I agree. It's just another "taking" lawsuit wrapped in a fancier package looking for a major shareholder to challenge. It will never fly, IMHO.
Very well stated. I agree 100%. If any of these litigations rescinds significant parts of the governments "deal" with Fannie or Freddie, I believe FHFA will declare an insolvency and liquidation which may not return non-cumulative divvies to Pfds but the recouping of share price is likely to approach $25 par value; Won't leave much, if anything, for commons.
I am long FNMAS.
Just read the Shapiro study, yourself. I don't have the time or interest to explain it to you after your previous snide remarks.
Shapiro also calls for a dilution of common shares from 20.1% of equity to 10% of equity, so new commons can be issued, effectively stealing half the equity from today's common shareholders to give it to new common shareholders whose capital infusion can pay for homes for low income borrowers.
I calculate his projected common share price in 2020 at around $7 if his plan gets actualized.
FNMA share price dropped from $62 a year earlier, to $7 prior to the conservatorship. Sounds to me like you are thinking of the old country music sing, "Looking for love in all the wrong places."
Fannie's board and senior exec's OWN the responsibility for most of the losses experienced by retirees and mutual funds. They should have spent less time in the lead-up years lobbying for more freedom/less regulation, and more time contemplating the logic of sucking up Alt-A and subprime garbage paper.
The truth is that most pension and mutual funds sold off Fannie when it was sent packing to otcmarkets. The "poor retiree victims" of conservatorship is a myth that may sound good on "investors unite" but carries little merit in the reality of things as they today stand.
I believe the $15.14 projected 2020 S/P is before a 50.1% dilution to common shares which Shapiro talks about in the next part of his narrative. This would mean that a tradable S/P in 2020 would be right around $7.00... exactly where FNMA common shares were trading at market close on 9/5/08 which was the day before conservatorships were announced. Anybody think this is a coincidence? I don't.
Hey, with a little bit of luck the share price in 2020 coud project as high as $15 and change.
Anyone know if he accepted political donations from Fannie Mae during and of his many re-election campaigns? Could $$$ have something to do with his support of the GSEs?
In a Wall Street Journal report in July, 2008 it was stated Fannie spent $170 million on lobbying since 1998.
Ackman is getting his head handed to him. Meanwhile Barry Rosenstein @ Jana Partners banked over $! B on Valeant when he sold it in September before its 40% haircut.
What a difference.
The five year redemption window for FNMAS comes up first on 12/31/15. $25 plus cum divvies in a liquidation before commons see diddly. Plenty of incentive to liquidate shares when Perry bought in at around 50 cents.
That's a nice "Santa Rally" result.
Think you better check your revenue number. Revenue for Q3/2014 was $29 billion. FNMA revenue could not have declined to $5.8 billion.
You are correct about he progress made since conservatorship was set in place. The FHFA has done an outstanding job of cleaning up the huge mess inside Fannie and Freddie.
As Lew clearly informed Capuano in Hill testimony, there was no loan to repay. The sweep is to pay for the government backstopping GSEs wit the risk of another $187 billion bailout. So the sweep remains in full force and effect, consistent with Judge Royce Lamberth's ruling.
Capuano is a well-intended Liberal that serves basically the same District 7 constituency as Tip O'Neal and JFK served in the past. His interest in affordable housing is popular since his Congressional district is very concentrated with minority voters. Among his largest campaign donors in the past are realty and homebuilder contributors. Who better to benefit from the GSEs being released with no responsibility to pay for the backstop. "Hey, just stick it to the taxpayers all over again."
Why don't you just post them under your other ID?
Liar, liar, pants on fire.
Your videos are toast except in locker rooms and drug-infused Hookah joints in decrepit strip malls that cater to addicts.
What's that sound I hear, there, sue? Could that possibly be the sound of the I-hub message police rendering another opinion on those videos?
Bwahahahaha. I am not a prophet of any kind. Never claimed to be. You are likely to get in a lot of trouble if you keep up this campaign
By the way, I am a shareholder in Fannie. I just happen to be a FAIR one.
Thanks for devoting your first post under your new ID to me, Trevor.
Much of the content was crafted by a college student presuming to know everything about housing and reform of the housing market including the GSEs. Smart kid. Huge ego. Very low credibility based on inexperience.