Fannie Mae-No Politics (FNMA)

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" analysts believe the common is essentially worthless…"

Short Takes: Why GSE Reform is Truly Dead / A Tale of Two GSEs / Common Not Doing So Well / Stearns’ Future in Servicing? / SoFi Cuts Mortgage Workers / About Those Strategic Plans…
By Paul Muolo

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THIS JUST IN: The Supreme Court on Tuesday declined to hear legal appeals by GSE investors related to the government’s decision to keep all of the profits that Fannie Mae and Freddie Mac generate. As Cowen & Co. noted: “This was the expected outcome, which means it is unlikely to jump start efforts in Congress to enact GSE reform. It is another reason why we are increasingly dubious Capitol Hill will act.”

Fannie Mae and Freddie Mac both filed 10-K statements with the Securities and Exchange Commission in tandem with their fourth quarter results. The cover sheets of the two filings list the different classes of outstanding junior preferred shares with one interesting difference: Freddie lists each class of preferred, assigning a nominal value of $1 apiece. Fannie lists the value as either $25, $50 or in one case $100,000. Does Fannie know something the rest of us don’t?…

And in case you haven’t noticed, the value of Fannie and Freddie common has been sinking steadily for several weeks. Stock analysts believe the common is essentially worthless…