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I listened to the entire recording on CSpan. I think you have to look at the statements in the context and get the actual interpretation.
I understood that both of them TSY and FHFA chief want to eliminate NWS ASAP. The capital threshold that was mentioned was $100B. That gives a lot of valuation to the commons and Pref shares.
Do your own DD. Above is my opinion/conclusion.
GLTA
Congrats for the milestone! Next Million $$$ mark comes relatively quickly. Good Luck.
Nice
I think re-incorporate is used in context of having these as regular corporations without the Federal charter..
I sold around 70% of my holdings of various preferreds today, both Fannie and Freddie. Did that before the news about release of 11K docs.
I may buy back a few if any of them go 10% below my selling price.
Needed to raise cash to close another transaction, if my offer gets accepted.
Why can't they both (Mnuchin and Watt) have 4th Amendment effectively bringing the div amount going forward to 0.000001 per share (effectively close to zero)? If they officially did 3 amendments, they can do this one too. The reasons could be many - To build capital and prevent future draws, to respect other shareholder's rights (Republicans are supporting rule of law), more than original investment has already been recovered, and so on..
Thoughts?
Great point, shareholders have rights.
Also, just how 3 amendments were done, 4th one can be done to make zero percent sweep, as UST has already recovered more than what they gave.
Alternatively we need one executive order stating that FHFA is NOT ABOVE THE LAW, and can be sued.
Very few preferreds being sold. Look at FNMAM, FNMAJ, FNMAI. All have today's volume less than 25K.
Regarding the word scheduled..
Yes, it seems a different approach this quarter. Previously I recall reading direct headlines everywhere such as "Freddie to send $XX Billions to Treasury" immediately after the quarterly results.
No such news today!!!
Without NWS, Net income (loss) attributable to common stockholders would have been $4,847 M for Qtr and $7,815 M for 2016 for 3,234 M shares. This represents EPS of $1.50 for 4th Qtr and $2.42 for 2916 respectively.
At a moderate P/E of 11, this should be trading around $24. We will get there slowly IMHO.
Note: The above numbers include shares outstanding AFTER exercising
warrants, which may or may not happen.
Do your own DD before buying.
He should be able to stop NWS just by stating the facts that original div rate was 10%, which itself was higher than all other bailouts. $250+ Billions recouped so far, TSY still holds 80% warrants, so stopping NWS is a no brainer.
If he is questioned, he should point to Obama appointee FHFA conservators who failed in Preserve and Conserve directive they had.
He should be able to stop NWS just by stating the facts that original div rate was 10%, which itself was higher than all other bailouts. $250+ Billions recouped so far, TSY still holds 80% warrants, so stopping NWS is a no brainer.
If he is questioned, he should point to Obama appointee FHFA conservators who failed in Preserve and Conserve directive they had.
Preferreds and Commons on Friday
SYMBOL TIME & PRICE CHG & % CHG VOLUME DAY'S LOW & HIGH 52-WK RANGE BID ASK DIV/SHARE YIELD
FNMAP 03:59pm EST 16.99 +3.49 +25.85% 25,897 13.50 16.99 4.24 16.99 - - 0.00 0.00
FNMAL 03:54pm EST 15.90 +2.45 +18.22% 1,019,105 13.76 17.05 3.9 17.05 - - 0.00 0.00
FNMAM 02:56pm EST 17.00 +2.55 +17.65% 108,527 14.55 17.00 4.12 17 - - 0.00 0.00
FNMAO 03:51pm EST 16.04 +2.24 +16.23% 16,804 14.00 16.55 4.15 16.55 - - 0.00 0.00
FNMAK 03:55pm EST 16.25 +2.25 +16.07% 46,466 14.40 16.35 3 16.35 - - 0.00 0.00
FMCCK 03:54pm EST 16.80 +2.30 +15.86% 19,284 14.75 16.80 4 16.8 - - 0.00 0.00
FNMAG 03:56pm EST 16.45 +2.20 +15.44% 23,398 14.35 16.45 3.75 18.12 - - 0.00 0.00
FNMFO 12:52pm EST 31,000.00 +4125.00 +15.35% 10 31,000.00 31,000.00 8,000 31,000 - - - -
FMCCH 02:46pm EST 15.50 +1.75 +12.73% 22,727 14.00 15.50 3.79 15.5 - - 0.00 0.00
FNMAJ 03:58pm EST 9.70 +1.08 +12.53% 57,753 8.40 9.70 2.25 9.7 - - 0.00 0.00
FMCCS 02:37pm EST 14.33 +1.53 +11.95% 53,707 13.00 14.33 3.9 14.33 - - 0.00 0.00
FMCKK 03:50pm EST 15.35 +1.60 +11.64% 26,176 13.75 15.35 3.83 15.35 - - - -
FMCKP 03:50pm EST 16.00 +1.66 +11.58% 18,324 14.40 16.10 3.91 16.1 - - 0.00 0.00
FMCKL 03:59pm EST 8.48 +0.86 +11.29% 402,100 7.58 8.48 2.07 8.48 - - 0.00 0.00
FMCKO 03:50pm EST 8.32 +0.82 +10.93% 13,708 7.55 8.32 2.07 8.32 - - 0.00 0.00
FMCKM 03:55pm EST 8.15 +0.80 +10.88% 14,246 7.40 8.15 2.01 8.15 - - 0.00 0.00
FMCCI 03:08pm EST 14.34 +1.34 +10.31% 1,800 13.25 14.39 3.4 14.39 - - 0.00 0.00
FNMAT 03:57pm EST 10.15 +0.90 +9.73% 1,419,201 9.32 10.19 3.65 10.19 - - 0.00 0.00
FMCCG 03:58pm EST 14.25 +1.25 +9.62% 7,667 13.00 14.25 3.56 14.25 - - 0.00 0.00
FMCCP 03:59pm EST 15.85 +1.35 +9.31% 32,351 14.95 15.85 4.01 15.85 - - 0.00 0.00
FMCCL 03:55pm EST 14.11 +1.15 +8.90% 18,527 12.98 14.11 3.55 14.11 - - 0.00 0.00
FMCCT 03:57pm EST 16.70 +1.35 +8.79% 5,945 14.75 16.70 4 16.7 - - 0.00 0.00
FMCCM 03:47pm EST 14.10 +1.00 +7.63% 2,000 13.46 14.39 3.56 14.39 - - 0.00 0.00
FNMAH 03:52pm EST 8.50 +0.60 +7.59% 206,901 7.90 8.50 2.1 8.5 - - 0.00 0.00
FMCKI 03:56pm EST 8.60 +0.60 +7.50% 33,946 7.90 8.63 2.47 10.5 - - 0.00 0.00
FMCKN 03:53pm EST 8.00 +0.55 +7.38% 7,588 7.32 8.25 2 8.25 - - 0.00 0.00
FMCCN 02:07pm EST 13.95 +0.95 +7.31% 2,100 13.40 13.95 3.51 13.95 - - 0.00 0.00
FMCKJ 03:59pm EST 9.63 +0.61 +6.70% 3,135,522 9.07 9.70 2.8 9.7 - - 0.00 0.00
FMCCJ 03:56pm EST 14.13 +0.82 +6.16% 6,084 13.31 14.13 3.58 14.96 - - 0.00 0.00
FNMAS 03:59pm EST 10.09 +0.58 +6.10% 6,067,143 9.55 10.16 2.9 10.16 - - 0.00 0.00
FNMAI 03:53pm EST 8.84 +0.44 +5.24% 8,226,038 8.35 9.50 2.54 9.97 - - 0.00 0.00
FMCCO 11:40am EST 16.12 +0.62 +4.00% 2,962 16.12 16.12 4.16 16.12 - - 0.00 0.00
FNMA 03:59pm EST 4.38 +0.16 +3.79% 9,638,551 4.23 4.38 1.26 5 - - 0.00 0.00
FMCC 03:59pm EST 4.15 +0.12 +2.85% 5,594,779 4.04 4.15 1.21 4.84 - - 0.00 0.00
Who has the guts to hold over weekend..
Everyone here, including you.
Stop the nonsense, join the party. We forgive you.
If he does not leave, he will be humiliated for the failure to put FnF in sound and solvent condition. Remember, he has not made that determination yet.
IMHO, he should save his own a** and resign.
If they amend FERA so that FHFA director can be sued, he will quit the moment such a bill is introduced.
Agree. There was no congressional approval for the 3rd amendment. So a fourth amendment could have been done had they not been greedy
The docs were not released as it was claimed by President that the release of this info was detrimental to the economy. However if the new President decides that it is no longer the case, why would these be still kept under executive privilege? The underlying reason for the exe prev itself may no longer be valid.
Thoughts?
POTUS talked about wind down in a speech he delivered from Phoenix, AZ. Google it and you can see, he did say wind down.
All that is history now, they are not going anywhere. They are here to stay.
Add me to the list too. Level doesn't matter. Put gold or platinum if you have to. Not getting out of FnF till the whole thing is fully resolved.
Why can't Mel invite The Tres Sec for negotiating the 4th Amendment and then declare that FnF are now Sound and Solvent so that they are automatically released after principal is marked as paid, warrants are canceled?
Can you please share the link to the court page again that publishes it on Tuesday and Friday?
Thanks.
Done. Posted my story. Suggested replacing CONservator who could not not make them sound and solvent in the past 8 years. Also asked to replace the board of directors who do not communicate with real owners (shareholders who hold shares in their investment accounts)
Go FNFA FMCC.
Go TRUMP
MAKE FANNIE AND FREDDIE GREAT AGAIN
Sorry to say, his writing is biased. The newspaper he writes for sells for $1 for 2 months and all his articles have free access to anyone who wants to read, without paying even a dollar. Not worth even few pennies..
Writing on the wall.. yeah, the Wall of Shame soon will be full of people responsible for illegal theft.
So this indicates that he already did have his first meeting already!
Shared the story/idea to release FnF from conservatorship and STOP THE THEFT on his website. Thanks for sharing.
BREAKING - APPEARS Meal Whatt will be an orphan soon
When BOb leaves office, he will have nobody to support him from the WaffleHouse.
Meal Whatt, a Democrat appointee by BOb, couldn't bring FnF to a state of sound and solvency in the past several years of his leadership at FHFAY.
Accompanied by the puppet BOD's, he led the team of an 'independent agency' that facilitated illegal redistribution of wealth from private FnF shareholders to the 'taxpayers'.
It is noted that Mr. Donald Trump did not receive a single penny as a result of this controversial redistribution as the Democrats contesting the elections presume that he is NOT a 'taxpayer'.
The above article is written for entertainment purposes only. Copying it or forwarding it or reproduction in any form whatsoever without prior approval is strictly prohibited.
If FHFA is claiming ALL rights, they need to come and get the share certificates I own and keep in my safe. They are claiming rights on them so, I should start charging FHFA the safekeeping fees of $10000/day/share retroactively from 2008 and sue them to pay up.
Didn't the president talk about winding down FnF? I remember he said it in one of his speeches he delivered from Phoenix, AZ but I guess he said he called on to Congress to wind down...
Why did he say so, when Conservator was appointed to preserve and conserve (and not wind down)?
This is based on FHFA's BS claims:
FHFA claims ALL rights from the shareholders. But the FNMA shares are still lying in my account.
Did they forget about their economic rights and left these rights for someone else's benefits?
If FHFA wants to replace shareholder's names with theirs, they should transfer these FNMA shares to their account (transfer out of my account) and be subjected to TAKINGS CLAIM.
If me or my Investment account is holding rights (economic right as represented by FNMA Stock certificate) that FHFA is claiming as theirs, I should send them an invoice for holding charges as I am holding their rights with me.
I don't want to hold their rights for free.. I want to charge them for my holding service. UST charges 100% of NW. I will charge 200%, who cares?
Just my opinion on the FHFA substitution request:
To oppose the substitution, the plaintiffs should ask the judge and FHFA if they would also substitute (take the place of) the shareholders in case of receiving liquidation amounts. If the answer to this is YES, they have all rights, but it is TAKINGS. If the answer is no, they cannot substitute.
Has anyone though of briefing Trump on FnF and the NWS?
This would be a major victory point for him against the Democrats on housing and snatching away of private property rights by the Democrats.
Good article.
Well said Tim!
Thanks for posting.
The lawsuits are NOT for placing them into Conservatorship, but on the 3rd Amendment that happened in 2012, not in 2008.
I will start calling FHFA director and other FNMA Staff everyday DAILY from Monday and request them to transfer my call to my (shareholder's) representative in FNMA. I have some time that I want to utilize to find out who has my (shareholder's) rights and continue calling until that individual re-list FNMA on major exchanges where I bought it. They are profitable now. Watt seems to have disowned the responsibility and representation of shareholders. I have several things to ask and my company representatives are not responding to my calls or letters from me (company's part owner).
It was nice to meet with other IU members, small shareholders like me and Tim & his team in DC.
I am interested to participate (listen only mode is ok) in these discovery calls too. How do I express my interest to the Judge ? I am not part of any suit at the moment, but have been impacted by the 3rd Amendment !
Thanks.
Bought LEHNQ and LELHQ today between .44 and .45 range based on Google board for Fannie and Freddie discussion group. Thanks GLTA.
Nice DD on Exide. Thanks. Does XIDE.AC pay interest during bankruptcy process? What is the frequency of interest? I have never invested in bonds, so I don't know. Thanks in advance.
The BOD should now also include (in addition to individual directors) FHFA as they think they have assumed that fiduciary responsibilities to increase the shareholder's value.
Also, in the letter, ask them (BOD) to respond with a rejection or postponement to WH request for 1Billions for Affordable Housing in a public manner citing the fact that they have their first duty towards their shareholders (and to declare the pref dividends) before any charitable giving.
Also indicate that this is the opinion and demand of all or majority of shareholders, not only of the hedge funds.
Awesome letter ! Way to go Bruce !
I think I should copy paste some stuff (name, address etc.) and write a similar letter to the BOD and Mr. Watt.
The response on Fannie website says "Our Board and management will continue to perform their duties, as provided by federal statute and delegated by FHFA, diligently and to the best of their abilities."
In corporate world, shareholders give powers to the Board of Directors. They perform/execute. Here, why they say 'as provided by federal statute and delegated by FHFA' it should have said
'as provided by existing shareholders, federal statute and now temporarily delegated TO FHFA until the conservatorship ends'.
BOD did not perform their duties to the best of their abilities. They accepted an obligation without their repayment mechanism spelled out. On top of that they declared dividends in cash..
Come on, now it is time to correct your mistakes and perform your duties to the best of your abilities.