Author Topic: FNMA and FMCC preferreds. In search of the elusive 10 bagger.  (Read 3222550 times)

DRValue

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #12950 on: July 11, 2019, 12:50:48 PM »
Clear FUD. The person they quote doesn't say he heard that this was the plan or anything close to it. I guess can't expect much during this news lul and perceived delay in the release of the plan...

More receivership BS from IMF

“If you’re wondering why everyone in the mortgage industry is waiting with bated breath for the new capital standards for Fannie Mae and Freddie Mac, it’s simple: Those standards, once cast in stone, will give the Federal Housing Finance Agency a powerful tool. One GSE observer who used to work on Capitol Hill told IMFnews those standards will give the FHFA legal cover to declare Fannie (or Freddie, take your pick) “critically” undercapitalized. Once that determination is made, the agency can move to terminate the conservatorship and enter into a receivership…

The next step might be to create a limited liability regulated entity (LLRE) which would succeed the GSE. After that, the LLRE (once capital is raised) becomes a new company and the charter is sold to new owners. From what we understand, the FHFA has the legal power to sell the charter. We also understand that the Treasury Department under former Senior Counselor Craig Phillips was well aware of all of this. More to come in the weeks ahead…”

If they only knew we've monitored every news story of the past 4 years.

If they only knew we've lingered on every sentence uttered by every player in this game.

If they only knew we've analysed the context of words and the tone expressed.

If they only knew we know all the paid for opinions and vested interests.

Maybe then they could come up with something that would work. Maybe.

But I doubt it.
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Luke 5:32

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #12951 on: July 11, 2019, 03:36:38 PM »
https://twitter.com/timpagliara/status/1149439305129111552?s=19

"Discovery production in Lamberth Court next week. Everyone cooperating but Treasury. Imagine that. Motion to compel will follow."
Invest for retirement?  Sure.  But investing in eternity is infinitely more important.  Don't get it twisted.  "...but lay up for yourselves treasures in heaven, where neither moth nor rust destroys and where thieves do not break in and steal."  Matthew 6:20

SnarkyPuppy

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #12952 on: July 11, 2019, 04:08:51 PM »
Clear FUD. The person they quote doesn't say he heard that this was the plan or anything close to it. I guess can't expect much during this news lul and perceived delay in the release of the plan...

More receivership BS from IMF

“If you’re wondering why everyone in the mortgage industry is waiting with bated breath for the new capital standards for Fannie Mae and Freddie Mac, it’s simple: Those standards, once cast in stone, will give the Federal Housing Finance Agency a powerful tool. One GSE observer who used to work on Capitol Hill told IMFnews those standards will give the FHFA legal cover to declare Fannie (or Freddie, take your pick) “critically” undercapitalized. Once that determination is made, the agency can move to terminate the conservatorship and enter into a receivership…

The next step might be to create a limited liability regulated entity (LLRE) which would succeed the GSE. After that, the LLRE (once capital is raised) becomes a new company and the charter is sold to new owners. From what we understand, the FHFA has the legal power to sell the charter. We also understand that the Treasury Department under former Senior Counselor Craig Phillips was well aware of all of this. More to come in the weeks ahead…”

This is quite literally what Calabria discussed a few years ago (YouTube video posted previously in this thread).  Also consistent w his prior writings.  Is this explicitly inconsistent with anything munchin or Calabria has said publicly?  Immediate thing that comes to mind is "there will be two companies called Fannie and Freddie" in 5 years as Calabria had said publicly.   But in the aforementioned YouTube video he quite literally talks about creating an LLRE which has a 5 year life. 

Sure would be one way of a "waking congress up and accelerating the process of getting them to act"

Would also be consistent with "the companies will be on their own to build capital". 

Obviously I don't think this is a realistic outcome given risks involved but Calabria seems to have some challenges with realistic constraints. 

muscleman

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #12953 on: July 11, 2019, 04:59:06 PM »
https://twitter.com/timpagliara/status/1149439305129111552?s=19

"Discovery production in Lamberth Court next week. Everyone cooperating but Treasury. Imagine that. Motion to compel will follow."

It is deleted. Why is Treasury dragging the feet? Hmm.  It is suddenly Mnuchin and Calabria dragging this in court now.
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cherzeca

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #12954 on: July 11, 2019, 07:22:17 PM »
you can want peace, but if you are at war, you keep fighting until you shake hands on a deal

DRValue

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Not Investment Advice. Do Your Own Research.

investorG

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #12956 on: July 12, 2019, 05:44:32 AM »
https://www.bloomberg.com/news/articles/2019-07-12/trump-team-grows-wary-of-fannie-freddie-fix-before-2020-election

I certainly am not privy to what the leaders are thinking -- and its reasonable to not want to address this complex task -- but this article's message is not inconsistent with a team who is waiting on a Collins verdict and is attempting to buy time.   

muscleman

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #12957 on: July 12, 2019, 06:03:04 AM »
https://www.bloomberg.com/news/articles/2019-07-12/trump-team-grows-wary-of-fannie-freddie-fix-before-2020-election

I certainly am not privy to what the leaders are thinking -- and its reasonable to not want to address this complex task -- but this article's message is not inconsistent with a team who is waiting on a Collins verdict and is attempting to buy time.   

Is it waiting for Collins or is it trying to delay Collins?
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Luke 5:32

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #12958 on: July 12, 2019, 06:06:26 AM »
https://www.bloomberg.com/news/articles/2019-07-12/trump-team-grows-wary-of-fannie-freddie-fix-before-2020-election

More delays.  Not entirely unexpected, but frustrating for sure...

Perhaps most significantly, Treasury and FHFA could halt a policy that requires the companies to send nearly all their earnings to the Treasury. Though one person familiar with the matter cautioned that ending the so-called profit sweep is unlikely to happen this year.

Signs that the administration is moving more slowly than anticipated are evident. The Treasury is yet to issue a long-awaited report on its plan for getting Fannie and Freddie out of the government’s grip, despite Calabria saying he hoped it would be released by the end of June. Now, agencies are aiming to get the document out within the next couple of months, according to people familiar with the matter.


By the way, not sure if this matters, but Josh Rosner is calling B.S. on this article:
https://twitter.com/JoshRosner/status/1149660412540907521
Invest for retirement?  Sure.  But investing in eternity is infinitely more important.  Don't get it twisted.  "...but lay up for yourselves treasures in heaven, where neither moth nor rust destroys and where thieves do not break in and steal."  Matthew 6:20

muscleman

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #12959 on: July 12, 2019, 06:13:19 AM »
https://www.bloomberg.com/news/articles/2019-07-12/trump-team-grows-wary-of-fannie-freddie-fix-before-2020-election

More delays.  Not entirely unexpected, but frustrating for sure...

Perhaps most significantly, Treasury and FHFA could halt a policy that requires the companies to send nearly all their earnings to the Treasury. Though one person familiar with the matter cautioned that ending the so-called profit sweep is unlikely to happen this year.

Signs that the administration is moving more slowly than anticipated are evident. The Treasury is yet to issue a long-awaited report on its plan for getting Fannie and Freddie out of the government’s grip, despite Calabria saying he hoped it would be released by the end of June. Now, agencies are aiming to get the document out within the next couple of months, according to people familiar with the matter.


By the way, not sure if this matters, but Josh Rosner is calling B.S. on this article:
https://twitter.com/JoshRosner/status/1149660412540907521

Disappointing for sure. But I don’t think it is BS. Remember Calabria’s tone changed from IPO in Q1 next year to Hopefully sometime next year? That’s good enough indication for me to completely unload even if I were still a pure FA investor. If I were still hoping on Collins, at least I’d sell half.
I am muslceman. I have more muscle than brain!