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They work in two different areas of the industry. Mostly not in direct competition ...
Fannie buys mostly from commercial banks and Freddie buys from smaller and “thrift” bank.
I highly doubt this congress will agree on anything.
And Ackman owned 11% at the time he stopped reporting his holdings in FnF. Then made the statement, during a big drop in share price down to the $0.96/share area, that he had bought a significant amount during that drop.
Hear! Hear!
It’s all been an elaborate ruse!
You
Know
Damn
Right!
Never needed the humiliation that the Gov threw upon them. They, FnF, were the granite blocks that the U.S. housing industry was built upon ... and never needed “saving”.
Sunlight is the best disinfectant.
It’s just past 5:00 am, and ............
Here comes the sun!
Exactly correct.
Oh, but that can’t be right. It’s too simple. No smoke & mirrors. (Spoken with sarcasm)
I see what your saying ... but there’s one trump card in that mix. Calabria has stated that he never intended to give free rule to FHFA with no consequences ... at least he is on the inside no matter what his personal views were many years ago ... he said that what the Treasury and FHFA is doing is not what how HERA was written and was never meant to be ultimate power.
We’ll see how this plays out.
Which is precisely why Moelis2, as written, will not be enacted.
Mine too!
OTC stock shares bought and percent of company held isn’t required to be reported. That’s what Ackman said in a Shareholders news letter a couple years or so ago that he stopped reporting commons purchased and percent of Company it held. AND after that time he made an announcement that, during the then last price crash that bottomed out around $0.96/share, he had bought a substantial amount of shares.
That would be sweet if they were released too.
Every lawyer on that list was privy to the protected docs.
Seeing that Treasury, FHFA & DOJ lawyers are listed on that list also ... looks like the gov lawyers now have a fox guarding the hen house moment ... where the fox is Michael W. that has now moved over as the head of the DOJ chickens.
Thanks!
You and me both know that’s the truth!
Yes. Hopefully the last Thanksgiving year in purgatory for FnF!
Mods ... This should be a sticky
That’s my thoughts too about the OTC. The OTC is almost as corrupt as the Pink Sheets.
Hahahahasnork
I’m good with that, but I think it will be after Watts departs and his replacement is announced.
Ha! You and me both.
“How many companies can do that?”
Only two that I can think of ...
Ever is too far in the future for anyone to see ... I would choose a earlier date ... maybe 7.5 years.
And it follows the KISS principle designed by the U.S. Navy in 1960.
Keep it simple stupid
I would add that housing is THE driver of everything!!!
I love the smell of shorts burning in the morning.
And so may I !
You must still live in your parents basement. Name calling? Really? Because my views aren’t yours.
Putting someone down with name calling reveals your own low self-esteem. Stephen Richards
Correct!
I bought more this week. I normally buy more when it gets in the $1.20’s.
You don’t know where Amer Fubd bought from.
From Ackmans August 2018 Shareholders Letter:::
Still no concern.
Fannie Mae (FNMA) / Freddie Mac (FMCC)
Fannie and Freddie reported continued earnings growth in their core single-family guarantee businesses in the second quarter. Guarantee fees charged on newly issued mortgage backed securities continued to increase along with the size of their guarantee portfolios, while underlying credit losses remained modest. Both enterprises have
PERSHING SQUARE HOLDINGS, LTD. 9
Interim Financial Report June 30, 2018
now increased their capital reserves to the $3 billion per entity limit imposed by Treasury in December, and plan to pay a combined $6.1 billion in dividends to Treasury under the net worth sweep by September 30th. Inclusive of these upcoming payments, Treasury will have received a total of $286 billion in dividends on its Senior Preferred Stock investment, which is $94 billion more than its cumulative cash investment of $191 billion. This represents an annualized cash-on-cash return to the government of nearly 11%, above the bargained for 10% interest rate. This return reflects no value for Treasury’s warrants to purchase 79.9% of the common stock of both entities, which we believe should be worth in excess of $150 billion if Fannie and Freddie exit conservatorship and are recapitalized.
In June, FHFA, Fannie and Freddie’s primary regulator, released draft proposed capital rules for the enterprises that would apply once they exit conservatorship. Overall, we are encouraged that FHFA is soliciting feedback from market participants regarding adequate capital levels for the entities, which have been near zero since conservatorship began nearly a decade ago. In order to raise the large amount of private capital that will eventually be needed to recapitalize the enterprises, we believe that all final capital rules should avoid complexity and procyclicality, as well as balance the requirement for a fortress balance sheet with the need to deliver market returns to investors, and affordable mortgage rates to consumers.
Other than the draft capital rules, the last three months were relatively uneventful with regard to housing finance reform efforts, but we expect activity to resume in earnest after midterm elections in November. Last week, the government filed an omnibus motion to dismiss in 12 cases asserting an unconstitutional taking and related claims. Given the lengthy briefing schedule, we would expect a decision sometime in the late spring or summer of 2019.
We are pleased with the progress of our portfolio companies and the markets’ growing recognition of their undervaluation. While a few months of strong performance is too short a period to judge our performance, we believe that PSH is back on track.
From Ackman’s 2018 May Shareholders Letter :::
Doesn’t look like he’s lost interest in waiting.
Fannie Mae (FNMA) / Freddie Mac (FMCC)
Fannie and Freddie reported modest underlying earnings growth in the first quarter, including improved fundamentals in their core single-family guarantee businesses. After drawing funds from Treasury for the first time since 2012 earlier this year to fund one-time charges related to corporate tax reform, Fannie plans to resume dividend payments to Treasury this quarter while Freddie continues to rebuild its capital towards the $3 billion limit for each entity that became effective at the start of the year. Absent a further change in policy from Treasury and FHFA, we would expect Freddie to resume dividend payments to the Treasury in the third quarter. While increasing the amount of capital each entity is allowed to hold from zero to $3 billion was a step in the right direction, current capital levels are still woefully inadequate in light of their more than $5 trillion of outstanding guarantees and other liabilities.
Despite continued business progress and corporate tax reform which will materially enhance the GSE’s profitability, Fannie and Freddie’s common stock prices have declined about 50% year-to-date. We attribute this decline to investor frustration at the lack of progress on housing finance reform efforts in Congress, which seem to have stalled in the run-up to the midterm elections, and, we believe, forced selling from certain large investment firms that have recently begun to wind down their operations.
Treasury Secretary Steven Mnuchin stated in late April that he would focus on housing finance reform after the elections in early 2019. The administration will soon have the ability to appoint a new director of the FHFA, Fannie and Freddie’s primary regulator, in January. Since Congress has been unable to put forth a viable plan since conservatorship began nearly a decade ago, we believe it is increasingly likely that the administration and FHFA will soon take the lead on housing finance reform. While the exact timing of a resolution is difficult to predict and continued stock price volatility is likely, the per-share intrinsic value of each entity continues to grow along with their core businesses. We continue to believe that Fannie and Freddie offer a highly attractive potential reward relative to risk for the patient investor, particularly at current share prices, near their lowest since we made our investment in 2013.
That’s what I was thinking.