Its a shame the revisionists - history folk - spin the story to make people believe something that is not true. Fact is Fannie and Freddie are the victims here (along with their shareholders). The infusion of cash disguised as a "bailout" was nothing more than the government using fannie and freddie to stabilize the economy. From a business perspective, from a Charter Perspective, likely these were in direct violation of each and so the only way they could "mask" the treachery was to invent the "bailout" it was an orchestrated move coordinated and put about upon these entities in such a fashion that it wasn't known what the poison was until after ingesting it. But make no mistake, hindsight is 20 20 and there was deceit and tomfoolery going on.
The only question today is will they get away with it.
Hear ya. But, AER is the beast in the biz. They are the market leader. The KO, DIS, HD or Air Line Leasing with their recent purchase. No worries really.
I want to know who told Goldstein it was gov't policy to wipe out shareholders of fannie and freddie. Who told him. It wasn't his idea and he's not a policy setter. WHO told him.
Its like, who told them to give that kid in a "few good men" that CODE RED.
I Want the truth. Who told him.
It'll come. The event will be over before you know it. And some will look back and say. Wow that was easy. Why didn't we do that earlier. But it will come.
The FHFA? How do they have a beef with goldman? They weren't created or come into existence until 2008 and don't transact any business with anyone except themselves and treasury? Hmm...
Maybe I should sue Goldman. I mean, really, don't I at least as an actual shareholder of fannie and freddie have a better position than fhfa and they got 3.15B?
you need to go back and re-read that memo.
Consider this Goldstein wrote that memo to Geitner - as if it were the policy / goal of the administration and in doing so in the memo carried out that goal.
Who told Goldstein?
See my question. Goldstein wasn't setting policy - someone else did. So who was it? Goldstein was merely parrotting it. something he'd already heard.
Its an ugly memo.
And has lots of cancerous lessions assoicated with it.
The Treasury can't settle claims on behalf of Fannie and Freddie. Certainly, some wise lawyer or hedge fund manager will realize that Treasury can't do this and any settlement purported on behalf of fannie and freddie would not bind them. So, the defendant that pays treasury 20Billion is not absolving themselves of any liability to fannie and freddie. Could be interesting.
Based upon my quick take on the numbers and what AER should produce on an adjusted cash flow basis and figuring no recession.... I figure AER will trade into the low 60's over the next 12 months. Thereafter, we'll have probably hit critical mass and possibly then trade with capital appreciation until a dividend is initiated. With the fleet it has, I'd expect constant churning and growth / renewing fleet age.
One question is the lock up period on the AER shares... will there be a flattening of the curve with that?
Its another hack job by that hack carney. What a mo.
He totals whiffed on the concept of damages to be awarded.
And a few other points of interest. He's prob; that other carney's brother that used to front for the dude masquerading in the white house.
A dividend 2.5% of "fair value" for the commons (this is an example as back in 2007 the dividend was $2 / share with a share price of around 70 which is 2.85%) and considering fair value is north of $150 -175+ would yield $4 a share... meaning without selling a single share. Many people on this board could retire and live comfortably.
Do you really give this management that much credit? Personally, I am beginning to think FLY is dead money for the next 2-3 years as the market "bases". Meaning, I'll take the yield; and at some point will monetize it into a company looking to grow and prosper as opposed to one that is constantly stalling out.
How about they tear up the "paper" that the FHFA (Government) gave to Treasury (Government) and maybe we don't send the lot of them to Jail. Better yet, maybe we get our $100Billion back from the government, the warrants, and another 200Billion in damages.
The only question is how much "looting" can they do before they get "ousted"? And what kind of permanent damage do they inflict. Like getting the cockroaches out of the summer house.
I foresee the damage component to the orchestrated acts to be really monumental. What maybe 300-500 Billion in damages between FandF?
What a pile of stupidity.
What Carney writes... is silly. What should happen is the governement and treasury should stop taking what does not belong to them.
Without Fan and Fred, this market goes bust back in 2008. And yet these uneducated hacks actually write pieces that say stupid stuff that is obvoiusly wrong. And call it news.
yes the "profits of just" 1.9 B is lower than what would be but there are lots of gimmicks going on to keep the n umbers low and besides, 8 B in annual profits for Fannie is still $8 a share. Which still yields over a $150 market price per share and fannie isn't even trying.
What a motard.
The article is garbage.
So, if there were a true cost ... committment fee... that fee would then be past on to the borrowers from the loan sellers ... duh!
Also, Why would you need a fee on the full loan pool. Instead just a fee on "risk". Manage risk down as well. Sure, it effects borrowing. But, hey that's what the government wants.
This author has written an "article" that is so silly.
Time for barrons to expose some accounting trickeration at fnf... some something... MEANwhile headline article exposing shuttering fnf will come out some analist of the delaneny taking a crapo bill.