Make GSEs Great Again Plan

[FreeFannie&Freddie]

I’ve submitted my own individual retail investor proposition to fix Fannie Mae and Freddie Mac to FHFA, Mnuchin, and the president. This plan makes all classes of shareholders winners.

Submitted my plan to FHFA.

Dear Honorable Mr. Watt,

It’s now been over 9 years since the beginning of the Conservatorship of Fannie and Freddie. The companies have been through a massive transformation internally into much much safer and more efficient shareholder owned companies than they ever have been.

As you know, Fannie and Freddie are the most important and most profitable companies in the world. These companies have saved our financial system, and even provided assistance for affordable healthcare. These companies are fortunate that they have had the power and resources to help so many families afford a home, and even afford healthcare.

As a shareholder of the common equity of these systemically important institutions; I understood that according to the law set forth in 2008, that there was sacrifice involved with investing in these companies, but the investment was worth the time and sacrifice.

I must humbly say that I am disappointed the Conservatorship went on for so long, especially without some consideration to share the success with individual, normal, hard-working shareholders.

I feel there is a very simple solution that can be executed by you with help from the Treasury Secretary Mnuchin, and the president to ensure Fannie and Freddie are sound and solvent. The solution would be a huge win for the government, all classes of shareholders, the employees, and other stakeholders. The plan includes the following:

1. Immediate relinquishment of the so called 3rd Amendment of the PSPA known as the Net Worth Sweep.

2. Deem the Senior Preferred fully paid and cancel the shares

3. Deem the warrants for approximately 80% of the companies Null and Void

4. Order Fannie Mae and Freddie Mac to issue to the Treasury 500 Million to 1 Billion Common Stock Equity Options with a strike price of $60 and share. This exercise price is chosen because the companies boards have the power to deem the share price whatever stock price value they want. Also, because $60 would make all employee retirement savings whole. So many employees lost their savings from the 2008 crisis. Many of them trusted Fannie and Freddie not to fail.

5. Issue Fannie Mae and Freddie Mac a capital buffer equivalent to $30 to $60 B representative of the exercisable $60 option strike price proceeds that would go to the companies upon execution of the option(s). This equivalent buffer could be reduced as the government executes its options in the future.

This plan gives not only the shareholders vested interest in the value of the companies, but also the government. All stakeholders will have an interest for the companies to command great equity value.

For example, if the share price goes to about $1000 a share (before forward stock splits), the government could make over a Trillion dollars in combined proceeds from exercised options and from taxable capital gains. The plan will stop all lawsuits. Junior preferred and common equity holders will drop lawsuits because all stakeholders will be made whole; and will flourish.

May God Bless

[jthom...@gmail.com]

But hey moelis plan is great and isn’t stealing from commons.

[Tom Findley]

$60 a share X my 33,000 shares = $1,980,000.

I can dig it.

After reading other posts, I have learned that Trump has decided to keep paying subsidies to the insurance companies to keep Obamacare care going. This is paid for with our profits, and will continue until Obamacare ends.

[Camaro]

This plan is a win for everyone, not stealing from any class, even gov makes out.

 Jr Preferred holders get to RV, which is what they want. It will be up to the gov to determine when they will start paying dividends again.

This is a separate plan from any other submitted, call it An Average Joe’s Idea to Get Fannie Mae and Freddie Mac Out of Conservatorship

[jthom...@gmail.com]

Maybe Trump decides to go with something like this to play up ‘average American.’

[ron...@comcast.net]

This isn't a plan. It's pure idiocy. Point 4, for instance, is arbitrary and contradictory to every grievance since 2008. Why should the government be able to "order" new shares? Moreover, they have a much better legal chance of keeping the shares HERA gave them in the "original" deal than "ordering" new shares. They'd never order new shares in exchange for shares they already have.

[Letgoofmyfannie]

It's like in Monopoly, when you pass "GO" you get $200!

[ron...@comcast.net]

"Also, because $60 would make all employee retirement savings whole. So many employees lost their savings from the 2008 crisis. Many of them trusted Fannie and Freddie not to fail."

LOL. How absurd is that? That people trusted their investments not to fail is no reason for the government to issue themselves new shares at a high strike price.

This ridiculous wish of a "plan" makes GSE investors look like unprincipled morons. Something tells me CBS is under a lot of pressure that is taking its toll on his rationality. Not a recco.

[FreeFannie&Freddie]

Its an awesome plan!

Not sure who would say its not with a 1/2 a brain.
Just are there any 1/2 brains in DC.

Junior Preferred......Win!

Common Equity......Win! (Wynn)

Taxpayers........Win!

Government.....Win!

We all can Win!

Let’s do it! We can do!

Yes We Can!!!!

https://twitter.com/donotlose/status/920627626527612934

https://twitter.com/nsfraudbuster/status/920624827467227136

https://twitter.com/jemiller12/status/920626650701815808

https://twitter.com/nsfraudbuster/status/920624827467227136

https://twitter.com/jemiller12/status/920622588749058053

[ron...@comcast.net]

Deal with my posts. Just don't assert more nonsensical gibberis.

If government can order new shares, why shouldn't they just keep the warrants instead?

You despise the warrants but have no objection to new warrants being ordered. Mindless.

[Letgoofmyfannie]

Nonsensical Gibberish being in my wheelhouse too, I may as well get in a plug:

Net Worth Sweep Won’t Stop a-Takin’: #Fanniegate Blues No 9

https://www.youtube.com/watch?v=DqprcwFaeP0

Net worth sweep won’t stop a-takin’ 

Net worth sweep won’t stop a-takin 

Net worth sweep won’t stop a-takin’

US Treasury is stealin’ from me.

Biggest Fraud ever in the nation

Biggest Fraud ever in the nation 

Biggest Fraud ever in the nation

Largest theft in financial history.

Contact your elected representatives

Contact your elected representatives 

Contact your elected representatives 

Ask ‘em for a meetin’  tell ‘em what you see…

Net worth sweep won’t stop a-takin’ 

Net worth sweep won’t stop a-takin 

Net worth sweep won’t stop a-takin’

US Treasury is stealin’ from me.

[FreeFannie&Freddie]

The difference is these Legal options have a strike price of about $60 and incentivize the government to promote the value of the companies equity. They like all of us will want the most value possible. It means more income via capital gains, etc.

The government will execute its options at a price far greater than $60 a share.

The illegal warrants you promote is just theft. And it harms people.

Big Difference Buddy....!

You Should Support A WIN-WIN Plan For All!

I DO.

[ron...@comcast.net]

How is "ordering" new shares to the government legal? You can't even answer that one.

If it is legal to "order" new shares to be handed over to government, then strike price is irrelevant. That means government can order trillions of shares at a strike price of a penny.

[ron...@comcast.net]

"The illegal warrants you promote is just theft. And it harms people."

Ordering new shares to be handed over to the government is also theft. The only difference between the two thefts is in your plan the theft is accomplished at a higher strike price. That can be accomplished with the existing warrants. You're just willing to legalize a new form of rape.

[FreeFannie&Freddie]

Trump is a deal maker; and believes in making winning deals.

The options with a strike price of $60 provides instant restoration
of pre-crisis equity values. It’s a win for all.

All lawsuits will be dropped, and we will have peace and wealth.

Love Ya!

Your A Winner!

[ron...@comcast.net]

Keep dreaming...

[FreeFannie&Freddie]

Your A Winner! We ALL Are Winners!

God Bless

[mhill_fin]

The bipolarity of bashing the preferred one day and saying we're the devil, then the very next day inviting us all over to be one with God in a plan to save the world is a little perplexing. At this point in the game, I'm pretty confident that no one is looking toward the retail shareholder Google/Twitter groups for a magical resolution. However, you won't see me being a roadblock to the CatBird plan getting traction on the Hill, so have at it.

[Camaro]

The recommendation was sent to Watt.

[ron...@comcast.net]

More than the silliness of the plan is the naivety that allows one to think that such a wish has a chance of being granted.

[seysmont]

> More than the silliness of the plan is the naivety that allows one to think that such a wish has a chance of being granted.

The thread

[mhill_fin]

Thanks for clearing that up, some may have mistook it as a letter to Santa Claus.

[ron...@comcast.net]

😂

[FreeFannie&Freddie]

There has not been a better plan to date presented by a hedge fund, a lobby group, an individual, or even Congress.

The plan is simple. Its grassroots and not a hedge fund. It’s non-biased, and it makes all stakeholders happy.

All of you are winners. We all are winners.

https://twitter.com/nsfraudbuster/status/920624827467227136

[Crownjewels]

Maloni says, "Good Plan," but asked met to ask you to build in some retroactivity since most of his neutered stock options were in the 60's and 70's (dollars not decades of).

Oh, and he asks if you could throw in a 70inch Samsung wraparound  TV and two of those Swedish pumps that Mr F, Ugo, and Joseph S have????

[joseph s]

C.J.- I caught the heel on the stairs...

The heel and my toe are broken. Sad day.

On said "plan":

I grant the "wish" on the "plan". They don't call me alladin for nothing. Magic Carpet rides, 1 million a piece.

Might want to just copy Moelis then add in the warrant exercise "adjustment"

Santa, Mhill and I are proud. I hope he writes back or at least gives you a pair of roller skates.

[Halo Hat]

Belly laugh ;-)

[joseph s]

We all win! Thank God the plan with the 60 strike price has been submitted! May the best "plan" win! Who is the financial advisor that will execute such a plan? Who will be the book runner, the syndicate underwriter, etc? Have they signed on?

Good luck!

"So you are saying there's a chance...."

-Jim Carey

[FreeFannie&Freddie]

Does Not Cost A Dime &

Zero Legal Ramifications

[ron...@comcast.net]

Doesn't cost a dime? It dilutes shares no less than the existing warrants. The only difference is strike price would be 60. Therefore, a plan that sets strike price of warrants at 60 wouid by your estimation not cost a dime. So why isn't that your plan? It's because you think warrants are illegal. Well, how isn't "ordering" new shares illegal?

Regardless. it would cost investors. It would cost investors 1/5. Rather the 300 pps they'd have 60. That you're satisfied with 60 is irrelevant.

I can't post that on your board because of your hypocritical double standard of censorship.

[joseph s]

Did someone say free cookies and ice cream?

[G. Buckman]

Wait, what?....The Low Spark of High Heeled Boys....

My plan is much more simple-erer.....all I require is all the money in the world, plus a camper!  That ought to do it.  Oh yeah, one last thing....no camper, no deal.

[ron...@comcast.net]

GB

I downloaded that song not too long ago....

[G. Buckman]

XXX - oldie but a goodie. 

[joseph s]

I am going to be a millionaire off 1 share of fnma? When? Is it happening soon? It is all "free"?

I love my free soda hat I got. I wear it to the office every day.

https://youtu.be/8feZ7tfPQgw

[Mayhem]

Alright - my take point by point on this one (gov't perspective):

"1. Immediate relinquishment of the so called 3rd Amendment of the PSPA known as the Net Worth Sweep."

Starting off OK...

"2. Deem the Senior Preferred fully paid and cancel the shares"
Running into some math errors here, as they are still not quite fully paid with the 10% dividend, but maybe this could be sold as a 'good enough' gesture to shareholders to stop the lawsuits.

"3. Deem the warrants for approximately 80% of the companies Null and Void"

Hmmmm, why would we give away 79.9% of the companies again?  These seem to be on pretty solid legal grounds.  Maybe we can update the strike price to a dollar average of the trailing 30 days like we did with GM to help boost capital a little.  This would be somewhat fair and worth consideration.

"4. Order Fannie Mae and Freddie Mac to issue to the Treasury 500 Million to 1 Billion Common Stock Equity Options with a strike price of $60 and share. This exercise price is chosen because the companies boards have the power to deem the share price whatever stock price value they want. Also, because $60 would make all employee retirement savings whole. So many employees lost their savings from the 2008 crisis. Many of them trusted Fannie and Freddie not to fail. "

Wait - I thought you wanted warrants to be null and void, now you want them back?  $60 a share seems really unrealistic given the current market value.  Even assuming a more normal PE ratio, we don't get anywhere close to this number.  Also, why the #)%( are we now bailing out shareholders now?  I thought we already bailed out the bail outs and were done bailing things out.  The government has no obligation to bail out shareholders 9 years later, let alone any other time.  Also - it seems like someone does not know what this means.  500 million to a billion shares at $60 means it will cost between $30 and $60B to purchase those shares....last I checked that is not "free" and doesn't not cost anyone anything.

"5. Issue Fannie Mae and Freddie Mac a capital buffer equivalent to $30 to $60 B representative of the exercisable $60 option strike price proceeds that would go to the companies upon execution of the option(s). This equivalent buffer could be reduced as the government executes its options in the future." 

Hold up - what in the actual F are we talking about now?  If this is correct, the current 1.1B shares of FNMA being held against the $600M in capital means the shareholders are really only sitting on ~$0.50 in value....someone tell those commoners to get out before the share price corrects to its actual value!!!  So, I am going to need you to go ahead an study a balance sheet and show your work on this one, and also explain why $30-$60B is going to be adequate with the potential to be reduced later?  If the share price magically re-sets itself at a value that makes little sense, just for the government to pay a really high value, why is the expectation that the share price will stay there and not drop to the more realistic $15-30 per share after execution - especially given the new dilution taking place?  Show your work on how you are valuing the Market Cap as well, please.

"This plan gives not only the shareholders vested interest in the value of the companies, but also the government. All stakeholders will have an interest for the companies to command great equity value."
What value was that again for the government?  The assumption that stock prices go up forever and never go down?  Why do the shareholders have a vested interest in this scenario?  It is like you being handed a winning Powerball ticket - do you think you are really going to care about how the lottery operates after you cash that check?  How stupid do you think you are?  There will be zero f's given by common holders once they sell out(and they will sell out), unless you are just invested in this to feel good about helping the people, in which case, why the #)(% are you worrying about share price to begin with?

"For example, if the share price goes to about $1000 a share (before forward stock splits), the government could make over a Trillion dollars in combined proceeds from exercised options and from taxable capital gains. The plan will stop all lawsuits. Junior preferred and common equity holders will drop lawsuits because all stakeholders will be made whole; and will flourish. " HAHAHHAHHAHHAHHAHHAHH $1,000 per share...HAHAHHHAHHAHAHAHHHAHA.

[joseph s]

Wait until the 1:1 conversion

Fnma=BRK-A

Bwahaha!

[littlede...@gmail.com]

All da devil knows is RV in conversions for a utility or RV+, plus divies for a recap. RV is is da base line....keep it simple....do your dd and as always go figure....devil

[FreeFannie&Freddie]

Home ownership is considered a national interest. In crisis, the companies were in effect recruited. They did not see it coming. None of them did. The employees trusted that the companies were sound and solvent. Many of them poured their own life savings into the equity at $40, $50, $60 a share. Then one day without warning, lost it all. In a sense, the employees and shareholders were recruited to save our national interest. They went through a horrific battle to save our housing finance system.

All Shareholders (Preferred and Common) deserve to have full restoration of equity values, and I feel it’s the government’s duty now to ensure full restoration is completed.

A $60 strike price is to hold the government accountable to meet full restoration. It is to their benefit to help promote the share prices to reach $60 and even much more.

The $1000 wa just mentioned to exaggerate the potential unlocked capital there really is in a positive outcome. Years of revenue growth from investor capital gains taxes.

What’s in it for the government and taxpayers?

1. Higher share price means more revenue in taxes from investor capital gains.

2. A stock price exceeding $60 a share amplifies point 1., and the sales of executed options brings in further revenue.

Bottom line, we all benefit. Everybody wins.

[Mayhem]

There is some serious revisionist history going on here, but nonetheless - the government doesn't owe anyone anything for 2008.  The share price the day before the government took over was ~$6 for FNMA.  It had been eroding from that $60 level over the course of a year before this alleged "recruitment" happened.

Everyone *should* know the stock market is volatile and carries risk (hence the potential reward).  So your belief is that the people that bought into FnF as if they were buying the one magical stock that somehow could never go to zero?  That is the assumption that should be made on every other stock that has ever been sold.  If they were looking for safety, they should have looked at investing in other vehicles such as bonds or some other secured note.  Stocks always have at least some chance of going to zero, the relative risk of that happening is what the market is dictating.  I am not saying I don't want to make money here, I have both common and preferred shares - but let's not be delusional.

Tell me again why this can't be done with the current warrants and updating the strike price to a trailing 30 day average for the price?  It would get you half way to your $30B target for capital just from execution at the current prices.  If news leaks or is released before hand, they could be even closer!!!

[seysmont]

It's not even that. US government sponsors terrorism. So fraud is not something they would shun from. If you believe the fraud angle can be exposed with the US government firmly controlling the media through its propaganda, go for it. FOr everything else, the official lie stands, and you have to look for a way out assuming the government narrative. Then Moelis is a solution. Moelis is not a solution if the reality is exposed, but that's clearly not happening. 

[FreeFannie&Freddie]

By all means, your welcome to share a better plan that is good for all classes of securities holders.

I’m sure the brilliant minds here can come up with some better that all will agree is great!

FHFA is currently accepting plans so please get your Great plan for all in before the 27th.

Do you realize why FHFA is accepting outside plans? Hmmm...?

[fwc...@gmail.com]

No Seys, they are not going to expose the fraud. They've already been exposed by the NYT/Rolling Stone/others and survived. The Feds have managed the courts to slow play this so successfully it was beyond my naive comprehension. They always have the risk of public outcry and escalation, but they sure seem willing to take that risk. If Berko is selling, why take it to the SCOTUS at the same time? Why isn't DT influenced more by Paulson/Berko/Ichan I'd like to understand. This will go to the utility model I too agree. DT backing off the ACA payments is a good sign. A better sign would be more emails exposure from Sweeney's court, hopefully that's coming soon. 

[joseph s]

By all means, you're welcome to use the proper "your".

Lol

Move along Jeffy, recess is over.

I submitted my plan with Paulson. I bet on winning horses. Yours looks like 1500 mdn clm horse from the 1st race at Fonner Park against Classic Empire, Always Dreaming, Easy Goer and Sunday Silence.

Be realistic.

[joseph s]

Lmao! Good luck. I am sure MS, BAC, WFC, etc will be the syndicate group. You already met w/ em, right?

[FreeFannie&Freddie]

Average Joe’s plan is better than the budget plan. The budget plan costs government money in short term, although in long term they keep all the profits. Average Joe’s plan costs gov nothing short term and has long term potential of $1 trillion to government.

This really should be called ‘America’s GSE Plan’.

It’s from the people and for the people. Not from or for a greedy hedge fund.

[joseph s]

It is not a plan. It is a crack pipe dream. It does nothing except make you appear off kilter.

Good luck.

[Brian Adams]

I'm all common - 19320 shares. There are some plans that will make me a lot of money that have a serious chance of passing.

FreeFannie&Freddie's plan is not one of those. 

I'd recommend getting behind the actual plans. A Moelis hybrid where the warrants are used at a strike price to recapitalize or something. Or hope for an awesome settlement in court, or even an outright win many years from now with monetary damages. Even plain jane Moelis makes us money. 

The only thing more nuts than this plan is the idea that Watt and co would take it seriously. No offense. I'm on your team! Just not realistic.

[joseph s]

Folks thought I was on crack when I stated that RTH talk of raising the strike to 20 was feasible. Maybe 10. That way, it raises some capital

[joseph s]

Using Moelis and raising the strike....

[FreeFannie&Freddie]

The Average Joe Plan, brings Fannie Mae and Freddie Mac out of conservatorship. This plan is not written by an arrogant ass hole hedge fund manager, and offers:



· a simple solution for FHFA to bring Fannie Mae and Freddie Mac out of conservatorship;

· prosperity for present and future home buyers who qualify for reasonable loans as it restores confidence in housing finance for all Americans again;

· the government, in a bi-partisan approach to end the conservatorship and potentially unlocks up to one trillion in revenue - the beauty of this is it costs the government nothing;

· tax payers, as it ends government funds sent to Fannie Mae and Freddie Mac; and

· pension funds like those owned by school teachers and firemen for example and preferred and common stock owners as it brings their investment ownership to full value.

In other words, this plan is beneficial to all Americans of yesterday, today and of course the children, our future tomorrow.

This seems to be something this board just does not get.

The points of the Plan are so simple a child gets it, and you can count them on one hand. 1, 2, 3, 4, & 5.

EASY.

[mhill_fin]

Would probably be better to actually number the bullet points. I can't get past the Trillion dollars as I keep losing my shit after that and don't know how to come back down and find where I left off.

[FreeFannie&Freddie]

Well, you have to put forth something that gets people excited and exaggerates the point that there is a lot to be gained by making all parties happy to sell it. And it's simple.

That's the whole point of the 'one trillion' and $1000 (after years of forward splits, etc.) share price.

A politician thinks about government finance in the 10 and 20 year spans. If fact, they count potential revenue

as far as 10 and 20 years.

They won't sell it to other politicians and to the taxpayers as here is what we get in one year. No! it's here is what

we could get in 10 or 20 years by doing this ....

The points are tailored for a politician that thinks government revenue and spending in this manner, Not a trader or a hedge fund wanting a huge return in 6-12 months.

Understand?

[joseph s]

Lol @ understand....

Mhill understands this investment. He is going on 9 yrs in it. Move along. This is not a serious thing to anyone but 3 or 4 people

[joseph s]

Childish thoughts deserve a childish response. It wasnt childish. It is true.

This is not a plan. It is a crack pipe dream that wont come true. You have better odds of going to KS by clicking your heels 3x....

Dorothy

[feralcomprehension]

"A politician thinks about government finance in the 10 and 20 year spans..."

Flawed premises lead to erroneous conclusions.

[mhill_fin]

Extremely naive plan. I guarantee that it didn't even make it past the FHFA spam filter.

[Manure Baggers Association]

LOL, the 3 numskulls behind this cockamamie plan asking Watt to pump up their shares to the stratosphere: 

CatBird, Eva and nsfraudbuster

They probably should have cleaned up their tweets earlier in the year where they badmouthed FHFA & Watt. Dumbasses.

[Letgoofmyfannie]

Whoa there, don't forget, when you're heapin' derision: Blind Sheep Investor contributed gratis this handy Theme Song (it's not the best work, but hey neither is the Average Joe Plan). It appears that Catfish at least has enough sense to ignore Blind Sheep's overtures.  To be a big time Social Policy Planner one has to take a lot of criticism, you can't let anybody get your goat. Ergo, as Catfish has a Sheep that has a goat for a neighbor, does that count?

Average Joe Plan Marketing Theme Song 

Marketing is a very important part of any Winning Successful Plan and Average Joe's is no exception. Spokesperson Blind Sheep Investor has donated this valuable Theme Song that everyone has already agreed on for the Average Joe Plan:  

GSEs Should Be Released  

https://youtu.be/EzgJpRQ52F8 

Corker n Warner said GSEs can be replaced  
Hensarling sez we don’t need GSEs at all  
But without Secondary Mortgage Buying  
US Housing Prices are bound to fall  

I see home ownership falling  
From the West way over to the East  
Every day every day GSEs are not released.  

Down on Pennsylvania Avenue Jack Lew says he’s not to blame  
Says he got the sweep from Geithner and Hanky Panky  
But he collects shareholder profits just the same  

I see shareholders vindicated  
From the West way down to the East  
It’s the right thing to do now, GSEs should be released.  

We just had a contentious election  
The candidates were focused on calling names  
Now its time for the winner to turn attention  
To a positive solution without blame  

I see home ownership rising  
From those with Most down to the Least  
Any day now any day now GSEs should be released  

Any day now any day now GSEs should be released