Hi Bernie, I do understand that. It's not about settlement but about every event is happeming to FnF. I decided to wait till 9th . After that I won't be able to watch closely any stock since I will be traveling as you know. It's cold in LA, 64 degrees...kol We are spoji led here in Florida, We have 80 degrees, walking auround in short sleeves... Lol
The agreement resolves substantially all indemnification and repurchase obligations on 900K loans originated and sold by PNC to Freddie Mac (FMCC) between 2000 and 2008. PNC will pay Freddie $89M (less credits of $8M).
This follows an agreement in principal between PNC and Fannie Mae. Both deals require final approvals from the FHFA.
Neilhu, the price of the stock is $1.65...You jumped in well. I will wait the price settled. Right now is 22+ mln. volume., flying like rocket.. lol.. -:)
I hold 26K of FMCC. Now, since I have decide to buy OIBR I wont wait for Dec 9th.. I will sell tomorrow and . With low price of OIBR I will restore the loss quickly
Bernie, Nope. I am not in options... but once I am on a break for a month I will look into that
Yes, I do, remember. I hold it. Waiting -:) Our common friend was going to sell his options today. Wondering how he did.
"In the long history of bailout deals, no heist of the U.S. taxpayer would approach this one in cynicism and chutzpah," writes Jonathan Laing of Bruce Berkowitz's buyout plan for Fannie (FNMA +5.7%) and Freddie (FMCC +5%). One analyst calls it a "three-card monte" scheme in which the preferred holders want taxpayers to pay them off at par, or turn over the keys to the companies wildly valuable operations for little more than a $17B rights offering.
Yes, Treasury will have realized $187B in dividends from the GSEs by year end - equal to the amount of the bailout - but that's "merely fair recompense for the enormous risks taxpayers took." Also, more than $80B of the $187B is the write-up of deferred tax assets - it will only be realized if the companies operate profitably for many years, says Laing.
The $404M settlement (less credits of $13M for repurchases already made) is over reps and warranties on 716K single-family mortgages originated (between 2000-2009) by Bank of America (BAC) and sold to Freddie Mac (FMCC).
Any payment made by BofA is fully covered by the bank's existing reserves. With this deal, says the bank, BofA has resolved all outstanding potential rep and warranty claims by the GSEs on loans sold by both it and Countrywide from 2000-2009.