Tim's pretty good at slap downs too! Ya gotta love this one from his blog, see the two comments below, guess who the first guy is?...
Fanniegate Hero (@DoNotLose)
FEBRUARY 1, 2023 AT 9:59 AM
[Edited] Fannie Mae and Freddie Mac now have no pending litigation preventing the conversion of the [Treasury senior preferred] to common and exercising the warrants. The government can do this and move forward with recapitalization and release where JPS [junior preferred stock] dividends turn on to settle their pending litigation or convert to common. No pending legal challenges would object to this outcome.
Sorry that the judges did not stand up for your rights, but there is still a path forward. Biden admin can lock in its perspective on housing finance reform and allocate the proceeds that the Trump admin unlocked when it stopped the sweep (began retaining earnings).
Common have no security as there is no pending litigation against the net worth sweep anymore.
Reply
jtimothyhoward
FEBRUARY 1, 2023 AT 12:06 PM
I have accepted this comment (which required approval) in order to emphasize an important point about “Howard on Mortgage Finance”.
I began the blog seven years ago tomorrow, with the goal of providing a source of factual information and fact-based analysis about Fannie, Freddie and secondary mortgage market finance that I’d hoped might improve the prospects for the companies to be released from conservatorship in a way that maximized their value to their key stakeholders—homebuyers, shareholders, and the government.
I recognize, however, that some readers of this blog seem to have just one objective: to make money on their investments in the companies’ common or junior preferred shares. And it’s not difficult to identify the comments of those readers: they predict or advocate for actions that (conveniently) will produce the investment result they seek, but give little or no analysis as to why those actions are in the best interest of Fannie and Freddie’s other stakeholders (the government and homebuyers), or are likely to be taken.
In the past I have consistently deleted those comments, and I’ll continue to do so in the future. There are other forums in which people can “talk their book,” and try to convince other investors to agree with them. This is not the site for that.
And I’ll reiterate that there are no “taboo topics” for this site, including the conversion of Treasury’s senior preferred to common stock. If someone is able to present a cogent and credible argument for how and why such a conversion could help the administration achieve a defined and plausible resolution of Fannie and Freddie’s conservatorships, I’ll accept that comment, and probably respond to it. But I’ll also still reserve the right to delete (or not approve) comments that I believe have embedded misconceptions or misstatements of fact, and thus would not be of value to the broader reader base
Bullish
“If liberty means anything at all, it means the right to tell people what they do not want to hear.” “I disapprove of what you say, but I will defend to the death your right to say it.”
