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"Number 4: Mandatory Pay Down of Liquidation Preference Upon Issuance of Capital Stock"
- Mandatory paydown of liquidation preference
- Upon issuance of capital stock
What that is in reference to is the rule of absolute priority which is who gets paid first during restructuring. In other words, the capital stack.
Before FnF can disburse a single $1 of capital to stakeholders, the liquidation preference needs to be paid/settled first.
This means:
- Stock buybacks
- Dividends
- New JPS issuance
- IPO new shares
What it also implies is no exit from conservatorship until LP is settled.
They have 73.7B in retained capital.
The 70B is how much capital they're allowed to raise.
The liquidation preference is now up to 195.2B...
195.2 - 73.7B = nowhere near close enough.
You're completely misunderstanding what "Number 4: Mandatory Pay Down of Liquidation Preference Upon Issuance of Capital Stock" is saying.
You're almost as dangerous as Barron.
Biden is out of ammo. He has no more cards left to play except... releasing the GSEs and singlehandedly dropping for the 30 year mortgage rates by about 1.25-1.5%
How's that sound going into re-election?
Dude... he is wrong. Barron is just pulling stuff out of the wazoo.
If the seniors, warrants, and LP are to end with Lamberth, that implies the 8-0 jury verdict = conservatorship release.
Commons would be at $250 and JPS would be at PAR if that is the case. That hasn't happened because Lamberth does NOT end conservatorship.
Barron quote: "The Jury verdict in my opinion ends the SPSPA. There is no way forward in my opinion except the nullification of the SpS, Warrants, and LP."
Dude... Lamberth has zero effect on the SPSPA... it's paying out damages and after that, the status quo will continue as is.
You will be proven wrong in the coming few weeks.
Barron quote: "The Jury verdict in my opinion ends the SPSPA. There is no way forward in my opinion except the nullification of the SpS, Warrants, and LP."
Your confidence exceeds Bradford's.
That's bad feng shui lil bro... commons going back down below a buck due to the negative energy.
At the beginning of the conservatorship, yes that was the case.
Now, NO. The entire mortgage industry is pounding the table to free them to help make housing more affordable.
The stock movement correlates with Dave Steven's article about releasing the GSEs.
The 5 cent dilution was so last week. I'm now onto "Barron quotes".
Or maybe I should do the bold/italics guy.
Yes, I know.
The media portrays the situation as everything being all fine and dandy.
At least FnF holding at a buck today.
The lie that we're being sold is that the economy is fine since the market appears to be doing well.
The reality is different.
Business is slowing.
People getting laid off.
Commercial real estate is more F'd than FnF common bag holders on this board.
According to the treasury secretary (Hank the Tank Paulson) determined that an emergency existed. That is the story that has been written into the books of history and it will not change.
No one is even challenging that in the court of law. Even your man crush Barron won't do it.
Never say never my friend.
It has the greatest downside lil bro.
The 8 people said it was a minor boo boo and reduced the damages.
As explained by our friend Rodney.
Rodney quote: "It's a paltry sum for commons."
Then I suppose down to a nickel you go...
Barron quote: "You're all doomed."
The recommendation is to sell out of FnF commons as soon as recap news is announced because if you hold to the end there will be high risk of dilution down to 5 cents.
Also from our friend Barron.
Barron quote: "Loose coil, you've to stop bolding and italicizing everything for no reason at all."
Hopefully that helps.
A non-conservatorship company can buy back its own shares. Currently all forms of "capital distribution" are forbidden.
At 5 cents a share that is worth $14,850
Only common bag holders keep "investing" into this stock. I haven't touched my position when I reallocated after SCOTUS laid the smackdown.
It's time to MOVE ON lil bro.
Move on with your life.
The difference is that the GSEs will come out worse.
Because it's ridiculous watching people continue to buy cheapies worth only 5 cents.
Why do common bag holders keep thinking the govt is going to gift them 20.1% of the companies and keep less for the tax payers? Terrible optics.
Hello Rodney.
They did it to CITI and AIG... and the other 998 other bailed out companies. 101% legal.
It's so you guys can finally move on with your lives.
No price recovery today at all. 100% going below 90 cents tomorrow.
It will once it reaches 5 cents.
Back down below a buck.
What else you holding in your portfolio... I do hope it ain't all FnF.
Back down below a buck it is.
Did he tell Mongo Jongo?
What inside scoop?
Sure thing Rodney5.
He's making fun of FnF ICYMI there's also a clown emoji there.
Whalen obviously has a position in AOMR.
Back down below a buck.
Yes accruing but it's a rounding error if you're in commons only.
My guess is that they will... the incentives for attorney pay is linked to total payout...
Bigger lawyer payout.
Explained so well that the total max damages were 1.6B... and then the 8-0 jury decides that is TOO much in damages for the GOVT to pay so they lower it to 600M.