Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Agree, investment bankers will milk the hell out of this as government is doing. The only one who will stop that is SM in my opinion, since he is a wallstreet blue blood. MC has no idea.
No one time gigantic ipo or re offer is going to solely resolve this as jps keep hoping. I think an offer will be done middle of next year for maybe 20-30 billion, combination of commons, jps and some other investment vehicle. Then a year or so later for maybe 10-15, if it's even needed.
If the courts award any returns or damages, then definitely possibly only one re ipo/offer.
1 & 2 do seem likely. Always interested in hearing your opinion. Thanks
Thats frick'n poetic! Where did that quote come from?
Yes, that could very well happen. Every shareholder gets treated as before conservatorship. Focus is on the company and getting capital levels where they need to be. How they do that is not difficult, just a matter of making certain existing government road blocks disappear!
Courts will decide for the companies, I'm doubting any direct claims. I fully believe direct claims will all be shot down, as has been happening. The court remedies will affect what happens to all shareholders via indirect rulings.
Many things the government could do that they have control over could add quickly to capital in the way of stock price appreciation. Up listing, warrants being dealt with fairly, seniors being dealt with fairly, NWS being completely gotten rid of! Just to name a few. If these things were addressed in a timely manner, I dont think there would be any need for an astronomical capital raise later on. They have to realize trying to raise the numbers they have put into the rule are unfeasible via re ipo or offering. The advisors, I'm sure, have brought this to light.
You really have to gauge this from JPM & MS viewpoint. They will be driving this and structuring the plan with input from government.
So the question is...What is it, that we think, the investment bankers would do?
"Something to think about this weekend".....don't hurt yourself.
Agree.MC and SM went high on purpose, possibly. To pacify our juvenile Congress.
Will MC cave? He's already being beaten up with articles 15 minutes after The GSE's posted their letters. Lol
https://finance.yahoo.com/news/fannie-freddie-fhfa-capital-plan-231236984.html
Either Bove is going senile at 78yo or he is flip flopping for his handlers. At 78 I doubt he works and just uses a has been reputation to try and create investment confusion to pad his retirement account. You can bet he is bought.
A smidgen better than 50/50. He would rate close to a wedbush analyst. Lol
Richard Bove, Wall Street Analyst at Odeon Capital Group LLC, specializes in the Financial sector and covers 37 stocks with a 58.00% success rate
The guy works for deeper pockets, anyone believing analysts or hedge fund heads, are in deep trouble.
Yeah go with that genius! The government's going to not only forgive the seniors but make their 79.9% commons worthless. How fickle and dumb can you get?
Very real comment, I hope it reaches the gonads of those that it needs to.
Why did you change your name?
Rumple,
JPS think by giving them multi billions in par+, dividends, back dividends and maybe even a bonus because of their LAST contract claim case.....well....all this is going to help the GSE's raise that astronomical capital number, whatever it ends up.
Lmao. They have no logical idea.
You're correct Robert, no matter what Kthomp says.
MC is on record saying he was in no hurry and that this will take time to full capitalization. Jps have a long wait with the rest of us, it has not sunk in on them. Earliest capital raise is 1-2 years off, after consent decree release. The jps crowd would have you believe they are all soooo important, but the fact of the matter is there are more important issues to resolve long before their greedy needs are addressed.
Release the GSE's!
Awesome, thanks
I was reading on this myself today....interesting opposed to any re iPo. Gives shareholders a better hand/oportunity, I think.
I was going to pose the question to the board on what everyone thought of a direct offering opposed to the re ipo if they do go for a capital raise on commons? (After release)
Navy
Forgot to add: run jps_coverted, run.
(A la forest gump)
Pref's should be worried. Yep exec VP buying COMMONS, not pref's. Why would executives buy commons and not pref's if pref's were such a good investment? Why are bod's and company execs compensated with common stock options and not pref options? Why are IPO's common stocks and pref sold as an after fact Later on?
Anyone out there in pref la la land want to gander a guess?
Excellent Guido
Lol. Haha.
Taking a poll. What will jps_converted, aka commons_canceled change his/her sign on name to 6 months from now when it does not happen?
Oooh, ooooh, I'll go first!
Love_my_new_refrigerator_box
Speaking of scotus....awarding Ginsburg now so they don't have to post humussly, me thinks. Could be she will not be taking part in the pending decision. That would be a plus.
https://thehill.com/homenews/news/513934-ginsburg-to-be-awarded-liberty-medal
Maybe a 2 year old who is less vindictive should of been hired for the job then?
From FHFA site strategic plan for the conservatorship of the GSE's.
A
fundamental precondition to ending the conservatorships is that the Enterprises build their capital
to levels commensurate with safety and soundness. Returning decision making to private capital
that both earns the rewards and bears the risks of the Enterprise businesses will protect taxpayers
and support market discipline that serves homeowners, borrowers, and renters.
Soooooo, yep. BOD and shareholders voting.
Notice the word "risk". How much risk do jps have again?
Market is risk/reward.
Good article! You do write well Bradford.
If fee costs or point costs get bundled into a mortgage and not paid flat out, it's due to the stupidity of the borrower or mis-informing of the lender.
During 2008 people would do a type of cash out thing when refinancing where they would roll the loan for a new car purchase into their mortgage! They thought it a grand idea until someone pointed out to them you will be paying interest on that car loan for 30, 20, 15 or however many years.
The point being, you can't fix stupid. If people roll this point payment into their loan, in stead of paying it, after being explained to legitimately, then they deserve to pay. It's called learning a life lesson the hard way.
This is correct 100%. Amazing the jps crowd has not figured it out. They also will not be rewarded heavily for sustaining zero risk.
Because you guys assume all the risk that comes with investing in these companies? Right? You guys really gotta wake up. Pref's are at zero risk as you all say, and if at zero risk due to THEIR special place in things,then zero potential for outsized gains. Everyone who invests in stocks knows the rewards go to the risk takers. You guys took a huge risk investing in a liquidation preference and a dividend, oh my god!!!.....yeah right, so the government or bod should reward that with a ton of money? Anyone home in pref LA LA LAND?
Tell all the bloods in Wuhan, thanks for the virus! Mask up, hand sanitize all areas even if it hurts and when ya come back, maybe quit spreading other false stuff.
Did you mean whack a pref? Lol
Hard to convince jps in denial of who bears the risk/reward title/benefits....hint: its not jps. Jps have zero risk, they are not going to be treated to a kings ransom for having zero risk. EVERY INVESTOR KNOWS risk reward is tied to the common stock, this is why the perversion conversion is being pushed.
Heed your own advise (below), this would be the current commons who are under way greater risk than jps,,hence why we will fair better over time and will not be treated as a jps stepping stone. Jps have very little risk as is noted by their liquidation pref and dividend statements constantly. You guys are glorified bond holders! Zero risk.
Quote Kthomp
People who stand to make a great deal of money and are willing to accept the risk There are plenty of those out there.
You obviously deny the fact that current commons bear any risk, otherwise you'd not be in jps. That is why jps is not going to be treated any different than they already have.
+1
I've been saying this since first posting here, bravo!
I'd give ya a big thumbs up symbol but I do not have access to those emoji's.
Thanks
Let's hope he sends one swift kick to the nads of Dems if he does not win. That - is a far reaching "if" though.
Trump has a way of mobilizing the silent majority in this country who are a far larger group than minorities, females, LGBTQ, religious, etc. Because the silent majority is comprised of all groups from every aspect that are focused on America 1st and not segregated agendas.
Yes Golf. Exactly. Hoping the reason is because a remand with a steep penalty.
Maybe why everyone was saying b4 smarter to settle.....BUT, what if Trump does not want to settle, but instead is really trying to get scotus to right this wrong?
The only secret plan I know of that settles everything beyond a doubt, is releasing those presidential documents that very likely incriminate both RINO Bush and Obama.
If Trump released, him, MC, and SM jobs get tons easier, the courts can do a clean sweep on all the outstanding cases, and investors along with the companies can be made whole almost instantly! Amazing what the TRUTH can accomplish.
Rumple
I have always thought scotus only resolves the constitutional issue for any law that was made deficient, and any injurious settlements or awards were determined by the next lowest or lower courts under scotus? This (I) could be wrong, but I have not heard of scotus delivering compensatory awards but only decisions that affect a lower courts award decision.
The thinking is scotus see's its main function as correcting the law or defining it opposed to the civil aspects.
Pretty sure that capital requirement will get lowered. If they fully intended on implementing the full amount, doubtful they would have had this comment period. This is all window dressing to make sure those in Congress can not contest and will STFU. Same thing going on with courts,window dressing. Trump, MC, SM, Kudlow are playing a chess game to appease both parties but are letting other major actors who count, help point the direction. Smart if they pull this off. What would anyone else subscribe doing in this toxic Congress environment?
We just need to get you set up with one didgeridoo for now.
To keep you from blowing smoke up people's wazoo's on this board.
:-]