Replies to post #13884 on Fannie Mae Preferred S (FNMAS)

[Donotunderstand]

feral

if the GOV could have gotten away with it - without adding 5T to their books - the GOV would have put FNMA in receivership

that 99% likely would have resulted in common and preferred equity being wiped out 100%

the distinction here is there was no receivership action when it was EMERGENCY time and now receivership post fact is insane and likely illegal

if the GOV was debtor in possession in action but not name - what is the hedge fund - high risk - rate of return?

So figure 8% v 10% and figure any sweep above 8% under amendment 3 and you have the amount that would go to principal - likely about 60B of the 100B or so - very rough estimate

and as debtor in possession that is not unfair in anyway IMO
(unfair is the sweep !! ...unfair is congress talking about winding down a company 20% or more owned by private hands that are citizens etc)

I would love to get 100% of the company but I do not expect that and on the preferred side I suspect the GOV will put back some but not all of the dividend and try and buy back the preferreds at say 50-60% of face (a market like price for say a 3.5% preferred)

[georgenips]

The AIG warrants were converted because that was the only possible way the 182 billion dollar loan would get repaid. Our Gov made 22 billion off that transaction.

The former CEO of AIG is now suing over the bailout of AIG because it was unconstitutional and wrongly cheated shareholders out of billions of dollars.

General Motors received a loan for 50 billion and only paid back 39 billion.

Fnf will have paid back at least 22 billion on top of their loans next month when 4th quarter earnings are released.

plus another 21 billion through 2023 for the payroll tax fee charged on all FnF loans.

Our Gov could have gotten away with converting the FnF warrants a couple years ago. Now that the Gov has been paid back, their time for converting warrants is no longer "ripe".

Can you imagine the Gov releasing FnF from conservatorship? how much would the stock price be the next day?
Those 5 billion shares the Gov has in Fannie would be worth at least double their investment in Fannie.

Would that be fare treatment to current shareholders knowing the type of returns our Gov gained from the other bailed out companies? no way.

They will never get away with cashing in those warrants after their loan was paid in full.

In true Mafia fashion, FnF were bullied into the conservatorship and forced to take a loan with terms that were not negotiable.
10% on the money is more than fare and more than any of the other bailed out companies paid.

I have been long in mostly commons since 2008 when I first paid $5 a share and FnF were "adequately capitalized".

After all these years, it's about time I get "adequately capitalized"

[5bagger]

Feral says 10% divs was bad enough

Yes - 80% of the company + DOUBLE the interest charged to others.

That isn't enough for Sen. Warner.

Govt. will end up (should) with double what they put up... and that doesn't even consider that CASH Dispersed may not have been $187B.

THIS IS MY QUESTION: How much cash truly flowed and was not just memo entry for accounting purposes. REAL cash has flowed back to Treasury.