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Please give me an example of a company with two equity classes that is not dual listed in different countries or with different voting rights? If the company is to exit conservatorship then fnma equity will retain its rights
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I am not sure what this means. Different classes of stock have different rights and preferences. There can be a class A common and class B common with the class B having more voting power than class A.
There are many issues that trade domestically and on foreign exchanges.
How can a domestic issue with same rights have two types of shares? This was what you were saying on your first response.
Give me an example where one company has two stock listed with same rights. Also the warrants convert governments p shares into common stock for the 79.9% ownership of the company. If different classes of shares have different voting right then they would be priced differently.
Fnma is not going to have a foreign listing or offering. The many issues that trade domestically and on foreign exchanges do not apply as an example here. I asked for examples away from these.
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Yes, the government will exercise the warrants. How else do they own 80% of the company and do the 200B offering?
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They have warrants for 79.9% of the companies which expire in 2028. If they exercise their rights they can profit from the sale. As to a 200 billion offering, that is yet tbd. I doubt it will be that high.
That was in the news.
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Popeye on ABA March 18,2020 "Expects delay Capital Rule"
The link goes to article, but this is dated March 18.
No delay from May, so the days are ticking away...
Were you trying to fool someone?
Yes the article said it was delayed to second half of May. Who is fooling whom?
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How can the government raise 200B in capital market if the stock doesn’t get relisted?
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There won't be a capital raise of $200 billion but even if they wanted to it's not a requirement to be "relisted" although it is helpful.
Please give me an example of a company with two equity classes that is not dual listed in different countries or with different voting rights? If the company is to exit conservatorship then fnma equity will retain its rights.
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Converting their senior preferred into 80% of the common equity of the company.
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You mean the warrants? Senior preferred is a different asset class.
Yes, the government will exercise the warrants. How else do they own 80% of the company and do the 200B offering?
How can the government raise 200B in capital market if the stock doesn’t get relisted? Common stock has to be the same share class. They are not doing an IPO but a secondary offering. Converting their senior preferred into 80% of the common equity of the company.
I thought there was news that it may be delayed because they could not hold meetings during coronavirus
Do you think the capital rule proposal will be delayed again? It was supposed to be out Q1 2020 but was delayed to late May 2020.
Only if warrants are written off.
Meaning common would not be worth much?
Maybe they are covering now
Maybe trump wants to keep the funding for his campaign coming in from hedge funds.
Meaning that they won't appeal?
Why the drop today?
Why is the forward split necessary in this plan?
Why is preferred selling off?
So what will happen in the mean time when the companies have no capital buffer against losses? How will the market react to mbs securities issued by companies with zero equity?
How long would it take for them to raise the guarantee fund to cover potential losses? Who would put money in that fund?
They are trying to mimic the FDIC, but the banks are still private companies. It's the customers of the banks that are insured under fdic for only a certain amount.
I totally agree with you. A law firm even when they assign cases will always assign cases to the greatest probability of success. It would be destructive to just force a lawyer to take a case where he or she does not have the expertise or unwilling to take the case.
I'm not sure the case can just be dismissed. If that is the case, it would already had been dismissed. It doesn't need all the delays.
To dismiss the DE case, one would have to claim as a DE registered company, its corporate structure does not matter and it doesn't need to obey the rule set forth. That's a tough precedent to set.
The company exists and its shares are still traded. So the company and its shares exist legally. No one can dispute that. While the company's equity is being drained or swept but it has not filed for bankruptcy yet.
He is only winding down the hedge fund but not the mutual funds. So the lawsuit continues.
Which court summery?
Why is preferred S up?
I agree with you on this. Anyway I did not think a lot of hopes on this lawsuit anyway.
I think just waiting for treasury to make a supporting statement
I really hope they find something incriminating on Corker.
Corker seems to be the only one who really wants Mel to draw the line of credit. What kind of vested interest does he have in eliminating the gse? He basically had no rebuttal towards Mel's testimony. Mel has the responsibility and authority as conservator.
Lew is a total liar.
I don't get how the gse has a three year program for the underserved markets while running out of capital buffer by early 2018. How's that going to work?
That may be the case. It's one outlet of a bankruptcy. But what would happen to the implicit guarantee of the outstanding debts of a company in receivership? The receivership has to end somehow. What happens to the preferential credit rating these paper were priced.
Is this real? It's dated April 10, 2017.
Fnf are still corporations if the gov drained all profits and retained earnings, they would still have to go through a bankruptcy process. If that happens the implicit guarantee from the company charter will no longer be valid, and the government will likely have to step in for all the outstanding fnf debts or credit ratings could drop on the debts. What would happen then? No one knows. It's a big uncertainty.
What is the debt limit?
So this is back on!
They can offer it because they turn around and sell it to fnf. The only reason they can offer it is the existence of fnf.
This sounds like reform to me.
That is only 6 months from now. It means he has already started working on it. And by then fnf would have fully paid back the government.
I think he is going to re-iterate what he already said. That reform is a priority and fnfs need to be out of government control. If we are lucky he may say fnfs already made tax payers profit. All of these are facts.
This alone would be huge.
But you did not have a president and treasury that were making it a priority or publicly stated fnf be freed from government control.
There is no concrete evidence showing that watt would go against a fnf be freed from government control.
It seems to me treasury and watt's view that fnf in a continued state of conservatorship is not a viable long term condition. Watt knows well that something needs to be done as fnf deplete their equity.
http://www.housingwire.com/articles/39281-fannie-freddie-stock-plummets-after-court-decision-dents-shareholders-prospects
True but watt has stated time and time again that this continued conservatorship is not a viable state long term. I'm not sure he would not be in agreement if it comes a time for a 4th amendment.
http://www.housingwire.com/articles/37510-fhfas-watt-congress-needs-to-handle-housing-finance-reform
Treasury can do a fourth amendment without congress. That does not violate Hera.