Replies to post #794415 on Fannie Mae-No Politics (FNMA)

[Stern is Bald]

Hi. It looks like a dipshit has created a sock account today and posting nonsense statements...

Need to try harder idiot.

[stockanalyze]

if true that jpm only will allow you to sell but not buy, it is very very good news. they want people to just sell and market maker buys it back for the special interest or warren buffet or government whoever.

your authenticty is doubtful, you just created this account with very first post but showing us that you know everything posted here and many of the contributors. we have seen many like you. i am not interested in an explanation on why this is your first post, there are lot of intelligent ones here to figure it out

[3antar]

Happy birthday

[Panga]

Not sure of JPM, but Vanguard stopped all OTC transactions except selling after the time of the cutoff date. I couldn’t buy back my common as I had sold with intention of buying back and missed getting back in before the cutoff date. Still own preferred there though.

[Donotunderstand]

1. Never - the "loss" (cash outflow) gets reflected in the PPS in the normal market trading
2. Exactly - that is why the GOV only went to ~79.9. I do not know if that 79.9% changes (up) with either a WT execution or SP conversion to common/JPS

[kthomp19]

1. At what point do short traders have to put aside money to pay their share of the Lamberth ruling? FNMA already put it on their annual report, but I wonder if/when others have to do it and how much it would be.

The money isn't paid until the judgment is final, which is after all appeals have been exhausted. If neither side appeals that will be relatively soon, but if either side does then that date is probably 1-2 years from now.

2. What happens if the government is found to have actually nationalized FnF? Wouldn't the $8 trillion FnF debt have to show up on the federal debt and cause the US gov credit rating to go down and interest rates to go up? Are fed bondholders also getting a raw deal by having this debt kept off the fed books?

1) No court has been asked to rule that FnF have been nationalized, so I don't expect such a finding to happen.
2) Treasury has cited SFFAS No. 47, part 42, as its justification for not consolidating FnF's balance sheets onto the government's. That part of SFFAS No. 47 says that since conservatorship is temporary (yes, I know that's laughable) then FnF are not Consolidation Entities.