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Lets assume Mnuchin follow through with getting FNMA and FMCC out of govt control. There is only one thing that can happen to the NWS.....anyone care to take a guess?
I dont think this necessarely means FHFA is done but it could be a path for FNMA privatiization
I noticed that and meant to post something about it, anyone have an idea as to why it wouldnt be there?
yup....i bought 5k shares that day.
I didnt sell or buy....even though I know I should buy. I did think about selling all and moving to an island with no TV internet radio....because if I were to find out that FNMA stock goes to 125 a share I would kill myself with a coconut.
For sure, but theorizing about the likely scenarios all result in NWS ending. There are some ways he could totally screw over investors but from what I know about Mnuchin (my old boss) and Trump is they dont give a fuck. they will look out for shareholders and know FNMA being private again is good from goldman and the housing market
He meant to say he can imagine some scenarios where the common stock is worthless, however it is a very unlikely one. All I am saying is Trumps top advisers are long on FNMA, Mnuchin said he is getting it out of govt control and even this court case said the FHFA decision is of a "banana republic"...even though the constitutionality of the NWS is valid. yes this did make the day traders very happy but at the end of the day it really didnt make a lick of difference.
I do know this but since he was appointed economic adviser and since trump won POTUS he isnt allow to buy common shares or Im sure he would.
Exactly, what we know is that Steven Mnuchin is going to get FNMA out of Govt control.
There are only a couple of ways he can achieve this and every one of them ends up with him ending the NWS.
I mean that is true but there is no reason for him to dilute common shareholders....they are only diluted if the net income or assets are not enough to cover the debt. In this case the company is highly profitable and has a ton of net assets. most probably worst case scenario is he warrants the SH!T out of the commons and P go to PAR.
What would be the point of a brand new entity? not only that but John paulson (trumps economic advisor) loses millions and millions?? Pretty sure he isnt advising trump to do that
Ok explain how Steven Mnuchin will get FNMA out of govt control without common stock? I would love to hear this.....
what exactly does a huge gap up mean?
It probably means its about to jump big league
Man I have no idea....This is totally wack. Nothing really matters because this is all dependent on what Steven Mnuchin will do with the company.
OMFG i see 2.8 a share W T F
WHAT THE HELL>>>WHY IS THE STOCK TANKING
WHAT THE HELL>>>WHY IS THE STOCK TANKING
How is this positive?
CONCLUSION
"[color=red][/color]We affirm the judgment of the district court that the
institutional plaintiffs’ claims against the FHFA and Treasury
alleging arbitrary and capricious conduct and conduct in excess
of their statutory authority are barred by 12 U.S.C.
§ 4617(f). We affirm the district court’s dismissal of their
common-law claims because they were not properly
appealed. With respect to the class plaintiffs’ claims, we affirm
the judgment of the district court on all claims except for the
claims alleging breach of contract and breach of the implied
covenant of good faith and fair dealing regarding liquidation
preferences and the claim for breach of the implied covenant "
However if you read on it gets better
Here, Congress did not endow
FHFA with unlimited authority to pursue its own ends; rather,
it seized upon the statutory text that had governed the FDIC
for decades and adapted it ever so slightly to confront the new
challenge posed by Fannie and Freddie.
Perhaps this was a bad idea. The perils of massive GSEs
had been indisputably demonstrated. Congress could have
faced up to the mess forthrightly. Had both Companies been
placed into immediate receivership, the machinations that led
to this litigation might have been avoided. See Thomas H.
Stanton, The Failure of Fannie Mae and Freddie Mac and the
Future of Government Support for the Housing Finance
System, 14–15 (Brooklyn L. Sch., Conference Draft, Mar. 27,
2009), http://tinyurl.com/Stanton-Conference (arguing Fannie
and Freddie could have been converted into wholly owned
government corporations with limited lifespans in order to
stabilize the mortgage market). But the question before the
Court is not whether the good guys have stumbled upon a
solution. There are no good guys. The question is whether
the government has violated the legal limits imposed on its
own authority.
keep in mind that the companies are trying to not show a profit, if they are released and run the way they should the profits could be alot higher
he deserves to be the richest person to be honest. He will be a huuuuge shareholder in the largest company on earth..... The people who sold their stock are to blame
Can someone explain the senior preferred stock that the treasury received? From what I saw it was 1mm shares at a par rate of $1000. However I dont know the significance
what does that mean? "Treasury Draws?" and why is it significant?
he would be that massive about of money all get funneled into FNMA and FMCC....this is the way he will fund their recapitalization. 1.2b shares x 100 share price leaves fannie with 100b buffer against losses.
To new investors, Lets review what we know and why we are optimistic.
1: Trump doesn't give a Sh*t, he is pro business and would love to get this out of govt control.
2: Trumps financial advisers own hundreds of millions of dollars of this stock. I'm sure they are out for the best for Americans but even they cant resist the urge
3: Recent ruling by the courts on the sealed docuemnts for 2012
4: Steven freaking Mnuchin saying he is going to remove fannie from govt control
5: Pot odds. If we are looking at a $18-40 or higher stock price the pot odds dictate you invest. There is a chance you are throwing away your money but the upside potential is far to great not to gamble.
6: just throwing this in there for fun, their use of "scheduled payment" on the recent 2016 financial statement
I believe there has been a fundamental misunderstanding to this writers analysis
I assume you have 100k shares which is a ton! I am sure you are on the edge of your seat! What I did is hedged my shares with FNMAT. If the bearish analysts are correct and FNMA goes down to 1% the preferred shares should be at par and I only lose 10-20k.
Why is Chuck Cooper good for Fannie Mae?