Rep. Pearce: Fannie and Freddie To Exit Conservatorship/ The Elephant In The Room Addresses The Elephant In The Room.
Posted by timhoward717 in Fannie Mae Freddie Mac ˜ 43 Comments
Today’s hearing confirmed my belief that many members of Congress lack even a basic understanding of our situation. This is a very complex issue in which they rely largely on talking points provided by their leadership. This makes for some rather awkward and uninformed exchanges leaving anyone with extensive knowledge scratching their heads in disbelief. It was evident that many of the reps need to brush up on some basic key facts and I would suggest they stick around for the entire hearing next time rather than popping in for their 5 minutes of fame.
Due to this confusion we saw many Republicans help to reveal some critical truths today.This was evident was when Republicans questioned Mel as to whether the PSPAs trump HERA. The real benefit of these exchanges will come to light as more people become familiar with the work be done by Mark Calabria and Michael Krimminger. They were both very involved in the crafting of HERA, and they join Rep. Waters is stating that the intent of HERA was never to “wind down” Fannie and Freddie.I have a preliminary copy of the paper and can say that it will be a very powerful tool in unwinding the web we find ourselves in.
In a surprising twist we saw Republican Rep. Steven Pearce from New Mexico state that Fannie and Freddie would be exiting conservatorship. In a more shocking twist he stated his concerns that they must be cautious and not let private capital once again fraudulently dump toxic mortgages on the GSEs.It would have been nice to see the expressions on everyone else at the hearing when he expressed this.You can be sure he will be getting a visit tomorrow. Rep. Pearce confirmed as did much of the testimony today that both Democrats and Republicans are keenly aware that GSE reform is not possible and plans need to b
A LOT MORE -------------
Fannie Mae 6.75% Non-Cum. Pfd. Series Q===volume 7.46Mill--avg=118K
He won't sat anything about it---IMO there may never be any anouncement------should just start trading,,,anoucement @ 10:00AM when it hapenes
Somebody said they thought P/E should be 15==makes PPS $218.00
PPS should be $138 ************
PPS should be $138.00 $16bill/1.1 X P/E 9.50==$138.00
$16Bill Annual REv/1.1 bill shares X 9.50 P/E= $138.00
They could have a 4/1 forward split, ($34.00 pps)then we could rake in dividends for a few years,
This calculation was made prior to the recent revelations regarding the $61 billion DTA's...so perhaps it could be higher---anybody got anymore thoughts?
Anyone else notice that the "Hard to Borrow" flag is not there?
It's still on FMCC however