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not until released---
And we're not even at a PPS where big funds can buy in yet
MM needs to let her run
I say close $3.09---Maybe 4:00PM
Pretty solid trading for two hours into the day
CRamer-----such a freaking dorkus MOFO
Hedge funds believe that the two agencies could easily be worth more than $200 billion
Both Fannie Mae / Federal National Mortgage Association (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) are in the government’s control today. Congress plans to wind down the agencies. However, hedge funds know that it’s the right time. Banks are pulling away from the mortgage market, and private insurers are left with little capital. The hedge funds’ proposal includes converting their preferred shares worth $34.6 billion and underwriting a $17.3 billion rights issue. That’s like a cash offer from a group of private investors.
Hedge funds believe that the two agencies could easily be worth more than $200 billion. The reversal of the government-sponsored agencies (GSEs)’s reserve should amount to $55-$60 billion, lawsuits against banks could fetch at least $20-$30 billion, plus they are generating at least $25 billion profits a year. Such a lucrative opportunity ensures that hedge funds are unlikely to give up. Less
from yahoo FNMA board
What’s in it for common stockholders?
? The preferred stock is removed as a senior claim on the run-off value of Fannie and Freddie
? The run-off of the historical assets is valuable and should generate significantly higher recoveries than litigation, so long as the terms can be arranged fairly
? There may be an opportunity for common stockholders to purchase NewCos common stock, perhaps by allocating to common stockholders a portion of the rights offering
or by their providing incremental capital
Page 31
http://www.fairholmefunds.com/show_pdf.php?file=http://www.fairholmefunds.com/sites/default/files/FAIRHOLME%20CAPITAL%20MANAGEMENT%20ANNOUNCES%20PROPOSAL%20FOR%20PURCHASE%20OF%20INSURANCE%20BUSINESSES%20FROM%20FANNIE%20MAE%20AND%20FREDDIE%20MAC_0.pdf#pagemode=bookmarks
What’s in it for common stockholders?
? The preferred stock is removed as a senior claim on the run-off value of Fannie and Freddie
? The run-off of the historical assets is valuable and should generate significantly higher recoveries than litigation, so long as the terms can be arranged fairly
? There may be an opportunity for common stockholders to purchase NewCos common stock, perhaps by allocating to common stockholders a portion of the rights offering
or by their providing incremental capital
Page 31
http://www.fairholmefunds.com/show_pdf.php?file=http://www.fairholmefunds.com/sites/default/files/FAIRHOLME%20CAPITAL%20MANAGEMENT%20ANNOUNCES%20PROPOSAL%20FOR%20PURCHASE%20OF%20INSURANCE%20BUSINESSES%20FROM%20FANNIE%20MAE%20AND%20FREDDIE%20MAC_0.pdf#pagemode=bookmarks
WIND DOWN IS RELIABLY PROFITABLE
?
Repays in 2014 all amounts invested by U.S. Treasury
?
Provide a fair profit to Treasury on its investment and through additional
distributions shared 79.9% with Treasury and 20.1% with other common
stockholders
?
Respects order of priorities under applicable law
?
Consistent with legislative proposals
?
Financial analysis to be independently reviewed and verified prior to closing
including the support of the Federal Housing
Finance Agency, the U.S. Treasury, and other investors in Fannie and Freddie.
Bruce Berkowitz’s Fairholme Capital Management LLC has submitted a proposal for private investors to commit about $52 billion and buy businesses held by Fannie Mae and Freddie Mac that insure mortgage-backed securities.
The companies would be capitalized with about $34.6 billion in exchange for preferred stock in the entities and at least $17.3 billion in additional funds would be raised through preferred holders and a rights offering, Fairholme said today in a statement distributed by Business Wire.
http://www.businessweek.com/news/2013-11-13/berkowitz-offers-52-billion-plan-for-freddie-fannie-insurers
Hedge funds believe that the two agencies could easily be worth more than $200 billion
Both Fannie Mae / Federal National Mortgage Association (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) are in the government’s control today. Congress plans to wind down the agencies. However, hedge funds know that it’s the right time. Banks are pulling away from the mortgage market, and private insurers are left with little capital. The hedge funds’ proposal includes converting their preferred shares worth $34.6 billion and underwriting a $17.3 billion rights issue. That’s like a cash offer from a group of private investors.
Hedge funds believe that the two agencies could easily be worth more than $200 billion. The reversal of the government-sponsored agencies (GSEs)’s reserve should amount to $55-$60 billion, lawsuits against banks could fetch at least $20-$30 billion, plus they are generating at least $25 billion profits a year. Such a lucrative opportunity ensures that hedge funds are unlikely to give up. Less
from yahoo FNMA board
Wells Fargo to pay $335M to settle FHFA dispute
http://www.lasvegassun.com/news/2013/nov/11/us-wells-fargo-mortgage-settlement/
54 Million traded today
what happened yesterday at the hearing--I wonder?
what happened yesterday at the hearing--I wonder?
what happened yesterday at the hearing--I wonder?
Big money is in now---big blocks going through
Chhhhamone!!!!!
SEC Enforcement Actions Addressing Misconduct That Led to or Arose From the Financial Crisis
Key Statistics (through November 7, 2013)
http://www.sec.gov/spotlight/enf-actions-fc.shtml
I can only hope that the common survive a takeover--prolly not
Why is everybody excited about an article from July?
they were comparing the PPS action to that of Priceline...although there's prolly no comparison--if it were to move like that, then we'd be talking huge money--$1000/share
If the PPS gets that high and you don't diversify into something else you're nuts
We need a fly on the wall in the hearing
Ahoy Matees!!!!! Thar she Blows!!!!!!!!!!!!!!
nyuk nyuk nyuk
buy signal @ 10:36AM EMA's crossed upwards
Then please leave ...your input has no value
Such fortuitous timing on that article
Troops...... Tomorrow we meet at DAWN
That must be a big sell order sitting at the ask---why can't the big trading computers fill that from the float?
I think everyone should stay under the radar for now,,
being braggadocious prior to the "Hopeful" windfall is a bad idea IMHO----
DO not publicize the list
Very Weak volume
Is there a hearing or are we in court this week?
Does This Milestone Mean You Should Buy FNMA and FMCC?- MOTLEY LINK
http://www.fool.com/investing/general/2013/11/08/does-this-milestone-mean-you-should-buy-fannie-mae.aspx
Tim Johnson piece is GOLD
Bove talks about political risks
Bove has said that he will continue releasing articles with more detailed information, but he needs to address how shareholders will actually get value out of the company. He dismissed the political risk in his first article almost out of hand, saying that the government’s current stance is illegal and won’t stand while Congressional bills scrapping it won’t pass. He may be right, but unless he can persuade other investors of it they aren’t going to take a position no matter how good the fundamentals are.
is there are trial next week?