Author Topic: FNMA and FMCC preferreds. In search of the elusive 10 bagger.  (Read 4982151 times)

Midas79

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #15910 on: September 15, 2020, 09:37:58 PM »
@cherzeca

I think it's better to continue our discussion here rather than Tim Howard's blog; I think I got off-topic over there.

When I referred to problems under 4616, I meant only section (b). I'm afraid that a future FHFA director could use those authorities to mess with a consent order by saying that no consent order a previous FHFA director (Calabria) signed could prevent the new director from exercising his/her statutory authority under 4616(b).

The only way around that would be for FnF to hit $152B in core capital, thus exiting "significantly undercapitalized", before Calabria leaves office.

I could be wrong, though; can Calabria really sign away some of his statutory authorities in such a way that a future director couldn't get them back without the companies' consent?


orthopa

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #15911 on: September 16, 2020, 04:47:43 AM »
Anyone have the link to Calabria's house testimony today?


EDIT: Found it https://financialservices.house.gov/calendar/eventsingle.aspx?EventID=406867

That is quite an interesting title for the hearing. Oxymoron one would say.
« Last Edit: September 16, 2020, 04:49:39 AM by orthopa »

cherzeca

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #15912 on: September 16, 2020, 06:17:31 AM »
@cherzeca

I think it's better to continue our discussion here rather than Tim Howard's blog; I think I got off-topic over there.

When I referred to problems under 4616, I meant only section (b). I'm afraid that a future FHFA director could use those authorities to mess with a consent order by saying that no consent order a previous FHFA director (Calabria) signed could prevent the new director from exercising his/her statutory authority under 4616(b).

The only way around that would be for FnF to hit $152B in core capital, thus exiting "significantly undercapitalized", before Calabria leaves office.

I could be wrong, though; can Calabria really sign away some of his statutory authorities in such a way that a future director couldn't get them back without the companies' consent?

you have read HERA carefully and I don't disagree that (b) gives the fhfa director significant power.  I just think that the capital markets can swallow these powers, but cannot swallow conservator powers. these powers are very much within a regulated industries risk profile; conservatorship is not.  so I think a release from C into consent decree will open up the capital raising process. now if that process fails miserably, then these powers can be resorted to even if C is off the table.

Luke 5:32

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #15913 on: September 16, 2020, 11:31:43 AM »
SCOTUS December 9th...
NEW - Supreme Court releases December argument calendar. Big-$$$ Fannie Mae/Freddie Mac case set for Dec. 9.
https://twitter.com/GregStohr/status/1306296902233862145
"Way maker, miracle worker, promise keeper..."  God is a promise keeper. You can rest in the hope and assurance that He is true to His word.  But it is also a warning that He will keep His promises to those that choose a life of unrepentant sin. https://www.youtube.com/watch?v=XCpbeVFgs4E

cherzeca

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #15914 on: September 16, 2020, 11:47:23 AM »
SCOTUS December 9th...
NEW - Supreme Court releases December argument calendar. Big-$$$ Fannie Mae/Freddie Mac case set for Dec. 9.
https://twitter.com/GregStohr/status/1306296902233862145

a little more than 2 weeks after briefing ends...expedited. 

Midas79

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #15915 on: September 16, 2020, 11:56:50 AM »
The Collins opening brief is out too, but I haven't had a chance to read it yet as I am still listening to the House hearing.

https://www.supremecourt.gov/DocketPDF/19/19-422/154153/20200916135926128_19-422%20Brief%20of%20Patrick%20J.%20Collins%20et%20al..pdf

orthopa

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #15916 on: September 16, 2020, 12:30:38 PM »
SCOTUS December 9th...
NEW - Supreme Court releases December argument calendar. Big-$$$ Fannie Mae/Freddie Mac case set for Dec. 9.
https://twitter.com/GregStohr/status/1306296902233862145

I wonder if this even gets argued. Granted the effects are huge money and wide ranging but in light of the comment period ending for the capital rule, a PSPA that can change with the stroke of a pen, why would the gov even want to argue this case? It seems a whole lot of time, money and risk gets taken off the table for all parties involved with a final PSPA amendment.

Very tight tight time line here with capital rule comment period ending, election, arguments in SC and inauguration. Crazy 4th Q coming.
« Last Edit: September 16, 2020, 12:35:22 PM by orthopa »

cherzeca

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #15917 on: September 16, 2020, 12:40:34 PM »
just a paraphrased snippet from Calabria that I heard:  the capital rule will be implemented over time, so no need to raise g fees

orthopa

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #15918 on: September 16, 2020, 12:44:18 PM »
just a paraphrased snippet from Calabria that I heard:  the capital rule will be implemented over time, so no need to raise g fees

what do you interpret by this? lower capital levels to start/raise capital then raise requirements over time?

investorG

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #15919 on: September 16, 2020, 12:58:06 PM »
SCOTUS December 9th...
NEW - Supreme Court releases December argument calendar. Big-$$$ Fannie Mae/Freddie Mac case set for Dec. 9.
https://twitter.com/GregStohr/status/1306296902233862145

I wonder if this even gets argued. Granted the effects are huge money and wide ranging but in light of the comment period ending for the capital rule, a PSPA that can change with the stroke of a pen, why would the gov even want to argue this case? It seems a whole lot of time, money and risk gets taken off the table for all parties involved with a final PSPA amendment.

Very tight tight time line here with capital rule comment period ending, election, arguments in SC and inauguration. Crazy 4th Q coming.

If Trump wins, the case probably goes through verdict.   If Trump loses, let's hope it doesn't even get argued.