Author Topic: FNMA and FMCC preferreds. In search of the elusive 10 bagger.  (Read 2630520 times)

cherzeca

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #9510 on: March 09, 2018, 06:50:06 AM »
In the vein of "where did the money go" does anyone know whether the mbs reps ahs warranties lawsuit money went to the gse's or fhfa?

went to the GSEs...and then swept to treasury


rros

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #9511 on: March 09, 2018, 07:05:22 AM »
In the vein of "where did the money go" does anyone know whether the mbs reps ahs warranties lawsuit money went to the gse's or fhfa?

went to the GSEs...and then swept to treasury


rros

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #9513 on: March 09, 2018, 09:22:22 AM »
There could be another judge in that panel with specific bias. Take a look:
Quote
On the recommendation of Senators John Cornyn and Kay Bailey Hutchison, Haynes was nominated on July 17, 2007 by President George W. Bush to fill a vacancy on the Fifth Circuit...

Senator John Cornyn had strong views re Fannie and Freddie 2008 bailout.
https://www.cornyn.senate.gov/content/cornyn-statement-fannie-mae-freddie-mac

Have faith and keep your shares.
« Last Edit: March 09, 2018, 09:25:06 AM by rros »


Luke 5:32

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #9515 on: March 09, 2018, 09:51:57 AM »
https://www.insidemortgagefinance.com/imfnews/1_1310/daily/federal-reserve-worries-about-nonbank-mortgage-firms-1000045140-1.html?ET=imfpubs:e10636:73599a:&st=email&s=imfnews
With GSE reform looking deader than a $31,000 conference room table ordered (and then cancelled) by HUD, we’ve come up with a simple plan that might be amenable to all the different warring factions who waste their time slamming each other on Twitter. Here is a rough outline: Let Fannie and Freddie live but as government utilities with three classes of stock (senior preferred, junior preferred and subordinated juniors). Each class of stock pays a quarterly dividend based on profits, with the seniors earning the most. Only Treasury can own the seniors and all profits would go into the general fund and would be used exclusively to pay down the nation’s debt. The other two classes of stock would be given to current shareholders with their existing holdings retired. (Investment bankers, after completing a course in business ethics, can work out the ratios.) This would be done in exchange for dropping all legal claims. The federal guarantee on MBS would remain implicit (yes, implicit) for federal budget purposes and loan limits would be reduced and kept flat for a 10-year period while the private sector explores whether it can really make (enough) money as guarantors. And one last thing: never ever give Fannie and Freddie the right to lobby Congress or the states. This is just a basic outline. Congress can fill in the details or maybe Craig Phillips and Mel Watt…

blackcoffee

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #9516 on: March 09, 2018, 09:53:17 AM »
If you missed this - even if you didn't - it's time to revisit
http://www.fidererongses.com/params/post/1120535/perry-v-mnuchin-a-case-study-in-disingenuity

cherzeca

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #9517 on: March 09, 2018, 01:08:38 PM »
https://www.insidemortgagefinance.com/imfnews/1_1310/daily/federal-reserve-worries-about-nonbank-mortgage-firms-1000045140-1.html?ET=imfpubs:e10636:73599a:&st=email&s=imfnews
With GSE reform looking deader than a $31,000 conference room table ordered (and then cancelled) by HUD, we’ve come up with a simple plan that might be amenable to all the different warring factions who waste their time slamming each other on Twitter. Here is a rough outline: Let Fannie and Freddie live but as government utilities with three classes of stock (senior preferred, junior preferred and subordinated juniors). Each class of stock pays a quarterly dividend based on profits, with the seniors earning the most. Only Treasury can own the seniors and all profits would go into the general fund and would be used exclusively to pay down the nation’s debt. The other two classes of stock would be given to current shareholders with their existing holdings retired. (Investment bankers, after completing a course in business ethics, can work out the ratios.) This would be done in exchange for dropping all legal claims. The federal guarantee on MBS would remain implicit (yes, implicit) for federal budget purposes and loan limits would be reduced and kept flat for a 10-year period while the private sector explores whether it can really make (enough) money as guarantors. And one last thing: never ever give Fannie and Freddie the right to lobby Congress or the states. This is just a basic outline. Congress can fill in the details or maybe Craig Phillips and Mel Watt…

you know that when the fine folks at IMF start making mortgage finance reform proposals the MBA/TBTF boys are at the end of their rope

SnarkyPuppy

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #9518 on: March 09, 2018, 07:13:01 PM »
when bankers "restructure", they are talking about the capital structure.  while there may be a host of other things that mnuchin will try to do with fhfa, i think that when he says restructure, as a former banker what he is looking to do is make FnF capital structures sound again...and not expose taxpayer to bailout risk in future.  and he didnt talk about other guarantors or introducing further competition, which is what the leaked sen bnk ctee staff draft #29 was looking to do

Meh.   Quote from Michael Berman:  "As chairman, Berman's top priority will be to continue MBA's role in redesigning the government sponsored enterprises, Fannie Mae and Freddie Mac. "I am honored to serve our industry as MBA's 2011 chairman," Berman said. "MBA will continue to lead the battle to restructure GSEs with private capital and a new, clearly defined, but limited government role in guaranteeing mortgage-backed securities."

Context of Michael Berman for those unfamiliar:  https://www.nytimes.com/2015/12/07/business/a-revolving-door-helps-big-banks-quiet-campaign-to-muscle-out-fannie-and-freddie.html

Spekulatius

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #9519 on: March 10, 2018, 08:19:50 AM »
when bankers "restructure", they are talking about the capital structure.  while there may be a host of other things that mnuchin will try to do with fhfa, i think that when he says restructure, as a former banker what he is looking to do is make FnF capital structures sound again...and not expose taxpayer to bailout risk in future.  and he didnt talk about other guarantors or introducing further competition, which is what the leaked sen bnk ctee staff draft #29 was looking to do

Meh.   Quote from Michael Berman:  "As chairman, Berman's top priority will be to continue MBA's role in redesigning the government sponsored enterprises, Fannie Mae and Freddie Mac. "I am honored to serve our industry as MBA's 2011 chairman," Berman said. "MBA will continue to lead the battle to restructure GSEs with private capital and a new, clearly defined, but limited government role in guaranteeing mortgage-backed securities."

Context of Michael Berman for those unfamiliar:  https://www.nytimes.com/2015/12/07/business/a-revolving-door-helps-big-banks-quiet-campaign-to-muscle-out-fannie-and-freddie.html

Seems to be thwt the conclusion of this argument is too keep everything the way it is , since it seems to work just fine.
To be a realist, one has to believe in miracles.