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.
As much as I dont want this happen but in the best case the stock will idle for several years, in the worst case pps will gradually drop unless the shorts will keep up some volume.
Edi, I was wondering the same thing about Ackman. On Fnma message board I posted the question if Ackman would buy the same chunk of shares after government announcement .
By the way, I just was listening beautiful Armenian music on YouTube but It doesn't let me copy the link, only share it. Will you receive it if I send to new_edi_again email address? Since you liked the music you sent me I am sure you will like this one -:)) Let me know
Sigh... Yes Edi, you are right.
You know after I sell if I can. Buy back for 2.48 and sell for 2.6 ( that's the range this stock is fluctuating ) I could get my money back...