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.
Spot on!
That kinda makes sense Yank....GSE's and banks in the same boat, covering each others backs gives both incentives to support and not screw each other. FHFA needs something like this so GSE's can "police" the banks and mortgage houses from irrational lending.
This is not true...plenty of companies right now are cutting and/or discontinuing their dividends due to this shock from the virus and they are still raising needed capital. Many companies have IPO'd or raised money without dividend payment, just go back to the .com Era to see many.
Please prove otherwise your argument about a needed dividend.
Capital coming from courts....kaaaaching!
Capital coming from refi's....kaaaaching!
Capital coming from forbearance fees from mortgage companies...kaaaaching
And best of all, capital coming from those who keep buying prefs! Kaching, kaching, kaching....lol sorry
Most JPS probably bought out gradually before hitting par since par is probably years away
Someone else posted that also...except commons were up 3-4 cents and pref's up .01
Capital coming from courts....kaaaaching!
Capital coming from refi's....kaaaaching!
Capital coming from forbearance fees from mortgage companies...kaaaaching
And best of all, capital coming from those who keep buying prefs! Kaching, kaching, kaching....lol
Exactly as we've been saying. Pref's stay as prefs. No conversion, no split to benefit them, no par or dividend. ...at least until the companies are out of the woods. If that is 2, 3, 4, 5, years then that is how it goes.
Yes, commons get no dividends either but we have direct benefit of stock appreciating.
If pref's were illiquid before, my guess is they become even more so if this is drug out.
Might be new class of swamp creature?...
That kinda blows Kthompson out of the water!
His whole premise was conversion, or split or ba ba ba but par to 125% of par before release.
What kind of lock box do the GSE's put 240 billion in to keep governments/Congresses dirty hands off of SO IT IS THERE WHEN NEEDED?
240 BILLION is moronic
200 billion is stupid
150 billion is still much but a good compromise.
Will small mortgage companies and banks, who sell their loans to the GSE's, be on the hook for covering some of this "capital insurance", since they are usually primarily responsible for bad loans and most down turns(?), present one excluded, but it would be money to help them cya in an event like this.
Commons canceled acting like the rookie he is...using this as a done deal event to try and scare someone. Guy needs to get educated, HELLO! 90 day comment perriod, did ya miss that buddy? or maybe it's the result of head injury?. Who knows.
Definitely! Many countries do not even have a GDP that comes close to that.
My guess is we will land north of 100billion since previous apical before take over was approx 90billion, BUT way south of 200billion....thinking 135/145billion
Yes he does! The previous administration dragged the previous capital into a special funds black hole and spent it...but they'll never admit it.
They'll stick with "pooof", as in magically disappeared.
Warrants canceled and SPS will be used to raise capital along with government keeping a chunk until the twins are ready to run full speed.
Hahahahaha....ooohhh so right. Lmao
Boy, all the pref holders coming out of the woodwork to each display their knowledge of ABSOLUTELY NOTHING.
Fantastic ano, thank you
If it is true in that article, yes, pref's are in for some hurt. Just like they were saying new investors would not want current commons to benefit when they were preaching their common dilution, now shoe is on other foot. New pref's will want old ones wiped out possibly, maybe bought out, but I doubt full par is in the offering since the senior pref's is a big ax over their heads.
We will see if this is all true. Might be speculation and rumor for all we know right now.
Question for the board...
If and or when a court does finally find for plaintiffs, how is the 12 years of time factored in? 12 years is a long time for this government to be screwing people. I've been here for all 12 +1.
If found in the wrong about any of the current litigation, how do courts handle it with 12 years of being basically held hostage, because we all know the conservatorship was a sham from day 1, then we progressed into being taxpayer and government whipping boys for years.
That does make sense....
What's the flavor of the day today?...
Conversion 50 to 1?
Reverse split?
150% of par buyout?
Liquidation riches?
Special dividend payment?
Pennies from heaven?
More likely these guys need to clean out their clothes dryers and dig between their furniture cushions for that massive windfall! Lmao
If commons hit 30-40, then pref's can convert at let's see....
FNMAS = 7.45 into $30 = 4.03 pref's per 1 common.
FNMAS = 7.45 into $40 = 5.37 pref's per 1 common.
If I was the FHFA conservator, I'd like these numbers! Gets rid of a bunch of high interest coupon payments. If they don't convert, then no problem.
I see it as many long term holders do...theft is theft, and the government needs to correct said thefts completely. No if, ands or buts. If the government is too corrupt to do what's right, then the courts better dam well step in and quit looking at things through milky fogged glasses, straighten the government and the situation out, or we are that banana Republic everyone keeps talking about.
How are those dividends/coupon payments working out for you guys? How'do those cases go for back dividends?
Didn't stop prefs, though, Eh?
Oh yeah, they got no direct claims, right? Lol
Right with you on that Guido2
Golfbum22
All my personal outlook here...
I do think Trump, MC, and SM are hoping courts resolve before election most of the important cases, or rounds everything up so a settlement can be had.
If Bidden gets in... we are all very, very screwed that are in the stock market. It's already been reported by a few news outlets that the stock market does not want a Bidden presidency. He would bring in the old Obama Oceans 11 crew and you know what they would do.
Courts are probably reason for the capital rule hold up. No way of knowing what capital when there could be minor to major government liability in the case resolutions.
I'm very much hoping that June, July, August and into September much is known, and settled, and we are locked into an irreversible release.
Sell Jonny, sell
Yes, so as you see, nothing is a given, yet those here saying ACG is the know all and be all of what will happen are pushing rumor and innuendo as fact.
Click on "plan to reform the house finance system" in the first paragraph of the article. Link will open a treasury pdf
https://dsnews.com/daily-dose/09-05-2019/gse-reform-on-the-way
Lol. Facts are scary...
Yep, for sure. Ulterior motives and dreams abound with preferred holders. Conversion, bankruptcy, reverse split,,etc,....next they'll be saying they are entitled to 200% of par, or some other nonsensical theory.
Add away! Your additional info makes the point even more irrefutable.
From Treasury Dept release plan for GSE's:
The guiding principle for ending the conservatorships should be that each GSE should remain in
conservatorship until FHFA determines that that particular GSE can operate safely and soundly
and without posing an undue systemic risk. The specific preconditions for FHFA considering a
particular GSE’s exit from conservatorship should include, at a minimum, that:
? FHFA has prescribed regulatory capital requirements for both GSEs;
? FHFA has approved the GSE’s capital restoration plan, and the GSE has retained or
raised sufficient capital and other loss-absorbing capacity to operate in a safe and sound
manner;
Notice to prefs, it does not say that fhfa IS RESPONSIBLE to undertake raising capital, it does not say to do a pref conversion, it does not say to do a reverse split.
You gotta wonder if pref shares are even necessary at this point in the GSE's business since they ARE too big to fail and the government has proved this by forced conservatorship and said taxpayer bail out (which we all know was unnecessary). My point being...if government is going to say too big or economically important to fail, then why have pref class share that only counts on a liquidation that will never happen. Basically pref's are loaning the companies their money with no say so and no guarantee of coupon payment since the companies can postpone that indefinitely until healthy.
Ya know what's hilarious? Pref's think anytime MC or SM say "shareholders" that immediately it is common holders they are talking about. When they said no windfall for shareholders, that encompassed ALL shareholders. Now courts have shot down pref's direct claims suits, so the only way to gain is through a common position. This is why we see the pref's here vigorously arguing pointless and proof less topics like liquidation, conversions, splits, etc. They can dream I guess, but have no sound reason why the government would want to dilute, or why that is a requirement for release. They're gonna be so heart broken when release or relist hits because it will blow their phony made up theories out of the water. When consent decree happens, they lose any tiny hope of anything positive happening and will be delegated to sitting on those shares until the GSE's decide to either buy at low price or turn back on that coupon payment. Sucks to be in pref shares. No good outlook or future.
How does a pref share liquidation or liquidation pref work when GSE's are deemed too big to fail? Pref's fail to see their lost cause. If GSE's are ever in trouble, bankruptcy just is never gonna happen, so pref's are basically just loaning money. They will never see a liquidation or bankruptcy of the GSE's... Definition from wikki:
in the U.S. at the federal level, in September 2008, the chief executive officers and board of directors of Fannie Mae and of Freddie Mac were dismissed. Then, the companies were placed into the conservatorship of the Federal Housing Finance Agency (FHFA) via the determination of its director James B. Lockhart III, with the support and financial backing of U.S. Treasury via Treasury secretary Hank Paulson's commitment to keep the corporations solvent.[8] The intervention leading to the conservatorship of these two entities has become the largest in government history, and was justified as necessary step to prevent the damage to the financial system that would have been caused by their failure. Entities like this are considered "too big to fail