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Man ... I sure hope you and I are reading this right.
Thought Exercise:
If I am Mnuchin and I have this interview scheduled late in the trading day today, and I planned to dump the GSE's into recievership ... why would I open my mouth and say something that I KNEW would be interpreted as positive when everything was beginning to line up for recievership? He keeps his mouth shut and the GSE common shares have a REALLY good shot at having a REALLY BAD day and close below a buck ... GREAT setup for recievership!
So, you're saying ... if a MM had a healthy inventory of GSE common shares, and knew that the NWS was going to be stopped and the warrants were going to be canceled on Friday, they could simply sit on those shares and refuse to sell?
An except from a CATO Institute working paper titled, "The onservatorships of Fannie Mae and Freddie Mac: Actions Violate HERA and Established
Insolvency Principles". By Michael Krimminger & and Mark A. Calabria
Dated: February 9, 2015
"Conversely, if FHFA agrees to allow Treasury to seize all of the net assets from the Companies simply because Treasury has decided to prevent the Companies from returning to private control, FHFA is violating its obligations under HERA to “preserve and conserve” the Companies’ assets and protect the interests of stakeholders."
Thank you Stockman1010101. I appreciate your explanation. You are a gentleman & a resource.
Rek ... do you have formal law training?
That's good. Make people feel small for asking questions. THAT'S a wonderful atmosphere in which to learn. Yes, making someone else feel small MIGHT make you feel bigger, but I would hope that at our ages, we wouldn't need to artificially enlarge our view of self at the expense of others. But I've lost my head. Some of you never had to learn any of this stuff, you were just born knowing it. A modicum of civility would be fabulous guys.
3 "could be"s ... sounds like YOU ... are guessing. Does that make you a lemming? [pleasant, lemming-like smile]
1,013,507 shares, 7.3% below the prevailing ask? Well THAT'S not sketchy at ALL!!
Very peculiar. A trade went through at $1.78 after the $1.90 close. I wonder how many shares.
One of my "possible theories" is that the GSEs are a golden parachute for tRump. Under this theory,he has a ton of the GSE shares as indirect holdings (Ichan, Berko, Fairholme funds) and will light the fuse when he feels it is most advantageous. This peculiar bump "plays nice" with my theory if DT thinks the time is drawing near. It also kind of plays with Mnuchin floating his scheme to index cap gains against inflation. You certainly wouldn't trigger that big cap gain until you tried to see if that would fly.
Now this is only ONE of my theories and it is JUST a theory. I like to play with "What If"s
Navy, does your buy/sell stack suggest that 1.81 or 1.82 is in sight?
I think we're moving.
11:09am ... 4.40 mil volume
I'd be okay with $1.80
As a holder of common shares, I certainly hope you are correct. However, II never hold much faith in the laws, and rules that are designed to protect us little guys.
To my legally uneducated eye, they appear (in the letter) to be examining the difference between compensatory damages and restitution. This could be the sort of splitting of hairs that might play to our benefit ... but in light of our Judicial won-loss record, I'm not putting in my order for a new car just yet.
--- Tuesday Move ---
If Mel Watt IS "on the clock" ... perhaps this is simply the speculation buying of traders wanting to buy ahead of the announcement of Watt's replacement. This would allow them to make a few bucks if the new FHFA Director sounds pro-shareholder.
Thoughts?
I don't check EVERY day, but I had the feeling that $1.60 was a but of a resistance level. Man did we seem to burst through that. I'm getting damned close to my cost basis now!!
He's looking for a tall building.
I'm aware of what Ackman did & said. Bit you can't be totally aware of what Berkowitz did. Because if he sold prefereds to move to commons ... he doesn't need to report the purchase of common shares of OTC stocks ... I was WONDERING what the subtle uptick in common volume (while tamping down the ask) was for this last 6 months ... [Cheshire grin]
Don't think it's filed for the win ... just for a seat at the settlement table. CHA-ching!! [Grin]
Bwahahahaha ... did your visions of sticking it to the commons take a bit of a hit? NOW commons have a suit to be considered in any settlement. Possible that this suit was filed for the EXPRESS purpose of being sure that the Jr. preferreds didn't collude (whoops, there's that word again) with the goverment to the detriment of the commoners (double meaning intended).
This has certainly been an interesting conversation. I think ktomp19 hit close to home when they said ...
Poking the grizzly bear with stick is loads of fun ... until it isn't!!