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Alexa needs a software upgrade.
Once this news is released, they should make today a federal holiday and close the markets annually to recognize!
Very low volume.
FNMAS can be called 12/31/2020 and every 5 years thereafter. 12/31/2022 for FMCKJ.
Not converting FNMAS before end of this year would be a mistake by GSEs and their FAs.
$270?!?!? Patswill was right!
What does any of that have to do with the fact that the other poster has no idea about which court cases yields which remedies?
Then you should know that the Collins case is the only chance (albeit small) to wipe out liquidation preference and get the best possible remedy.
Sweeney’s $125b is almost $100b LESS than for what the Collins plaintiffs are asking!
You can’t possible be a shareholder if you don’t know that.
Why raise $30b core capital to retire $30b core capital - no increase in core capital - when you can convert existing $30b into equity and raise $30b that actually adds $30b to core capital?
Yes.
There's no limit.
Although both Calabria and Layton have said that it will likely be common equity. And if Basel III rules applied (which they don't), would be limited to $30-40b.
Well, joke’s on you. The concept of JPS getting paid first is actually mentioned several times by the attorneys during the Sweeney oral arguments. I’ll post excerpts later.
“Fair Market Value” shall mean, with respect to a share of Common Stock, or any other security of the Company
or any other issuer:
(a) the volume weighted average daily Market Price during the period of the most recent twenty (20) Trading
Days, ending on the last Trading Day before the date of determination of Fair Market Value, if such class of Common
Stock or other security is (i) traded
on the New York Stock Exchange or any other U.S. national or regional securities exchange, or admitted to unlisted
trading privileges on such an exchange, or (ii) is quoted or reported on the Over-the-Counter Bulletin Board
(“OTCBB”) or by Pink OTC Markets Inc. or a similar organization or agency succeeding to its functions of reporting
prices; or
(b) if such class of Common Stock or other security is not then so listed, admitted to trading or quoted, the Fair
Market Value shall be the Market Price on the last Business Day before the date of determination at Fair Market
Value.
https://twitter.com/HoldenWalker99/status/1202235675908673538?s=20
https://www.fhfa.gov/Conservatorship/Documents/Senior-Preferred-Stock-Agree/FRE/warrant/FRE-Warrant.pdf
Would be bad bad news if they were forced to spin off CSS...
I think you're right.
Government can punt this a while longer.
They don't HAVE to settle.
They might WANT to. We'll see.
You can't really expect the plaitiffs' attorney to say, "we want the seniors wiped out... even though there's no legal way for a judge to force it based on the original PSPA."
In Collins, no $ is requested. In Sweeney, it’s derivative, so back to companies not shareholders.
Only Lamberth has direct shareholder claims.
Usually a week or so.
Both of these extensions were requested by Ps/Ds.
$125b is what GSEs overpaid re: original 10% dividend. It’s in the Sweeney oral arguments and order. It’s also math.
That’s the amount of the taking due to NWS. No more, no less. Plus interest.
Interest is defined in most cases. Southern District of Texas - prime rate, about 5%. Federal Court of Claims - much lower, T-rate or 0.
Money goes to GSEs in Sweeney. Derivative claims.
He said $125b plus interest in Sweeney. That’s the limit.
They’re trying to do better in Atlas but we’ll see.
Why would government wipe out $210b liquidation preference if the judgement is only going to be $170b?
NWS resulted in $125b damages. Done.
Don’t care if she’s seen God and a unicorn. Judgment will be $125b plus some crappy T-bill level interest only.
Yeah, $125b.
No punitive damages against the federal government. It’s the financial taking plus interest only.
Taking is $125b plus prejudgment interest which is Treasury rate in Courts of Claims.
Nope. It’s $125b overpayments above 10% and interest. Nothing more.
It’s the law. And the legal PSPA.
5% simple interest. About $170b.
Amazing...
Until...
You realize that liquidation preference is $210b.
It's what people choose to hear.
And?
No.
Amazing.
What case challenges HERA?
I missed that one.
8th Circuit? Bhatti? Case is a loser. Trying to sneak by on technicalities.
Collins and Fairholme, et al... that's where you need to focus.
Sweeney can’t award you anything. Derivative claims only. It’s $124b back to GSEs if Ps win. And $190b+ liquidation preference (and growing!) remains.
All lawsuits will be won and common shares will likely still be stuck hoping for “$5 by Friday!”
Sweeney can only award monetary damages.
What are you talking about?
Moreover, if you read the transcript from Sweeney oral arguments, lawyers talked about how the government expected the warrants to have value which is why they chose to get them, which means that they would need to resume dividends on the junior preferred before the common equity had value.
You do realize that the Ps in all of these cases are encouraging the government to monetize their warrants as an incentive to end conservatorship? Even Ackman.
During multiple interviews over the past year, Calabria has specifically said that the Treasury has warrants... and goes on to say that it's Treasury's business how they deal with those and senior preferred.
WHAT COURT IS LOOKING AT THIS?
Courts just can't make up remedies based on claims no one is making.
NO ONE IS CHALLENGING THE WARRANTS. COURTS CAN'T THROW THEM OUT.
$3m FNMA/FMCC and $65m of FNMAS/FMCKJ (plus whatever other preferred).
Seems like a speculative allocation to common. <5%. If common go to zero and preferred go to par, hardly an impact on the portfolio’s return.