1. The warrants do not grant ownership until executed. They are simply a right to ownership into the future. Tsy may decline this right, courts may cancel it, etc.
2. The Srs. are securities purchased by Tsy as an investment. Have no votes. Mean nothing regarding ownership.
3. The money received by the GSEs was not a loan and in that regard there is no 180 bill +/- debt. That would be redemption value. Tsy is not a creditor that is owed money. It is simply a pain to common and Jrs. because they are higher in the capital structure and can siphon all earnings their way.
4. Watt is the CEO temporarily throughout the Conservatorship (steps in the shoes of...). DeMarco chose to give management some leeway. Same it appears for Watt.
5. Right now, courts will determine whether FHFA has been acting as an arm of the Treasury and if it was meant to do so. Or more likely, in what circumstances this chameleon (FHFA) changes its color to in regards to specific events, becoming a regulator, a conservator or an extension to the Treasury.
ralph nadar has been saying the same thing for years, as well as richard epstein, ted olson, bruce berdowitz, and others, so otherwise i'm glad you're in the battle
my friends, amidst all the jubilation of this day, we sometimes forget others whose independence has been stifled, repressed and oppressed. My friends, I am talking about two companies that support our vital housing finance system; Fannie Mae and Freddie Mac. So it is with a happy heart, that as of opening bell on Monday, July 7th, 2014, I hereby grant unequivocal and complete INDEPENDENCE for the two biggest companies in the United States, Fannie Mae and Freddie Mac. May their Sails Always Be Full. Thank you, My Friends. Now, join me and my family in PARTY TIME. Your Servant and Chief, O'Baumaughshanessy
i think it's better NOT to use the word "reform" because it give the impression they did something wrong...the better word i think is "regulate" you see, regulations can be made without a legislative act, like voting to do something, whereas, a regulation can be formulated and implemented within an agency, such as Treasury and/or the FHFA...i would stay away from the word "reform" even "restore" is better, sorry to be picky
and MotleyFool will publish a new article, it will be something like:
Why Fannie's big gains will disappear soon.
and TheStreet will write:
What Fannie shareholders don't want you to know.
"They" want YOUR shares...who are "they"?
-Media and Their Friends
-Washington Insiders including Congressional Insiders
-Large Investment Firms, including Hedge Funds
i just noticed on the "max" time period chart for fannie that when fannie was at about this same price in 1988 as she was going up, it took one year from about this same time (in 1989) to get to $10...that is, she gained $6/share in one year (from $4/sh)
BUT I WANT MORE AND FASTER, i want that $10 (which WILL come) to come in one month tops, but no selling for me til around $25
of course, you do realize that demarco addressed this issue a few months before he left the FHFA, by saying that yes, fannie and freddie have done very well...why? because they've been under FHFA conservatorship....we (the FHFA) made them what they are today....check the record, those were almost his exact words, but that still doesn't or shouldn't have precluded them from being released from c-ship..
GROUND FLOOR MATERIAL
pack it in like crazed sardine-packin' madmen