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We just did!
It seems to me Trump would like to give them one more middle finger by talking about how he was unable to help the shareholder because he was stuck with Watt until 2019.
So, at the risk of sounding like an armchair lawyer, which I am not, is Trump on record anywhere leading up to and during the first years of his presidency as saying he wanted to fix, release, restore, return, help, or any other similar term the GSE's to make them private companies again?
If so, isn't the fact that he was stuck with Mel Watt until 2019 some level of evidence that the president couldn't enact his agenda because he couldn't remove the director of FHFA? If he could have started immediately, we may have made it out of conservatorship within his 4 years.
If that is true, wouldn't that demonstrate some level of shareholders being harmed financially based on Alito's reason for remanding that question?
This decision does suck, but some of the points by SCOTUS make is obvious the legal teams went down the wrong rabbit hole.
I was shocked by the decision and anticipated better, but I bought years ago at .28 and sold enough to ensure my initial investment was not lost. I am truly saddened for those who bought much higher and have lost significant amounts.
I plan to ride out the rest of my shares until they either turn off the lights or return us to something resembling normalcy (probably just counting on another better rabbit hole).
You forgot the embarrassment part you always say about being delisted. That always moves a stock when it is embarrassed.
I couldn't agree more!
They could throw it in with one of the "stimulus" bills. What's 50 billion when your spending trillions?!?!
Just for fun I picked up another 10K shares today,...May the 4th be with us!
I couldn’t agree more!
Navy has been extremely consistent and helpful in every way for those of us following FNMA!
Do you actually change your shirt or something as you change between personalities?
I hope Obi will review and explain the implications here.
“SHE’LL NEVER SEE $3 AGAIN
Pre IPO.”
It may be time to hand off to “Arnold” again.
She doesn’t mean anything by it, just an annoying sport for her. Most just ignore her anyway.
I’ve thought that since she got elected years ago!
They say you shouldn’t pee into the wind,...you seem to do that a lot.
Will you ever acknowledge that things are moving in the right direction?
Old movie quote, “The earth is slow, but the ox is patient.” We just need to be the ox.
Wow, that is quite a coincidence in a long string of similar coincidences. You have such better insight into FNMA than your cousin.
Thank you! I always look forward to your insight on these things. I appreciate your response very much.
Where is Obit? We could use his analysis.
You might have missed the second sentence:
He told the gathering he is aiming to get housing finance reform done in six months.
Mnuchin said the goal is to reduce risk at the Federal Housing Finance Agency as well as removing Fannie Mae and Freddie Mac from conservatorship.
Will it actually happen? I guess we'll see.
Careful,...it is the year of the pig.
Totally agree! Seen it many times.
All that blustering for $2100 minus commission and taxes? Yea right! let me put my money with you, ha, ha,...
It might be time for you to become Arnold again for a little while.
This was probably already posted last week, but it is still a good read.
Popular Hedge Fund Bet on Fannie and Freddie Is Paying Off Big This
7:00 AM ET 1/26/19 | Dow Jones
By Juliet Chung and Andrew Ackerman
Some of Wall Street's biggest investors are sitting on a paper windfall this year as the government ratchets up a debate over the future of mortgage-finance giants Fannie Mae and Freddie Mac.
The increased rhetoric has so far led to a surge in the companies' shares and paper profits for their investors, including mutual-fund giant Capital Group Cos. and hedge funds Discovery Capital Management LLC, Blackstone Group's GSO Capital Partners LP, Paulson & Co., Perry Capital and Pershing Square Capital Management LP, said people familiar with the matter.
For more than a decade, lawmakers have tried and failed to overhaul Fannie and Freddie, which were placed in conservatorship during the 2008 financial crisis. But recent statements by administration officials indicating the government plans to move soon on taking the firms out of conservatorship have sent shares surging. The common shares of Fannie and Freddie are up more than 170% this year, while the most commonly traded class of the preferred shares, a form of senior equity that used to pay a dividend, are up more than 37%.
Several of the funds own different classes of preferred shares. Pershing Square largely owns common shares.
Hedge funds have been betting on Fannie and Freddie's privatization for years. They have pressed their case for much of that time with lawmakers, but have been buffeted by political and legal developments that have swung the companies' shares wildly. The trade has run for such a long time -- a decade for some -- that some early investors in it are closing down or have dramatically different businesses now.
Perry told clients in 2016 it was closing but continues to hold Fannie and Freddie in vehicles it is winding down, while Claren Road Asset Management LLC has changed its name and shrunk to managing $300 million but is still investing in the companies, said people familiar with the firms.
There is no guarantee a deal to end conservatorship will come to fruition. Repeated efforts to overhaul the firms have failed since the financial crisis as the issue is politically fraught; a change to the status of the firms could hurt the price and availability of mortgages for millions of Americans.
But should a plan go forward, it would conclude the biggest unresolved legacy from the financial crisis -- what to do with the failed mortgage-finance companies -- and partly determine whether hedge funds wind up profiting from their wagers.
"It's night and day," said David Barrosse of Washington, D.C., policy analysis firm Capstone LLC, of the change in political will to privatize Fannie and Freddie. "We think that the signs are there for anyone to see, in public statements: This is happening now."
Fannie and Freddie are central players in the mortgage market, buying mortgages from lenders and packaging them for issuance as securities. The government effectively nationalized them in 2008 in a bid to stabilize the housing market as mortgage defaults mounted.
In return for injecting about $190 billion into the firms, the government created a new class of stock -- senior preferred shares -- that paid an annual 10% dividend, along with warrants to acquire nearly 80% of the firms' common stock. The Treasury revamped its bailout agreement in 2012 to require nearly all the firms' profits be swept away as dividend payments on those preferred shares. Investors filed suit over the change.
Hedge funds, which largely own preferred shares, have been betting they will recoup on their preferreds something close to par, or 100 cents on the dollar. Some funds scooped up preferreds for cents on the dollar when the firms collapsed.
Hedge funds have been pushing for the government to raise fresh capital for the companies and sell its stake on the market. That way, investors hope, they might be paid out. Hedge funds argue the firms' restructuring would bolster a slowing housing market and move liability from taxpayers to private shareholders.
Fannie and Freddie have sent roughly $292 billion to the federal government since their bailouts in 2008. Investors point out that return relative to the amount of government aid the firms received far outstrips the $16 billion return on TARP, the federal bailout fund for banks during the crisis.
Hedge funds could also benefit if lawsuits investors have filed related to the government's rewrite of the bailout terms are decided in their favor.
To help their bet, fund managers and analysts have made regular visits to Treasury and Congress, kept investment staffers in Washington and hired specialist public relations firms.
Several investors have close ties to senior Trump administration officials. John Paulson, for example, invested inOneWest Bank, the lender rehabilitated by executives that included Treasury Secretary Steven Mnuchin and Joseph Otting, acting chief of Fannie and Freddie's federal regulator. Mr. Mnuchin also invested in Mr. Paulson's hedge fund before he became Treasury secretary.
A growing cadre of investors who aren't suing the government, including Paulson and GSO, are behind a proposal by investment bank Moelis & Co. that calls for allowing Fannie and Freddie to recapitalize by ending the profit sweep and issuing new common and preferred stock. Moelis, which is advising some holders of Fannie and Freddie's preferred shares, estimates the government could make up to $125 billion through the sale of its warrants for the companies' common stock.
Investors peg the total face value of preferred shares at more than $30 billion.
A Trump administration plan to release the companies from government control is technically feasible, but analysts said it may be difficult to pull off partly because Congress would be unhappy that the administration was sidestepping it.
Discovery, GSO and Perry are up on the trade overall, said people familiar with the firms.
I still have some .28
The drop is likely because those who have been manipulating this stock see their future opportunities slipping away. Frankly, I'm surprised this hasn't happened sooner and with more volatility.
Since. 28 here.
That's not what my fortune cookie said.
"Arnold" said you were almost suicidal from you huge loss.
I have been in this since 2011. This ride happens multiple times a year to differing degrees. There are serious manipulators on here that want to shake investors and use them as an ATM.
This isn't a short term investment. I have gained and lost value, but the way I view it is that I haven't "lost" money unless I sell my shares. I don't know what your situation is, but I have chosen to hold until the end result. The upside is too great to let these interim setbacks cause me to lose that focus.
I hope it turns around quickly, and I wish you well.
I look forward to when he/she says it will never see $100 again.
I guess that depends on the oven.
It's those with no patience that provide the daily ATM for manipulators.
Wow...interesting plot twist. Is it possible that GOP deliberately blocked or stalled all GSE reform so that Obama would now hold the bag as the bad guy who held them in "prison", while the GOP now can release them and appear to be the "saviors" of the housing market?
If so, it is fairly genius of them.
...in the stock market, the impatient pay a penalty to the patient.
So perfectly said! That is what continues to play out on this board daily.
Patience....As long as this stock is on this board these are the games we have to put up with. It is hard,...but it should soon be worth it.
If you have been here for the long haul this is just par for the course. Manipulation at it's finest.
Isn't this about the time you go on vacation and your inner "Arnold" comes out?
Bob Corker in front of a train? Hmmm.... That might be the best idea you have ever offered on this board.
I find it incredibly sad that Obama is taking this "victory lap". I think he just wanted one more ride around the world on his private jet. He will miss his Air Force 1.