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I don't know how you draw such a conclusion based on my message.
Fnf are private companies with a charter issued by the government, but not a government's unit and can never be owned 100% by the government because of the debt consolidation problem.
If the government offers an explicit guarantee on the Mbs issuance, then the government still own the default risk. There is no history of risk sharing, except for the subprime market which completely blew up in 2008. We have no knowledge of scale and scope of what the market would accept on the risk sharing paper.
If the government liquidates fnf, then the credit risk of all outstanding Mbs issuance which originally had an implicit guarantee by the government will be shifted onto the us balance sheet, adding the debt burden of the country, which is already 19trillion. Fnf outstanding Mbs issuance is approximately 4.5trillion, excluding gnma.
To consolidate the outstanding Mbs, when the government either liquidate the fnf or wipe out shareholders entirely, US national debt will increase by 24%. What would happen to US credit rating then? No matter what proposals come out, anything involving no more separate private entity, will require us government consolidate that 4.5trillion on the national debt. None of the proposals address the outstanding paper.
In order to have an explicit guarantee, the government will have to put all the outstanding debt and new future debt on US balance sheet. It is not a small number. And an impossible burden to take on.
So?
Your claim is completely based on your imagination.
1bn bond outstanding. 20 bn very sticky equity capital.
You were completely wrong about his entry price.
He is so far wrong on a few of his positions, but the market is still open, his capital base stable, he can recover.
If anything he would work harder on his fnf position because it has the best payoff potential among his various positions in his portfolio.
That is in the permanent capital vehicle, which is a listed company.
His entry price is around 1.8. Not 2.5
Pershing does not use leverage. What is your proof that Pershing use leverage?
You comment is completely false.
Fnf is a very small position in pershing's portfolio and Pershing has more than enough cash to pay for mark to market losses on his swap.
Pershing has permanent capital and to completely redeem out of the fund takes 3+ years. Therefore Pershing has very stable capital base.
Pershing has net cash position and does not use leverage. So there is no margin call.
Did the government filed their administrative record for the Iowa case? It was due mar 10. And I don't see filing for extension of deadline.
Would you mind to pls send another email to Steele and see if they have been served?
Even though the Delaware case is different, since fhfa included it in the roll up, it would have to be discussed. Another tactic to delay... It seems.
So because of this there is going to be more delays in the Delaware cases?
That's why I wonder if the sell off in the last hour today is related to this decision.
Why the big drop in the last hour?
Reaction to the conference call was pretty negative.
How does he keep going like this. He must be paid to bash fnma.
The FHFA Conservator Provides Evidence For The Perry Appeal
http://www.seekingalpha.com/article/3911686
What about this thing?
Is it true that federal law can override state rule?
Did she not issue an opinion or her opinion is not available to public because it involves confidential or privileged information? Since she may have to reference sealed motions.
What happened to all those bank settlement? Where did the money go?
Why was this necessary? I thought the Delaware case was largely based on the technicality of the securities law issued by a Delaware company.
We just need one of these to be in our favor, right?
It's still there on the site.
Where does it say that? This mentioned their dividend distribution.
Doesn't look like the jumpstart GSE act is in the bill.
Anyone can find out more?
http://www.npr.org/2015/12/16/459987911/no-government-shutdown-but-heres-whats-in-the-spending-bill
When are they voting on the spending bill?
It's probably year end hedge fund redemption selling.
You just made it up
Is this positive or negative?
You said that yesterday!
Why do u think so?
Is court transcript out yet?
Isn't there a status update conference today?
Something does not make sense. If fnma were to be wound down by 2018,by way of paying the sweep, how does it generate the projected 191bn in the federal budget in the next 10 years?
Can you pls resend the pacer doc on latest court transcript? Thanks!
I think pps then was 3.15 ish certainly higher than now.
When he said 10-15x the ops was at 4 and now pps was 2ish so he said 25x
Earnings release is on feb 20 according to Bloomberg.
Typo: comments=government