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The court already partially ordered against FHFA/GSE
Recent filing in Perry lawsuit if approved, will make Corker/congress law completely ineffective.
I was speaking specifically about the executive order Trump is scheduled to sign today.
As I said before and I am saying it now. President Trump will be the one who will end the Fannie and Freddie NWS and Conservatorship and he will do it with an Executive order or any other form of communication to his cabinet and Congress. It could happen tomorrow, next week, next month, or next year. It will happen for sure, you can count on it and bet the farm it will be done. We the shareholders will be freed from this terrible act of theft of our investment money.
It doesn't require an executive order to stop the NWS.
An executive order can't be issued in order to override a congressional bill. Corker's bill was made a part of law. It states releasing the GSE's require an act from Congress. An Executive Order can only create new laws. It can't override existing laws made by Congress. So the answer is no. The executive order won't have anything to do with the GSE's.
Good stuff. I agree. However, it is my opinion, and why I invested, that this company will not get released based on the court proceedings. Read Paulsons annual shareholders letter.
What reason?
I don't understand what you wrote.
The next net worth sweep is at the end of May correct?
My Chinese associates tell me your Chinese associates are unreliable and can't calculate basic math.
Governments don't purchase publicly traded stock. They purchase bonds. Your shares aren't worth $60-$100 per share. You'll find out soon enough.
Your link is broken.
The daily list includes temporary market maker trades that aren't actual short positions. They are temporary transactions in order to create liquidity that last a split second. That's why it takes a few weeks to weed through them and produce the actual short list which is a bi-weekly product.
That isn't a record of short sales.
Prior to 2012, the dividend was a 10% fixed rate. After the 2012 Ammendment, it became variable. That's why an "illegal takings" argument is being made in court.
Source: https://www.fhfa.gov/Conservatorship/Pages/Senior-Preferred-Stock-Purchase-Agreements.aspx
$265B is more than $187B+5% interest
If $265B is applied towards $187.5B & 10% interest then it cannot be taking.
Even in Perry appeal hearing, Judges asked how much is total for principle and interest.
Even according to Ackman, $265B might be close to $187B plus 10% interest.
Mnuchin has been consistent on what he's said from day one. Unfortunately, less schooled individuals tend to create their own definitions of the English vocabulary. Hence, confusion sets in regarding the meaning of what someone said and/or didn't say.
I have the feeling that all this payments to treasury could be earnings retained.
You are saying that the accounting entry for payment of dividends at F and F is DR/CR Retained Earnings and DR/CR dividends paid ? Is that right?
Why if there was a profit to sweep would there be any need to DR/CR Retained Earnings v Income? [img][/img]
No doubt in my mind that's the direction the courts seem to be headed. Why Fairholme is not pushing harder, I don't know.
You should read Hank Paulson's book. Will enlighten you as to how it went down.
You've almost got it. The $600m reserve is not a reserve. Why they call it a reserve is confusing. It's a hypothetical number they arrived at. It's a "hurdle rate". An intangible number that does not represent an actual cash amount.
$0.10 per page is relatively cheap considering the government houses the information on computers and servers and pays employees to mine the data for public use.
Due to transparency laws, the government created pacer.gov which houses court cases from every state. It's fee based. $0.10 per page to download.
Of course the NWS changed the dividend. But the NWS swept the earnings, not the reserves. And why would the NWS impact the reserves? There should be $100 Billion still in reserve or did F&F run at a deficit for several years.
Open a PACER account and that information is provided in the first group of dockets.
I respectfully disagree. Lower corporate taxes generally reflect an increase in production and salary.
Will never happen.
The capital buffer (aka capital reserve) reaches $0 1Q 2018. That means an amount equal to shareholders equity (net worth) will be swept each quarter from the GSE's. Right now, equity for Fannie Mae is $6b. If it were 2018 today, the quarterly sweep would equal $6b.
Because of the expected change in corporate taxes from 35% to 20%, the company will be forced to impair approximately $19b of their assets. So, if equity is $6b and a $19b write off takes place, equity would equal $-13b. In that situation, the company would be forced to take another draw from the Treasury which, at Treasury's discretion, could force the company into receivorship.
Completely agree.
He's talking about the deferred tax asset impairment charge that's been the center of discussion for the last two months. "Write down" = impairment, discounting the value of an asset, devalue, diminish, charge off, etc.
If I needed investment advice from you, I'd ask. The company doesn't have resources beyond shares of stock.
Progress doesn't take 10 years.
The poison pill does not prevent the company from holding annual votes for the CEO and BOD.
I remember when the company was pushing the poison pill. While I was warning everyone against it and what it would do, you were right there all in favor for it telling everyone how it protects the company. Have no sympathy for you at all. Yes...I told you so. Next time, don't be afraid to learn.
I am here as I said before until the FNMA stock reaches $100 pps.
The stock isn't trading anywhere close to 2007 level. It's not even "starting" to.