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Capitol Report: AIG’s win holds no promises for Fannie, Freddie investors: analysts http://on.mktw.net/1HLvFfL
Capitol Report: AIG’s win holds no promises for Fannie, Freddie investors: analysts http://t.co/GsQMgUWzM5
— Ruth Mantell (@RuthMantell) June 15, 2015
Navy, sorry if this is naive question.
What if, if the govt. got similar ruling in FNMA also like AIG ?? Meaning lawlessness but no damages ?? Then isn't 80% warrants valid ??
timhoward717 on June 10, 2015 at 4:10 pm
Great to see this, nice to see our forces aligning so well. I keep thinking back to the famous Rep. Larson quote: “Fannie and Freddie aren’t going anywhere”…….
Keep in mind what you saw this week is just the beginning of what will be a long and intensive campaign. I hope to post tonight or tomorrow and explain more. Keep the Faith!
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I hope this board is the place to share the facts but not to create the rumors.
How do you say that. I don't get anything what's going on here. How do you come with new symbol as FNM. Though it's old symbol. Please clarify and thanks.
That's the old symbol when it's on big boards.
We are building something we want to own for years - Bill Ackman in Forbes May 2015 edition.
I guess FNMA and FMCC are the two of among his other stocks for long term.
Anonymous on May 5, 2015 at 4:48 pm
A new bill is going to be released any day now supporting full privatization of the GSEs, including shareholder rights and capital requirements. Hang in there it’s coming…
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JDsaid:April 29, 2015 at 12:29 am on www.timhoward717.com
I’ve been to court several times. Had judges do as usual exactly different than you’d expect more times than you’d figure. My experience is the judge be in a federal bankruptcy judge; a claims; magistrate are very unpredictable.
It was interesting that reading wheeler he cut off / questioned the defendant counsel repeatedly but let the plaintiff’s speak.
Here is my parallel;
Essentially, boies says that the language in the 13/3 loan prohibits the borrower from paying more than some board of governors rate that is commercial and of reasonable commerce or some such. Basically, the guidelines prohibit the extraction of a cost greater than what is allowed and that the borrower can not agree to more. The wisdom of this is it prevents the lender from extracting more, from being punitive and the borrower from being raped. It actually, forces reasonable business practices and encourages private lending because it moderates the rate. Its like having a right bestowed upon you that, you can not waive. Similar to employment law.
Further, it or in every case cited, collateral once the loan was repaid was released.
As for the argument; if not for this loan you go bankrupt and therefore you should be happy you got more than nothing. The 13/3 loan provision essentially, wipes that grin off the face of government because it disallows that premium from being agreed to; it removes that.
It compares the loans AIG got to jpmorgan, morgan stanely, etc. and says, wait a minute. They paid 3% we paid 14% and you took 80% of the entity. The government says, be happy you got anything at all. That they testified they could pick winners and losers; and be happy. My thought on this is simple, that’s not within the lines of the 13/3 loan. Sure, the government could have offered no loan, but once they did they were precluded from exacting a pain greater than 13/3 allowed.
Also, why would they have granted a loan they didn’t think would be repaid? See my question is circular; in other words, the loan was granted on terms the government expected to be recovered upon, if not which for the government could have denied. Two options; grant a loan on 13/3 terms or no loan.
Now, how does this apply to Fannie and Freddie; Well it would appear that 13/3 set the standard for recovery to the government of the provision of liquidity. Does Hera violate that long standing precedent? If it does then how can any right under it be valid? Afterall the provisions of 13/3 has apparently stood the test of time; such that anything more than that could be considered a taking or rather an exacting of “pound of flesh” that is not authorized; or allowed to be offered.
Also, it was noted that the board of directors had duties to shareholders, and when they acted not in consideration of shareholders their actions could be voided.
Lastly, it was clear from the arguments that the gravity of the situation as noted by the plaintiff didn’t give the government cart blanch to run all over it; just because it could; that’s like saying in Katrina, murder wasn’t murder even if it was expedient. Sure some rules get set aside in matters of need; but even in times of war due consideration is paid – ever hear of “war bonds”.
If AIG case goes to the plaintiffs; the fannie / freddie actions will fall. As the bridge from the 13/3 cases to fannie and freddie have to be paved with AIG.
To me its not a matter of if, its when. KTF. Thanks Tim.
I don't see anything happening here because the volume went up but the price is almost same. Just IMHO.
Big trades so far 100k and 131k at 0.067 and 0.068 respectively.
I am looking at TD Ameritrade. Looks like you looking at Fidelity.
My guesstimate is that we may cross 3 million volume today.
1 million in the first half an hour.
700k volume in the first 11 minutes.
NITE put 226k for 0.80 on Ask side and 307k for 0.065 on Bid side.
400k volume in the first one minute.
Entire Treasury Department Competing For Same Goldman Sachs Job Opening
http://www.theonion.com/articles/entire-treasury-department-competing-for-same-gold,38472/
I think isn't govt. paid about 2 thousand dollars for it's taking of 79.9% of Fannie Commons ?? I think It didn't take the stake with out paying a single penny as in AIG ?? Please correct me if my understanding is wrong.
Anonymous on April 23, 2015 at 11:02 pm
If a government official helps Wall Street, he can be rewarded with $$$ later. If he helps average citizens, he gets essentially nothing from them.
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http://timhoward717.com/2015/04/21/randy-devalk-wsj-reporter-or-treasury-official-alliance-pays-wsj-big-dividends/#comments
At the outset of the case, experts gave Greenberg little chance of convincing a judge that the government somehow harmed AIG shareholders by saving a company that had taken risky bets on subprime mortgages. But Wheeler’s questions suggest he at least has a a reasonable chance.
Wheeler compared the predicament to allowing a homeowner to keep “a nice house in the country,” but adding, “We’re going to make you live in the master bedroom.”
USA Today:
Wheeler, however, said he remained “perplexed” by the government’s treatment of AIG. “It doesn’t really justify interest (rate) four times as high (as other firms) and an 80% stake,” the judge said. “I mean nobody got that.”
But Wheeler responded, “One view of the case is the government took the stock, didn’t pay anything for it and then pocketed revenue from the sales. I mean, come on.” The government earned about $16 billion in profits when it sold the AIG shares and another $7 billion or so in interest.
http://timhoward717.com/2015/04/21/randy-devalk-wsj-reporter-or-treasury-official-alliance-pays-wsj-big-dividends/#comments
BaGr, but today only it has a big volume of 2.8 million. Yesterday it's just 1.29 million. It's around 1.7 million day before yesterday.
I see in iHup iPhone app. Under the trades tab.
And there's another one 134,210 traded for 0.076 around 11.24.
Actually they are executed trades. But don't know whether it's a buy or sell .
I see two trades on iHub 1,40,000 and 1,45,000 for 0.067 and 0.0686. Many 50,000 blocks. ????
Today's low is 0.064 and high is 0.083.
Now 2.8 million as per TD Ameritrade. It's huge in recent times. About 4% of out standing. I think like volume is picking up day by day. Don't know whether it's dumping or accumulation.
Wow the volume is 2.6 million as per TD Ameritrde. It's very big when compared to recent times. 90 day average is about 590K and 10 days average is about 1.2 million. First time it crossed 2 million mark in this year. But this volume is just about 3% of out standing shares.
The very first time after more than 4 months we are at about 2 million volume (198k till now). Still don't know which direction it's going.
Something is going on. Either dumping or accumulation. Don't know which one.
Something is going on. Either dumping or accusation. Don't know which one.
Almost half million (440k) volume in just first 15 minutes. This is about a whole day volume few weeks back. Something is going on which we don't know. IMHO.
Don't know what's in store.
90 day average volume 583k. 10 day average volume 1.17 million. Today's volume 1.29 million. The volume is not that big. But it's better than 10 day average and much better than 90 day average.