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Another gap to fill, what a racket.
You will agree with me that if the warrants are exercised to capitalize the gse and have a cushion of 100b, all this money is real and has to be counted as assets. then the value of the company must have at least this value. $ 100b / 5b shares = pps $ 20
* * $FNMA Video Chart 12-07-17 * *
Link to Video - click here to watch the technical chart video
Senator Heitkamp, Thank You! Fannie & Freddie Are The Only Game In Town; & AverageJoe Plan Is Fair And Balanced.
Make America Great Again!
Let's Rock!
https://twitter.com/nsfraudbuster/status/938986987049984008
National debt accounting
The on- or off-balance sheet obligations of the two GSEs,
which are "independent" corporations rather than federal agencies,
are just over $5 trillion, a significant amount when compared to
the $9.5 trillion of officially reported United States public debt
at the time of the takeover.
The September 6, 2008 conservatorship and the subsequent planned
Treasury infusion of capital support the senior liabilities, subordinated
indebtedness, and mortgage guarantees of the two firms.
Some observers see this as an effective nationalization of the companies
that ultimately places taxpayers at risk for all their liabilities. The federal government follows specialized accounting standards set by the
Federal Accounting Standards Advisory Board.
The net exposure to taxpayers is difficult to determine at the time
of the takeover and depends on several factors, such as declines
in housing prices and losses on mortgage assets in the future.
The Congressional Budget Office director Peter R. Orszag announced
on September 9, 2008 that the CBO intended to incorporate the assets
and liabilities of the two companies into their federal budget planning,
due to the degree of government control over the entities.
The White House Budget Director Jim Nussle, on September 12, 2008
indicated their budget plans would not incorporate the GSE debt into
the budget because of the "temporary nature" of the conservator
intervention.
GSE can raise $100B by same dilution % as if warrant is exercised
Government may not exercise 79.9% warrant but Gov can force GSE to raise $100B by same dilution. That will be easy with no lawsuits. That's why Mnuchin say, "When we reform GSE, make sure GSEs do not require bailout again."
He can put this $100B in the treasury bond generating $3B per year.
Use $3B to as fee for LOC and trust fund.
You will see mother of all wild ride in following scenario:
1. GSE will be recap, release and relisted with warrant being exercised - going $60
2. Dilution by 5 times same as warrant to raise $100B - Back to $20.
Exactly what about Dodd Frank places a burden on these banks. Give me an example. Curious to know because I have never heard anyone with specifics.
Financial condition of Fannie and Freddie prior to takeover
Over 98% of Fannie's loans were paying timely during 2008.
Both Fannie and Freddie had positive net worth as of the date
of the takeover, meaning the value of their assets exceeded
their liabilities.
As of March 31, 2009, seriously delinquent loans accounted for 2.3%
of single-family mortgages owned or guaranteed for Freddie Mac and
3.2% for Fannie Mae.
While those are historically high levels, they compare favorably to
industry averages of 4.7% for all prime loans, 7.2% for all single-family
mortgages, 24.9% for all subprime mortgages, and 36.5%
for subprime adjustable rate mortgages
all their money counted as assets
these are warrants at a penny or so - not options at a buck or more?
the Warrants "are" ILLEGAL but the GOVT still OWNS them
unless the Courts Rule otherwise I expect the GOVT
to Convert them to Common & SELL them for additional TAXPAYER Profit
Agreed.
And they will shake the tree every now and then while we are OTC, I have seen it hapen with some many news-driven stocks on the OTC.
In my opinion, the projection of the ackman pps is correct, if the warrants are executed (complicated thing because the debt has been paid with interests) all there money must be counted as assets, making the value of the company rise considerably and consequently the value of the 'diluted' shares. if we add an annual net income of about 10b to all this, we will have annual profits of $2/share more or less. for all that I have exposed I think that the estimate of $25-45 made by ackman is quite prudent
Need I remind you that you have specifically posted that the warrants are illegal and would not be executed?
I fully expect the warrants to be executed, just curious why your posts change depending on the month.
GSE YIELDS FOREVER
Gaps have always filled with FNMA. That probably is not a gap. What is the date.
the GOVT OWNs 79.9% of the Common shares
the GSEs and the Common AIN'T GOIN' ANYWHWERE !!!
When the Treasury took over in 2008,
it maintained warrants on 79.9% of their
common shares. The remaining 20%
continued to trade in the public market,
where they soon fell under $1 a share.
(They had peaked at $86 in 2000.)
This high volatility confirms that we are at the last stage of conservatoship. i think it's a bad moment to trade, you can be out at there moment and you'll can't react. the smartest position is 'buy as you can' don't matter commons or prefd at the end everyone will win.
?
You do know that financial institutions had their most profitable year ever last year?
But they are dying under the burdens
There should be relief for the smaller and medium size banks
But the top 10 banks - which control most of the action in every way - need to be regulated. They are all Wells Fargo if you remove the veneer
Someone will looks with a silly face on the day that doesn't cover that gap and keep going up ...
Yes I think so, also trump mortgage LLC in 25 states had failed .
The TRUTH will set you (us) free! That is why the left fight so hard to suppress it.
Tomorrows news today!
https://www.infowars.com
Warrants ARE illegal. Do some DD.
Not a recco
All F&F gaps fill, ALWAYS. Watch and learn.
A roll back of Dodd-Frank would be a good thing as it places too heavy burden on financial institutions adding significant cost of doing business which is passed on to the tax paying public.
What leverage does Corker have to get Jumpstart v2 added to the spending bill?
No matter what crook gov said or any crook has some agenda planning wanted to put out a lot bogus news so they can shake out the week hand.. Whether, common or preferred eventually will get compensated fairly after 9 years of C-ship. So much crook in here talk trash but in the end no one will live forever... $$$$ will change from one hand to another hand and in the end everyone will return back to mother earth ...That is the fact and it is true and it is dam true. So stupid money can blind the eyes but no one can be appreciated how blessing can be to breath fresh air when wakeup in the morning then compare the massive fire in CA at the moment. F&F will stay to rebuild what ruin by mother nature..Just think about that!
Financial CHOICE Act is a bill introduced to the 115th United States Congress in 2017 that would, if enacted, roll back "many of the protections in the landmark Dodd-Frank 2010 federal law, including the "strongest" Wall Street "regulations from the financial crisis.[1] The legislation passed the House 233–186 on June 8, 2017.[2] The 600-page[1] legislation was crafted by Congressman Jeb Hensarling (R-TX), chair of the House Financial Services Committee.[2]
Plus Washington Federal Case still progressing, correct? That's the best plaintiff argument of all of them, if you ask me. Challenges the original '08 action.
Just imagine a judge nullifying the last 9 yrs of this saga and ordering just compensation, all dividends in arrears to be paid immediately plus interest. In a just world that would be the judgement. In our world, appeal would take 2 more years, the appeal again another 2 yrs, by which time the final verdict by the supreme court after another year will be to tell the plaintiffs they're totally correct but award them nothing.
Corker is trying to slip the Jumpstart 2.0 into the spending bill. I'm thinking it's a good time for the smackdown. President Trump hates him. Corker is toxic. Time for Treasury and FHFA step up.
Even if he does get it in... Treasury and FHFA can still do a 4th amendment.
And this bill to stop the contribution to the "Housing Trust Fund" if a full sweep payment is not made. This could be a violation of HERA???
What's happening with the "Quick Peek"?
I’d fill that gap in a heartbeat if it happens
Yes. There is a gap at 2.45-2.50 that has not filled. Not every gap fills....
Most do but not all and not always.
Is there one at 2.45?
Preferreds are still cheap. I do not intend to buy anymore and may swap a tiny fmckj position for fnma if fmckj:fnma gets to 3:1 ratio.
Prefs super cheap if gse reform gets done in next 2-3 mos.
Not a recco
This sounds about right.
https://twitter.com/weiyenzhao/status/938909261010104320
Probably 8-10
Who knows how this goes. If they push eff-start 2.0 into omnibus, nothing happens till 2019. That would be sad because they need capital to survive. Without it, they can argue they are insolvent.
Not a recco
"This is another pathetic attempt by Hensarling( who is probably lobbying for Dave Stevens job at MBA) and Corker /Warner to eradicate the GSE. Mel Watt and Mnuchin need to put there big boy pants on and deal with GSE reform now! The unfortunate story is the warrants. Either way they will spur more lawsuits. It is unreal to think that our politicians have waited this long to try and deal with a major component of our economy. Corker, Warner and Hensarling are elected officials who are lobbyists. Bought and sold by the banking industry to work against middle class Americans. Taxpayers bailed out the banking sector and the auto industry, and if politicians didn’t politicize the GSE, we would not be in this position "
I like your take on this. It's what I think. If the government does not deal with this correctly then there will be more law suits.
Any resolution will have to address the major law suits. In fact RNC resolution stated that the law suits need to be settled.
Exactly. 2.70 ish gap has filled!
dilution is fine. Just release us. PPS must not be $300, but $30 is good
The warrants are going to be extremely difficult to challenge. I am very doubtful the warrants will ever be tossed.
Not a recco
I would conclude that they paid the dividend. Until something passes both houses and is signed(or admin reform is done in lieu) I will not be celebrating or thinking this is over.
This is another pathetic attempt by Hensarling( who is probably lobbying for Dave Stevens job at MBA) and Corker /Warner to eradicate the GSE. Mel Watt and Mnuchin need to put there big boy pants on and deal with GSE reform now! The unfortunate story is the warrants. Either way they will spur more lawsuits. It is unreal to think that our politicians have waited this long to try and deal with a major component of our economy. Corker, Warner and Hensarling are elected officials who are lobbyists. Bought and sold by the banking industry to work against middle class Americans. Taxpayers bailed out the banking sector and the auto industry, and if politicians didn’t politicize the GSE, we would not be in this position
Funds not for ACA. Watt wants funds for Affordable Housing Payment that was legislated in rhe 2008 HERA.
Shall we conclude anything if the dividends end up being paid end of december/january?
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