June 3, 2013 Record Profits The two government-sponsored enterprises have begun posting record profits after drawing a total of $187.5 billion in aid from taxpayers to stay afloat after the housing crisis brought them to the brink of bankruptcy. Heartened by the change of fortune, hedge funds including Paulson & Co Inc. and Claren Road Asset Management LLC have been buying shares of the companies’ junior preferred stock and urging lawmakers to drop plans for abolishing them. The discussion draft of the bill says any proceeds from the liquidation first would go to the U.S. government as the senior preferred shareholder in each of the companies, and then to holders of junior preferred shares, followed by holders of the common shares. The new agency, to be named the Federal Mortgage Insurance Corp., would continue existing efforts to build a common securitization platform and would have the capacity to help small lenders issue securities.
What Happens when you owe $117B then amazingly payback $95B way sooner then anyone expected??
UT OOOH US Govt, has a BIG problem on their hands!!!
Even Jim Cramer says this could be "BIG"
CNBC Coverage of Fannie Mae's Financial Results May 2103
Bruce Berkowitz, Fairholme Capital Management (2.4 BILLION DOLLARS INVESTMENT) John Paulson, Paulson and Co Richard Perry, Perry Capital Claren Road Asset Management Capital income builder ( holds 12.5 million COMMON SHARES)
June-3-2013 Hedge funds have been lobbying Congress to restore the dividend, which was suspended last year. Although Mr. Berkowitz has not done so yet, he plans to join those efforts, he said in an interview Monday with The Wall Street Journal. To him, restoring the dividend is just “the right thing to do.”
Purchased largely this quarter, the Fairholme position is about 90% to 95% preferred stock with the remainder in common stock. He said the shares are split proportionally between the $8.2 billion Fairholme Fund and the $311 million Fairholme Allocation Fund.
June-3-2013 Record Profits The two government-sponsored enterprises have begun posting record profits after drawing a total of $187.5 billion in aid from taxpayers to stay afloat after the housing crisis brought them to the brink of bankruptcy. Heartened by the change of fortune, hedge funds including Paulson & Co Inc. and Claren Road Asset Management LLC have been buying shares of the companies’ junior preferred stock and urging lawmakers to drop plans for abolishing them.
The discussion draft of the bill says any proceeds from the liquidation first would go to the U.S. government as the senior preferred shareholder in each of the companies, and then to holders of junior preferred shares, followed by holders of the common shares .