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What happened to "$14/share"? All the pumpers gone? The frontrunners out before their "target price"? The toxicity still escaping the blind faithful?
yeah, if that toxic purchase agreement in the IBOX can't reel in the new marks, tell 'em Paulsom himself is long this POS. ;0)
The $5-$6 billion fully diluted market cap that FRE still has is the result of frontrunners on the IHUB message
Actually, the pump & dump was do to the government rigging the market by taking out shorty & speculators worldwide creating momo. Investors Hub was just a small part of it, but a good example of frontrunning and pump & dumping. Reminds me alot of the KMart pump & dump, except that KMart wasn't a GSE and actuaclly went Chapter 11 instead of reorganizing via conservator.
I feel for the penny players who lost more dough to frontrunners who played on their greed.
The first 1000% was the easiest because all one had to do was read and correctly interpret the purchase agreement
I think you mean, BLIND THE FOOLS W/ PUMP & DUMP BOLOGNA and dump BEFORE your "target price". The "purchase agreement" is as TOXIC as it gets. Anyone saying different is doing so out of ignorance, or with intent to decieve.
yet it keeps jumping after every dip.
PULEEZE! It was liquidated from $70/share after the senior preferred toxic liquidation terms were made public & it was pumped & dumped by speculators & frontrunners on bogus news for some quick profit after the fact. To save FRE the common must be sacrificed. You can't change that.
LOL, ok, ask the folks who had this at $70/share if they
think the heavy hitters are gone.
Those that liquidated from $70/share did so because of the purchase agreement and its' toxic liquidation terms. They got out while they still could. The frontrunners pumping this POS here bailed before their "target price" leaving the pinky scavengers holding the bag - as usual. Now the warrants and liquidation financing terms loom. Heavy. ;0)
They did that already einstein.
You better read the purchase agreement. They haven't even started yet. Besides the warrants, the senior preferred have rights to create ANY new class of stock, at ANY time, with WHATEVER preferences & priviliges on that stock that they desire for their ROI.
So the US government in an attempt to SAVE the economy is going to take down the companies that control 50% of US mortgages... That makes total sense.
You don't get it. The goal is to SAVE the "companies that control 50% of the US mortgages". To do that the companies must be solvent. To be solvent they must extinguish debt. The common stockholders are debt. When the warrants are exercised, if they're WORTH exercising, the common will be obliterated. If not, it is because the stock is wothless & the warrants as well. The only stockholders that matter are the senior preferred. Understand now?
but requiring banks to giving loans to people who at most could not afford them was pure Democratic Socialistic BS
You're WRONG. Deregulation is from the school of Ronald Reagan so the rich could get richer and "trickle down" the wealth to the under classes. Instead the rich moved their corporations offshore to tax free havens and employed their labor at slave wages. Screw the under classes. The crooks wanted government out of business. They declared the goverments' regulation of business just screwed business up. Meanwhile, these same deregulation freaks want to regulate womens' bodies, who can marry, etc. etc.. Now they come, hat in hand, asking the dreaded GOVENMENT to bail them out, at their victims expense. "Democratic Socialistic BS", you say? Sounds like feudalism to me.
FRE below a buck...prolly tommorow.jmho.eom
Yeah, and the frontrunners who pumped this toxic POS dumped before their target price to boot.
If it means anything, the "bail-out" can't save the common regardless. "Bail-out" is another word for TOXIC FINANCING. The Dems are fighting for a ROI for the US taxpayer. The common have no one fighting for them, their dividends & voting rights have been stripped and they will be toast when the senior preferred exercise their warrants. The only reason they wouldn't exercise them would be because the stock is worthless. You've been PUNKED!
They were hoping that business and stockholders would be held accountable and would police themselves. which is how we should all behave, IDEALY
"Ideally", huh? What these neocon deregulation freaks did was defraud the country and destroy our capital markets. They not only have get-out-of-jail free cards, they have multi-million dollar golden parachutes & the US taxpayer is going to BAIL THEM OUT! Look at these message boards. You're telling me any responsible fiduciary would trust these "stockholders" to "police" themselves? They can't even deal with shortsellers! PULEEZE! Reagan & his Baron-esque disciples preach an ideology. A bad one.
McCain, Bush, and other Republicans tried to prevent and STOP high risk loaning practices
Now THAT'S FUNNY! McCain? Mr. "Keating 5"? Puleeze! These Reagan apostles deregulated the savings & loans and now the banks. They wanted government OUT of business and now that they've screwed the country, economy & taxpayer, they go to the GOVERNMENT to bail them out. The scariest thought of all is if, God forbid, McCain is our next president, what role his deregulation freak pal Phil Gramm will play.
One error, in your post to be aware of. The FED is not publically traded
Quinn, let me clarify. The law says that some of the Federal Reserve stock may be sold to the public. Public stockholders can't own more than $25k of the stock. Per 12 USCA 283, the law stipulates a small portion of Federal Reserve stock may be available for sale to the public, but sold via private placement & that stock has no voting rights.
The US owns the most ...
google:
gold in fort knox
The US went from the Mint system to the federal reserve in the 1960's. No gold or silver backs the US dollar anymore.
I am pissed is they are they were having a big party instead of saving for a rainy day. Now the responsible have to help pay for the irresponsible.
Oh PULEEZE! That's as dopey as Reagan's "Welfare Queens" supposedly driving to the Western Union in their brand new Cadillac's to cash their welfare checks. Puleeze. You're going to blame hard working tax-paying Americans for the downfall of Freddie & Fannie? Why are we losing our jobs? Why are the recipients of CORPORATE WELFARE pulling up stakes in the US and moving their operations to tax free havens that pay workers slave labor wages? That's "trickle down" economics? How about the predatory lenders who emulated the federal reserve and sold these taxpaying Americans junk loans, only to sell them off immediately to FRE so they didn't have to actually lend-out a penny to their victim borrowers? FRE bought them , leaving the predators to victimize more taxpayers who will end-up paying for EVERYTHING. The same people you blame are the ones who are left holding the bag & bailing out the scammers enterprises - to the victors go the spoils, golden parachutes and all.
The FED is a private company perpetrating a brutal rape of the American financial markets
Quinn, you are SO right on. In fact, these scammer companies like FRE & Fannie, etc. use the Federal Reserve as their example! What does the Federal Reserve do except print bad paper like these scam companies do their toxic shares of stock? There is nothing in the US Treasury to back even the paper the US dollar is printed on. The Federal Reserve is a publicly traded company run by private bankers who tell us they are backing the US dollar the same way FRE told us they were backing those subprime junk loans.
The pumpers here just don't get that the taxpayer is buying the bad debt as the FED prints more paper that dilutes our dollar the same way FRE's toxic financing dilutes FRE's stock price. No matter what kind of turn around FRE does via the bail-out, the common shareholders are bad debt like the subprime junk loans EXCEPT, no one will be saving the common shareholder. When the warrants are exercised, everyone will see that. This was a pump & dump by frontrunners who dumped before their stated "target price". The green penny traders fell for it hook, line & sinker. The only "institutions" buying this toxic garbage are those who hedged trading in it & have to cover due to the government rigging the market to get rid of shorty so the stock will be worth the effort of exercising their warrants. Every cliche' in the book has been used to pump this toxic pig.
Um, the common HAS NOT BEEN WIPED OUT. That's what is trading.
Um... the warrants haven't been exercised yet. And it'll continue trading alright, in pennies - if you're lucky. This was a pump & dump of a toxic POS. It smelled like one. It tasted like one. It looked like one. Frontrunning, mob rule, penny traders, bad info, etc., etc.
The frontrunners cashed out before their "target price". Get it? Yes, the common is still "trading". Lucky you.
Have a great day!
I will, along with other shareholders, be looking forward to the resumption of dividend payments
And what about your voting rights? Like you have any say in the matter. This is tragic. It was a pump & dump. Now comes the carnage. The senior preferred take preference over ALL other classes of stock. The purchase agreement is TOXIC. The senior preferred can issue & dump more common at ANY TIME they desire for the interest & dividends on their stock. The senior preferred can create ANY NEW CLASS OF STOCK, WITH ANY PREFERENCES THEY DESIRE, AT ANY TIME. The common are HISTORY. Perhaps if more people actually read & understood the toxic purchase agreement in the IBOX, they wouldn't have been led by the frontrunners over the cliff.
Wipe out the shareholders?
The only "shareholders" that will benefit from a "bail-out" are the senior preferred. No matter what ANYONE tells you to pump this stock, the common stock is fully dilutive DEBT and will be obliterated. The "bail-out" includes warrants for 79.9% of the common stock that will massively dilute the common to perpetual penny status. And, if everyone has forgotten, the common have no dividends. The common will not benefit whatsoever from a "bail-out". That is why it was "traded", not "invested" in. The frontrunners & promoters here were talking "long term", giving us "purchase agreements" that they didn't even understand were toxic. Telling us fully diilutive common stock was not debt and that the "bail-out" would benefit the common. It was a pump & dump. Nothing more.
With my target of $3 - $5 by the end of January, and getting to $2.95 in September, I'm out 100% of my remaining shares. Got close enough. Will play again in the future since IMO it's going to as high as $14 long term.
Let me get this right... you posted your "target" was "$3-$5" and you're now "out 100%", dumping BEFORE your "$3-$5" "target"? I think the SEC calls that "frontrunning". Hope those that bought into your "$3-$5" "target" can get out like you did. Timing is everything, huh? LMFAO!
it will be flushed whenever the Gubment pulls the handle... on their timeframe... with absolutely zero notice.
You got that right. I remember all the KMart know-it-alls making the very same claims to me while buying-up KMarts toxic shares. KMart, like FRE, told the public its common shares were toxic. The speculators bought right into the halt in trading. This pig, being a GSE that can't go the Ch 11 route may end-up its' days trading for pennies in the pinks. It is what it is. How the pumpers will talk away the warrants will be high comedy. At least we have that to look forward to.
Back to lurking for today. ;0)
What if part of the apparent "partnership" being reported between FRE and the Bailout Package includes the liquidation of the Government held shares to satisfy the preferred share investors, and the subsequent inclusion of FRE "assets" to the holdings of the Fed? I see the taxpayer common shareholders here getting double whammied....
Exactly right. That is the REALITY of this play. I say trade it if you can handle the risk. Kudos if you score on it. Like you, its' too risky for me. My complaint is solely claims being made to pump this toxic pig that its a "long term investment". PULEEZE! Believing that will result in a lot of bagholders.
Govt has no reason to issue warrants.
REALLY!? LMFAO! You have only TWO scenarios here ... 1) The warrants are exercised and the common stock is MASSIVELY DILUTED into OBLIVION. The warrants are for the senior preferred ROI. You're telling us that isn't "reason" enough to exercise them? LMFAO!
2) The shares are too worthless for the warrants to be exercised.
Either way, the warrants are entered as debt in the books because they are fully dilutive. But, then you guys don't believe that fully dilutive stock is "debt", right? LMFAO!
Trade it if you can. Take your profits. But this toxic POS is going to get chopped off at the knees w/o notice.
He's saying the value of the common stock was destroyed -- meaning the price. It is destroyed meaning hurt bad. But not eliminated. :)
Be honest with this. The government financiers have warrants to buy 79.9% of the common. If they execise those warrants, the common becomes massively diluted and worthless - best case scenario trading in the pinks for pennies. If the warrants are NOT exercised, it'll be because the shares are already worthless. That is the truth here. Its a trade. Nothing more. Speculation & rigging the market by getting rid of shorty is soley responsible for the pop in share price. That will pretty much seal the warrants being exercised and the common to be massively diluted into oblivion. The hammer could drop at any moment. If you can trade it for profit, kudos. But its' important to not lead anyone in beliveing this is a long term play. The warrants are reality.
And, btw, when they talk of increasing "stockholder value", they are referring to the senior preferred owned by those financing this pig. The common have had their voting rights stripped and their dividends extinguished. Any act that increases "shareholder value" will NOT increase the common's shareholder value. Common get NO DIVIDEND on ANY EARNINGS. Only speculators and the rigging of the market by taking out shorty can increase the PPS here. No "institutions" will buy this toxic BS. Any institution that was hedging trading in it must cover due to the rigging of the market by eliminating shorty. Don't confuse the two.
Emptyhead, I don't have PM capabilities, so - sorry for not getting back to you sooner. In summary, I agree pretty much with the case you make. Bottom line is, the posters here incorrectly believe a bail-out will somehow benefit the common shareholders. Just the oposite. And, as I stated before, either way the common are doomed. If the senior preferred exercise their warrants, the massive dilution wipes out the common. If the warrants are NOT exercised, there is only one reason, because the stock is worthless. And, the warrants are debt because the stock is fully dilutive. The common, warrants and all, are just more debt that will have to be trimmed if FRE is bailed-out and is to be a going concern. Best case scenario is the stock trades in the pinks for pennies.
It's a risky trade, but could be a quick buck. Too risky for my blood. The hammer could fall at any moment. Best of luck to you if you're trading it. ;0)
Again, you fail to mention that they own HALF of all mortgages in the U.S.! How can you fail to notice and acknowledge that one? It boggles the mind. 6 TRILLION dollars in mortgages...6 trillion! How can that not be of consequence to you? With every post, you're losing money. If they fail, we're all screwed...not an exaggeration.
You might want to do some DD. FRE's assets are tainted with defaulted subprime junk loans. The paper is worthless and is now being pawned-off on the US taxpayer. You really think the US taxpayers care about your trade of FRE? The bail-out will devalue the US dollar by about 50%. Therefore the value of those homes are cut in half, get it? Your borrowing power on that home will be cut in half & a new home will cost you twice as much.
There are approx. 350 million US taxpayers. 60% of them own homes. If the government paid-off the mortgages of ALL those taxpaying homeowners, it would cost the US taxpayer only about 1/2 of the bail-out price. The bail-out is for the Wall ST fat cats who DESTROYED WAll ST with their greed and fraud. The same greed, with all respect, makes penny players speculating on this pig, feel that they, like the Wall St fat cats, are more important that the US taxpayers and FRE investors who lost heir life savings because of the fat cats greed and fraud.
Take your profit, This POS is TOXIC.
All preferred stock for every company on the planet has a liquidation preference over the common. For all practical purposes, it's meaningless to you and I. :)
That ridiculous. Not every company is toxic financed. This one is. The toxic liquidation agreement guarantees the financiers ROI. That's why they're first in line when the assets are liquidated and the common are last. There won't be anything left for the common and the warrants, exercised or not, are going to render the common stock worthless as well.
What is the meaning of the Senior Preferred Stock at $1 billion aggreagte liquidation value ?
Emptyhead, I brought that to their attention. Rawnoc's response was that the liquidation agreement was "boilerplate". LMFAO! The toxic liquidation terms are just more "CNBC" propoganda I guess. ;0)
Like good little sheep, they then flooded this board telling me that the Purchase Agreement that they didn't even read nor can locate meant going to zero. lol
Do you really think that you have a better understanding of the toxic purchase agreement than economists? The agreement clearly states the senior preferred toxic financiers shares take preference over the other classes of preferred and common. In fact, the common shares have no more voting rights and no dividends and the toxic financiers have warrants for 79.9% of the common. Speculators are insuring the government will exercise the warrants and dilute the common into the oblivion. I think "CNBC" is just stating the obvious. And, again, if the government doesn't exercise the warrants its only because the shares are WORTHLESS. The warrants, exercised or not, are fully dilutive and entered into the books as such.
The only "stockholder value" of concern here, is the senior preferred.
The government rigged the market by taking out shorty and speculators, like they did with Kmart, are throwing money into this toxic pig not understanding at any moment that the common will be cut off at the knees. The Kmart speculators lost EVERYTHING. If you can trade this pig, God be with you, but again, the claims this is "long term" are totally irresponsible, particulary seeing the pinky players are the ones doing the speculation here. the agreement is TOXIC. Anyone who understands what they read knows that. That's why the stock was dumped from about $70/share.
Rawnoc, please, keep it real, will ya? Any investment here is HIGHLY RISKY. OK, the shares are still trading and those that got in after most liquidated might be able to trade it for some profit, but common shareholders will soon be holding worthless toxic paper.
You keep refering to the Treasury's deal but you never acknowledge that all your dividends and voting rights have been stripped. You don't acknowledge that the Treasury has warrants to purchase 79.9% of the common or that the common are now first in line for losses & last in line for profits.
All the shareholders that liquidated from approx $70/share liquidated because of massive toxic share dilution. You guys could pump that the government has no plans to exercise those warrants, but it's totally irrelevant. Warrants have to be carried on companies' books as fully diluting shares, so the massive dilution essentially takes place regardless of the Treasury's desire to exercise them and if the Treasury doesn't exercise their warrants that tells everyone that common shares are worthless. Get it? The Treasury will exercise the warrants only if shares have value. So, either the shares become worthless, or the Treasury exercises their warrants and massive dilution makes them worthless. Either way, they'll be WORTHLESS.
To believe the common shares won't be diluted into oblivion is definitely putting blinders on. Take your profits off the table while you still can. This POS is TOXIC and no matter how you slice it, the common shares will eventually be worthless.
"(a) The holders of outstanding shares of Common Stock shall be entitled to receive, ratably, dividends (in cash, stock or other property), when, as and if declared by the Board of Directors out of assets legally available therefor.
Rawnoc, what don't you understand about, "ratably"? The common are last in line for any assets and the government owns 79.9% of the common as well.
The senior preferred take preference over the common and other classes of preferred. What is left, is divided PRO RATA among the common, AND, the assets, if you'll recall, are the PROBLEM - defaulted subprime junk loans. With all respect, you need to get a better grasp of this stuff.
It's been said, time and time again by the experts over the weekend that FNM and FRE will most likely wipe out investor value of these stocks. I dont know why some of you chose not to listen. Yeeeesh!
You're right. It's a pump & dump. The government rigged the market by temporarily putting a halt to shorting & the penny players are buying in a frenzy. The two are resulting in the pop in shareprice for the senior preferred's 79.9% of the common. The 20% that is owned by the penny players here and the remaining common stockholders have no dividends. No earnings are reflected in the pop. It's a PUMP & DUMP with the toxic financiers holding the senior preferred with liquidation rights & preferences being the government. A savvy trader could make some profit here playing the momo with the government, but this idea that FRE is a long term investment is sheer lunacy. You're right. Don't let the mob ruffle your feathers. How many times have we seen this exact scenario played out on the message boards? SOS.
You were saying that the stock was going to 0 at .25 cents. Who would listen to you?
None of you have to "listen". It's the same SOP on all these toxic pigs. They get pumped on silliness. A mob rule takes control of the board. Eventually the toxic pig is liquidated to zero bid and those that got caught up in it start posting how "we should've listened".
Don't listen. The facts are the government took control of this toxic POS. Their senior preferred have preference over all other classes of stock. They also own 79.9% of the common, diminishing your ownership to 20%. They've stripped away your voting rights and they extinguished your dividends so no matter how well FRE does under government ownership, your 20% will see NONE of it. The "stockholder value" they refer to is the senior preferred. That's their only concern.
They rigged the market by temporarily not allowing shorting. That is for the sake of the senior preferreds' 79.9% of the common stock, ie., the government.
Truth is, most of the common shareholders are big mutual funds with lots of small shareholders, not penny players on message boards, who have no importance to the economy per Paulson. Hence the delays with the bail-out in Congress, The Dems want provisions for Joe Taxpayer & the little guy. The GOP figures the little guy got what he deserves speculating in the free market. Which is ironic, seeing their mantra was "Less government". Now they come to the "government" to bail them out of their mess. The little guy is totally irrelevant to them.
I hope you took your profits here on this rigged bounce. Don't fall in love with this toxic pig and, good luck.
analog, you couldn't be more right. FRE was taken over by the government in an effort to rescue it from further financial disaster. What these guys fail to understand is that, as the common shareholders of this company, they are last in line for claims on any of FRE's assets and there’s a very good chance their shares will become totally worthless. FRE is not under bankruptcy protection. Instead, FRE is in conservatorship to put it in a solvent condition. Anyone thinking about buying this stock needs to understand that, as part of the takeover, those preferred stock purchase agreements pumped in the IBOX here. The agreements put the government in a preferred position. Under the terms of the toxic agreement, the common and preferred shareholders bear losses ahead of the new government senior preferred shares. That means there is no guarantee that current shares will be worth anything when or if FRE comes out from under the conservatorship. The conservatorship won't eliminate the common stock like a reorganization/Chapter 11 would, but it does place common shareholders last in terms of claims on the FRE's assets.
The government now owns 80% of FRE. The common no longer get dividends on their 20% of the common and their voting rights have been stripped. No matter how well FRE does in the future, the common, now down to 20% ownership, will see NONE of it.
The pop in the shareprice is due to speculation. We saw the same thing with KMart. In KMart's SEC filings they made it crystal clear to the public that the common would be canceled and that buying it was very risky. And yet, the day Kmart emerged from Chapter 11, 91 million shares changed hands before trading was canceled! There's one born every minute.
I really hope the scavengers here played the pop for profit. Its going to be bloody soon. You are so right on when you say,
"this is just another episode of toxic financing with Uncle Sam wearing the pinkie thong"
Not many here will listen, but kudos for telling it like it is.
Good luck to all those who play this pump! Congrats!
We all already know that you need a margin account to short stocks. That is and never was in dispute. Please quit trying to play that Strawman.
No, you DIDN'T know that. You insisted you could short NON-MARGINABLE securities, which brings us to...
Please enlighten us when this new rule by the Federal Reserve Board took place and what subsection of Regultation T makes it illegal to short non-marginable stocks.
Reg T states clearly that ALL SHORTING is on "MARGIN". You can't buy or sell/short NON-MARGINABLE securities on MARGIN. Get it? I don't know if you actually trade stocks or not, but if you do, you'd know full well that ALL SHORTING is on MARGIN and you can't buy/sell NON-MARGINABLE securities on margin.
You're just making yourself look sillier. Admit you had no idea what you were talking about, apologize to those you confused and thank me for setting you straight.
Please enlighten us when this new rule by the Federal Reserve Board took place and what subsection of Regultation T makes it illegal to short non-marginable stocks.
Rawnoc, do you even trade stocks? You cut & pasted an excerpt from a letter posted on the federal reserves' website from 1996 where the author was defering to exemptions for MM specialists. That's how you explain away margin requirements for short sales? PULEEZE! Per Reg T shorting requires a margin of 150% - for a marginable security in the US. 100% of the margin requirement can be the proceeds from the short sale, but the other 50% is your margin. One cannot short a non-marginable security because, per REG T, ALL SHORTING IS ON MARGIN. I'll also defer you to the NASD's daytraders' rule 2520 that requires margin to short stocks in the US. Also, it took me less than 2 minutes to find this:
http://www.investopedia.com/ask/answers/05/marginaccountshortsell.asp
The reason that margin accounts and only margin accounts can be used to short sell stocks has to do with Regulation T, a rule instituted by the Federal Reserve Board. This rule is motivated by the nature of the short sale transaction itself and the potential risks that come with short selling.
Under Regulation T, it is mandatory for short trades that 150% of the value of the position at the time the short is created be held in a margin account. This 150% is comprised of the full value of the short (100%), plus an additional margin requirement of 50% or half the value of the position. (The margin requirement for a long position is also 50%.) For example, if you were to short a stock and the position had a value of $20,000, you would be required to have the $20,000 that came from the short sale plus an additional $10,000, for a total of $30,000, in the account to meet the requirements of Regulation T.
The reason you need to open a margin account to short sell stocks is that shorting is basically selling something you do not own. As the short investor, you are borrowing shares from another investor or a brokerage firm and selling it in the market. This involves risk, as you are required to return the shares at some point in the future, which creates a liability or a debt for you. It is important for you to bear in mind that it's possible for you to end up owing more money than you initially received in the short sale if the shorted security moves up by a large amount. In such a situation, you may not be financially able to return the shares. Therefore, margin requirements are essentially a form of collateral, which backs the position and reasonably ensures that the shares will be returned in the future.
A margin account also allows your brokerage firm to liquidate your position if the likelihood that you will return what you've borrowed diminishes. This is part of the agreement that is signed when the margin account is created. From the broker's perspective, this increases the likelihood that you will return the shares before losses become too large and you become unable to return the shares. Cash accounts are not allowed to be liquidated - if short trading were allowed in these accounts, it would add even more risk to the short selling transaction for the lender of the shares. For further reading, see our Short Selling Tutorial and our Margin Trading Tutorial.
I do see Brute force making more false or misleading arguments than rawnoc.
LMFAO! You DO, huh? But , for whatever reason, you don't want to be specific, eh?
As for the "housing market", you don't get what the problem is - DEREGULATION. When one buys a mortgage now, the lender doesn't care about your creditworthiness. He knows he will immediatelty sell the debt to FRE & FANNIE. So, in essence, the lender did NOTHING but make money without any pay-out. Just how the federal reserve works. Do you think the federal reserve has a mint of gold bricks somewhere backing the money they print? LMFAO! The debt is covered by the taxpayers, not the Federal Reserve. They just BACK the debt if it isn't covered and if they're ever forced to cover it, like FRE, they'll need a government bail-out too. Do you really think the US taxpayer gives a ratz azz about those trading FRE for a quick buck? PULEEZE. You guys are just silly or niave.
There is NOTHING illegal about shorting any stock on the planet including pinks. In fact, the Federal REserve specifically warns that it is okay on their website.
You left out the part that's its not "illegal" to short any MARGINABLE stock on MARGIN. To short a stock on MARGIN, it must be a MARGINABLE security. You can't short a non-marginable security because ALL SHORTING, by law, must be done ON MARGIN. Per "Reg T". How long have you been trading?
Question for the board. With this gov. bail out of FRE are the commons intact or will be wiped out? TIA
Read the purchase agreement. Its a toxic financing deal. The government gets a 79.9% chunk of the common, control, can issue and sell new classes of stock with any preferences & priviliges at any time they desire and can issue and sell any amount of common they desire, at any time for the senior preferred's ROI. The common's dividends have been extinguished by the conservator so no matter how well FRE does, the common will get no dividends on those earnings. The common have also been stripped of their voting rights and have absolutely no say in what the government does with the company. The conservator must make FRE solvent before it is handed over to the government control. That means extinguishing debt, ie, the common.