Author Topic: FNMA and FMCC preferreds. In search of the elusive 10 bagger.  (Read 4477608 times)

cherzeca

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #15930 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 #15931 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
The Atheist Delusion, watch here: https://www.youtube.com/watch?v=ChWiZ3iXWwM

cherzeca

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #15932 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 #15933 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 #15934 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 #15935 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 #15936 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 #15937 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.

cherzeca

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #15938 on: September 16, 2020, 01:02:36 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?

Calabria did not explain, but recall that the proposed rule release asked for comment on many questions, one of which was whether the final capital rule should be implemented in stages.  if the required capital level percentages are phased in, then the GSEs might be able to meet the increasing hurdles in a deliberate manner...which would mean offerings over a longer timeframe, with some offerings conducted after the GSEs' capital levels have already increased...less risk for new investors

orthopa

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #15939 on: September 16, 2020, 01:16:50 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.

If Trump wins you maybe right, or any settlement goes out way further then before inauguration. F*** me. Looking for some sort of closure with this investment is never ending!