Calabria has made sure that no new investors will invest in FnF equity capital with his many loose talk interviews.
Besides unless FnF are totally free from Gov loans/investments and Conservatorship controls, no new investors will invest in FnF equity capital. No expert adviser can convince new investors to invest unless these conditions are met.
What is really funny here is the fact that nothing and no one protected taxpayers against the government virus expenses and people doesn't care about it either. So all MC talk about taxpayers protection is unnecessary imo.
Re: Capital Rule and dimension to be set by Director Calabria:
<<There's no prize for MC setting a standard any higher than what's reasonable...>>
The prevailing statutory requirement exists for both GSEs under provisions of two Acts of Congress. HERA did not alter that capital basis, only gave the Director the ability to modify it during conservatorship. On such basis, FNMA falls into a capital deficit of $131.3 B as reported in the latest 10-Q on page 66. There is very low likelihood that any change will be made that lowers that number. The combined F&F total capital needing to be raised is somewhere above $200 B, IMO. A link to the 10-Q follows...
I concur on your point that no dividends will resume until statutory capital requirements are fully met. I believe this is what creates the thirst for a JPS-to-common conversion whose goal was to preserve the safety of Liquidation Preference in case of a receivership, then do an end-around to convert to commons before the dividendless JPS goes into years of hibernation at well below par share prices.
If Calabria opens up the rulemaking processs to public comments, every common shareholder needs to raise concern over any JPS conversion as envisioned by Moelis.
News 
Market Data 
Discover 
