Author Topic: FNMA and FMCC preferreds. In search of the elusive 10 bagger.  (Read 4629657 times)

investorG

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #16010 on: October 07, 2020, 06:34:28 AM »
There is no way in hell there is a settlement before the election.  The optics look horrific, especially with the yellow press about Freddie and the Kushner multifamily loans.

I would also be very surprised if there is a PSPA amendment pre-election, for the same reasons.  The reason being it's too to cast as a windfall for security holders.  B/c make no mistake, GSE securities would fly on either (some chance the common could decline on a PSPA amendment but why chance it).

Meanwhile, there is still work to be done.  The capital rule has to be finalized.  Maybe the Freddie stuff is what Calabria means about being bad corporate citizens.

Besides, Mnuchin is basically running the government.  Congress, China, stimulus, the economy, he's doing it all.  Where is the facetime for FHFA and settlement and all the provisions that would probably accompany a PSPA amendment?

Post election, different story.  There is still a month between the election and the Court.  That's plenty of time to settle and in fact the government has settled other cases in the weeks before oral argument, so it wouldn't be unprecedented either.  Then nobody cares about the optics.

If they had led with courage they'd likely be monetizing warrants at this moment to pay for a politically beneficial program of their preference. 

Rather mnuchin hid behind lawyers the past 20months post-watt and fought to further legitimize the illegal and/or unethical NWS.

Could cost them the election when combined with the housing stimulus a semi-capitalized FnF would have provided in 2020.


typicalvalue

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #16011 on: October 07, 2020, 08:42:58 AM »
Find attached senator Warner letter to Calabra/Mnuchin. Could be a sign PSPA amendment is close and we could see it before year end.

cherzeca

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #16012 on: October 07, 2020, 10:18:15 AM »
Find attached senator Warner letter to Calabra/Mnuchin. Could be a sign PSPA amendment is close and we could see it before year end.

agreed.  given the perspective of history, I can't help but pointing out how feeble this letter is.  if corker were still around, there would have been hell to pay

Luke 5:32

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #16013 on: October 08, 2020, 06:48:14 PM »
Could be a sign PSPA amendment is close and we could see it before year end.

Word on the street is that PSPA is coming around Thanksgiving.
The Atheist Delusion, watch here: https://www.youtube.com/watch?v=ChWiZ3iXWwM

Jcmeg35

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #16014 on: October 08, 2020, 08:04:41 PM »
Where did you hear this? Feel like there have been a lot of rumors over the years that havenít materialized.

investorG

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #16015 on: October 09, 2020, 04:21:23 AM »
Could be a sign PSPA amendment is close and we could see it before year end.

Word on the street is that PSPA is coming around Thanksgiving.

I guess the likelihood of this depends on if you believe the market has any predictive power.  I believe it does and therefore am skeptical.

cherzeca

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #16016 on: October 09, 2020, 06:37:33 AM »
Where did you hear this? Feel like there have been a lot of rumors over the years that havenít materialized.

this is plausible for two reasons...it permits time for the potus election to shake out (though I would not be surprised if it is still up in the air by thanksgiving), and it is the perfect time to do something under the radar that some might think is controversial

Luke 5:32

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #16017 on: October 09, 2020, 08:04:12 AM »
Where did you hear this? Feel like there have been a lot of rumors over the years that havenít materialized.

From somebody that has connections with high-level officials at UST and FHFA.
The Atheist Delusion, watch here: https://www.youtube.com/watch?v=ChWiZ3iXWwM

Jcmeg35

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #16018 on: October 09, 2020, 08:17:21 AM »
Where did you hear this? Feel like there have been a lot of rumors over the years that havenít materialized.

From somebody that has connections with high-level officials at UST and FHFA.

Thanks for sharing! Did you get any additional color if this would include a consent decree or just PSPA?

Luke 5:32

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #16019 on: October 09, 2020, 08:26:06 AM »
Thanks for sharing! Did you get any additional color if this would include a consent decree or just PSPA?

Just PSPA around Thanksgiving.
The Atheist Delusion, watch here: https://www.youtube.com/watch?v=ChWiZ3iXWwM