De Marco is on his way to be replaced with lots of critics what he suggests doesn't make sense and will be fought by the Congress
Seems like the White house doesn't like De Marco. Obama has tried unsuccessfully to replace him. Type De Marco Wikipedia, it's all explain there The day he is replaced we may go big time green. What De Marco wants to do doesn't make sense. Form one entity with the funds of Fannie Mae and Freddie Macthat that would end up a Gov Branch Department like Medicare is pretty communist. A Stalin or Lenin move... Most people complain of FNMA or FMCC too much backed by tax payers but what De Marco suggests is exactly a Gov Firm supported by Taxpayers... Sounds like an indirect manipulative nationalisation. He is manipulating down the stock by creating a fear technique on the eve of an extremely great report that should move up PPS if there was not this nationalisation fear ... If the Republican agrees with this then how can they complain about FNMA or FMCC to be too much a tax payers liability. The New firm and the former company shut down would be a big time tax payers liability. Maybe. Keeping Fanny Mae and Fred Mac wound down: smaller but profitable and independant competing with the new Gov Firm might be what De Marco at the best could achieve. But Fannie Mae and Freddy Mac out of the game while being big time profitable doesn't make sense!
Perhaps De Marco is just being preemptive. Washington is seeking change for F&F and he is taking he initiative. Moreover, there is no reason the new company formed should not be a new "platform" doing what F&F do now but WITHOUT THE GOVERNMENT GURANTEE. It is this governmn guarentee the government wants to eliminate in the future. Just like any other "spin off" the new company should give shareholders in F&F shares in the new company. See any problems here for us shareholders?
He is blocking FNMA and FMCC and just want the new Entity to become a Government Branch doing the present Job of FNMA and FMCC so the risk to Taxpayers would be actually the same if there were another downturn in the future.... This doesn't make sense esecially that now FNMA and FMCC is profitable... so why to change something that is working, blaming them for the taxpayer risk when in fact they are reimbursed and creating a new Entity that would involve the taxpayer because it will be a Gov Branch. More of the same with a different name... Don't you think? Most taxpayer don't even know who is FNMA and its activity.... so don't this politician don't have soemthing else to do than changing name of a Company....
I agree, as soon as he is replaced we start going green. There is no possible reason that this valuable company should be trading under 30c, unless DeMarco is planning something bad for commons. We must do everything possible to get rid of DeMarco.