Replies to post #773405 on Fannie Mae-No Politics (FNMA)

[Donotunderstand]

I can follow that ---- to my surprise

I will take 14.44 for a growth company ---- tomorrow

That is why - my arguing not to worry WTS -- is bullish if SPS is deemed paid by 300B paid already PLUS the huge profit on the WTS - for me that is 100B in simple math and your math a GOV bonus of 104 Billion (I leave the JPS alone in my simple world --- and they will be paid out at PAR at some point - and assume no capital raise - just time --- and come to 25 a share for us and 4B GOV shares ---- very top line look

[LuLeVan]

No president, neither Biden nor Trump, would run the risk of a failed FnF IPO (SPO) for just $25 billion more (that's what an SPS conversion adds to the government's gain from R/R as compared to the "warrant exercise only" scenario).

The supposed "$25 billion extra" for the government could thus be lost in other ways. And in the worst case, there may not be enough subscribers for the new shares offered, which could cause the IPO to fail.

[FOFreddie]

Hi LuLeVan, Something to consider if FNMA and FNMA were ever to come public again is that they would be included in the S&P500 and other capitalization weighted indicies. Normally Index funds and other asset managers end up owning 40% or more of the capitalization of index components since they may holdings for index funds or funds benchmarked to the S&P500. Citigroup capitalization is approximately $ 80 bn and Bank of America is in the $ 225 bn range. Both GSEs would have market caps greater than Citigroup and together greater than Bank of America. The point is that there would be natural demand for approximately $ 100 bn of equity just from index funds on the exit from Conservatorship.

[Wise Man]

When Howard says "SPS repaid", he means "forgiven", because the SPS are obligations issued by FnF (debenture) and if it's cancelled, it's been forgiven. Because he doesn't mention how they were repaid, like I do with the assessments (capital) sent to UST quarterly, in the Separate Account plan backed up by statutory provisions. Now, we want that capital back, because it's held in escrow. The conservator's Incidental Power (take any action authorized by this section -Rehab-) allows it to hold the Common Equity in escrow, both through phony dividend payments to UST and the offset when the SPS LP is increased for free and for no reason, as of September 2019, and a one-time $3 billion on December 2017. So, there is no need to cancel the SPS if there are none in the Separate Account. Other theme is that in the current Balance Sheets, the gifted SPS are missing. Financial Statement fraud to avoid the "walk of shame" once the FHFA is compelled to unwind its plan that would show $-194 billion Core Capital today, and the same amount every quarter.

1st. Howard's stance is struck down right away. So, the UST took all their capital generated away, directly ($301 billion cash) and indirectly, through the gifted SPS ($121 billion) and, 15 years later there is a negotiation and it would claim that the debt has been satisfied. This isn't serious and can't be a bailout mechanism. Two guys seated at a table with a pencil and without any financial knowledge, talking about billions in FnF and counting on one's fingers. Maybe if FnF throw in a dozen of goats and a cow it's considered done faster.

2nd. Neither FnF are Zambia that need to have their debt forgiven, nor the UST will ever forgive a debt it's owed, just because Howard says so.

3rd. If the SPS are cancelled (forgiven), FnF would post a profit (core capital) but they would have to pay taxes on that profit. So, the capital wouldn't increase 1:1 as he claims.

4th. Funny that Howard says "SPS deemed to have been repaid", because he went to the Supreme Court as Court Amicus, to claim a dozen times that the SPS are "non-repayable securities" and conceal that the FHEFSSA allows the repayment of SPS as exception to the Restriction on Capital Distributions, which is what has happened. An Amicus brief that is the reason why he has to pay us Punitive damages (formal document)
He reminds me you, Glen Bradford, now cheering up when the common stock price rises one day. It seems that you think that we will forget all you've done in the past, with all your toxic SA articles bashing the common stocks and peddling the government theft story, accused of stock price manipulation.

[Ace Trader]

I have a problem with this !

If every court and Judge doesn’t see this as accounting fraud 101 deem the SPS paid back then why is it left off the balance sheets ?

If the recent Jury found the Gov acted in bad faith with applying the NWS then why is not another case from shareholders challenging the NWS as payment in Dividends as under HERA the companies can’t pay dividends under conservative ship so then it’s a payment applied to the outstanding balance loaned ??

[The Man With No Name]

You need not waste your time on Howard's pipe dreams.

"deemed repaid".....that's stupid. dividends don't repay anything.

[5bagger]

Howard, Luluvan logic is spot on

Converting SPS might be illegal, Warrants would not be.

Much simpler all around

IPO buyers would have to deal with 99.5% of shares from govt., not 80%

This scenario is likeliest to me, too... and $14 would be nice, huh? Well, maybe not the expected $2,500 but still nice.