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Bottom line....
Fnf needed help just like the rest of the financial and non financial firms when our economic system was on the brink of collapse 5 years ago. I applaud those in dc that didn't allow that to happen, bravo!
Here is the difference though.
Every other firm that needed help from the govt needed help on their own merits of risk they were taking in association of making huge profits.
Fannie and Freddie needed help from the government because the representations made by the banks that the govt is settling with on behalf of Fannie and Freddie, for billions of dollars, defrauded them.
This is clear as day, no questions asked.
Ask your self, is it ironic that they amount of funds that the govt needed to give fnf, is the same amount of money that they sued the banks for? I think not, fhfa knows that fnf were defrauded.
There are also 2 other important features to this conservatorship:
1. 79.9 percent of shares the govt can exercise if they don't get paid back. Not 80%. That .1% is a very important thing. That extra .1 would make it so id the warants were exercised, the 6 trillion or so would have to go on the govt s books. Their books can't handle that. They knew that then and they know that now.
2. conservator, not receiver. Very important. If they put into receiver none of us would be on this board as it would have been game over 5 years ago. They knew they needed to protect them only (conserve) Because they were defrauded, hence, the amount of money needed in relation to the amount of money fhfa sued the banks for. Cooooooooooincidence, I think not.
The Bberg article yesterday says it all to me in relation to sentiment now. We all saw how fast bberg and others were to write negative articles (and even publish them many times) since May. Now the write that article yesterday talking up fnf!
If this run happens, it will be diffrent than May, it will hold. As we expect billions in profit from fnf in the next few weeks, and net zero approaching then, the govt has Jo choice by to release them.
Do you think that the hedge fund counsel isn't going to refer to these fhfa victories and billions paid by banks for defrauding fnf numerous times, when arguing everything, you have never seen an episode of Law and Order (or a copy of the constitution).
Time for govt to reform (not much to reform anyways, 15 billion in profit combined last quarter, and historically LOW default rates) and release back to the share holders who believe in these companies (I.e. Believe in America).
Some very smart people on this board, good luck all longs, we are in this together, to the MOON baby).
Like I mentioned before, anyone that still blames fnf needs to be evaluated on scale of the first magnitude. If someone has the nerve to spew that nonsense after jpm and bofa this week, THEY should be taken into conservatorship as they are not willing to look at reality.
Blue and obi and others???? What is the value per share if govt does and does not exercise warrants?
What happened to the bashers today? They got burnt like toast!
Anyone in dc that wants to blame fnf is a complete idiot at this point. They sounded foolish before, now they will just sound out if touch with all reality and in someone's pocket.
Go fnf, bofa about to pay up bigtime
How can the govt on one hand try to blame fnf for the problems and then sue the banks on the other hand and settle for billions, what a joke. We will be released very soon. I am not sure who is more dumb, them or the people that believe them.
IMHO
Exactly. You can't take peoples property without paying them. You need to own something to shut it down. Currently, if u own 1 share of Fannie, u have 1 more share than the govt does (they have warrants, not shares). Does anyone think that if they exercise those warrants that they will not sell the shares on the open market. Do u really think that they would flush a potential 250b down the toilet? I think not
IMHO
Beyond sad
I have also been limited to 1 message a day thanks to MH. He also called me names in PM. I am leaving ihub because of this. Have fun listening to this person who is clearly in need. Good luck to all (except shorts), I am done with ihub because of this.
Yes, fnf own it. Plain and simple. No way to spin it. In black and white.
You called it
He has never owned 1 share. Complete liar
I'm back, couldn't resist given this news. What does this mean?
Everyone! Do not respond to MH, he gets paid per response, by responding, you are only helping him. I suggest putting him on ignore like I just did
After hours does not exist on OTC
Are you kidding?
Their job is create bills to fix something that is not broken, ok.
The govt is shut down. Do you really think that they are worried about putting together a bill to shut down profitable companies when they themselves are shut down?
Fnmfo traded up 950 points today on 171 volume, get ready folks
Close at 1.65 + today, just watch.
What news did we get? There is no news.
IMHO
Buckle up and hang onto your hats folks!
Govt is going to have to sell their shares in fnf to keep the lights on, how ironic
On wall street, money talks and BS runs a marathon. 10B in profits last quarter. Also, wouldnt the govt be flushing a potential 250b down the drain if they did that?
Also, they opened the segment by talking about a pizza party. Aren't those for little kids. Who could possibly take them serious
They don't even understand the topic and the logistics of what they are discussing. The govt could not an will ever not be able to put fnf portfolios on their books. That is why the are in cship and not rship, that is why the warrants are for less than 80 percent of stock, and that is why they have to release them. CW should bring a bill to shut down FHA now if protecting the tax payer is their intent. This alone shows their true intent and let the cat the cat out of the bag. anyways, the govt has much more pressing issues right now other than shutting down profitable companies that have almost repaid their debt.
No because those securities need someone to sell them, that someone being fnf. Fnf have always been that link between private and public. Ask those people that fnf are selling too if they would consider buying them without the fnf backing if they would be interested without that backing and the answer would be no. It seems a if the pun dents are always a topic or a question short. IMHO
Replace them with the same banks that they are suing and settling with over mortgage fraud. Really, now how much sense does that make.
FHA and Fnf have nothing to do with each other, you are aware of that, correct? Recap, Fannie, 10b profit last quarter, FHA needs a bailout of 1.7b. Considering that Fannie paid the treasury 10b and Freddie paid 5b, looks like fnf are now bailing out FHA.
Kiss all of these bills in DC good bye..... After govt shuts down and then starts back up again, the only thing anyone will be worried about is getting re elected next year..... And when it comes to fnf, they will say that they tried.... Don't be surprised if govt cashes in their fnf chips to get running again and call it the most successful bailout that they had from the crisis.., clear sailing ahead for longs
IMHO
Failure? You have not seen the last 2 Earnings reports I guess......
Announce what?
They aren't thinking about fnf. They are about to go home because govt is risking a shut down in the next month. Do u really think that they have time to throw this political football around right now.
Read the real news about risk sharing securities, get a clue, they are expanding operations and fhfa is doing self reform.
They are arguing about debt ceiling and shut down.
What are you talking about.
Fnf are the last thing in their minds
What is the purpose of putting something like this on a board?
My favorite part.....
"Under the FHFA’s direction, Fannie Mae and Freddie Mac are seeking to lower their future risks after returning to profitability following almost $190 billion of taxpayer-funded capital injections"
Imho, Fhfa, it looks like they see the value in fnf. I hope that they are fine tuning in advance of release from cship. IMHO
http://mobile.bloomberg.com/news/2013-09-23/refinancing-effort-for-lost-value-homes-gets-push-by-u-s-agency.html?cmpid=yhoo
So If there is no 10 percent first hit, then the tax payer is on the hook even more. Doesn't make sense. IMHO
Imho, You can't get rid of a profitable company because of a bill. This is America, the confidence of the whole stock market will be shaken if this happened. If it is modeled after the other bill, why don't they just support that bill? What is the difference between the 2 bills? Tia
Shortable? Is anyone able to short this stock today? Tia
*not receivership