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

[Iriminage]

6 hours ago, COBFInfinity said:

Trump signed an executive order to create a sovereign wealth fund. I have no idea if POTUS can do that without Congress, but in any case I can't help but hear Bessent say this and not think the GSEs are at least in consideration here.

 

"We're going to monetize the asset side of the U.S. balance sheet for the American people," Bessent said. "There'll be a combination of liquid assets, assets that we have in this country as we work to bring them out for the American people."

i haven’t posted in, oh, 6(?) years, but wanted to check in here RE: musk activities within treasury over the weekend.  
 

Musk’s team of 6 zoomer software engineers, all under age 26, spent some quality time over the weekend accessing, exploring, installing hard drives, downloading, uploading, playing solitaire, at both OPM, and Treasury

 

https://slate.com/news-and-politics/2025/02/elon-musk-us-aid-social-security-data-heist-trump.html

[james22]

1 hour ago, Iriminage said:

Musk’s team of 6 zoomer software engineers, all under age 26, spent some quality time over the weekend accessing, exploring, installing hard drives, downloading, uploading, playing solitaire, at both OPM, and Treasury

 

https://slate.com/news-and-politics/2025/02/elon-musk-us-aid-social-security-data-heist-trump.html

 

Those of us within the ranks of the federal workforce looked on in horror at all of this. 

 

Those of us without look on with glee.

 

Trump is doing what he was popularly elected to do.

[Iriminage]

So this is evidence that us little guys are invited to the table with Elon, Paulson, and Ackman?  One is remunerated, the other bought off, and all remaining plaintiffs are settled directly with a phone call and a bank transfer, screw the lawyers.  Any and all of these hypothetical transfers could have happened Monday morning.  Some 19 year old kid, working for free, could have clicked confirm on a $10 billion transfer to Paulson.  
 

No i don’t mean it’s physically possible that he could hack in from his mom’s basement, or lift a badge from someone at Starbucks and sneak in at lunch.  Dude was already, factually, in the building.  
 

Does that pass every sniff test for you?

 

Many of us entered the gse saga with a reasonable premise, expecting reasonable treatment which never came.

 

But it will totally work this time, because the powers that be are dedicated to a deliberate, unbiased interpretation and execution of Law?  That’s my question.  

[james22]

2 hours ago, Iriminage said:

That’s my question.  

 

Why rant about it?

 

You know the answer: if you can't trust the actors, you shouldn't invest.

 

No one is going to talk you into it.

 

Move on.

[Grenville]

I think it's a fair observation...no reason to bully the person off the thread. 

[james22]

40 minutes ago, Grenville said:

I think it's a fair observation...no reason to bully the person off the thread. 

 

It's political. Better than a ban.

[Mephistopheles]

https://www.wsj.com/finance/regulation/new-hud-chief-sets-sights-on-fannie-freddie-cost-cutting-and-new-name-2e83652f?st=AFdYXU&reflink=article_copyURL_share
 

Here we go!

[Mephistopheles]

I made a Truth Social account to pump Fannie Mae. Yall should get in on this.

 

Turn it into a meme stock among the MAGA folk.

[Ulti]

https://www.bizjournals.com/atlanta/news/2025/02/13/fannie-mae-freddie-mac-privatization-impact-rates.html?cx_testId=40&cx_testVariant=cx_3&cx_artPos=7#cxrecs_s

[Mephistopheles]

https://www.freep.com/story/news/politics/2025/03/13/bill-pulte-confirmed-senate-lead-federal-housing-finance-agency/82371332007/
 

Here we go

[Iriminage]

https://storage.courtlistener.com/recap/gov.uscourts.dcd.163155/gov.uscourts.dcd.163155.439.0_1.pdf
 

Monday may be wild

[DocSnowball]

18 hours ago, Iriminage said:

https://storage.courtlistener.com/recap/gov.uscourts.dcd.163155/gov.uscourts.dcd.163155.439.0_1.pdf
 

Monday may be wild

Was just reading the same. Good to see discussion again of rights traveling with the shares, along with the process moving forward.

 

I have no legal background, just a preferred shareholder. Wondering what the amount is worth per preferred share  fwiw. More importantly, it seems it will help close the legal front being a class action lawsuit.

 

Thoughts from those who know more? I added preferreds over the last week anticipating momentum after Pulte confirmation. It's been a long patient wait, as long as my membership on this board!! 

 

https://www.govinfo.gov/content/pkg/USCOURTS-dcd-1_13-mc-01288/pdf/USCOURTS-dcd-1_13-mc-01288-10.pdf

[This2ShallPass]

7 hours ago, DocSnowball said:

I added preferreds over the last week anticipating momentum after Pulte confirmation. It's been a long patient wait, as long as my membership on this board!! 

Looks like wait will be longer..

 

https://www.cnn.com/2025/03/13/business/fannie-freddie-privatization-fhfa-director/index.html

 

[Iriminage]

1 hour ago, This2ShallPass said:

Looks like wait will be longer..

 

https://www.cnn.com/2025/03/13/business/fannie-freddie-privatization-fhfa-director/index.html

 

Yes, after all this, we may have to suffer DOGE going BigBalls-deep into Fannie & Freddie.  Two companies among the highest efficiency on a per employee basis in the country.

 

Hopefully Ackman/Paulson have some say on the extent of theatrics involved.

[DocSnowball]

12 hours ago, This2ShallPass said:

Looks like wait will be longer..

 

https://www.cnn.com/2025/03/13/business/fannie-freddie-privatization-fhfa-director/index.html

 

Not sure what to make of the article from CNN just yet. Pulte is tweeting dozens of times a day, so waiting for more information from him or FHFA first hand. I would think information will come out directly, and if not then via share price movements, in the coming month. Difficult line to walk between confirmation bias and selling too soon. At 40% of par, preferreds are undervalued for the current situation imho. 

[rogermunibond]

FT opinion piece on putting Fannie and Freddie into a US sovereign wealth fund

 

https://on.ft.com/41NnCN6

[TwoCitiesCapital]

On 3/16/2025 at 12:08 AM, This2ShallPass said:

Looks like wait will be longer..

 

https://www.cnn.com/2025/03/13/business/fannie-freddie-privatization-fhfa-director/index.html

 

 

Lol

 

Any effort would require "significant study"...

 

Guess that studying wasn't done the first time around? I think we're getting the confirmation that this isn't a priority for Trump this time, just like it wasn't last time. 

[COBFInfinity]

11 minutes ago, TwoCitiesCapital said:

 

Lol

 

Any effort would require "significant study"...

 

Guess that studying wasn't done the first time around? I think we're getting the confirmation that this isn't a priority for Trump this time, just like it wasn't last time. 

 

It is very unclear to me whether they are just downplaying a release plan to reduce resistance, or if they are just working towards another punt after 4 more years. I mean, Pulte had several tweets over the weekend referencing employees' potential for growth potential in their careers and earnings - it's easy to read into that must imply a release with future stock options in play, etc. Of course, it could just means he is going to try to get a bunch of people fired (opening the door for others), but since he won't be running the companies, I'm not sure he has much sway in that.

[COBFInfinity]

On 3/14/2025 at 11:04 PM, Iriminage said:

https://storage.courtlistener.com/recap/gov.uscourts.dcd.163155/gov.uscourts.dcd.163155.439.0_1.pdf
 

Monday may be wild

 

These securities very often don't act the way you would think. It seemed like there were multiple positives over the weekend, but nonetheless common are down a bit while JPS are up slightly.

[crs223]

[deleted]

Edited March 17, 2025 by crs223

[Iriminage]

5 hours ago, COBFInfinity said:

but since he won't be running the companies, I'm not sure he has much sway in that.

yea, about that…

 

So Pulte is now chairman of both boards.  Oh, and, one of the new board members, Christopher Stanley, is doge.

[This2ShallPass]

12 hours ago, COBFInfinity said:

It seemed like there were multiple positives over the weekend, but nonetheless common are down a bit while JPS are up slightly.

What were the other positives than the lawsuit outcome?

 

Saying we need to study deeply is code for we're not interested in doing it now. I sold a third of my remaining common today. 

 

Still have pfds. What are the boards thoughts on those?

[orthopa]

 

I would say as expected. Hard to argue Assets of the people, staying with the people. Makes monetization easier, on less pushback. 

 

I believe recent board changes with DOGE and pultes comments are to make FnF lean. Decrease expenses. If meaningful less expenses improve margins, earnings and help towards a better valuation if/when goes private.  Lord knows after 15 years under the helm of multiple admins with different goals that is probably a lot of fat to trim. I think this is a move towards privatization vs more of the same for the next 4 years. 

[Mephistopheles]

Playing devils advocate here. Does sovereign wealth fund necessarily mean privatization? They can just put the entities as they are, in conservatorship, into the fund and get all the cash flow to diversify into other assets. 

[COBFInfinity]

1 hour ago, Mephistopheles said:

Playing devils advocate here. Does sovereign wealth fund necessarily mean privatization? They can just put the entities as they are, in conservatorship, into the fund and get all the cash flow to diversify into other assets. 

 Based on the current terms of the SPS, Treasury won't receive any cash flow for years to come. So that would imply ending the conservatorships is the only way to get any cash out during Trump's term. Buuuuut, there isn't anything stopping them from adjusting the SPS terms yet again, is there? When Treasury and FHFA have been given a rubber stamp by the courts to do almost anything they feel like, it makes it hard to guess what might happen.