removed FNMA
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Resistance
3.05
2.84
2.71
2.46
2.14
...Ultimate support @ $2....avg. Ackman price
Trade with fun
Good luck to all longs
FNMA
For Immediate Release
We are a group of concerned taxpayers, students, families, shareholders and citizens who are dedicated to establishing fairness in America’s housing market. The combination of congressional and US Treasury pandering is poised to undermine homeownership, rip-off taxpayers, and gift billions of dollars to financial institutions. At stake is not only the future of mortgage giants Fannie Mae and Freddie Mac, but the real interests of American taxpayers, homeowners and stakeholders.
For the past five years, the US Treasury has imposed uniquely onerous terms on Fannie Mae and Freddie Mac in an effort to hollow them out. Now, the Senate Bill 563 calls for Fannie and Freddie's demise; only to replace them with an ill defined, untested insurance scheme, which places the large banks in control – leaving homeowners at risk and taxpayers on the hook for future catastrophic losses.
Before the advent of Fannie Mae in 1937, home loans were harder to get and more vulnerable to busts. Fannie Mae, and later Freddie Mac, made the home loan market more resilient by pooling risk and attracting a wide range of investors. They provided what banks could not: continuous access to affordable, 30 year fixed rate loans with no prepayment penalty. For almost five decades, they helped establish a culture of middle-class home ownership, which is regarded as a bedrock of American values. In other words, in the absence of Fannie Mae and Freddie Mac, the mortgage market would invariably be smaller, less liquid, and more volatile. (see this video for general stats, and this video for multifamily stats)
Those who seek to end Fannie and Freddie insist that the GSEs were the primary villains of the financial crisis. They argue that the government’s catastrophic guarantee is misplaced, and that our housing market would be much safer if placed solely in the hands of the big banks. Each of these contentions is mendacious.
Fannie and Freddie are commonly portrayed as the villains that perpetrated the 2008 financial crisis, when in reality they were the playing field. With the big banks in the skill positions, mortgage lenders on the line and politicians coaching from the sidelines, the real villains were the absence of credible rules and umpires to enforce them. The big banks and mortgage lenders didn’t have any skin in the game nor were they called out for illegal motion; they simply passed the sub-standard loans down the field. Eventually, these bad loans piled up as widespread defaults and catastrophic losses for Freddie and Fannie. Rather than blame each other for devastating record of losses, the key players and coaches direct their fingers down at the playing field demanding a new venue.
As structural support to our $15 trillion home loan market, a taxpayer backstop has proven to be critical. Absent this taxpayer promise, to step in during times of extreme crisis, untold trillions of dollars would never come to the housing market, mortgage rates would be far higher, our economy crippled and housing prices far lower.
The Senate Bill 563 proposes that we transfer the taxpayer backstop from Fannie and Freddie to the big banks. Once the plug is pulled on Fannie and Freddie, the valuable American mortgage market will be the private property of a few influential banks. The next time we have a housing crisis, the taxpayers will have no choice but to directly bail these big banks out. Under the Senate Bill 563, the big banks will do very well, even if homeowners and taxpayers don’t.
Big banks are not particularly well suited to protect the interest of taxpayers or homeowners. That is not their business. It is to maximize opportunities and to score profits. Those who contend that the big banks will suddenly become good stewards of our housing market ignore the fact that they have already settled billions in claims for defrauding Fannie and Freddie. Before handing over the nation’s house keys to the big banks, a brief review of the London Whale losses, the interest rate swap scandals and LIBOR manipulation scandal should give everyone pause.
By placing Fannie and Freddie into Conservatorship, the US Treasury has largely done the big bank’s bidding. Fannie and Freddie were charged double the rate big banks paid for borrowing taxpayer funds. When the big banks could not unload their toxic loans quickly enough, the Treasury prodded Fannie and Freddie to purchase these junk assets. Under the creative fallacy that real estate prices were never going to recover, the US Treasury forced a write down of Fannie and Freddie assets, doubling their total taxpayer debt to $188 Billion. As the financial tsunami retreated, the big banks were encouraged to pay back their debts to the taxpayers, hire lobbyists, support political candidates, and generally get on with business.
Not so Fannie Mae and Freddie Mac. These two entities are expressly prohibited by a US Treasury decree from repaying any of their debts or participating in any form of political lobbying or fundraising. The US Treasury has already collected $146 Billion from Fannie and Freddie and, by the first quarter of 2014, if not earlier, Fannie and Freddie are poised to return every penny they ever borrowed from fellow taxpayers. Yet, they remain uniquely trapped in the US Treasury's debtor's prison.
Profitable companies, such as Fannie and Freddie, are not typically hollowed out. Thanks to a revival of real estate prices and improved underwriting fees, Fannie and Freddie’s net income is expected to reach a whopping $110B this year, a record, which to put in perspective, is greater than the expected combined earnings of both Exxon and Apple. Yet, nothing will go to Fannie and Freddie shareholders, or build up Fannie and Freddie's capital base. Instead, based on the clandestine, August 2012, Treasury decree, all earnings are now funneled directly to Treasury’s general fund.
In stripping all cash out of Fannie and Freddie, taxpayers are being ripped off. When Fannie and Freddie were placed into conservatorship, the US treasury granted itself warrants for 79.9% of both Fannie and Freddie's common shares. These warrants represent payment to the taxpayer for backstopping Fannie and Freddie. Assuming that Fannie and Freddie are restored, rebuilt and return to their 2007 market valuation of $150 Billion, taxpayers would have a $120 Billion asset. Yet, thanks to the Treasury and the Senate Bill 563, US taxpayers lose all this value. The big banks get Fannie and Freddie’s franchise and invaluable government backstop, compliments of the American homeowners and taxpayers, absolutely free.
Should the big banks want a piece of a reformed and rebuilt Fannie and Freddie, let them buy it from the taxpayers at a fair market price, not be gifted to them on the cheap through Congressional lobbying and influence peddling at the US Treasury.
Rather than destroying Fannie Mae and Freddie Mac for the selfish interests of the few, they should be restored for the broad benefit of the great many. There are already a number of solid strategies developed by the GSEs. Other steps to achieving such basic fairness are straightforward. Designate all past and future payments from Fannie and Freddie to the US Treasury as repayment of debt to the American taxpayers; rebuild Fannie and Freddie's capital base by releasing them from conservatorship to allow them to accumulate private capital, enshrine responsible lending standards in their charters, and build value in Fannie Mae and Freddie Mac for American taxpayers, homeowners and stakeholders.
Sincerely,
Restore Fannie Mae
http://www.restorefanniemae.us/
PLEASE VOTE HERE TO SHOW YOUR SUPPORT!
https://oneclickpolitics.com/messages/edit?promo_id=622
Dear Sen. Corker and Warner and Hensarling and to whom it may concern:
I will kick you guys' @$$ sooner than you think, if you even think about winding down my company.
Sicerely,
GreenWizard
The Dallas Morning News recently recognized Fannie Mae as one of its "Top 100 Places to Work 2013." More than 69,000 workers across Dallas participated in the survey, which asked them to rank companies based on leadership, direction, and loyalty. We are delighted that Fannie Mae finished in the top 25 in the Large Company category. You can read more on this story at: http://res.dallasnews.com/interactives/2013_Top100/
FNMA
The Dallas Morning News recently recognized Fannie Mae as one of its "Top 100 Places to Work 2013." More than 69,000 workers across Dallas participated in the survey, which asked them to rank companies based on leadership, direction, and loyalty. We are delighted that Fannie Mae finished in the top 25 in the Large Company category. You can read more on this story at: http://res.dallasnews.com/interactives/2013_Top100/
Yes, my friend. FHFA is suing those banks. FHFA are the conservator of Fannie and Freddie.
I also expect that.
LOL...LOL
You can find Fannie Mae's name in this article.
As part of the $6 billion to investors, $4 billion will resolve government claims that JPMorgan misled mortgage finance giants Fannie Mae and Freddie Mac about risky mortgage securities the bank sold them before the housing market crashed.
http://www.cbsnews.com/8301-201_162-57612888/jp-morgan-chase-feds-agree-to-$13-billion-settlement/
Welcome to the FNMA board, the only big board stock trading in OTC.
Note: FMCC is the other one.
LOl.
I watched ARCA offering the highest bid and the lowest ask in L2,
at the same time......
LOl
Thanks a lot Clay. Very nice work as you do as always. Look forward to having more of those updates in future.
FNMA
Certainly Hedge Funds are not dumping. We had a red day. But volume was not that much. This is a good sign.
Dear Folks, please be informed that Hedge Funds's managers are not dump people. They are the smartest guys. Even if they had done dumping, they would do it to buy back.
Be patient, we will hit $4 soon. The charts look very healthy.
FNMA
LOL..
Exactly.
IMO, this is not the reversal. Just a normal correction after the spinning top...We are still in a breakout mode, if current volume continues.
Good luck to all longs.
Need to break $2.64...Next resistance is around $2.76.
FNMA
Like your prediction. You were correct several times during the last run and even this time about the $2.71 retracement.
Thanks.
FNMA
Right. Tomorrow we will possibly see a gap down in the early session. Then a pull back. But certainly we see $4 soon. This time we are in a run healthier than the previous one.
All IMO.
It was a long day. Flipped several times. I payed $300 commission fee today. Traded 50 times. Most of them in FNMA and FMCC.
Good luck to all longs.
Probably Oct 7 is his wife's birthday...Any other thought?
LOL.........Ha ha haaaaaa
Sure.......
There is a gap between $7 and $0.39, which happened overnight when GOV took it as conservator.
When that gap gonna filled up?????????????????
Any Gap idea?????????????
Nice post.
I can see some hope with my several millions shares.
STOA
During the financial crisis, when Fannie were insolvent, the PPS were $7 before conservatorship. The price dropped from $7 to $.39 after GOV takeover announcement.
Since now they are solvent and stronger than ever, I think way more than $7. May be $20 atleast.
If treasury sells GSEs warrant of common shares, does not it mean Gov. is returning it to the private shareholders? I am confused. Please explain if you can. Thanks in advance.
FNMA
This is exactly what is gonna happen.
FNMA
Excellent post. Thx.
Dear Mods, it deserves a sticky.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=94144770
Dear Mods, please sticky this post.
Thanks Michael...
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=94142345
Nice post.
Folks...Yes, every one of us in Detearing's FNMA long list is smarter than Sen corker, Warner, Hensarling, Waterstone fund managers, and even our president, who wanted to wind down Fannie.
Remember, smarter people are winners.
Good luck to all longs.
Man, I am absolutely envious!
I dont understand why people talk about receivership or wiping out the common shares. If receivership would happen, it had been done before, when FnF was in severe financial crisis. They are in conservatorship. The sole objective of conservatorship is to restore, rehabilitate and restructure the company.
Why would be a financially solvent company in receivership?
Typically common shares are fully wiped out, if and only if the company is bankrupt. FnF were never ever bankrupt. So why common would be wiped out????????????
People often take the analogy of General Motors. We have to understand that GM filed for Chapter 11 bankruptcy. Thus they wiped out the common shares and offered IPO for new GM. FnF never filed for bankruptcy.
The only option left for DC morons: To return FnF to the private shareholders.
FnF
I dont understand why people talk about receivership or wiping out the common shares. If receivership would happen, it had been done before, when FnF was in severe financial crisis. They are in conservatorship. The sole objective of conservatorship is to restore, rehabilitate and restructure the company.
Why would be a financially solvent company in receivership?
Typically common shares are fully wiped out, if and only if the company is bankrupt. FnF were never ever bankrupt. So why common would be wiped out????????????
People often take the analogy of General Motors. We have to understand that GM filed for Chapter 11 bankruptcy. Thus they wiped out the common shares and offered IPO for new GM. FnF never filed for bankruptcy.
The only option left for DC morons: To return FnF to the private shareholders.
FnF
We will be rich with Waterstone money...LOL
Ackman had shorted FnF in 2008. Now he is buying.
http://finance.yahoo.com/mbview/threadview/;_ylt=Aq1nCKy5IO2QP3DMLtAILk3eAohG;_ylu=X3oDMTB2cjZ1YzF1BHBvcwMzNwRzZWMDTWVkaWFNc2dCb2FyZHNYSFJVbHQ-;_ylg=X3oDMTBhYWM1a2sxBGxhbmcDZW4tVVM-;_ylv=3?&bn=e0e2b58d-64fb-37a2-9273-29a5ce093d80&tid=1384539993815-41b5b898-6752-4a02-9f22-c46e65cc575a&tls=la%2Cd%2C6%2C3
Nice comment. Perfectly agreed.
In my feeling, we will be uplisted anytime to NYSE.
Hold tight Folks.
FNMA
Fairholme Capital (Bruce Berkowitz)
Perry Capital LLC,
Paulson & Co.
GSO Capital Partners
Pershing Square Capital Management (William Ackman)
........
Who is next?
FNMA
Every drop calls for a new high.
Very true for this stock.
The only big board stock being traded in OTC.
FNMA
Thanks Mike.
What was the PPS of AIG at those time? Very similar to FNMA?
Thanks in advance.
Thumps up Dr.
Yes....Nice holding @ $3.33. Need a gradual increase.
FNMA
Yes, my friend. With 1.18 bill OS shares, It should be around that.