Author Topic: FNMA and FMCC preferreds. In search of the elusive 10 bagger.  (Read 2066634 times)

rros

  • Sr. Member
  • ****
  • Posts: 442
Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8110 on: September 14, 2017, 09:29:39 AM »
The only thing missing in the RNC document is that they will restart the Jr. dividends on Jan. 1st 2018, cover all Berkowitz lawsuit expenses and compensate those owning the shares on 8/17/2012 lol.


cherzeca

  • Hero Member
  • *****
  • Posts: 1242
Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8111 on: September 14, 2017, 09:31:52 AM »
Remember to from the outset Mnuchin said he wanted a bipartisan solution. Seemed like the last thing that was going to happen at the time.

if mnuchin is machiavellian, the smart strategy would have been not to personally fight for GSEs, putting himself out on a limb, but to be able to point out that he is within the consensus view, and fighting for GSEs is republican party orthodoxy.  if mnuchin is in a chess game with crapo/corker/hensarling, then i would say that mnuchin has made a smart move, and an even smarter move if his tracks are completely covered vis a vis this rnc resolution

emily

  • Sr. Member
  • ****
  • Posts: 286
Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8112 on: September 14, 2017, 10:21:33 AM »
Why are you surprised? This was a political mess to begin with and RNC is on the right side and it will be solved politically. I would not be surprised if it done overnight like the NWS was done overnight.

#8 bulletpoint
https://www.gop.com/rules-and-resolutions/


feels surreal to read this from the same party that blamed the gses for all the evils in the world. has the tide shifted for good?

emily

  • Sr. Member
  • ****
  • Posts: 286
Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8113 on: September 14, 2017, 10:25:17 AM »
It is real. #8 bulletpoint
https://www.gop.com/rules-and-resolutions/

You mean loudmouths like fellow travelers, John Carney, John Light, Ed Demarco and Mel Watts? Who cares about them, they were on the wrong side to begin with. You can only go so far with wrong politics and the end will be real bad for these loudmouths.

does anyone have any details on how this document came to be formed? how "official" is this? still taken aback and hoping it is for real, bc agree w/ cherzeca, it marginalizes the anti gse loudmouths (we all know who)

DocSnowball

  • Full Member
  • ***
  • Posts: 132
Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8114 on: September 14, 2017, 10:33:18 AM »
So if rights of shareholders are respected, then commons are not worthless? Can commons still go to zero if rights are respected?

emily

  • Sr. Member
  • ****
  • Posts: 286
Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8115 on: September 14, 2017, 10:34:09 AM »
Good question. What would be the value of common shares if warrants fetch them 100 billion?

https://howardonmortgagefinance.com/2017/07/31/a-pattern-of-deception/#comment-4355

So if rights of shareholders are respected, then commons are not worthless? Can commons still go to zero if rights are respected?
« Last Edit: September 14, 2017, 10:36:01 AM by emily »

Midas79

  • Full Member
  • ***
  • Posts: 188
Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8116 on: September 14, 2017, 10:43:03 AM »
Good question. What would be the value of common shares if warrants fetch them 100 billion?

The Moelis plan has the government exercising the warrants and gaining $100B while existing common shares go to $9-13. That's the most recent number I can find that has substantial logic behind it.

cherzeca

  • Hero Member
  • *****
  • Posts: 1242
Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8117 on: September 14, 2017, 11:42:30 AM »
the rnc resolution reference to the $100MM figure is of course a direct (approving) reference to moelis blueprint.  this is a real big deal methinks because all non-GSE friendly proposals (ie MBA) do not afford treasury the ability to monetize warrants.  now the discussion with tbtf/mba is, why exactly do you want taxpayers to forego $100B?
« Last Edit: September 14, 2017, 11:54:30 AM by cherzeca »

cherzeca

  • Hero Member
  • *****
  • Posts: 1242
Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8118 on: September 14, 2017, 01:19:33 PM »
mnuchin vid live at politico pro:  https://www.pscp.tv/stevenmnuchin1/1lDGLkoQOyQKm

Midas79

  • Full Member
  • ***
  • Posts: 188
Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8119 on: September 14, 2017, 01:27:11 PM »
Nothing new from Mnuchin, except that he views GSE stuff as a 2018 issue. He still expects the NWS dividends to be paid.

The moderator has pushed the issue on dodged questions a few times, e.g. why Mnuchin only specified hedge funds and not private equity when it comes to the elimination of carried interest. I really wish the moderator had asked how Mnuchin can reconcile his seemingly contradictory stances of wanting minimal risk to taxpayers and still expecting full NWS dividends.
« Last Edit: September 14, 2017, 01:29:14 PM by Midas79 »