Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Yep. Trump probably runs again in 2028 and loses again.
Harris will win. Sell now! You can buy back in cheaper after she’s elected. Its going to be 5 years minimum until they are released.
How much are we dropping tomorrow? I think preferreds drop 20% and commons drop 30%. Could be a good buying opportunity but they won’t get released until 2030 at the earliest if Biden is reelected.
Duplicate Post
It appears everything will be allocated based on ratio of par value held to total aggregate par value (minus opt outs) for each of Fannie and Freddie prefs
Once again a legal judgment is not a capital distribution. Do you think FnF are magically immune from lawsuits because they aren’t allowed to pay dividends?
Nonsense. A court judgment is not a capital distribution.
Then after April it gets appealed and we’re talking another year or so.
The three judge panel has been assigned to the Collins case in the fifth circuit.
http://www.ca5.uscourts.gov/oral-argument-information/court-calendars/Details/1690/
The judges are Smith (Reagan), Southwick (GW Bush), and Higginson (Obama). Unfortunately both Southwick and Higginson voted against Shareholders in the en banc and are likely to do the same here. Our best bet is another appeal to en banc. Still quite a long shot in my opinion.
Government will certain appeal. And plaintiffs will appeal for more money.
SCOTUS will reverse, just like in Collins. Easier for them to make up a reason government actions were legal than to try to unwind them.
Rop v. FHFA Cert is DENIED
https://www.supremecourt.gov/orders/courtorders/061223zor_d18f.pdf
You imply the redemption value of the seniors is based on their LP. However the CBO report uses face value $190B in their calculation, which remains unchanged between 2023 and 2025. Does Calabria’s book specify which one they were assuming for redemption?
If senior redemption is based on LP then Treasury’s percent of the conversion will keep growing while JPs will shrink. That seems be a disincentive for Treasury to release quickly.
Great now 5th circuit Collin’s appeal will be stayed for a year pending this result, which will obviously be in the government’s favor.
I bet even if HERA were successfully challenged, the remedy would be some BS like the amount the stock fell on the day HERA was enacted. And we’d have to wait another 3 years for that even.
It was four votes from a win. Federal courts require unanimous verdicts.
How to take property without just compensation:
1) Pass law to make property “not property”.
2) Take the not property.
Stupid judges.
One down 4 to go. Maybe we reach litigation end date this year?
Wasn’t this already decided last month?
Treasury could exercise the warrants and capture 79.9% of the award.
Why was the cofc case not appealed to SCOTUS? Why ask for an extension and then not file the appeal? Did something happen??
By the CAFC's logic can't the government take anyone's property by first placing them into conservatorship (taking away control)? I would think if HERA allows the government to convert private property into "not property" then that would be considered a taking. Is the problem here that the case challenged the NWS instead of HERA?
The only remedy that both unwinds the NWS and conforms to the unchallenged original SPSPAs is for Treasury to return $125B in cash (the amount they received above the 10% dividends) and keep the seniors intact.