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

[SnarkyPuppy]

The volume and price surge seems disproportionate to the Senators' letter. We have seen those before, though the request for a reply by September 29 is new.

 

Edit: the letter might even be negative if Mnuchin was hoping to keep his plan under wraps. I don't see how he can dodge the question this time.

 

The Phillips comments are a much bigger deal imo. This is a Treasury official directly commenting that the conservatorships need to end. Recapitalization will have to precede that. For all the talk about "we do not want this construed as an intent to 'recap and release'," there sure are a lot of power players leaning towards that possibility.

 

Why do you not contemplate a reformed structure without the current two GSEs as part of the 'end of conservatorship'?

[ValueMaven]

Its a nice positive...take it for what it is

 

 

[Cardboard]

Babe holds the key to your bright future:

 

http://www.townandcountrymag.com/society/politics/amp10029952/who-is-steven-mnuchins-fiance-louise-linton/

 

Man, this guy is ugly. He must be really kind. Lol!

 

Cardboard

[Luke 532]

https://prod-cdn-static.gop.com/media/documents/Resolution+on+Protecting+Taxpayers+by+Restoring+Safety+and+Soundness+to+Government-Sponsored++Enterprises.pdf

 

I think this came out last week (right click, view page info, see date... not sure if that's how to accurately check the date of this document).  Very interesting.  With the Democrat letter to Mnuchin today, it sure seems like both sides of the aisle are getting on board.

 

"Safety and Soundness" sound an awful lot like the Moelis plan.

[SnarkyPuppy]

https://prod-cdn-static.gop.com/media/documents/Resolution+on+Protecting+Taxpayers+by+Restoring+Safety+and+Soundness+to+Government-Sponsored++Enterprises.pdf

 

I think this came out last week (right click, view page info, see date... not sure if that's how to accurately check the date of this document).  Very interesting.  With the Democrat letter to Mnuchin today, it sure seems like both sides of the aisle are getting on board.

 

"Safety and Soundness" sound an awful lot like the Moelis plan.

 

No chance this is real.  If this is real you would be silly not to back up the truck tomorrow.  No chance this is came out last week and it wasn't everywhere

[SnarkyPuppy]

https://prod-cdn-static.gop.com/media/documents/Resolution+on+Protecting+Taxpayers+by+Restoring+Safety+and+Soundness+to+Government-Sponsored++Enterprises.pdf

 

I think this came out last week (right click, view page info, see date... not sure if that's how to accurately check the date of this document).  Very interesting.  With the Democrat letter to Mnuchin today, it sure seems like both sides of the aisle are getting on board.

 

"Safety and Soundness" sound an awful lot like the Moelis plan.

 

How did you find out about this?

[Midas79]

Why do you not contemplate a reformed structure without the current two GSEs as part of the 'end of conservatorship'?

 

No chance this is real.  If this is real you would be silly not to back up the truck tomorrow.  No chance this is came out last week and it wasn't everywhere

 

There's "realism," there's pessimism, then there's this attitude which seems self-defeatist. Why would anyone in power concern themselves with the safety and soundness of companies that won't exist for much longer? As for the RNC letter, it is hosted on the gop.com server and has been reported on by Lorraine Woellert of Politico.

 

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=134601835

[Luke 532]

 

There's "realism," there's pessimism, then there's this attitude which seems self-defeatist. Why would anyone in power concern themselves with the safety and soundness of companies that won't exist for much longer? As for the RNC letter, it is hosted on the gop.com server and has been reported on by Lorraine Woellert of Politico.

 

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=134601835

 

And Mnuchin is speaking about the GSE's today at the Politico Summit: http://www.politico.com/tipsheets/morning-money/2017/09/13/mnuchin-and-more-at-politico-pro-summit-222249

[orthopa]

Seriously what is going on?

 

Why is the RNC so concerned all of a sudden about FnF? They/Them are certainly taking the blame it on Obama angle to heart as some on here speculated Trump would, and now the zero capital is scaring the democratic senators.

 

Whoever wrote the RNC statement seems pretty well versed on all of the key points that Berkowitz, etc have been pounding the table about for years.

 

After 3-4 years I have learned to not get excited much at this stuff at all but is this why Paulson, Ackman etc see a resolution by year end?

[Seahug]

Real? I can't find the document using the search function on the GOP website,

[rros]

 

There's "realism," there's pessimism, then there's this attitude which seems self-defeatist. Why would anyone in power concern themselves with the safety and soundness of companies that won't exist for much longer? As for the RNC letter, it is hosted on the gop.com server and has been reported on by Lorraine Woellert of Politico.

 

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=134601835

And Mnuchin is speaking about the GSE's today at the Politico Summit: http://www.politico.com/tipsheets/morning-money/2017/09/13/mnuchin-and-more-at-politico-pro-summit-222249

Where does it say GSEs? Or is it part of tax reform? The agenda isn't including housing reform.

http://www.politico.com/live-events/pro-policy-summit/agenda

 

[SnarkyPuppy]

The RNC document, if real, is hands down the most bullish news to come out with respect to this investment.  As someone mentioned, it reads as if berkowitz himself wrote it, and was almost certainly coordinated

[TonyG]

https://www.gop.com/rules-and-resolutions/

 

its on the RNC site

[SnarkyPuppy]

https://www.gop.com/rules-and-resolutions/

 

its on the RNC site

 

Says this was a result of the 2017 RNC summer meeting

[Luke 532]

Where does it say GSEs? Or is it part of tax reform? The agenda isn't including housing reform.

http://www.politico.com/live-events/pro-policy-summit/agenda

 

My mistake, I don't see it now after a second reading.  I could have sworn I read it in that article.  I'm reading so many articles that I'm getting them mixed up... my apologies for the confusion.

[Midas79]

Seriously what is going on?

 

Why is the RNC so concerned all of a sudden about FnF? They/Them are certainly taking the blame it on Obama angle to heart as some on here speculated Trump would, and now the zero capital is scaring the democratic senators.

 

Whoever wrote the RNC statement seems pretty well versed on all of the key points that Berkowitz, etc have been pounding the table about for years.

 

After 3-4 years I have learned to not get excited much at this stuff at all but is this why Paulson, Ackman etc see a resolution by year end?

 

A (probably optimistic) guess is that the RNC knows that recapitalization is coming and wants to get ahead of it, making it look like their idea. As opposed to it ostensibly taking them by surprise and making their previous resolution look silly. It's political theater, but that's what they do.

 

The resolution also takes the requisite potshots at Obama. I wish those hadn't been in there; if there is to be bipartisan housing finance reform that actually respects shareholder rights it will need support from both parties.

 

I thought Phillips's comment was good news but this bit about shareholder rights is the single best thing I've heard from a power player so far.

[Midas79]

 

There's "realism," there's pessimism, then there's this attitude which seems self-defeatist. Why would anyone in power concern themselves with the safety and soundness of companies that won't exist for much longer? As for the RNC letter, it is hosted on the gop.com server and has been reported on by Lorraine Woellert of Politico.

 

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=134601835

And Mnuchin is speaking about the GSE's today at the Politico Summit: http://www.politico.com/tipsheets/morning-money/2017/09/13/mnuchin-and-more-at-politico-pro-summit-222249

Where does it say GSEs? Or is it part of tax reform? The agenda isn't including housing reform.

http://www.politico.com/live-events/pro-policy-summit/agenda

 

Lorraine Woellert seems to think that the GSEs (and specifically a potential recap) might be part of it.

 

https://twitter.com/Woellert/status/908314119815737344

[Luke 532]

The RNC document, if real, is hands down the most bullish news to come out with respect to this investment.  As someone mentioned, it reads as if berkowitz himself wrote it, and was almost certainly coordinated

 

I don't think there will be a legislative solution, but now we have both Democrats and Republicans publicly asking Mnuchin to allow the GSE's to build capital.  Both the Democrat and Republican documents started circulating on the Internet yesterday... I'm sure that's just a coincidence.  ;) 

 

At the very least, it gives Mnuchin a lot of political cover to do the right thing and allow the GSE's to build capital.

 

Democrat letter and Republican document attached.

FNMAS_Republican_resoultions.pdf

[waynepolsonAtoZ]

OK! Gotta love the RNC document.

[Guest cherzeca]

https://prod-cdn-static.gop.com/media/documents/Resolution+on+Protecting+Taxpayers+by+Restoring+Safety+and+Soundness+to+Government-Sponsored++Enterprises.pdf

 

I think this came out last week (right click, view page info, see date... not sure if that's how to accurately check the date of this document).  Very interesting.  With the Democrat letter to Mnuchin today, it sure seems like both sides of the aisle are getting on board.

 

"Safety and Soundness" sound an awful lot like the Moelis plan.

 

+1.  great find.  sounds like one of us wrote that...

[hardincap]

feels surreal to read this from the same party that blamed the gses for all the evils in the world. has the tide shifted for good?

[Midas79]

I don't think there will be a legislative solution, but now we have both Democrats and Republicans publicly asking Mnuchin to allow the GSE's to build capital.  Both the Democrat and Republican documents started circulating on the Internet yesterday... I'm sure that's just a coincidence.  ;) 

 

If by "legislative solution" you mean a full overhaul of the housing finance system before the GSEs run out of capital, I agree.

 

But if enough members of Congress really want a recap, could we see something like an anti-Jumpstart rider? One that directs Treasury to immediately void the senior preferreds and start recapping the companies? Until now it has been the anti-GSE members of Congress (especially the Senate) that have controlled the debate, and not enough other members felt strongly pro-GSE enough to push back. But now if the pro-GSE faction can control the narrative and pull along the (likely) majority that doesn't really care, the votes could be there.

[Guest cherzeca]

to me, the power of the RNC resolution is that it gives mnuchin cover if he wants to push congress in a certain direction.  until this resolution, corker/crapo/hensarling etc could stake out a anti-gse position and be confident that they were defining republican orthodoxy of the gse subject.  now they find themselves on the other side of the "official" party position.  mnuchin can now clothe himself with this resolution and argue for a result that is close to the moelis blueprint and not be a party outlier, and corker/crapo/hensarling etc now bear the burden of pushing a non-orthodox party position.  i say close to the moelis blueprint because that rnc resolution could have been appended as an exhibit to the blueprint.

[hardincap]

does anyone have any details on how this document came to be formed? how "official" is this? still taken aback and hoping it is for real, bc agree w/ cherzeca, it marginalizes the anti gse loudmouths (we all know who)

[Guest cherzeca]

@hardin

 

rnc summit was 8/23-26.  apparently posted to rnc website 8/31.  still trying to get clarity on whether reps from trump admin/treasury were at summit/voted on resolution.