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Watch senators and congressmen would probably buy shares in advance and set a high pps lol.
Who's going to put up the billions in private capital for the Equity raises or public offering?
Historically reading up on past public offerings, even the highest amount generated from public offerings is at most 30 Billion and even that the companies, the investors had an incentive to buy into the company. What would be the incentive for investors in the Moelis plan? What would get them to invest their money? These are the first questions that should be asked, then even then, the amount of private capital which would need to be raised wouldn't be enough. We're talking 60-80 Billion dollars. Just mentioning Ali Baba and Facebook raised 17 Billion and 25 Billion in their IPOs respectively and those investors had more incentive....
With GSEs in Moelis, you're asking investors to put up private capital to the tune of 50-80 Billion by purchasing common stock and then also telling these investors you're gonna exercise the warrants further diluting the stock how is it possible?
Type in any other OTC stock and it comes up on there, which means it means nothing.
"The administration has stated that the GSE's will be out of conservatorship by year end. So there already is a plan by the administration."
Lol please enlighten me as to what your reference is for this. I'd be interested to know. Thank you so much. :)
Why announce your retirement beforehand though? I mean I'd lean more towards this conclusion if only corker didn't appear so upset etc?
Is the $200 Billion Dollar line of credit a loan? Meaning if they draw from it what are the terms of the Treasury Line of Credit? What are the terms for paying it back?
What's the more lucrative and influential position, director of FHFA or Congressman? As a congressman, he'd have more power and influence and could do more or as much to the GSES as conservator or director of FHFA?
Is it possible this could go 10-15 more years and still remain in conservatorship lol? The positive being the warrants would be expired by then hopefullyz
The 140 Billion is Freddie's line of credit from the US treasury.
Has this site ever been accurate? I have seen several instances of inaccuracy, I'm a bit confused by Inside Mortgage Finance.
Is it just me or was there many many empty chairs at this hearing? Maybe an indicator that nobody in congress actually cares that much and there's not much point to these hearings?
Curious have the plantiffs filed any motions or complaints with regards to this no timeline thing? If not maybe they know something we don't?
What's preventing the Trump Adminstration from going through with the Moelis plan or blueprint now?
Sorry wrong post but I meant this:
https://twitter.com/nsfraudbuster/status/922368644843175936
I am a bit confused about this letter. Was this sent to Mel Watt by his own team at FHFA? Or some random person? At the end it speaks about working together? It also has the names of some others in FHFA at the bottom after regards?
Was this just some random individual writing to the FHFA members or Mels team writing to him?
Thursday? Documents? Do you have a source or link for that?
Is there any details of this budget plan and what this plan has in store for the GSES? I do know the Trump Budget had them being privitazed and then the house passed a budget resolution but don't know what it said about the GSES. Is there a blueprint for this budget plan anywhere?
DOJ decides which course to take regarding lawsuits against the government from my knowledge. The Attorney General is head of the DOJ and that is Jeff Sessions. His best friend and longtime friend is lead Attorney for Fairholme which is either really bizarre or they're colluding.
They could have yes. But then again, we don't know where the profits from these two companies were going towards when they were paid to the treasury. If it was something critical or highly controversial that was being funded with the profits, where ending funding by stopping the NWS would have been highly unpopular, the stuff could take some time to sort out to not have a big effect, idk.
Otherwise, they could be waiting for the Senior preferred restrictions to expire in 2018. Maybe they don't want to give away any impression where congress may try and interfere with the shares.
The timing of ending the subsidies for Obamacare seems interesting though. Why did they end it now when they could have done the same months ago? Upcoming court decision? Settlement? Documents? I don't know but the timing of it is interesting.
Also, even the media outlets which are anti GSEs are admitting that they're generating profits and are profitable companies so I don't think it's a question of if they'll stay or go anymore. I think the narrative has changed from wind down to keeping them.
Fairholme Supreme Court?
https://twitter.com/DoNotLose/status/920810944296398848
I thought he just gave the shares of the companies invested in to the investors? How does this connect to the Junior Preferreds in the way you are describing?
Carl Icahn?
A better question to ask is, why are the lawsuits still ongoing if the preferred were all onboard with the Moelis blueprint? Why wouldn't Berkowitz just agree with the government on motion to dismiss? After all, he is a preferred shareholder? His lawyer is best friends with Jeff Sessions head of the DOJ? So assuming all preferred were going to go with the Moelis blueprint why not just dismiss lawsuits and settle? It doesn't require an act of congress either. The worse thing that could happen with the senior preferred would be to sell them for profit right? Lol doubt congress would want to void them lol.
So assuming it is Moelis what's the holdup? Why haven't they moved forward yet?
What's the incentive for some people or organizations to throw huge money at a diluted common stock? What would be the upside to such a diluted stock the way Moelis says it's going to be?
Again we're talking 200 Billion dollars in capital raise. For the sake of ckmparison Ali Baba IPO raised 21 Billion in Capital. Lol.
If the government was going to go through with the Moelis Proposal, then why stop the ACA subsidies payments in the first place?
Meaning if you're going to realize $100 Billion dollars plus in warrants or by selling the senior preferred stock shares, why would you stop the ACA payments which cost you less than $7 Billion dollars per year if I'm not mistaken? Which is a very small amount compared to what you'd receive with the selling of the warrants and going with Moelis plan if you're the government?
I know it's following the law but still, to the common public it just looks bad and is bad politics unless you wouldn't have the funds to pay for the ACA and...
What's the difference in the Senior Preffered being fully paid back and them being void?
What about the lawsuits though?
I can't see the plantiffs settling for absolutely nothing.
Either the warrants or the Senior Preffered or both should be voided.
The Question is, lets say that January comes and the Jumpstart expires, if they were to let them keep their earnings and take another step towards recapitalizing, but then at the same time you still have the lawsuits which are pending with Fairholme and Washington Federal and some other groups don't know the names, would not letting them keep their profits or taking another step towards recapitalizing give the attorneys more time in their cases? This would further increase the chance of more incriminating documents being released etc.?
People on this board have said that sweeney is dragging her feet but if they recapitalize even a little bit this step would give those plantiffs in the cases more time would it not? Or am I missing something?
Keep in mind, I am not saying about releasing from conservatorship and letting them out of government control but just simply rebuilding their capital buffers?
You neglected to mention the Cooper and Jeff Sessions connection which I still think is important. Jeff Sessions is the head of the DOJ which decides how to defend cases against the government. Cooper is Fairholmes attorney and fairholme is a pending case against the government. Cooper and Sessions have met and cooper at the same time is Sessions private attorney.
Dude do you really think Jeff Sessions would let his best friend down?
Defendants have answered? Wasn't their response that they wanted the case dismissed?
Haven't heard any updates from fairholme or in regards to the case in a while?
Bcode,
Charles cooper who's the attorney for fairholme plaintiffs is also the private attorney for Jeff Sessions who is the head of the Department of Justice which is fighting the case against fairholme plaintiffs. I assume fairholme knows their attorneys relations and his other client interests. But why would they be comfortable keeping the same attorney if they know his relations and interests with Jeff Sessions? Anyone else, if they were fighting a case, knowing their attorneys were also working for the defendants, lol they'd change their attorneys. Unless...
Does anyone know what happens if both of these two companies indeed have a 0 zero capital buffer on January 1st, 2018?
I have read about the 258 Billion line of credit that they have from the treasury. I am well aware of that.
But if they do have a zero capital buffer, would there be any other way for them to continue their operations besides taking the draw from the treasury? If they have zero capital, how else would they continue operations?
Lastly if they do indeed take the draw from the treasury, wouldn't the FHFA basically take that money as well too and give it back to the treasury since they take any Non-Capital money which comes in to the enterprises and it automatically goes there?
Or am I wrong in that thinking?
Pay close attention to the wording in the articles.
RNC said they "CAN" execute the warrants. Not "WILL".
There's a big difference between Can and Will.
I don't see the plantiffs in any of the cases settling without the warrants being void. What reason would they have to settle? What would be in it for them to settle if they're not getting anything in the settlement?
Rereading both Bill Ackmans and Bruce Berkowitz's letters to their investors, both mention capital raises or make refer to equity raises. However both at the same time say that the shareholders who were wronged should be rightfully compensated.
How can the shareholders who were wronged be rightfully compensated while at the same time have private equity raises which dilute their shares?
Its contradictory.
So I'm not very good at math and maybe I'm way off on this thought,
But what if the government compensated shareholders by rewarding them
with extra shares rather than paying back the money that they stole?
An example would be 10:1 forward stock split, share price would get diluted at first but then have a massive capital raises to end up at original amount of 9-13/pps
Is there any problem with this recap and release idea or concept? Would this work to compensate the previous shareholders?
What if a Merger through receivership is Mel Watts goal and also the Treasury's as well?
Think about it for a minute.
They have and are nearly done implementing the CSP common securitization platform for both Fannie and Freddie?
So far nobody has made any mention about the Shareholders.
What if the whole plan is to drain the capital and then Merge both corporations upon receivership?
Has there been anything said which would give another impression?
It's funny you mentioned merger, didn't some Obama advisors release a similar proposal to merge the Gses into a single corporation?
The only problem with that proposal was what would happen to the shareholders of both entities? Would we be issued stock in the new corporation 1:1? Or would we be out of luck?
Mnuchin said 2018 now after the tax reform....
Said that the only reason they are operating is because of a line from the treasury....
He said that he expects the dividends to be paid...
:'((
LOL