Replies to post #737587 on Fannie Mae-No Politics (FNMA)

[Donotunderstand]

well finally the PIK (pay with equity common stock ) VERSUS use cash is raised

and a big shot said - seriously - did not know we could?

that is insanity

Indeed the role of conservator - is in part to conserve cash - and where such cash might go low == THEY ABSOLUTELY SHOULD HAVE PAID IN STOCK

that alone seems so huge

What is this bull about we need to infuse cash (so they do not borrow to pay 10%) when F and F had zero need to pay cash

[Donotunderstand]

on one point in red

HUGE ---- size of the globe - difference between a policy orientation (right or wrong) to "small the roles of F and F" in an overall MBS market

VERSUS

To wind them down

That difference IMO is so large and huge --- the two "policy "orientations" should not be in same sentence --------

[Clark6290]

Ruff, ruff. Lamberth court room is the only one that matters. I have been in a family law court room, does that count? Ruff, ruff

[Patswil]

So SEC green lighted this thing, meaning someone over there must have known in advance.

Layton said it was clear they were being informed of FHFA's decision to do 3rd/NWS and input was not wanted or requested. $3B reserve was questionable since volatility would lead to draws
Layton claims he didn't know about PIK option until the lawsuits started [No one read the PSPAs?] Thought growing liq. pref. would also cause problems, even though concerns were in bonds, which are senior to SPS because "it would look like FnF are in trouble"
FnFan
@FnFGateFan
·
8h
Never discussed a pay back option, and got impression that Tsy was not interested. "The Govt", meaning some combination of Tsy/FHFA/White house, viewed FnF charters as flawed, only wanted release after legislation to change it. [Don't like law so we'll break it until they change]

[Patswil]

Finally, joint proposal to push closing to Monday, since trial is taking a bit longer than expected. Will depend on how many jurors will request to be excused when they find out. We should have a final answer Thursday

[skeptic7]

If this was a fight, the ref would have stopped it.

[Ace Trader]

Seems Gov wants to close this down and keep damages to the Government at a minimum!! The longer the trial goes on the more damages and possible larger damages payout