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Calabria stressed_that GSE_reform already happened in 2008:
While GSE reform was eventually passed in 2008, the structure of that
reform largely mirrors the Shelby bills of 2004 and 2005...
He also said he would carry out the intent of congress:
I want to very clearly state to this Committee, that if confirmed,
my role as Director of FHFA is to carry out the clear intent of Congress, not to impose my own
vision.
So he intends to follow HERA - as passed in 2008 - and will not be waiting for further legislation for GSE reform before taking action. HERA gives him authority to end the conservatorship. So it sounds to me like he will be moving in that direction without waiting for further legislation.
(In my opinion)
I think that's $500 for FNMFO
The earnings releases always mention the sweep. About the only reason I can see for coordinating these earnings releases is if they intend to mention how the company(ies) will be affected by the increase in allowed capital retention and don't want one to jump the other in announcing this change.
This can mean only_one_thing MERGER!!!!
And a super welcome back Rick! I was wondering if those guys caught up to you again...
Please refrain from using pronouns in your replies. As jhdf51 said, it can be very difficult to know which thing "that letter" or "they said" or "his reply" is referring to. Just a few extra words can make it clear and prevent confusion and redundant questions. Especially when a similar post pops in between the first post and a response to it.
When BBANBOB said "FOLKS I think we just took a big WEEEEEEEEEEEE IN SOMEONES WHEATIES with that letter" the question is - which letter? Especially since that reply was not flagged as a reply to a previous post, so you can't follow the chain backwards. (Oops should have said "BBANDBOB's reply")
We don't want to have THAT happen again. (Have what happen?)
I'd say more like "Storage Wars". When they buy a storage unit and it appears to have art work in it, but maybe it's real, maybe they are reprints...
When they bought the WMI assets they were pretty sure there was a LOT of value there, but a chance it was worth nothing. They risked all of what they paid but hoped to make many billions in profit. Probably a fair risk-reward, but like in "Storage Wars" they sometimes have inside tips about the owner and their assets... :)
Partly coincidence, partly by design that there is just enough left to pay all of the creditors. All along it was known what the pool of money was for the bankruptcy, and the big liability question mark was sold away. So previous disbursements were tailored to get everyone paid and maybe a few pennies left for shareholders.
I'd say they did an amazingly good job. As it turned out the assets they sold were worth many billions more than they got for them, so that was a "mistake" - but I think that was no accident if you know what I mean.
In any case - as of now everyone has their money except the floor sweepings they owe to the escrow holders.
In most bankruptcies things end up close to zero for shareholders - they don't usually let net worth go too far negative before bankruptcy is invoked. Hey - as a contrarian bull I have bought stock in many, many companies that went bankrupt and I'd say WMI was all in all one of my success stories. Better than WoW and Worldcom for sure!
I think your question was in regards to the paragraph highlighted in red:
Those numbers seem a little high. I would expect the amount to be split among all escrow groups will be between $25M and $65M. Still a big range, but I expect the WMI-LT to grab as much money as possible at the last minute to pay for various expenses and slush funds, so the low number might be even lower.
I fully expect nearly a penny per common escrow share when all is said and done. I hope I'm not disappointed...
First the funds split 75/25. Then within the Preferred class (19) the split for that 75% is as follows:
TPS: 52.6%
WAMPQ: 40.99%
WAMKQ: 6.41%
Then within each class of preferred, that group's money is split up among the total number of shares.
At least this is my understanding and this matches what is shown on the "Escrow Share Calculator" you can get to from the main COOP board page.
So - lets say there is ONE BILLION DOLLARS!!! for WMI-LT to distribute. The money per share breaks down as:
Total amount to distribute: $1,000,000,000
Preferred - 75% = $750,000,000
TPS - 52.60% = $394,500,000 / 3729658 shares = $105.77 per share
WAMPQ - 40.99% = $307,425,000 / 2906421 shares = $105.77 per share
WAMKQ - 6.41% = $ 48,075,000 / 18166565 shares = $ 2.65 per share
Commons - 25% = $ 250000000 / 1194340178 shares = $ 0.21 per share
Of course, the amount to be distributed is more likely something between $38 million and $25 billion so the numbers may change.
Fannie at $2.39 on German market right now after converting euros to dollars. Nice to see it's hanging in there.
I have not seen this said clearly, but doesn't "Bankruptcy Remote" mean separate from the bankruptcy. Thus not included as a bankruptcy asset.
I made my first stock purchases late in the day on Black Monday 1987, so have never been a fan of stop loss selling. This stock especially I'd never use stop loss orders.
I just wait a bit and try to catch that falling knife!
Buy low, sell high. Never sell when it's going down.
That's how I got here. Bought Fannie before things went bad and just kept buying.
Very good calculations! And you came to the same conclusions as me. Why isn't 4.5 million enough indeed!
Same issue as many companies: Debt load and cash flow. If I could sell off some real estate and pay off some debt we'd be there. We have some difficult to sell assets.
I have been hoping for years that Fannie and Freddie would come to the rescue. Maybe soon!?
I'm similar to Embers. At $18 or even $10 I could permanently retire, and the majority of my holdings are in my IRAs. However this does not mean the majority of my IRA's are in fannie and freddie. In my case it's probably only 30%. And my IRA's are only a fifth of my investments.
So it's a big stake (to me) and could pay me millions of dollars at $18, but it's a small percent of my total.
My hope is that this will pay off my home mortgage and investment loans, leaving all the income from my other investments spendable. That would be sweet!
We all enjoy going along_4_z_ride as f&f go up!
My crystal ball also says it will either go up or go down although there is a slight chance it will be flat from here. That's why I always have open buy and sell orders for both fannie and freddie.
My best advice is to buy low and sell high. You'd be amazed at how many people can't follow that rule. For example anyone buying above $2.50 or really anyone buying above $2.00 today is most likely not buying low in the short term.
Yeah... $2.73. Oops. That is my last still open sell order. My best sell that executed was $2.49 so missed the top.
Oh, great now that everyone knows my next sell point the stock will top out at $2.72...
Hey - it still might happen today! So I have only sold 8 lots so far today... point is - play the volatility for fun and profit while we wait for REAL news.
I kept to my rule. Buy on a 10% drop, sell on a 15% rise. I have been buying a whole lot recently. Today I sold fannie and freddie in 10 lots at 10 different prices. Kinda feel bad about the sell for $1.88, but am happy with the sale at $2.73 - so far.
Ahh but even all those sales only represent about 10% of my shares so given the rise - my stake in these companies went up today as did my cash balance.
Not sure if I'll raise my buy orders from the $1.30's... lets see if this rise has any basis in fact behind it... With the market being closed for 3 days this weekend I would not be surprised if this jumped up a lot right before the close.
I only have 20,000 wamuq warrants, but have owned WAMU since before the bankruptcy. And yes I do trade the ups and downs to get me some income while we wait...
Two cents is tempting but I would need a dime to seriously consider an offer... I'm 95% sure that $.008 is the real value, but hey -- you can dream...
I'm much more into Fannie and Freddie and AIG/WS
The guy probably doesn't own any escrow shares..Just probably a day trader based on his previous posts. When COOP shares starts a reversal trend..you will definitely hear from him again..lol
I am very optimistic that in the "summer" 2019 timeframe we may see the final payment on the escrows. And I'm still hoping it will be as much as $.008 per common escrow. I have plans for that money!
the Link is right there ...
https://thetruthaboutfannieandfreddie.wordpress.com/2016/11/12/repayment-and-warrants/
Reading this - I find:
The value of the warrants issued to the government under the terms of the PSPAs could potentially increase, thereby providing enhanced value to the taxpayers.
It sounds to me like they are considering the warrants to be "enhanced value to the taxpayers" in return for the risk they took on with the PSPA. This sure sounds like risk/reward talk to me.
So many misunderstand the purpose of the warrants. They are not collateral. They are useless as collateral. The only way the loans are not paid back is if f&f go into liquidation. At that point shares are likely worthless. Not good for collateral.
Their purpose is to motivate Treasury to keep f&f profitable and ultimately release them. That maximizes the value of the stock, and the warrants.
I don't think they will end the NWS. Not officially. They will keep everything the same and simply raise that $3B retained number to say $100B.
Sweep will continue once they earn and retain that amount.
Keeping things simple.
Sorry they are just the common share escrows.
Worth a lot less than the preferred.
I only have 20,000 escrows. But at a dime a piece it's enough to take a short vacation.
I REALLY hate this wash sale rule!
A couple dozen buys and sells between $1.01 and $1.55, combined with old holdings acquired between $.23 and $4.25... I have given up trying to figure out whether I have a gain or a loss. But Schwab keeps adjusting my basis on older trades... I just know that if I buy one day at $1.01 and sell days later for $1.27 I MUST have made some money, right?
This is why my accountant gets the big bucks.
It's unfortunate we can't sell escrows. Based on some of the postings I see, I bet I could easily get ten cents per escrow - maybe as much as a buck. I would so happily sell them for ten cents!
I'd still rather have bitcoin than escrows! Heck I'd trade 10,000 escrows for a single bitcoin...
Physical gold is nice but I'll trade my escrow shares for one bitcoin each.
Click on "WMI_Equity_Escrow_Calculator" just above here in the boilerplate on the main COOP board page and you see the numbers broken down by group/type/pre/post.
For the commons it looks like close to 1.2 billion escrows were issued.
Simple_typo. One_word got put in the wrong place:
“Correct. The NWS Did Not Happen. It’s Over”
should have been typed as:
“Correct. The NWS Did Happen. It’s Not Over”
True__historically this was_due the last business_day of the month. Many previous years it was paid on December 31.
But historically the TBD date posted by FHFA was also the last business day of the month. This time the TBD date posted was Dec 28th. Unusual.
I forget which usually gets updated first - the FHFA report or the DTS. I guess we can assume the shutdown may have changed things this time? I am pretty certain that by 4pm we will see that the NWS was paid on Friday when Treasury posts the Friday report today. But again - the shutdown might change the normal process, so I'd only give that 95% odds.
Not that any of this means anything - but it relieves the two-year boredom while we wait for Elizabeth Warren to become President and fix things once and for all.