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

[muscleman]

Love me some democrats  https://twitter.com/DoNotLose/status/859628827647016960

 

Thank you. I wonder what's the context there. They were discussing CHOICE act last night so I wonder how did they brought up FnF.

[Luke 532]

http://video.foxbusiness.com/v/5420142826001/#sp=show-clips

 

Doesn't sound like Mnuchin expects (nor needs) Congress to get this figured out.  We already knew that he doesn't need Congress, but it almost seems like he doesn't expect Congress to do anything... although in the past he has said he is hopeful for bipartisan support.  Heck, I'm hopeful the Red Sox would draft me and I could play SS for them, but I'm certainly not expecting it.

 

Mnuchin is being thorough and meeting with a bunch of interested parties (as he should).  The point is that he clearly realizes that he alone can make a recommendation to Trump on what to do and, more importantly, he seems to realize that might be the best option.

[Flynnstone5]

I'd like to know when the hell someone will do a thorough interview and actually ask him directly about his views on the sweep and what his position is on shareholder rights. Maybe bring up the fact of how much money has been paid to treasury and compare with any other company that received bailout funds. WTF?!

[Midas79]

Amazing the action on the preferreds past couple of days.  Mr. Market reacting exactly the opposite of how I would have guessed based on Monday mornings comments on Fox.

 

The prospect of Congress getting involved actually scares me. That's where the players are who want to screw shareholders.

[muscleman]

I'd like to know when the hell someone will do a thorough interview and actually ask him directly about his views on the sweep and what his position is on shareholder rights. Maybe bring up the fact of how much money has been paid to treasury and compare with any other company that received bailout funds. WTF?!

 

+1. So far there have been none of such discussions.

 

[muscleman]

Amazing the action on the preferreds past couple of days.  Mr. Market reacting exactly the opposite of how I would have guessed based on Monday mornings comments on Fox.

 

The prospect of Congress getting involved actually scares me. That's where the players are who want to screw shareholders.

 

Nothing would be done by Congress. Not in the past eight years. So the inertia will likely continue.

 

[Guest cherzeca]

I'd like to know when the hell someone will do a thorough interview and actually ask him directly about his views on the sweep and what his position is on shareholder rights. Maybe bring up the fact of how much money has been paid to treasury and compare with any other company that received bailout funds. WTF?!

 

+1. So far there have been none of such discussions.

 

Mnuchin is smart to avoid being too specific. There would be a lot of action in the stocks and he doesn't want to be responsible for that. Time is not his enemy. The closer we get to 2018 without resolution the stronger his hand will be

[Fat Pitch]

http://video.foxbusiness.com/v/5420142826001/?#sp=show-clips

 

Sounds like Mnuchin isn't going through Congress. Going to reach out to groups and gather info and make a recommendation to the POTUS to what the solution should be. Getting bipartisan support just went out the window.

[Luke 532]

Getting bipartisan support just went out the window.

 

I wouldn't be so quick to assume that.  The shouting last night might be an indication that nothing bipartisan gets done, and perhaps that display last night is enough for Mnuchin to think he's given Congress a chance and now he needs to act.  But I think he gives Congress until the 2nd half of the year to see what they come up with as he has stated he won't tackle GSE reform until then.

[Midas79]

Mnuchin has mentioned the Treasury's line of credit to Fannie and Freddie several times recently. Some appear to interpret this as Mnuchin thinking the GSEs owe their existence to the government or some other negative.

 

But I see this as just more reiteration that since the line of credit exists and FnF have close to zero capital, they are in constant danger of needing another bailout. Mnuchin wants to end this line of credit as it is a source of risk to taxpayers.

[no_free_lunch]

Mnuchin has mentioned the Treasury's line of credit to Fannie and Freddie several times recently. Some appear to interpret this as Mnuchin thinking the GSEs owe their existence to the government or some other negative.

 

But I see this as just more reiteration that since the line of credit exists and FnF have close to zero capital, they are in constant danger of needing another bailout. Mnuchin wants to end this line of credit as it is a source of risk to taxpayers.

 

Yes, and in the May 1 fox interview he specifically and clearly stated that the current setup is putting tax payers at risk. Of course there are numerous ways to resolve that and still burn fnma common and preferred's.

[Luke 532]

Mel Watt to testify next week before Senate committee...

https://www.wsj.com/articles/senate-panel-to-revive-mortgage-overhaul-efforts-with-first-hearing-next-week-1493836967

 

 

[rros]

Mnuchin has mentioned the Treasury's line of credit to Fannie and Freddie several times recently. Some appear to interpret this as Mnuchin thinking the GSEs owe their existence to the government or some other negative.

 

But I see this as just more reiteration that since the line of credit exists and FnF have close to zero capital, they are in constant danger of needing another bailout. Mnuchin wants to end this line of credit as it is a source of risk to taxpayers.

 

Yes, and in the May 1 fox interview he specifically and clearly stated that the current setup is putting tax payers at risk. Of course there are numerous ways to resolve that and still burn fnma common and preferred's.

What is absolutely clear to me is that Treasury's backstop will disappear judging from Mnuchin's insistence on getting taxpayers out of the equation. How it ends, abruptly or over a number of years or how it gets replaced... no clue.

 

The implications are clear. The PSPAs will have to be terminated and both Fannie and Freddie will have to look for capital somewhere else. That is when Watt will be forced into the picture.

[Luke 532]

Trump should stop tweeting so much — these 'interjections are harmful,' says powerful GOP Sen. Corker

 

I highly doubt Corker would risk upsetting Trump by saying something like this if he liked what was going on behind the scenes.

[muscleman]

 

I watched the arguments regarding FnF causing the financial crisis. 4:30 and later.

I am surprised it is the Democrats who are insisting that FnF did not cause the crisis and it is the Republicans who said FnF caused the crisis.

 

[no_free_lunch]

Its just the government involvement they don't like. Then they look for reasons to kill it. GFC does the trick so thats it.  Read the breitbart article,  its full of half truths but in politics its about agenda rather than truth.

 

End of the day getting rid of gses is a good idea but they will mess up housing market for years.

[muscleman]

Anyone tracking the Pagliara hearing today?

 

[Midas79]

 

I watched the arguments regarding FnF causing the financial crisis. 4:30 and later.

I am surprised it is the Democrats who are insisting that FnF did not cause the crisis and it is the Republicans who said FnF caused the crisis.

 

You shouldn't be surprised at how the left/right split breaks down. Democrats want FnF recapped and released to continue their affordable housing mandate. Republicans (especially the libertarians) want the government charter and mandate rescinded. Efforts to kill FnF have mostly come from the right.

[muscleman]

 

I watched the arguments regarding FnF causing the financial crisis. 4:30 and later.

I am surprised it is the Democrats who are insisting that FnF did not cause the crisis and it is the Republicans who said FnF caused the crisis.

 

You shouldn't be surprised at how the left/right split breaks down. Democrats want FnF recapped and released to continue their affordable housing mandate. Republicans (especially the libertarians) want the government charter and mandate rescinded. Efforts to kill FnF have mostly come from the right.

 

 

Hmm... That's strange. Didn't the board members say if Hillary got elected, the FnF stocks would be trading at a fraction of today's price?

[Midas79]

 

I watched the arguments regarding FnF causing the financial crisis. 4:30 and later.

I am surprised it is the Democrats who are insisting that FnF did not cause the crisis and it is the Republicans who said FnF caused the crisis.

 

You shouldn't be surprised at how the left/right split breaks down. Democrats want FnF recapped and released to continue their affordable housing mandate. Republicans (especially the libertarians) want the government charter and mandate rescinded. Efforts to kill FnF have mostly come from the right.

 

 

Hmm... That's strange. Didn't the board members say if Hillary got elected, the FnF stocks would be trading at a fraction of today's price?

 

Yes, but that's more of a function of who Hillary would have put in charge. Instead of Mnuchin and Mulvaney we would have "fellow travelers" Jim Parrott and Gene Sperling, for example.

 

And I spoke too broadly about the Democrats' motives. There are certainly some (e.g. Warner) that want FnF dead. But by and large that party supports government-mandated affordable housing.

[muscleman]

Trump should stop tweeting so much — these 'interjections are harmful,' says powerful GOP Sen. Corker

 

I highly doubt Corker would risk upsetting Trump by saying something like this if he liked what was going on behind the scenes.

 

Good point!

[Desert_Rat]

 

I watched the arguments regarding FnF causing the financial crisis. 4:30 and later.

I am surprised it is the Democrats who are insisting that FnF did not cause the crisis and it is the Republicans who said FnF caused the crisis.

 

But it's always been that way. The GOP, for law, can't stand us for reasons like the community reinvestment act while the lawless, heathen Dem's see us as a utility to help finance the poor. So on one side we have a group that would do away with us but regret the theft, and on the other a group that would prefer the NWS remain in perpetuity.

 

 

[Desert_Rat]

 

I watched the arguments regarding FnF causing the financial crisis. 4:30 and later.

I am surprised it is the Democrats who are insisting that FnF did not cause the crisis and it is the Republicans who said FnF caused the crisis.

 

That was interesting. I listened to the whole thing and started to worry about what was in this H.R. 14, but Ellison was right at 4:27: Not one damn thing in it refers to FnF https://www.congress.gov/bill/115th-congress/house-bill/10/text. So what was that whole back and forth about?

 

Our govt in action. Hours wasted bitching about something they obviously know little about, and in the end rejecting the amendment they were asked to legislate but really did not.

 

[Luke 532]

Corsi at 15:00 mark: "The regulators of Fannie and Freddie are asking President Trump to stop taking the money out of Fannie and Freddie."

https://youtu.be/PWNQNf7DCfY

 

I know, I know, Corsi is a whack job (not factoring in Mnuchin's comments possibly confirming Obamacare story) but I wouldn't be surprised to see Watt say something along these lines during his testimony next week. After all, in the past he has publicly stated the law got trumped and the conservatorship can't last forever.

[waynepolsonAtoZ]

God knows, in The Donald era Corsi is a very credible source! Watt always said he would defer to Tsy on the SPSPAs, so this makes sense.