Author Topic: FNMA and FMCC preferreds. In search of the elusive 10 bagger.  (Read 4304261 times)

orthopa

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #11660 on: February 14, 2019, 06:29:58 AM »
what time is hearing today?


Jcmeg35

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #11661 on: February 14, 2019, 06:36:22 AM »
what time is hearing today?

Starts at 10AM EST, I believe. Posted link to live stream yesterday, but here it is again:

https://www.banking.senate.gov/hearings/02/07/2019/nomination-hearing

investorG

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #11662 on: February 14, 2019, 06:57:50 AM »
the sweep continues, sadly.  remote odds tsy 'cancels' a nearly $200bn asset of US govt.  the courts and/or congress are likely necessary for that possibility.  if courts or congress fails, then Tsy would likely want something -- billions more common shares perhaps on top of the warrants -- for the sr pref.  good luck everyone. 

investorG

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #11663 on: February 14, 2019, 07:02:53 AM »
What is stopping FHFA/Tsy from reversing NWS -> leaving current GSEs with minimal capital (what was the relief from the en banc, $13bn?) -> FHFA declare undercapitalized and force receivership?

not much.  the Moelis warrant values are likely wildly inflated to generate publicity.  we'd have to hang our hats on either a) a court win or b) a creative way to share cash flow proceeds from the process among govt, jr pref, and common that reflects some level of fairness and sacrifice by all sides.

investorG

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #11664 on: February 14, 2019, 07:06:23 AM »
At least we know a plan is coming.. from 10-k

"Administration Developments

Officials in the Trump Administration have indicated that resolving the conservatorships of Fannie Mae and Freddie Mac is a priority and that the Administration intends to release a framework for housing finance reform in early 2019."

they are likely reading the news just like us.  and things can (and likely have) changed since otting spoke to the FHFA employees. 

Midas79

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #11665 on: February 14, 2019, 07:17:51 AM »
Just guessing here, but it looks like Calabria will go last.

DRValue

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #11666 on: February 14, 2019, 07:18:25 AM »
https://www.ft.com/content/617d11e0-2fb0-11e9-8744-e7016697f225

"One person who has been consulted on the administration’s thinking said: “They want bipartisan support, but they know that is going to be difficult, especially with so many Democrats running for president. But there are plenty of things they can do without Congress giving its support.”"
[E]xpedience does not license omnipotence.

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Luke 5:32

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #11667 on: February 14, 2019, 08:04:27 AM »
Calabria has said "well capitalized" at least a dozen times so far.

Question from committee member: Your thoughts on what Congress should do about this (Fannie/Freddie in general, wide open question)?

First thing Calabria said "I believe regulator can make number of changes to make stable footing to minimize losses in the inevitable next market downturn."

He has quoted Shelby at least twice (maybe more): "never seen an institution fail that was well capitalized, well regulated, well managed..."

More rough quotes...
"2 large institutions with zero capital is my concern.  Very concerned to have large orgs without adequate capital."

"get rid of privatized gains and capital losses, need to be well capitalized."

"For any additional capital to be raised requires an agreement."

"I support the concept of having significantly more capital at the GSE's."
« Last Edit: February 14, 2019, 08:13:07 AM by Luke 5:32 »
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Luke 5:32

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #11668 on: February 14, 2019, 08:09:29 AM »
He more or less punted when asked what he thought of Otting's comments a few weeks ago to FHFA staff.  He said he thought it was just a pep talk, that he was trying to help with morale.  I wish Calabria would have said something better, but perhaps he simply wanted to say nothing at all. 
"You are life, You are life, in You death has lost its sting.  I'm running to Your arms, I'm running to Your arms.  The riches of Your love will always be enough, nothing compares to Your embrace.  Light of the world, forever reign." Listen: https://www.youtube.com/watch?v=ADuWzd7x25c

cherzeca

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #11669 on: February 14, 2019, 08:31:21 AM »
reading between calabria's lines, seems to me that he would be satisfied with fhfa's proposed and moelis blueprint's capital level