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Why was this unopposed?
This is crazy no choice but to add.
Ex-Obama campaign adviser: White House hopefuls should talk Fannie Freddie, to release study Monday on releasing 'em http://politico.pro/1XV8CFa
https://twitter.com/JonAPrior
is earnings this week or next?
Bid of 415,000 at $2.25
Has the proof became public?
Appreciate it. I was looking at yahoo page at the 60%. I wont be shorting just looking for a good price to enter at.
I see 60% held by insiders. Where can I find more information?
Thinking of getting in but whats this about?
http://blogs.barrons.com/focusonfunds/2015/10/20/cetera-financial-is-reportedly-on-block/?mod=yahoobarrons&ru=yahoo
Is Cetera Financial on the auction block?
Reportedly so. Bloomberg on Monday published a story that said RCS Capital (RCAP), Cetera’s brokerage owner, is exploring a sale for at least $700 million. That sum wouldn’t be great, since RCS bought Cetera last year for $1.2 billion.
RCS Capital is headed by Nicholas Schorsch a real-estate investment trusts player co-founder of American Realty Capital, now called Veriet (VER). Schorsch has been embroiled in an accounting scandal, however, and Schorsch stepped down from RCS’ board late last year.
A spokesman for RCS told Bloomberg that the company is “exploring options to raise significant capital.” That capital is needed to avoid a messy debt default, Bloomberg reports, citing people familiar with the matter.
Citigroup analyst William Katz ran the numbers and is skeptical about the $700 million figure:
“A 10/19 Bloomberg article indicated RCAP was looking to sell Cetera Financial Group for $700M. While we do believe RCAP is likely pursuing various options to deal with tightening liquidity and high debt load, we believe the article is likely misguided on two key dynamics.
If correct, the $700M would suggest RCAP’s common equity value is essentially worthless considering the firm has $850M in debt and another $300M in preferred equity. Considering RCAP paid $1.15B for Cetera, we find it unlikely that the firm would look for such a ‘fire sale’ that would ostensibly ‘zero out’ common equity holders.
If RCAP were to sell Cetera for $700M, the business would be left with $150M of debt and $300M of preferred equity against Hatteras and ~60% of the I-Bank (with American National Stock Transfer and RCS Advisory Services sold as part of previously announced strategic initiatives), which collectively generated $28M in annualized 2Q15 EBITDA.
That said, Hatteras continues to shrink while it is unlikely the I-Bank would be valued highly, in our view, given sustainability questions post recent Wholesale business sale.”
What time do the events on Monday start? Are they going to be streamed online?
He already tried today with this http://www.nber.org/papers/w21626 didnt help much tho :)
Too big to fail
Moved passed the 100 DMA!
http://www.bostonherald.com/news_opinion/local_coverage/2015/09/us_senate_passes_warren_bill_to_require_settlement_details
Will this have any issue if there is a settlement in shareholder cases?
Thanks for posting
Chief Economist Becketti says it's one of the best years for home mortgage production since 2007
Got in today; hope .05 holds.
http://www.imdb.com/video/withoutabox/vi2185364249?ref_=tt_pv_vi_aiv_1
looks... interesting...
Do not forget on Tuesday the Columbia event with Bethany McLean and Bill Ackman.
Can be seen below.
http://www.universityprograms.columbia.edu/live#!/big-problem-financial-crisis-still-isn%E2%80%99t-fixed
Another bill that wont see the light of day.
Would like to see it streaming somewhere that day.
They will receive the documents in all cases involving FnF, just that the documents are still protected from the public I believe.
queue john carney response that this doesn't mean anything in 3... 2...
The Sneaky Path We Took To A Socialist Mortgage Market
Jeffrey Dorfman
CONTRIBUTOR
I use economic insight to analyze issues and critique policy.
FOLLOW ON FORBES (168)
Opinions expressed by Forbes Contributors are their own.
Back in September 2008, two government sponsored entities commonly known as Fannie Mae and Freddie Mac were placed under government conservatorship. These two quasi-governmental agencies provided much of the liquidity in the U.S. mortgage market by borrowing money at low rates thanks to their implicit government guarantee, and then using those funds to purchase and securitize mortgages. But with the real estate bubble deflating rapidly, they were broke and needed government help. Or did they?
A strong case can be made that Fannie and Freddie should never have existed in the first place. If the government was taking much of the risk by guaranteeing their bonds, why were Fannie’s and Freddie’s executives and shareholders allowed to share the profits? However, the answer to this question should have been to revoke their implicit government backing, not to make them a full-fledged arm of the government.
A new report by some investors who would like to see some return on their shares in Fannie Mae shows that the government used some highly questionable accounting tactics in order to make it appear that Fannie Mae needed a bailout Their analysis shows that Fannie actually had enough cash reserves to have made it through the recession; in fact, they show that Fannie actually generated positive net cash income every quarter throughout the mortgage market meltdown.
Rather, the losses on the accounting statements that led to the government takeover were all non-cash items: large increases in reserves for future loan losses and a removal of a deferred tax credit asset (the value of having past losses to use against future profits and thereby avoid taxes). In simple terms, the federal government forced Fannie’s accountants to show a large loss on paper and took them over on that basis.
Oddly, the federal takeover of Fannie and Freddie appears to have been done for one reason, while they have continued under federal conservatorship for an opposite one. The Bush administration wanted a free-market mortgage market and saw the takeover as the first step toward eliminating Fannie and Freddie.
In contrast, the Obama administration sees Fannie and Freddie as both a source of revenue for the government to spend on pet programs and as a tool through which the government can wield social policy. Since taking over the two mortgage giants, the federal government appears to have made about $40 billion in profits, money that goes into the Treasury and can be used to increase spending without raising either taxes or the deficit. Just as importantly, Fannie and Freddie can be used to push social policies such as steering more mortgages to poor or minority neighborhoods, accepting low down payment loans, etc.
Naturally, as a libertarian, I oppose a socialized mortgage market which is what we are now more or less running. However, one can make a case for either a free market or a nationalized system of providing liquidity to the mortgage market. What you should not do is commit fraud to implement your preferred option.
The federal government appears to have done two fraudulent things on the way to our current situation. First, they used false pretenses to take over Fannie and Freddie. Second, they pretended they were only temporarily providing financial stability. While the government took an ownership stake in return for its “bailout” (a trick it may have learned from Warren Buffett) , they allowed private shareholders to remain and have even sold some of the government’s shares on multiple occasions. However, unlike a truly private company, all profits of Fannie and Freddie are still being seized by the government for reasons which are unclear and possibly illegal.
Given that the government did not simply declare Fannie and Freddie defunct, but allowed private shareholders some hope (and even sold them shares), it seems the government created an expectation of future return to those shareholders. Yet, several years past the date when the government was paid back, it continues to deposit all profits into the Treasury, leaving investors high and dry. At least the way our government does it, socialism pays pretty well.
Follow me on Twitter @DorfmanJeffrey
Ronald "Ron" Kirk is an American politician and member of the Democratic Party. maybe
Wont see it under 2 today
Yes also today, the short radio is 15. GL
APPY going to rocket up
APPY short squeeze incoming with news coming in a few days. Look at the stats for yourself. BIG leg up coming.
High short ratio in this. They will be squeezed soon watch.
ITS GO TIME
A lot of people took the long weekend and didn't see the news until today. This is going to be a good week ahead.
The uptrend continues tomorrow. Large buying Friday on a short day.
your crazy not even usain bolt is going to be able to catch this run on monday
Awesome. IENG will be going higher no doubt about it.
Plenty of people here trying to hold this down so they can get in; so funny.
Big weeks ahead! Good end of the year coming.