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So every decision in the GOV is made in one building by one person
"Calabria already alluded to that not happening.
The warrants or shares after exercised will likely be sold at the highest price possible per Mark Calabria's own words "
"Nobody should have a reason to hate the warrants."
They are the primary reason that Treasury has to allow recap and release rather than just never approving release at all.
The idea that the commons would be worth 5 times as much if the warrants ceased to exist is incredibly naive.
Removing Treasury's incentive to prop up the share price (and push for lower capital requirements) is far more damaging than 5x dilution.
"No, Treasury selling the warrants instead of exercising them removes Treasury's incentive to keep the share price up (and its incentive to push for lower capital requirements that would result in less dilution). It would be a disaster for the commons."
"In case anyone missed it, there was a great post made on CoB&F today.
"
"
bcde, I share your points of view. "
"I agree that the capital buffer is probably a bridge too far to qualify under a %th Amendment issue. However... "
"CC, this time I must agree with u. FnF is gambling and is not an investment.
That is why I can’t see how investors will gamble $120B in new common. JPS in some sense is a loan so may be FHFA can find $120B JPS investment. Other ways are retained earning and hedging the credit risks.
"
car123,
Thanks for excellent comments.
"$FNMA = High Risk Gambling. Far from investment-grade.
But everyone is allowed to paint their own picture. "
This is just a bridge too far. The Fifth Amendment says that property taken for public use involves compensation. Saying that a capital buffer to protect taxpayers is a public use is a huge stretch. The proportional ownership of the company itself (which is what you claim will be taken) won't be for public use at all.
"The original contract for the bailout is still in effect. It has been amended but is still in effect. Wouldn't the statute of limitations start after the contract is closed? "
"Bye bye Joe. Good luck with that 1000 pps prediction. "
Action8101,
LOL, Joe is very sad because CS holders are going get back ownership rights and true market value and Wallstreet fellow thieves can not continue to rob FnF and Common shareholders.
Joe is not just happy if JPS holders get par value for JPS as per much touted JPS contracts.
I guess we will see what happens. Under the nonsensical ideas, JPS get wiped and common shares are 1000.
"After the 1 for 30 reverse split. Yeah!!! Go FNMA all day! "
There will be no division for almost 5 years the way I understand it. It’s not gonna happen until what u said occurs. If Ps want to get some they better push for NWS to end and treasury give back stolen money ASAP
donotunderstand,
thanks. it is just a deabte.
Any common shareholder hoping for less than par for the juniors doesn't realize that this amounts to cutting off their nose to spite their face.
conclusions people draw surprise me
"Probably many common holders are hoping for warrant canceling ceremony and treble damages of 300 per share.
I guess anything can happen and maybe they trade north of 5 or 6. "
CS are Risky, so are rewards. But CS will be there.
"JPS cannot be diluted without 2/3 vote of holders of each class. The prospectus will set you free.
It's coming.... "
"Lol. That is a new one. So, the plan is now not going to come out? Is that your opinion on this topic?
I believe that a plan is going to com ed out very soon. "
"The Trump administration is close to announcing its plan for Fannie and Freddie. Let’s hope it’s not investors’ favorite option, the “recap and release plan”
navycmdr,
It looks like CP left unceremoniously without any hope of implementing bankers plans.
May be some, more important people pulled the rugs under the feet of these wall street bankers.
"I don't think you understand any of this, at all. But that's okay. $FNMA might still double from these prices and everyone will be rewarded.
#LuckOfTheDraw
"
"$FNMA Commons are going to get diluted either way. If anyone still holding $FNMA doesn't understand that yet, they should move everything to cash and run far away from the Stock Market.
#NoRagrets
"
"Lol. Not accurate but you just keep saying stuff "
"Do you realize there's numerous different Series of Jr. Preferreds that have been offered throughout the history of the GSEs?
None of those impacted the price of the other JPS when they were offered. You're confusing this with dilution, which only affects $FNMA Commons.
And legacy JPS are already at a way higher yield than new JPS would be issued at wink
"
"You forgot Step 2 - Massive Capital Raises. They can't Release until the GSEs raise ~$100B. "
"Really nice news. Here comes Big Bank Crapo with the SIFI 6% solution and the chance to impale FNMA investor's gigi's with a meathook. "
"Navy has been doing this every day for a decade... doesn't work. "
"The linked article below was in the Houston Chronicle yesterday. "
"Not true. It is the assumption that FnF did not need a bailout that must be proven. Needed or not, they got one. "
"THEY ARE ALL READY TO COLLAPSE THE GARBAGE CAN "
Please stop your misinformation campaign.
Fellow thieves tried to collapse the US economy and FnF forcing conservatorship. Then Fellow thieves used series of accounting frauds and forced usury SPSPA and Warrants on FnF. But these lawless things did not work. Then Fellow thieves used NWS in 2012 to kill FnF. But that also did not work. Even Banana republic judges conspired to bankrupt FnF with twisted interpretation HERA.
In the end FnF have paid off all obligations as SPSPA and have become highly profitable companies despite deliberate mismanagement by Fellow thieves in UST and FHFA conservatorship.
Now we have rule of POTUS and HUD Sy, FHFA Director who want to end conservatorship in favor of affordable housing policies.
FnF shareholders have seen all ups and downs but nothing has deterred them from being long term investors in FnF, believing in American rule of law and greatness of American economy.
Only American enemies try to short American companies and harm American companies to benefit Global trader Bankers.
"Y’ALL GET READY FOR THE BIG COLLAPSE "
"YOU WERE WARNED THIS STOCK WILL COLLAPSE THIS WEEK TO $1,75 THIS COMPANY IS BANKRUPT "
"Five dollars a share can be reached in a blink of the eye . Fannie Mae has a history of HUGE price swings. After planed hit piece last Monday the anti Fannie people are running out of bullets . Three dollars has held and its up from here. Either get in now or watch share price increase. It’s not a hard choice to make. "
alongzride,
Thanks, This is the most conservative estimation.
"Treasury report to be released/endorsed very soon. "
"If dividends have been in fact been paid to some, but never declared, then the shareholder may seek an equitable remedy to have the Court find a constructive declaration of dividends and order the corporation to pay the dividends to the minority shareholders"
"May increase reserve to 6B from 3B on 28th "
MannSinger,
Thanks, This is looks much better than NWS. However the SPS value goes up by the same amount but cash remain with the companies.
When cash is sent UST it is like sending cash to a black hole.
When it comes to Black hole, nobody knows how laws work. Same is true about UST especially when UST is managed by wall street traders and Globalist Bankers.