Replies to post #13895 on Fannie Mae Preferred S (FNMAS)

[betahighlander]

so hard to keep the correct "tone"
with e-mails and posts.
If its any help i did not see your post as a dig. I also concur with your point.
I would like to see a pro forma
Current monthly pl and draw and then adjustments for the following. draws and effect on PL:
If DTA was not removed from Balance sheet
IF the Bank settlements were put on the balance sheet back to the when the losses occurred
If the Reserves reflected actual losses NOT the inflated Scenario
above reflects feral argument balance sheet was manipulated to fail.

Then make adjustments if GSE were treated as the banks:
draws on above if 5% divi
Draws on above if reserve requirements were the same as the banks
Above reflect equal treatment

Adjustments to reflect swaps intended to be held to maturity- were not marked down M2M- represents a change in rules - that the business model was not intended handle. the hedge to keep balance sheet in good order to meet federal rules was turned against them.

I do not think 1 Dime was needed from the government to pay claims. or meet obligations- the money was needed to fill balance sheet changes imposed by the government or false losses from faulty loss scenarios and bank fraud.

[5bagger]

Severe share shortage suspected

Feral - No worries - I didn't take it that way.

All - The 50s are all around $17 (35%) and some even have a BID price above $17.

The cheaper 25s are all around 8.50, and premium for extra dividend seems to be disappearing... seems to be anyways.

We haven't heard from Ackman or Berkowitz in quite some time.

Given Corker's remarks about Crapo/Johnson coming in 1-2 weeks (today is the end of the first week), I really think we are on the verge of a big news event.

Place your chips:
1) FNMAS and FMCKJ are hovering right around $10 - when news does hit, they should move fastest, because of the liquidity
2) Common will also rise quickly - and if the news is right - much faster