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Re: Donotunderstand post# 198720

Friday, 03/28/2014 10:59:00 AM

Friday, March 28, 2014 10:59:00 AM

Post# of 790400
Here is the link to the Alvarez and Marsal Valuation. A&M's conclusion is not 200B after liquidation and taxes. That number will not be found in this report. According to A&M, the number would be almost half that amount. See page 18 for liquidation proceeds.

Net Liquidation Proceeds would be $61,429 million for Fannie Mae and $47,583 million for Freddie Mac if cash income taxes are applied, calculated at the 35% Federal statutory rate.


Source: LIQUIDATION ANALYSIS OF FANNIE MAE AND FREDDIE MAC PREPARED FOR GSO CAPITAL PARTNERS
March 19, 2014
- http://bipartisanpolicy.org/sites/default/files/files/GSO%20-%20FNMA%20FHLMC%20Methodology%20%20Assumptions%203-19-14.pdf

As stated, the rest is pure fantasy in percentages (%) without actual numbers and clear expressions.

Without assumption, the duopoly will be wound down and eliminated per Waters' bill and replaced with the "National Mortgage Finance Administration (NMFA)," the "Office of Federal Home Loan Bank Supervision" within the NMFA, a "Mortgage Securities Cooperative, a "Multifamily Platform" and the "Mortgage Insurance Fund." There are no individual shareholders. There are members in mutual cooperatives, the "Mortgage Securities Cooperative" and the "Multifamily Platform." Members are (private and public) institutions and companies. See Sec. 211 and Sec. 604.

After a five year transition, a runoff process begins with a ceasing of all new business and gradual liquidation and sale of assets.

All of this is in the Waters' draft bill.

Waters' Draft Bill
http://democrats.financialservices.house.gov/FinancialSvcsDemMedia/file/003%20Maxine%20Waters%20Legislation/GSE%20Bill/WATERS_046_xml.pdf

See: TITLE V—WIND DOWN OF FANNIE MAE AND FREDDIE MAC, sections 501 to 507.