Author Topic: FNMA and FMCC preferreds. In search of the elusive 10 bagger.  (Read 1961162 times)

Luke 5:32

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #6800 on: April 20, 2017, 05:17:17 PM »
Requires you to sign up and I've used my trial so I can't read but this explains the liquidation thing: https://www.americanbanker.com/news/mnuchin-targets-fdic-powers-volcker-as-top-reg-priorities

From the little bit available, It doesn't appear to be related.

Thanks for the info.
You are willing to give your life, if necessary, to protect a stranger... me, my bride, each one of our children. For that I thank you every single day, veterans. And I consider you a friend. "Greater love has no one than this, that someone lay down his life for his friends." John 15:13


Desert_Rat

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #6801 on: April 20, 2017, 05:36:00 PM »
Joshua 10:25

Desert_Rat

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #6802 on: April 20, 2017, 05:43:53 PM »
basically, why not do this for fnma and fmcc first since they are the housing finance market, and them say others can compete on same basis?  gses have all of the expertise in house and are managing Ts in gtee obligations, so why not start there first?

I think that is what he is saying. Take a look:
Quote
Preserve where possible the existing infrastructure for example, a rechartered Fannie Mae and Freddie Mac could be the first two Guarantors.

Rechartered successors to Fannie Mae and Freddie Mac would likely be the first two Guarantors. Preserving the existing human capital and operational processes at both GSEs and reasonably supporting their emergence as viable Guarantors. Transitioning to the new system over a multiyear period, with implementation occurring gradually to avoid market disruption and to build required capital.

Guarantors would be monoline, regulated utilities owned by private shareholders. (The monoline was also Millstein's idea).
 
Competition can come later and only if the regulator charters out to other institutions . And we know banks will kill for such charter.

I do not think Berkowitz wanted a gov. guarantee though. Maybe Ackman.

Stevens plan may gather consensus from many parties. As well as shareholders provided we are part of the transition.

Potentially more money for govt as well.

I recall from way back that FnF's CDO algo's could be sold to replacement vehicles. Since FnF do their job so well I'll assume they're pretty valuable.

doughishere

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #6803 on: April 20, 2017, 05:45:00 PM »
Joshua 10:25

hallelujah! Praise the one they call mnuchin!
« Last Edit: April 20, 2017, 05:56:35 PM by doughishere »

Desert_Rat

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #6804 on: April 20, 2017, 06:10:08 PM »
NYT, fake news and all has got our back. Not sure what I think about all that but I'm not complaining at this exact moment: https://www.nytimes.com/2015/12/07/business/a-revolving-door-helps-big-banks-quiet-campaign-to-muscle-out-fannie-and-freddie.html?smid=tw-share

Luke 5:32

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #6805 on: April 20, 2017, 07:42:24 PM »
NYT, fake news and all has got our back. Not sure what I think about all that but I'm not complaining at this exact moment: https://www.nytimes.com/2015/12/07/business/a-revolving-door-helps-big-banks-quiet-campaign-to-muscle-out-fannie-and-freddie.html?smid=tw-share

Pulitzer Prize winning writer Gretchen Morgenson has written some good articles on the GSE's over the past couple years.  This particular article was great when written and is still great today.
You are willing to give your life, if necessary, to protect a stranger... me, my bride, each one of our children. For that I thank you every single day, veterans. And I consider you a friend. "Greater love has no one than this, that someone lay down his life for his friends." John 15:13

Spekulatius

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #6806 on: April 20, 2017, 08:40:27 PM »
Quote
I believe there's a real chance that corsi's reporting on the GSE profits funding Ocare through the Treasury is somewhat accurate -- especially after reading the joint congressional report from last year

Money is fungible, how would you determine where the Dollars for a specific expense is coming from? The whole idea makes no sense to me, unless you talk about money laundry.
To be a realist, one has to believe in miracles.

investorG

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #6807 on: April 21, 2017, 03:48:30 AM »
Quote
I believe there's a real chance that corsi's reporting on the GSE profits funding Ocare through the Treasury is somewhat accurate -- especially after reading the joint congressional report from last year

Money is fungible, how would you determine where the Dollars for a specific expense is coming from? The whole idea makes no sense to me, unless you talk about money laundry.

if you read all of corsi's reports, including a couple with govt data, and then the 200 page joint congressional report on the CSR payments, I think you too will think there's a real chance the GSE profits were used for the Ocare subsidies.

rros

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #6808 on: April 21, 2017, 04:37:10 AM »
Quote
I believe there's a real chance that corsi's reporting on the GSE profits funding Ocare through the Treasury is somewhat accurate -- especially after reading the joint congressional report from last year

Money is fungible, how would you determine where the Dollars for a specific expense is coming from? The whole idea makes no sense to me, unless you talk about money laundry.

if you read all of corsi's reports, including a couple with govt data, and then the 200 page joint congressional report on the CSR payments, I think you too will think there's a real chance the GSE profits were used for the Ocare subsidies.
I believe spekulatius is correct. HERA enables all payments to go to Treasury's general funds. It's in the law signed in 2008. Once in general funds the money gets lost. That money -whether dividends, legal settlements or DTAs- will be no different than any other money Treasury receives. This Ocare payments strategy should be abandoned, in my view. The more transparent theme regarding the NWS has always been "never to share a dime of profit with shareholders". There is even a Treasury memo about it.

investorG

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #6809 on: April 21, 2017, 06:42:14 AM »
Quote
I believe there's a real chance that corsi's reporting on the GSE profits funding Ocare through the Treasury is somewhat accurate -- especially after reading the joint congressional report from last year

Money is fungible, how would you determine where the Dollars for a specific expense is coming from? The whole idea makes no sense to me, unless you talk about money laundry.

if you read all of corsi's reports, including a couple with govt data, and then the 200 page joint congressional report on the CSR payments, I think you too will think there's a real chance the GSE profits were used for the Ocare subsidies.
I believe spekulatius is correct. HERA enables all payments to go to Treasury's general funds. It's in the law signed in 2008. Once in general funds the money gets lost. That money -whether dividends, legal settlements or DTAs- will be no different than any other money Treasury receives. This Ocare payments strategy should be abandoned, in my view. The more transparent theme regarding the NWS has always been "never to share a dime of profit with shareholders". There is even a Treasury memo about it.

it's possible you are right, that's why I say there's a chance it was directed to CSR payments.

but once again I would say if you read the 2 joint congressional reports and corsi's reports, including the mar13 one (can be found on gselinks.com), I think you'd have some suspicion over the timing of the congressional request, then withdrawal of the CSR funding at the same time of the GSE DTA windfall, combined with the ridiculous stonewalling of the congressional investigation by the prior admin.

it's also possible that the current admin knows this but doesn't want to hurt people if their plan is to eventually stop the sweep.  but maybe you're underestimating the power of the anti-gse opposition and thus anything that tilts opinion in favor of the GSEs needs to be used, imo.