choose too.
Preferred stock most of it is not transferable either.
Choose wisely.
So it appears
Some version of Moelis - yes Corker-Warner Moelis is the starting point
So it appears from reporting so far --- albeit by VERY limited sources
he is not wrong?
we can have a friendly difference
I think the creation of FNMA as a GOV agency was GREAT
The boy who cried "wolf", I love that story. The best part is that the boy gets eaten by the wolf, haha!
There are likely many opportunities to trade this, still.
Not a recco
Still not our day. Sad common owner rite now
Hensarling is a constitutional conservative and doesn't believe that the government should be involved in housing finance. He's not wrong, but the government is involved and any changes would be way too disruptive. He's also not running for re-election so can say what he wants with no political ramifications
Corker-Warner/Moelis is the plan.
David Stevens retiring from MBA next year, Hensarling quitting Congress. Nice gig at MBA waiting. What a coincidence.
WARNING - HUGE GAP ON ALL P SHARES BELOW
solid summary
commons will do better than 10 dollars soon - IMO
(I still expect that in moving pieces on a chess board - the GOV will use some of the warrant exercise money as a MATCH to ? to create a capital buffer at F and F fast --- this means much less dilution .... but yes the use of the warrants and say 6B shares at 10-30
And that is where Hensarling is at? That is what I thought I read ?
But is not Hensalring out the door this round?
Corker-Warner is the plan (and it's Moelis-esque).
Mnuchin told them to come up with something to retain the GSEs (since no administration would want to disrupt the housing market before mid-terms).
Mnuchin would prefer it to come out of Congress and Corker-Warner is bipartisan. Need to retire preferred to get rid of lawsuits and to improve capital structure. Need to crush common shareholders to raise capital. Need to exercise warrants so Uncle Sam gets his money.
Everyone wins except shorts. Common shareholders win the least but many still make out ok if they bought post-conservatorship.
You can also bet that Corker-Warner loaded up on Fannie/Freddie preferred shares to profit off this (one last windfall for Corker).
DeMarco plan won't happen. Hensarling supports and he's not running for re-election. It's a dead end politically. Hensarling is positioning for his next job.
No idea why such guarantee should go via GNMA? (Is GNMA 100% a GOV agency?)
Good luck, common shareholders.
All signs point to GSEs sticking around and preferred shareholders getting (close to) par value as I expected.
Now it's how badly the common shares get diluted. Warrants (government incentive to keep GSEs alive) and capital raise will come on the backs of common shareholders. It'll take years for common share to get to $10, but $5 seems possible in the short term.
Hopefully most people took the advice of preferred shareholders and weighted their portfolios accordingly.
Fannie-Freddie Would Be Lender-Owned in DeMarco’s Plan
By Joe Light
June 29, 2016, 7:00 AM CDT Updated on June 29, 2016, 11:38 AM CDT
Ex-FHFA director would put mortgage firms into receivership
Co-author worked on Senate proposal that was blocked in 2014
Fannie Mae and Freddie Mac would be put through receivership and turned into lender-owned insurers under a housing-finance overhaul plan co-authored by the companies’ former regulator.
Pretty good amount of buying for the first 30 minutes but a lot of shares for sell at every penny. Also ARCA is a decent tell and they stayed on top of the ask.
Which Plan is the DeMarco Plan?
No kidding. I thought we’d be rockn it.
I like Green but where's the volume? Still feel like nothing's changed
For all those celebrating a couple penny uptick, keep in mind FNMA hit $5 NOV 16.
Too early to celebrate.
Or make lemon drops.... This thing is not over yet. Not even close
Not a recco
You ain't lying, Thank God for that man.
Common will follow the preferred shares UP, UP, and away!
when life gives you lemons, make lemonade
& that which does not kill me should run
All it said is that pref. Maybe okay, but common likely not but then says no one knows. So it’s all positive as couldn’t get rid of commons as everyone would sue the government. Idea is to keep fnma so we all win!
Boom! That gap up !
FNMA
I'm just having a little fun today...my family has owned FNMA since 1982 and my last name is on one of the lawsuits. I don't like shysters either so when I get 'em under my wheels I try to ensure they won't get up again.
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