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Warrants are illegal.
What then?
Nonconvertable...
This sounds like a roadblock.
Barney Frank called us financial vultures.
I thought that was hurtful.
Definition of confirmation bias.
So they make decisions based on a otc stock chatroom?
Funny.
number 3 works for me.
a higher share price would result in JPS being paid off quicker than the 15-20 years I orginally said.
we could issue more shares at 200 and pay off JPS debt.
share structure would only change a small amount.
I think this will also resolve some land issues dealing with the southern wall being erected to the south.
You got a link for my short memory?
I dont even remember it coming before a committee let alone a vote.
The plaintiff lawyer said six months.
ok...that tells me what I needed to know.
you may want to read more of his post before buying the farm.
I agree...but
convert the JPS on a date sometime in the fall and announce the Plan to do so in July.
It gives everyone time to digest and plan for the future.
Hopefully we will be around 25 per share so JPS gets really close to Par.
Me like.
Once the Dems see this is gonna happen with or without them...
You'll hear their unwanted opinion on the GSE's.
Or at least thats how its been so far.
They are just waiting on the adminstration to form an opinion so they can obstruct it.
How many bills have been passed this year?
Not many.
That said, grid lock in Congress is probably good for us.
Only the plaintiffs will be paid immediately.
Everyone else in the JPS crowd would have to wait.
Are you in the plaintiff class?
If not, just be glad you would be made whole.
If you are Patrick Collins, my apologies and this does not apply to you.
I'm ok with a long time horizon paying off my jps shares.
It would be better for the company and I will not be using it for 20 years.
I'll tweet that to MC when I get a chance.
I know they will be settling this fall.
Extending the time horizon makes sense.
Everyone gets paid...if you live to see it.
It would be alot easier to issue more JPS shares at a lower rate and use that to pay off jr. preferred shares slowly over the next 15-20 years.
The problem is everyone wants paid "now".
No dilution.
SPS cancelled.
That way everyone is happy.
I dont think so.
It was painfully obvious it was not going well for the defendants.
I think they went back and said...its not good the free ride is over.
Then, in steps MC...
"Its Urgent".
Yelp, its urgent now after ten years.
Yeah, I caught that...
A loan that can never be repaid.
The judges caught it to.
The Plaintiffs attorney mentioned we want cash in our pocket, not a credit card...its not the same thing.
He was good on his feet with rebuttal.
Pretty certain of the judges that actually engaged the lawyers...they were sold on "safe and sound".
its a simple principle that even a small child can understand.
several did not speak.
Id say honestly, around 80% they rule for us.
If that happens, I wonder if they will remedy the complaint or send it back to the lower courts.
I think since it is first of its kind...you will see a judgement.
I could not tell if the plaintiffs asked for punitive damages or just the accounting change.
I think it would be funny if they sided with us on the sweep and sends it back to the lower courts for further review and retrial.
That would be a middle of the road result.
It means the GSEs will have a tax credit or the Treasury will receive a statement of over-payment. Treating the sweep as a over-payment in taxes.
Thats how I took it.
Im certain others would disagree.
some may say it is a JPS payment...lol.
I listened to the audio again last night...loved the part about remedy...judge asked if they could handle that accounting change.
The Treasury said, we don't want that.
That was a big game changer.
For the first time, we are the government did not work as a valid excuse.
I think it's over zealous thinking assuming the JPS lawsuit includes all JPS holders. Unless it's a class action, don't assume your shares will be under the remedy.
Think logically.
Why settle a class that is not a class?
Doc, I think you have a winner on the haircut.
Solves all capital issues.
No class, no action.
No free rides.
The Governments argument of Safe and Sound because it has the backing of the Treasury is poorly thought out.
The Plaintiffs could have argued that the Receivership clause in HERA proved that it was an option if Capital was not available.
Which is why they need Capital to survive.
The Government makes its case ignoring the original intent to conserve.
First case of its kind.
I think the argument was just simple enough everyone understood it.
The remedy was pretty simple...just an accounting change with no cash out of pocket from the FHFA or Treasury.
I feel pretty good about it...and we will know soon enough.
ok...who could borrow money at 10% and give it away at 4% and still make a profit?
someone who did not need the money.
clearly, the Treasury needed the money more than anyone.
That would solve all the capital issues.
Just saying.
Looking good Lewis.
I would tend to agree with you on the voided JPS.
They had a chance to get relief through the courts and opted not too.
That is not the tax payers issue.
It would be wrong not to follow the law to its letter.
by that logic our case would fall into the later...
the sweep was the government collecting a dividend so shareholders got a divy...but 20% did not.
thats how i take it.
they called it a sweep.
I call it a dividend.
What is the statue of limitations on Preferred claims?
What motivation is there to pay claims that have not been filed?
If you remove the expired promissory notes...capital is aplenty.
If you own JPS shares what are you holding onto that makes you think you will be made whole.
MC has talked about the commons being made whole...not so much the JPS.
Also, if JPS is voided, does the statue of limitations start then or date of first missed payment?
Happy Fathers day to everyone who identifies as a dude with kids.
I had to pay a 5% load on the purchase but if this does get released and recapped, they will have a big voice at the table.
exciting times.
anyone done the math on % of shares vs the float of the mutual?
Does anyone find it odd how many shares of FMNA and FMCC are owned by American Growth Funds ticker AGTHX.
My God they own almost 10% of the float on both companies.
I bought a nice round number of the mutual fund with my 401K. ;)
How did this not get noticed?
Happy Fathers Day.
En banc release at 6 pm this evening like clock work.
Just another reason to hold through the weekend.
I think its more telling how many shares did not move.
14 million sells vs the float.
The float is getting locked down.
That must be discouraging to all the funds that thought they could play that game forever.
I had been trying to find a way to buy some FNMA with one of my retirement accounts.
Just got off the phone with American Funds.
They hold over 77 million shares in ticker symbol AGTHX.
Confirmed they still own and purchased the mutual fund.
Wanted to share to the other weary travelers.
wow..that is a small pool.
very few shook out...
thats scary to some.
even the politicians forget this is a publicly traded company.
you want to say something material...put it in a press release.
otherwise, you are affirming insider information, and people are trading on it.
I had heard that this stock is on a watch list.
time will tell if their is a coordinated effort to suppress the PPS.
simple and clean...I like it.
I would think MC would want a meeting with shareholders before drafting a plan.
Im willing to go to DC and discuss.
It does not cost anything to talk.
in separate vehicles.
its a vile art to twist ones words.
MC mentioned more competition...not me.
I was providing a shareholders thoughts on how it could be done without affecting commons.
That triggered you, so it must make sense.
We may be looking at this all wrong.
Ive heard some pretty big numbers on dry powder from these other players...Buffett en al...
MC may be setting up an additional charters with this money.
Think about this...a release and recap of the existing GSES.
Then a issuance of an IPO for two new charters separate from the existing GSEs.
More competition/less risk.
lower insurance cost to backstop.
less risk to tax payer.
Thats how you fix the model.
Add additional players and have a common pool of capital to backstop all of them. Basically a capital buffer between the Government and the pool of GSES.
The private capital will have their vehicle and we keep ours separate.
I think the Enbac result will force this to become reality.
Its what they ultimately want anyhow.
Basically, if the conservator was doing its job it would not need a recap.