Author Topic: FNMA and FMCC preferreds. In search of the elusive 10 bagger.  (Read 2950769 times)

emily

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #11230 on: January 14, 2019, 06:54:02 PM »
Yes, you are right, I meant preferred stock of any other company.

I don't think she means GSE prefs, she means other company prefs or dividend stocks.


rros

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #11231 on: January 15, 2019, 05:54:12 AM »
Would this end up being same ? Mnuchin 2 yrs ago in November spread optimism and nothing happened.

How difficult is it for FHFA to modify PSPA immediately and write up a small fee to build the wall and in return void NWS? Simple enough to write it up and both FHFA and Tsy can do it alone.

Can they cite Calabria’s writings  in Collins oral argument as the nominated FHFA director’s views? Judges would at least be reluctant to favor defendants as they know in case Calabria is confirmed, the judges will lose credibility as now there is a FHFA director who himself believes HERA was violated.

https://object.cato.org/sites/cato.org/files/pubs/pdf/working-paper-26_1.pdf

Hope plaintiff lawyers are well prepared in front of the panel and persuasive and not let Judges fall for Cayne's piteous fable on how government saved Fannie and Freddie.
FHFA and Treasury can write a "Letter of Agreement" anytime and modify just about any aspect of the PSPAs. Like they did when they raised the floor for the companies' minimum net worth.

rros

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #11232 on: January 15, 2019, 06:22:06 AM »
If so, that would be beautiful on all front : end the shutdown, build the wall beyond 6.5 billion and continue building it till the next election and help housing by releasing them as housing is kind of on a slippery slope. Benefits abound. There is no political impact as no matter what they do, they will get criticized and nothing can be worse than what fellow travelers did.

Would this end up being same ? Mnuchin 2 yrs ago in November spread optimism and nothing happened.

How difficult is it for FHFA to modify PSPA immediately and write up a small fee to build the wall and in return void NWS? Simple enough to write it up and both FHFA and Tsy can do it alone.

Can they cite Calabria’s writings  in Collins oral argument as the nominated FHFA director’s views? Judges would at least be reluctant to favor defendants as they know in case Calabria is confirmed, the judges will lose credibility as now there is a FHFA director who himself believes HERA was violated.

https://object.cato.org/sites/cato.org/files/pubs/pdf/working-paper-26_1.pdf

Hope plaintiff lawyers are well prepared in front of the panel and persuasive and not let Judges fall for Cayne's piteous fable on how government saved Fannie and Freddie.
FHFA and Treasury can write a "Letter of Agreement" anytime and modify just about any aspect of the PSPAs. Like they did when they raised the floor for the companies' minimum net worth.
I think "the wall" is not just about the 5 billion needed. It seems to have political ramifications that go beyond the money. So more complex. And an easy route like reaching into the till may not be the preferred action. I may be wrong too.

Wiggins

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #11233 on: January 15, 2019, 07:06:33 AM »
I'm encouraged.
The latest brief from Otting's FHFA argues that common shares after HERA but before the NWS were "nearly worthless" and traded for their "speculative value." That's a whole helluva lot different than saying they were worthless and had NO value.

This is simply a negotiation before any restructuring/settlement. The 5th circuit may or may not sweeten the pot for common holders.

DRValue

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #11234 on: January 16, 2019, 12:25:58 AM »
The en banc hearing, if relating to relief, does give a politically expedient way to end conservatorship. I wonder if anyone has ever 'thrown' a case?
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orthopa

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #11235 on: January 16, 2019, 05:27:06 AM »
Looks like FHFA is not going to defend the constitutionality of FHFAs powers under Otting. Impactful in anyway legally? Looks to me like FHFA saying why bother if we have a road map anyway.

cherzeca

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #11236 on: January 16, 2019, 07:20:26 AM »
Looks like FHFA is not going to defend the constitutionality of FHFAs powers under Otting. Impactful in anyway legally? Looks to me like FHFA saying why bother if we have a road map anyway.

fhfa will defend against standing only for the unconstitutional claim, which they won with in Bhatti in the district court and lost in collins in the district court.  won't defend against unconstitutional claim on merits.  all of the action in this case will focus on whether to give retrospective relief (vacate NWS) as I expect en banc to find standing

blackcoffee

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #11237 on: January 16, 2019, 08:20:53 AM »
Looks like FHFA is not going to defend the constitutionality of FHFAs powers under Otting. Impactful in anyway legally? Looks to me like FHFA saying why bother if we have a road map anyway.

fhfa will defend against standing only for the unconstitutional claim, which they won with in Bhatti in the district court and lost in collins in the district court.  won't defend against unconstitutional claim on merits.  all of the action in this case will focus on whether to give retrospective relief (vacate NWS) as I expect en banc to find standing

who would have standing for relief if not the parties suing? Could you point us to an analysis of what the logic (loosely used term with the legal system as it relates to the GSE cases) was used in the argument on that point?

cherzeca

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #11238 on: January 16, 2019, 08:24:03 AM »
Looks like FHFA is not going to defend the constitutionality of FHFAs powers under Otting. Impactful in anyway legally? Looks to me like FHFA saying why bother if we have a road map anyway.

fhfa will defend against standing only for the unconstitutional claim, which they won with in Bhatti in the district court and lost in collins in the district court.  won't defend against unconstitutional claim on merits.  all of the action in this case will focus on whether to give retrospective relief (vacate NWS) as I expect en banc to find standing

who would have standing for relief if not the parties suing? Could you point us to an analysis of what the logic (loosely used term with the legal system as it relates to the GSE cases) was used in the argument on that point?

just read the Ps and fhfa briefs.  they contain the arguments

cherzeca

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #11239 on: January 16, 2019, 01:09:40 PM »
judge lambeth gets tough on HRC private email scam:  https://www.zerohedge.com/news/2019-01-16/federal-judge-orders-rhodes-rice-other-obama-officials-respond-over-clinton

wonder if he will get tough on fellow travellers if fairholme ever gets to trial...