Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
" It is just a bluff by Mnooch. Go FnF!"
"Mnuchin: "The GSEs couldn't operate if not for the Treasury lines."
"
"Third parties capitals: Private investors? Secondary markets?"
"Calabria relegated to back seat ?
"
"Yanks......There is going to be a lot of pressure on Mnuchin to provide a fair deal for the common shareholders. Calabria has been relegated to the back seat with the En Banc constitutional ruling, IMO."
TRCPA,
As for conservatorship is concerned MC is front and centre of any Administrative and Legislative reform. Clearly MC does not have the same media cheerleading support as bankers in UST get.
Clearly financial media is trying to make SM as center of all things related to FnF. But SM is not in driver seat.
"eventually raise third party capital"
"Rule of Law Guy - Tweet ..."
"The only known antidote for Moelis Kool-Aid is buying commons. Could be too late now. They'll continue with their blinders to the end."
"FHFA is unconstitutional.
What now?"
Who said that? Only FHFA single director structure is unconstitutional (not yet final) and has been corrected by severing "removal for cause" clause.
im cool with no divy during the recap.
but by your logic...you want it to take longer just to keep jps happy?
not me...
refi...pay them off.
I want to put that behind us quickly.
"Anybody else think that the plaintiffs and government are going to settle before the decision gets remanded back?"
"I like the refi the jps debt.
lower interest rates...
payoff the existing jps with the issuance of new jps."
"These are perpetual preferred shares 191 billion at 10%. If you have 130 billion to recap, you still gotta pay back divvies to preferred. Yes. Back divvies. Or haven't you heard about this lawsuit thingy...."
JosephS,
All forced (mafia) perpetual investments all illegal. May be this will be litigated in trials.
Once NWS is revoked retroactively, SPS liquidation preference value changes based on draws and repayments. Once SPS liquidation preference reaches 0, then there are no dividends to be paid.
Currently FnF capital requirements are 1% to 2% based recent stress tests. There is a surplus of $25B. In addition there is remaining SPS credit line of $256B. So FnF may need another $40B to $50B investment at market based interest rates.
Once FnF have a minimum core capital of $100B, then there is no for Gov SPS credit line.
"Doesn’t this completely destroy existing common shareholder?"
"There is an instant recapitalization but the SPS consume all of the GSEs’ earnings."
"Gov never paid for wattants. Why in hell should we pay for something they never gave consideration?"
"Some of the lower court stuff requires no further litigation and simply need remedies applied based on this key win."
MannSinger,
Thanks, Things are working in favor of all shareholders.
There was never a need for any dilution.
If Gov allows FnF to buyback warrants using UST standards, then it is much better for all stakeholders.
"He should have said "the Treasury would not be sending any money immediately "
Love you"
"Show me where in the ruling that Treasury is ordered to send any money to FnF. Provide a page number and quote."
"Treasury is not going to send FnF any money as a result of this ruling."
This is false.
"I spent lots of time and my money helping get Trump elected because he was going to clean things up. You can add Trump-Mnuchin to the above statement because they have been doing the exact same thing as the "thieves" for almost three years now. This time, there will be NO time and NO money.
"
"Wow, hats off to ACG Analytics, and to the judges on the En Banc panel who were intelligent enough to see through the fog and have the balls to rule against the Gov! Where is skeptic this evening?? LOL
"
Yes, but what about Cryptonator posts. We should also appreciate his posts.
(2) end NWS, pay back $130b in overpayments of 10% & UST keeps $200b liquidation preference
"Congratulations commoners!"
"I am no attorney, nor am I a judge, but I'm wondering if the sent it back to afford the plaintiffs a chance to amend their complaint and prayer for relief to include the words "punitive damages"
"the JUDGES even use Calabria's Cato Paper as REFERENCE !"
5th Circuit thinks Shareholders could theoretically obtain full relief under Count I alone.
So probably may be for this reason it did not grant relief under count 4 of unconstitutional structure.
"This statement could go along ways back to ‘08. No?"
Basically it means SPSPA and NWS can not voided based unconstitutional structure of FHFA based on logic that there were many Directors appointed under different administrations but they did not oppose NWS ( Plaintiff Objection 2 : FHFA lacked authority to adopt the Third Amendment because its Director was not removable by the President..)
But however under "Plaintiff Objection 1: the Third Amendment exceeded FHFA’s statutory powers" remanded back to district court, District court can reverse NWS after the trial.
Consequently, we decline to invalidate the NetWorth Sweep or PSPAs.8 Instead, we conclude, given that the majority of the court has found the FHFA unconstitutionally structured, that the appropriate remedy for that finding is to declare the “for cause” provision severed.
5th Circuit ruling summary:
1. We REVERSE the judgment dismissing Count I and REMAND that claim for further proceedings.
2. We AFFIRM the judgment dismissing Counts II and III.
3. The court REVERSES the judgment as to Count IV and REMANDS that claim for entry of judgment that the “for cause” removal limitation in 12 U.S.C. § 4512(b)(2) is unconstitutional.
clearly congress doesnt wanna do anything unless forced
"Both plans lacked specifics regarding some of the recommendations,"
WS bankers have made it catch22 situation with evil intentions and now these people keep on harping that recapitalization is must before release.
BTW who lied and stole all the capital?
Who will invest in FnF still under lawless conservatorship?
"Where exactly is this from ?"
From todays UST bankers essay.
You WANT FNMA to be bright red tomorrow. You Prfrd' holders are SO childish lol
"
"It's a sure thing $FNMA will be bright red on heavy volume tomorrow.
And you can take that to the bank!"
"Treasury gave FHFA the green light to recap, i.e end the sweet... tomorrow I expect more institutional buying...
"
"Makes perfect sense.
"
"Statement of FHFA Director Mark Calabria on the Administration's Plans For Housing Finance Reform"
"While Treasury consulted with FHFA and other Government agencies as required by the Presidential Memorandum, each agency will determine in its own discretion whether to adopt any particular recommendation set forth in this plan.
Relatedly, each amendment to the PSPAs recommended in this plan would entail arms-length negotiations between Treasury and FHFA in its capacity as conservator for the GSEs and would remain subject to FHFA’s independent discretion.
"
"Stress test capital is not the same as the FHFA capital requirement. GSEs will need to raise much more than $30 billion. First day following the GSEs?"
LOL, It is not $100B or $150B. It will be in the range of 1% to 2%.