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The best way to become a GSE millionaire is to start with 2 million or more.
Let me say this real slow, JPS and Common shareholders are NOT a party to any CONTRACT between Treasury and the GSEs.
Furthermore, as a Common holder, you have no contract with the GSEs period.
I think it's optimistic
50,000,000
I'm talking about the future....try to keep up.
Ignorance is bliss. Don't let us disturb your delusions....sell JPS, buy Commons...please do.
Accumulated net worth (capital requirements) would be a factor, which should translate into a higher than usual p/e multiple.
You're asking a question that depends on the re-org scenario which involve legalities I'm not going to venture into on this board. Treasury holds all the cards....they can either take it all with the messy route...wiping out JPS and Commons...or they can give up a little and avoid any material litigation.
Pushdown in 2012:
The SEC staff's guidance
further states that pushdown accounting is (a) required when 95 percent or more of an entity is
acquired, (b) permitted when 80 to 95 percent is acquired, and (c) prohibited when less than 80
percent ownership is acquired.
https://fasb.org/document/blob?fileName=EITF_agendareport_2012_05_14.pdf
But that all changed in 2014. Pushdown is optional at any level:
https://fasb.org/document/blob?fileName=Proposed%20ASU%20Business%20Combinations%20(Topic%20805)%20Pushdown%20Accounting%20(EITF%2012-F).pdf
https://www.morganlewis.com/blogs/financialreporting/2014/11/sec-will-no-longer-require-an-acquired-entity-to-use-pushdown-accounting-upon-a-change-in-control
I don't really understand what all the fuss is about, Treasury could take 99.99999% of the common stock position but the JPS remain...which is equity...thus limiting the government's ownership position....(until the JPS takes a conversion deal).
That wasn't a query, that was an incorrect statement. The SPS have NOT been paid off, no matter how many times you want to post that they have.
I'm not beholden to you. I will do as I please.
Here's a question for you....how much do you think your shares will be worth upon release?
It's more than just personalities but I'll let the idiots keep on believing whatever they wish.
Hahahha....no dude, there aren't any pros here. And I never said I was a pro, I just have decades of experiences with restructurings. You need to understand something. It does not matter to commons how much capital is added since the SPS liquidation preference is going up in lockstep dollar for dollar. FURTHERMORE, since the GSEs portfolios keep expanding, SO DOES the capital requirement.
Do you honestly think that after 14 years of screwing shareholders, the government is all-of-a-sudden going to ONLY dilute commons by 80%? I don't think so.
No need for name calling. The only certainty is that commons have absolutely zero upside. Some day people will wish they could have sold for 40 cents.
Hopium
Just to clarify, outside of receivership or bankruptcy.
Organic recap depends on portfolio expansion. It could easily not happen in our lifetimes if that is the path.
You're a dreamer that can't read. 2 years ago, I bought more preferreds....that I have since sold off to almost nothing. I haven't owned commons in over 10 years.
Commons are going to zilch, get over it. Preferreds may end up the same. I'm putting my money in other places....there's still a long runway here.
IF ever this conservatorship ends, a reorganization will be necessary. The snowball's chance is commons getting more than a De minimis recovery. It's just not gonna happen.
There is an alternative, it's called the status quo.
Political win? How?? The JB administration has a wide-ass open border policy...that certainly doesn't help with affordable housing....and somehow that Potato Brain could do something with the twins?? All they care about is growing the Democrat Plantation, not some side show called Fannie and Freddie.
The government will not settle. The lawyers will milk this until the bitter end.
Nope, to me it means wiping commons out with a senior-to-common conversion. TINA.