I don't have a short position......just a nervous holder...don't see how govt would profit in the long run if the recent bailout agreement provides for the full payback by sweeping earnings. Sounds to me like F&F
would no longer benefit the govt once the bailout is paid off in full. ...And DeMarco wants them phased out in a bad way. Just looking for some valuable insight. My sentiment is long, but I'm very nervous of it all being eventually wiped out.....is the stock not technically currently "worthless" to begin with? What will it be once the govt is fully paid off??
Its not just Demarco he was hired to oversee the wind down... Taxpayers were promised a wind down of the GSE's because the system or function of the GSE's failed and taxpayers had to bail them out. If they consider keeping two failures and not reform them into or more proficient model we will face this same problem again...TAXPAYERS WANT THE GOVERNMENT TO KEEP THERE WORD.
the government promised the American Tax payer back in 2008 that the GSE's would be wound down after the taxpayer bailed them out to the tune of allmost 200 billion dollars... Under the current agreement any profits are to returned to the treasury in the form of a dividend which is currently considered repayment on "investment" and NOT considered repayment on "bailout or debt" to the American taxpayer... Now there is talk or rumors about the GSE's using deferred tax assets or loses to offset what they owe the American taxpayer.... DO YOU HONESTLY THINK CONGRESS WOULD AUTHORIZE UNDER CONSERVATORSHIP A TAX BENEFIT TO THE GSE'S when the american taxpayer bailed them out in the first place....