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

Thanks for the summary. Any idea when some sort of decision will be published?

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

Apologies if this has been covered, but is there a timeline for a decision in the Bhatti case? Or at least a range? Thanks.

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

 

Section 802: Continued Conservatorship

a) timing - the conservatorship of each enterprise shall continue until a receiver is appointed...

b) No privatization.

 

 

 

 

Courtesy of whipstick on the iHub board:

 

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=138127285

 

http://bankrupt.com/CRL_FMCC_013018_182330.pdf

 

I just started reading but it appears to be a draft of the Corker/Warner bill.

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

https://www.bloomberg.com/graphics/2017-fannie-freddie-friends/

 

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

An off-the-wall thought:

 

Could Watt direct the GSEs to use their profits to start retiring/redeeming the junior prefs? Any money used to do that is out the door and is no longer part of net worth, meaning that the GSEs wouldn't have to send any money to Treasury. It could help with a restructuring of the balance sheet and maybe even undercut the lawsuits; perhaps Berkowitz and others would drop their suits if they're paid at par. High-dividend series like FNMAS and FMCKJ are Fairholme's main holdings and also the most prudent to pay off first.

 

Of course, this doesn't address Watt's concern with the lack of capital for short-term fluctuations. But it would help with a post-conservatorship future by not having dividend obligations. Watt might see this as a better use of money than just sending it to Treasury for no consideration.

 

I believe the chances of this happening are very small, but are they non-zero? Or would this violate the PSPAs in some way?

zero.

negative 1 million %, doesn't make sense financially or politically.