Replies to post #528540 on Fannie Mae (FNMA)

[navycmdr]

It may be preferable to stagger that process due to
the complexities involved in getting the government-backed
firms, which have different business models, ready for

private ownership, said Mark Calabria, director of the FHFA,
which oversees Fannie Mae, Freddie Mac and the
U.S. housing finance system.

“I’m open to seeing what makes sense...that kind of sequencing
hasn’t been decided, but obviously if you tried to engineer them
both at the same time, you’re depending on more things going
right at the same time,” he said.

“One may be ready before the other, it just depends.”

[RickNagra]

Staggering is not important. Just the fact that Calabria mentions release is causing the pop.

[CatBirdSeat]

BooM ! Go FMCC!

Great news

Freddie only needs 50b
Fannie 75b

[Patswil]

Let's go BIATCHES!!!!!

“There’s less risk of overwhelming the demand that’s in the marketplace,” he said. “But again if they are both ready to go and you start to hear very large appetite, that this is something that the market could absorb at once, then that changes the dynamic.”

In the event of a staggered privatization, Calabria said he hoped any lag between the entities would not exceed six months.

[Stockman1010101]

My guess Freddie (FMCC) will be privatized first because its smaller and hence easier to see if there are any issues with the conversion process. In other words "they will tip toe into the water and see how it feels, before they jump in with all Cos impacted". Assuming my theory is correct, that implies that Freddie's (FMCC) stock price will surpass Fannie' (FNMA) stock price when the news is announced. I own both shares now so I will be happy with any privatization process in any manner chosen.
GLTA

[Pecker9Wood]

Very possible. My bet is on Freddie first as they are better positioned. Great idea.

[TRCPA]

Now we are getting some more insight and some smart market thinking on the part of Calabria.

Freddie might go ahead of Fannie, in which case Fannie can learn from the smart moves and mistakes made with Freddie.

Calabria is indeed cognizant of the marketplace, noting the possibility of staggering the public offerings (I assume intra AND inter company), and gauging the market appetite for the shares.

We all must remember that these will be extremely desirable companies for shareholders to be in at the end of the day, with large capital reserves in place to go along with multi-billion dollar annual profits.

Not ready to look at hard numbers yet, but the general picture is starting to take greater shape.

Thank you.

[Warhead]

Oh boy, a staggered release!
This is going to be the definition of FUN.
My seat is wet.
Boom!

[bcde]

U.S. government could stagger Fannie, Freddie privatization: regulator

The possibilities of this are very remote and also this does not comply with WH directives.

Recap and Release are like opening Pandora's box and once opened, all kinds of disasters will be inevitable.

There is no need to make any contingency plans if Release and Recap plans are implemented.

[Donotunderstand]

Navy

Again

Thank you

Very Interesting

[Potty]

Talking the stocks up -- I am beginning to believe that Calabria is talking the stocks up in a quite deliberate fashion. Calabria is not stupid, he knows what he says has an impact. So why does he keep talking? And when is what he is saying getting sharper and sharper in the details?

I think Calabria, maybe in coordination with others is focussed on moving the share price up and/or letting the markets, and larger participants, know that a float is really coming -- and to get that capital free for the deal of the year...

Calabria and Treasury look like they are on board to make placement of common shares a success...

If that is true, then it bodes well for the common -- and pose a real and present danger to shorts prior to details of float(s).

Happy days...

[HappyAlways]

A quick and easy way to recapitalize the GSEs is to issue perpetual bonds with the coming years earnings.

1. Stop the NWS
2. Declare the bailout is fully repaid & waive the free warrants and SPS.
3. Convert all JPS to commons at face-value
4. Issue perpetual bonds or new JPS at 4.5% annual interest to raise $200B. Annual interest payout will be $9B.
5. Pay the perpetual bonds/new JPS interest with the annual earning

This can be done in 9 months. Just to trigger some thoughts. IMO.