WOOO HOOO!!! I have one green!!!

[skibrian]

LOL

FMCCM up one cent!!!!  F*#@!@ YEAH!!

the rest of mine?  No bueno...

https://finance.yahoo.com/quotes/VYM,FMCC,FNMA,FMCKJ,FMCKI,FMCCM,FMCCK,FMCCT,FMCCI,FMCKK,FMCCG,FMCCH,FMCCL,FMCCN,FMCCO,FMCCP,FMCCJ,FREGP,FMCKP,FMCCS,FMCKO,FMCKM,FMCKN,FMCKL,FNMAP,FNMAO,FNMFO,FNMAM,FNMAG,FNMAN,FNMAL,FNMAK,FNMAH,FNMAI,FNMAJ,FNMAS,FNMAT,FNMFM,FNMFN/view/v1


F8!@# Corker Warner

[seysmont]

Apparently someone priced positive legislative action. I don't get it. I thought legislative action would be insane and random. This reduces the probability of insane and random solution. So it should have been a huge positive. Even if they are going to do an insane and random solution it's not the worst insane and random solution. I don't know what these computers price.

[chrise...@gmail.com]

Seys says: "So it should have been a huge positive"

Agreed.

Selling out the companies for cheap is a de-facto recapitalization and we have a floor for the value of the companies with Moelis.

Start the deal-making.

[joseph s]

The market is not always rational.  During the crisis after Citigroup announced they were buying Wachovia, I bought the severely distressed TRUPS(preferred stock that is essentially debt) for 8 bucks a share(25 redemption) that was paying dividends.  Put 125k in it with 20k in dividends.  After Wells announced they were buying it instead, the pref traded even lower.(I think the 6's)  Imagine 2 suitors and both with the ability to pay the debt holders yet it sells off more.  Happens all the time. 

not a recco

[chrise...@gmail.com]

Ain't talking kill, but talking deals and money for the sale and when this is happens, the news is good.

Remember this one:

Reducing the conforming loan limit to $400k, then $300k, then $200k and allow private market players to take this business, while the GSEs self strangulate with no new business and no way to pay off the loans. This plan does end up in r-ship.

Corker / Warner II sounds better to me than THAT plan.

(Your example, I can't remember, but sounds like 1st buyer walked and 2nd one grabbed, but then who knew if 2nd one would walk, as well... not familiar. I do know there were many unbelievable deals on preferred shares that paid out!)

[seysmont]

My understanding is that it will involve spinoffs of different businesses, not sales. It doesn't matter, because it's probably DOA anyway, which is good for us too, so it was a win win, but the market didn't like it for whatever reason. $0 is off the table even with the Congressional solution now. The reaction was not something I can explain. That was not a bad news contrary to the market reaction.

[chrise...@gmail.com]

"because it's probably DOA anyway"

Again, agreed.

Maybe the downdraft is shorts now knowing / thinking that Congress bought some time. Maybe a few months or even into 2018.

For example: If someone said the common was going to get paid out $10 in 2019 - for sure - one would think the immediate move would be UP. However, shorts take the opportunity to sell and scare and get rid of stops, etc. It would not be a straight-line up to $10 over the 2 year span. It would be lots of ups-and-downs.

As time has gone on, FNMAS should have made a line from .40 to $12.50 and kept climbing. Not so. Time has always been on our side.

Again, I think it is a chin-stroke... hmmm... maybe that Corker is on to something here. Let's think about this and have some studies and a CBO impact and see what we can do by 1/1/2019. Hmmm.

[joseph s]

Chris- Both C and WFC fought over Wachovia. Neither wanted to walk. Citi was left in the cold.

[seysmont]

The proposal like that will not make it out of the committee. It needs lots of details, and if it's Russian style "privatization", there will be a lot of pissed off stakeholders, not including the shareholders. If it's break up of monopoly it's first needed to be capitalized. I'm sure they will be given time, but whatever Corker & Warner hash out now without talking to anyone else will not fly and will use up attempts. Besides, Hensarling will have to lead on the effort, not these clowns. It's the House that has to lead. I'm not saying that Hensarling plan will be workable either, but it will not involve gibs to insiders on fire sale prices either.

[joseph s]

I think zero is completely off the table.
I think this happens in months.

Not a recco

[feralcomprehension]

Added $50's

[neo]

If Watt does not stop the sweep or he institutes the type of capital fund the NAR suggests (not as positive as outright stopping the sweep and retaining funds with GSEs) the share price action will be interesting to see

[chrise...@gmail.com]

Watt Man of Word, Man of Action?

Watt Whiny shill for elite who won't fight his own fight or stick by the smallest, simplest of change - keep funds in coffers?

Watt never would have gotten to be in his seat of power if he did not have a backbone and believe, in his heart, that he was right, correct, moral. He is a lawyer. He knows what he can and can't do and he played the politically correct servant and even told them what he was planning to do. No, you can't - Corker. Well, I just said I wouldn't be doing my job if I didn't - Watt. In front of thousands, if not millions of people?!

You can say what you want but I AM A BETTING MAN and I say Watt does not turn over the money (Bethany McLean & Joe Light sensed he was going to do it last quarter).

We shall see... we shall see.

[joseph s]

I do not think he will turn over the funds, either. I dont know if the stock goes up or down. Not a recco

[seysmont]

Watt is one shady character. He can go both ways. I don't think he is (a) afraid and (b) is moral. Watt will do what benefits Watt. He will do whatever benefits him the most at any cost. 

[mhill_fin]

I don't know what Watt will do. However, if Freddie is swept we are officially going over the 10% barrier that was agreed upon in 2008 into a new realm of takings. My belief is that is a much bigger deal than anyone can understand at this juncture. I believe it is a trigger point that cannot be undone that some judge somewhere will take seriously.

[SimSla]

Manuchin said he expects the payment. I think Q3 is when Watt stops the gravy train.

[Wayne Z]

That was also my only green yesterday!