FNMA and FMCC preferreds. In search of the elusive 10 bagger.

[Luke 5:32]

but the takeaway as I think you allude to is that the smoke (such as this letter, Bright's letter and Warner/Rounds letter) would indicate that there is fire

Also, Warner and Crapo took Mnuchin out to dinner Wednesday night, after the hearing in which Warner said nothing negative about GSE's and Crapo was positive.

Forgot to give link:
https://twitter.com/GarrettHaake/status/1334591472419659776
On Wednesday night, Senators @MarkWarner & @MikeCrapo took Secretary Mnuchin to dinner, two sources tell me. Among other topics, they discussed the bipartisan COVID relief framework. Warner is one of the Dems most involved - so here's another way lawmakers are working the WH.

[asterisk]

but the takeaway as I think you allude to is that the smoke (such as this letter, Bright's letter and Warner/Rounds letter) would indicate that there is fire

Also, Warner and Crapo took Mnuchin out to dinner Wednesday night, after the hearing in which Warner said nothing negative about GSE's and Crapo was positive.

Forgot to give link:
https://twitter.com/GarrettHaake/status/1334591472419659776
On Wednesday night, Senators @MarkWarner & @MikeCrapo took Secretary Mnuchin to dinner, two sources tell me. Among other topics, they discussed the bipartisan COVID relief framework. Warner is one of the Dems most involved - so here's another way lawmakers are working the WH.

Thanks Luke! Likely GSE reform came up.

As Otherpa has said very well, there is no reason for Mnuchin to care about GSE reform besides helping out some friends. We are seeing a slow burn of cards starting to play out. As Cherzeca said where there is smoke is indicating fire. The fire is getting bigger little by little.

[cherzeca]

" Nobody will be asking the preferred holders for their input."

GSEs won't want to pay JP divs. w/o JP divs no common divs. w/o common divs, no cap raise. if JP dont have a seat at the table they certainly will be on zoom speed dial

[Williams406]

but the takeaway as I think you allude to is that the smoke (such as this letter, Bright's letter and Warner/Rounds letter) would indicate that there is fire

Also, Warner and Crapo took Mnuchin out to dinner Wednesday night, after the hearing in which Warner said nothing negative about GSE's and Crapo was positive.

Forgot to give link:
https://twitter.com/GarrettHaake/status/1334591472419659776
On Wednesday night, Senators @MarkWarner & @MikeCrapo took Secretary Mnuchin to dinner, two sources tell me. Among other topics, they discussed the bipartisan COVID relief framework. Warner is one of the Dems most involved - so here's another way lawmakers are working the WH.

As luck would have it, I may have been dining at the same restaurant that night. Upon seeing the trio, I sent over an appetizer of beautifully plated goose-eggs benedict to Warner and offered to pick up the tab for them if anything positive for junior preferreds was finalized at the dinner. Crapo said if I was a taxpayer I would be picking up the tab either way. When I said "that doesn't sound like protecting the taxpayer to me" Mnuchin just shrugged.

[WB_fan82]

Ortho,

I DO believe the prefs will be offered a conversion.  At least all except the floaters.  It's just going to happen at the end.  I could be wrong b/c, as you point out, there is flexibility to pay some distributions after they meet the core requirements.  But that just leaks out capital for no reason and I don't see what is accomplished by converting the prefs early.

What part is me saying Calabria is lying?  I think Calabria has been transparent Day 1 and he's the GSE holders' best and only friend.  Huge fan of that guy.

[Luke 5:32]

SCOTUS live oral arguments, December 9th at 10am...
https://www.c-span.org/video/?477438-1/federal-housing-finance-agency-consolidated-oral-arguments

Credit to this Twitter account: https://twitter.com/30yrdream/status/1334885790342672384

[undervalued]

but the takeaway as I think you allude to is that the smoke (such as this letter, Bright's letter and Warner/Rounds letter) would indicate that there is fire

Also, Warner and Crapo took Mnuchin out to dinner Wednesday night, after the hearing in which Warner said nothing negative about GSE's and Crapo was positive.

Forgot to give link:
https://twitter.com/GarrettHaake/status/1334591472419659776
On Wednesday night, Senators @MarkWarner & @MikeCrapo took Secretary Mnuchin to dinner, two sources tell me. Among other topics, they discussed the bipartisan COVID relief framework. Warner is one of the Dems most involved - so here's another way lawmakers are working the WH.

As luck would have it, I may have been dining at the same restaurant that night. Upon seeing the trio, I sent over an appetizer of beautifully plated goose-eggs benedict to Warner and offered to pick up the tab for them if anything positive for junior preferreds was finalized at the dinner. Crapo said if I was a taxpayer I would be picking up the tab either way. When I said "that doesn't sound like protecting the taxpayer to me" Mnuchin just shrugged.

Almost got a seat at the table?

[TwoCitiesCapital]

but the takeaway as I think you allude to is that the smoke (such as this letter, Bright's letter and Warner/Rounds letter) would indicate that there is fire

Also, Warner and Crapo took Mnuchin out to dinner Wednesday night, after the hearing in which Warner said nothing negative about GSE's and Crapo was positive.

Forgot to give link:
https://twitter.com/GarrettHaake/status/1334591472419659776
On Wednesday night, Senators @MarkWarner & @MikeCrapo took Secretary Mnuchin to dinner, two sources tell me. Among other topics, they discussed the bipartisan COVID relief framework. Warner is one of the Dems most involved - so here's another way lawmakers are working the WH.

As luck would have it, I may have been dining at the same restaurant that night. Upon seeing the trio, I sent over an appetizer of beautifully plated goose-eggs benedict to Warner and offered to pick up the tab for them if anything positive for junior preferreds was finalized at the dinner. Crapo said if I was a taxpayer I would be picking up the tab either way. When I said "that doesn't sound like protecting the taxpayer to me" Mnuchin just shrugged.

Almost got a seat at the table?

They were in the room where it happened! Some would kill for that privilege.

/hamiltonjokes

[COBFInfinity]

It's nothing new to anyone here, but I am still astonished at the many parties interested in the GSE conservatorship, but don't have the slightest concern for shareholder rights or are antagonistic to shareholder rights. I am so naive that I thought those rights would matter.

[Luke 5:32]

A few bullish quotes, in my opinion, from hearings this week...

Senator Crapo:
“While my preference was for Congress to pass a bipartisan deal, it is long past time to make the hard decisions and address this last unfinished business of the financial crisis. Because of that, I would encourage you and the director of the FHFA to continue to take important steps that move the system in the right direction. The status quo continues to be unacceptable.”

Mnuchin:
“Well, let me just say, I don't think that they should be let out from conservatorship without appropriate capital. There is obviously different opportunities to accumulate capital and to raise capital. This is one of the areas that I will continue to try to work with this committee and others. I think there should be housing reform. I think that the appropriate scenario is for these to have real capital and ultimately them be released.”

Powell:
“I would just echo the Secretary's point that I think we would all—I would certainly like to see—the GSEs return to private hands over time and the housing finance sector and system standing on its own two feet with a lot of private capital behind it.”

Mnuchin on consent order:
“Despite the fact that the Director and I are having conversations, we have made no decisions at Treasury whatsoever. We are contemplating. There could be a scenario where at some point between the zero capital and the full capital requirement, there would be a consent order and they would be released subject to consent order. There has got to be significant capital to be released.”