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that is so true. agreed.
I just see so many people on this message board committing wishful thinking. Come on, it is investment and you can not cloud your judgement with your current holding.
Capital Alpha Says Turbulence Ahead for GSE Investors
By Paul Muolo
pmuolo@imfpubs.com
A bipartisan draft of GSE reform legislation expected by summer could spell bad news for investors who own Fannie Mae and Freddie Mac common and junior preferred shares, according to a new report from research firm Capital Alpha.
The legislative draft – it’s backed by key elected officials on the Senate Banking Committee – likely will not contain a provision to recapitalize and release the GSEs, Capital Alpha predicts.
“Recap and release” is an idea favored by private equity firms and investments funds that bought GSE shares on the cheap earlier in the decade. Fannie's and Freddie’s senior preferred is owned by the U.S. Treasury, which backed the two during their money-losing years. If recap and release doesn’t happen, the common and junior preferred classes of stock likely would become worthless, or close to it.
The research firm projects that the “emerging reform thrust” might emulate GSE concepts promulgated by the Mortgage Bankers Association, which is adamantly opposed to recap and release.
such possibility always exists. what I want to say is that you should not let your holding cloud your judgement.
the warrant is valid for the new entity as well.
Commons have a great chance to be wiped out
I agree what you have said 100%.
Here is my catch. I start investing this stock both common and preferred three months ago. What I want is to have fair share in the new entity.
Trump will be the greatest job president ever and the economy will grow like crazy. Having some future entity's common stock will be a tremendous fortune and not many people can see it.
If preferred is converted to commons, I think that is a steal for me because the IPO will double the price within hours if not minutes. Securing common in the newly formed entity will be my catch.
We both read the blueprint and no childish argument. Tell me what you think to the commons. My position and my understanding is quite clear to you already. It is time to show your judgment if you want to.
have you read the blueprint?
agreed.
Well, no argument. Let us see.
Obama commits $100b to the developing countries in 2009. Never happen (very good thing BTW)
Killary and Rice blamed an internet video for Benghazi. Turn out to be massive coverup.
Are you serious? Can you trust the word of a democrat politician? They will say anything and do nothing to please their donors.
judgement and financial statement. Clearly, a good lawyer can make a case of liquidation.
I have no 100% assurance on my judgement. I have to take chances.
Commons will be wiped out in the scenario of liquidation, which is very likely if the NWS continues for one or two quarters. Bankruptcy lawyers are good at proving a company is broke.
In the case of liquidation, preferred will have some value. See the blueprint for detail.
it will not occur at least for this quarter.
too much wishful thinking. let us be real
1. NWS has not yet be terminated. The only reason you believe so is Mel Watt's testimony. Do you seriously trust the word of a politician? A Democrats in particular?
2. Moelis's proposal clearly says that the commons are dead. Preferred will be converted to common. This blueprint makes sense.
3. Tax reform and healthcare will not be signed into law by August. Do you think anything significant will happen soon?
4. Forget about the lawsuits. Nothing is useful until now. (9 years later still nothing). Why do you think there will be changes overnight?
you have to be cool. Any bankruptcy lawyer will make any company broke.
Do you think you can argue with the government FHFA? seriously.
We have to be on the same side, the right side rather than endless arguing with other people and resume wishful thinking.
more information is greatly appreciated.
where is the proposal indeed? any link and we should take a look myself.
existing common will be wiped out? can you show me where?
CNN is of course fake news.
Golden shower? Presidential polls? the list is growing.
CNN is FAKE NEWS.
one post per day quota has just been redeemed. lol
no one wants to kill gse to my understand.
the worst scenario is to eliminate gse and wipe out shareholder and setup a new entity immediately after to do the job gse used to do.
this scenario is increasingly unlikely as of now though.
not a big news. still waiting the later release of 7500 documents.
heated exchange. lol
imagine!!! dame Apple keyboard!!!
Still nobody starts leaking the 3500 documents? I cannot image that! Better be quick.
not any more. The congress just passed the bill to void the exclusion of F and F from FOIA.
no way. I think this is the first batch. More to go. Actually, this is what we need because the news will slowly brew. Adding potion to the pot gradually is the key. lol
you are so late. lol
it has been released!!!
the batch has been released to fairholme's attornies!!!!!
where are the 11k documents? it should be done by the end of today.
this ruling has nothing to do with 11k documents which supposed to be produced at DOJ, right?
today's ruling is about 56 documents rather than the most anticipated 11k documents. DOJ just promised to produce these files and release them after a 43-day delay.
I do not understand why such a 56 document ruling is so important.
This time is different.
It was DOJ that requested a 43-day delay to process documents. The deadline is self-imposed.