Luke 532

Snarky, I'd be interested in reading the work you've done on anti-shareholder incentive structures. Thanks in advance.

Finance Bill Big for Fannie Mae, Freddie Mac https://money.usnews.com/investing/stock-market-news/articles/2017-12-13/fannie-mae-freddie-mac?src=usn_tw

Mayopoulos today: http://fortune.com/2017/12/12/on-leading-fannie-mae-outlook/ (paraphrased) "We've paid them back plus about $50 billion." When is the last time Mayopoulos publicly discussed the payments to Treasury?

Dick Bove discusses GSE's this morning with Maria Bartiromo starting at the 3 minute, 45 second mark: http://video.foxbusiness.com/v/5677611451001/?playlist_id=1866680862001#sp=show-clips

+1

Calabria (paraphrased): "I worked on the framework on their conservatorship and it shocks me that they are in conservatorship today, that needs to end." https://twitter.com/AtlanticLIVE/status/938855271979294720

Moelis & Company‏ @Moelis 9m9 minutes ago Don’t miss Chairman and CEO, Ken Moelis on @BloombergTV with @ErikSchatzker today during the 11am ET hour. He’ll be talking tax reform, M&A, and more.

LOL, good one!

That's a healthy way to look at things (from different angles). That certainly could be the case here, but Ackman going out of his way to sing the praises of Corker and Warner is incredibly interesting and makes me lean towards the Light article having some merit. But I'm biased given my stake in prefs. Seems to be at least 2 bills floating around: Jumpstart extension and revised Corker/Warner that is shareholder friendly (or so it seems). Going to be a wild ride.

Lorraine Woellert states the obvious... or what should be obvious. Lorraine‏Verified account @Woellert Replying to @billrad In any scenario involving shares, preferreds will come back first. Commons will be at the end of the line. That’s my best understanding at the moment.

Looks like screenshots from a bill (pulled from Twitter so can't verify it). See attached...

https://www.bloomberg.com/amp/news/articles/2017-12-07/lawmakers-plans-to-overhaul-fannie-and-freddie-come-into-focus?__twitter_impression=true Under the proposal, preferred shareholders of Fannie and Freddie could be made whole or close to it, depending on the final outlines of the transition, the people said. But common shareholders may not fare as well, they said. Whether and how shareholders get compensated in the transition to the new system is still an open question. Investors in the companies include several prominent hedge funds.

When did Ackman build his common stake? He was singing the praises of Corker and Warner not long ago.

It's happening: Senate #GSE reform proposal preserves Fannie and Freddie (in smaller form) and builds on existing system. #housing Only on @POLITICOPro -->https://www.politicopro.com/financial-services/article/2017/12/fannie-and-freddie-would-live-on-under-senate-proposal-211101 … Lorraine‏Verified account @Woellert 31s32 seconds ago You heard it here first-->Some Fannie & Freddie shareholders wiped out when the government took control of the companies eventually could see their stock values return under new Corker-Warner plan. $FNMA $FMCC #mortgage http://politico.pro/2B6NSs5

Where did you read that? Any Mnuchin actions could simply be in the format of an Executive Order from Trump.

Keep in mind the warrants that the gov't owns. They would give up a few billion per quarter by stopping the NWS but would gain a massive amount of cash ($100B+?) almost immediately by the common stock rising and the warrants being sold/exercised/etc. With a maximum 7-year window for this Administration, perhaps 3-year window, I'd rather have a massive payment up front to use at my disposal.

Mnuchin has been vague on a few things, but very clear on 2... Fannie and Freddie are not going anywhere and the 30-year mortgage will be intact. The former being the focal point with regards to Hensarling's comments. I would place more weight on Mnuchin than Hensarling given their titles.

The following things certainly seem interesting, especially since they have all transpired since late October. Corker and Stevens are arguably the most well-known anti-GSE personalities in their fields, respectively politics and the mortgage industry. -Corker's public feud with Trump via Twitter. -Corker's opposing views to Watt ("why not just draw $10B and see what happens?"). -Corker only Republican no vote on the recent tax reform. -Stevens is publicly against Trump via the recent tweets. -Stevens doesn't like Watt (see attached image). This has all happened in the past 6 weeks. The opposition to Fannie/Freddie seems to be getting anxious and they are lashing out. I like the fact that Corker/Stevens do not like Trump/Watt. I would be more concerned if the former pair liked the latter pair. Edit: The Corker/Watt exchange wasn't 6 weeks ago... that was in May.

Agreed on many fronts. With tax reform (nearly) completed, Mnuchin has less reason to toe-the-line and play both sides (as he was likely trying to do to get tax reform votes). Also, jumpstart is expiring, Congress goes on break on December 18th, the capital dwindles to $0 soon, etc. He has already (almost) achieved the most important thing on his agenda, the tax reform. Much of the political reasons to not act on his own is now gone. Sure, there are always political implications to acting on his own but not nearly as much as existed yesterday morning.

Yes, we know. That's the impetus for action from Mnuchin and the Trump Administration. They have clearly said no bailouts, protect taxpayers, GSE's aren't going away, etc.

This would be ideal. Bill passes and Corker is the only R that votes against it. This was tweeted just moments ago... around 4:50pm Eastern time. Chad Pergram‏Verified account @ChadPergram 4m4 minutes ago With Corker as a no, we expect the tax bill vote to likely be 51-49 with Corker as the only GOP nay

I would love to see the entire list and see if anything Jumpstart-ish is in it.

GOP Senate source tells me a deal has been cut with Corker, leadership has the votes for tax reform. It’s possibly they wrap before 7 p.m.

Looks like Flake and Collins are voting "yes" for the tax reform bill, so the bill is very likely to pass. In other news, Corker/Warner are apparently writing a GSE reform bill right now... probably because they didn't get anything in the tax reform bill so they're trying to get something in with a separate bill.

+1! That would be great. The article must have added those additional lines after I posted it because that would have definitely caught my attention. Thanks for posting! The next two sentences are better news: I would love for the bill to pass with Corker voting no. That means he didn't get his preferred language in.