TwoCitiesCapital Posted May 22 Share Posted May 22 (edited) 19 minutes ago, Sunrider said: Indeed - what a slow burn. Just wondered whether there's anything new in terms of admin action or courts which I missed? I seem to recall that there was a plan to release once they build enough capital - was that ever formalised? How far away would the companies be from that? C. They're still not able to really build capital. Every $ of retained earnings is offset by a liability of $ owed to the Treasury via liquidation preference. They get the benefit of having access to that liquidity, but any return it generates is still owned by the Treasury and not shareholders. The only real benefit of "reforms" made by the Trump admin is it put an extra layer of trouble for the Treasury in accessing those funds that they technically own - basically made a current asset a deferred asset. Shareholders do not benefit from this arrangement though - it seems more designed to punish the next administration then improve anything for the stockholders. People have argued it was set up to incentivize additional negotiations between the two parties to come to an agreement in the middle, but here we are 4-years later with 0 progress made there. It was a hard argument to make as a positive twist then and significantly harder argument to make today with the benefits of hindsight. Edited May 22 by TwoCitiesCapital Link to comment Share on other sites More sharing options...
sholland Posted May 22 Share Posted May 22 7 hours ago, Sunrider said: Indeed - what a slow burn. Just wondered whether there's anything new in terms of admin action or courts which I missed? I seem to recall that there was a plan to release once they build enough capital - was that ever formalised? How far away would the companies be from that? C. It’s a Trump trade. Share prices going up lately because Trump’s poll numbers have gone up. Trump floated the idea of John Paulson being the treasury secretary. Paulson was a backer of the Moelis Plan to recap and release. Link to comment Share on other sites More sharing options...
TwoCitiesCapital Posted May 22 Share Posted May 22 23 minutes ago, sholland said: It’s a Trump trade. Share prices going up lately because Trump’s poll numbers have gone up. Trump floated the idea of John Paulson being the treasury secretary. Paulson was a backer of the Moelis Plan to recap and release. If Trump really wanted to help them, couldn't he have forfeited the Treasuries' defense in court and admitted that the institutions were stolen from shareholders, and pillaged, at the direction of the Treasury and the prior administration? He didn't. Link to comment Share on other sites More sharing options...
Sunrider Posted May 23 Share Posted May 23 Thank you. If there is one thing I’m sure about is that Trump as President or ex will only do what benefits him. Link to comment Share on other sites More sharing options...
Sweet Posted May 23 Share Posted May 23 I don't believe that Trump could not have gotten these companies released had it truly been a priority. Link to comment Share on other sites More sharing options...
gfp Posted May 23 Share Posted May 23 I don't follow any of this FNMA/Freddie stuff closely, but I will just point out that Trump was completely checked out once COVID messed up the pretty picture he was trying to paint. Mnuchin was basically running Treasury without much input from Trump and Mnuchin was busy micromanaging the COVID response with Jay Powell. Link to comment Share on other sites More sharing options...
Mephistopheles Posted May 24 Share Posted May 24 Mnuchin went on cnbc before Trump was even sworn in, and said he wanted to release the companies. He should have had it done long before Covid. As two cities mentioned, why the fuck did he keep fighting Fairholme et al in court?? How hard is it to drop a case, to settle if you’re the Sec of Treasury. Is the bureaucracy really that bad? Link to comment Share on other sites More sharing options...
Gregmal Posted May 24 Share Posted May 24 Just flip em into the election. Easy trade. Link to comment Share on other sites More sharing options...
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