"RumplePigSkin - I am at a total loss what kind of agenda or whatever you mean. Its just a discussion board. I didn't mean to start a whole big to do about this. My original question - it was a question and not an opinion - relates to the AGC mention of the possibility of an uplisting this fall (sooner than I expected). If we do an uplisting, we may or may not have to do a reverse split. So my question was that I remember that some were opposed to a reverse split (saying the concept in general was bad). I always thought that a reverse split generally works out well for the current stockholders. So all I wanted to do is ask some of the reasons why this could be bad. A simple question - that's all - sorry if I was just trying to learn something.
"
nats1,
First you need to understand how wall street lenders operate. First wall street lenders let companies borrow freely until companies get in to trouble.
When companies get in to financial troubles lender start squeezing them ruthlessly. Finally Lenders wipe out common shareholders and convert debt in to common shares at deep discount. This is how lenders own the company.
But in the case of FnF, FnF were never in financial trouble in 2008 and they are not in financial trouble in 2020. If wall street thieves were not to rob FnF with SPSPA/NWS, then FnF would have been fully capitalized long time back.
Currently wall street lenders are trying to create capital shortage by imposing bank like capital requirements on insurance companies (FnF) to force FnF to raise large capital from markets.
FnF are gov economic policy instruments, so Gov will never allow any private entities to control FnF by acquiring large common stock. So private investors have no incentives to invest large sums of money in common stock with very uncertain returns and no way of controlling FnF.
12 years of lawless FHFA mob conservatorship, investor hostile lawmakers, judiciary, UST, and financial establishment have scared away the investors. Current FHFA Director has made it even worse with his reckless interviews.
There is no way any investors will invest tens of billions in FnF equity however attractive offering may be, knowing very well how investors have been treated in the last 12 years.
Unless FnF operate few years freely without the mafia FHFA conservatorship and mafia spspa/warrants, and build sufficient capital and profitability, it is impossible to attract any investment in equity. This is what investment advisers are going to tell FHFA and UST.
JPS are good investment based on the expectations that they will be redeemed at par value after few years. The is no business case for converting JPS in to CS leave alone converting at deep discount.
