Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Support MFO
Donate through PayPal
Why Fannie, Freddie Declines Leave Big Investors Unfazed: Bill & Bruce: "What Me Worry"
I'm sorry but one need only look at the last name of one of the bill's authors to see where this was headed. I still wonder if BB bought more.
lol.
Frannie wind-down could spare preferreds; faces hurdles in any case Mar 13 2014, 11:20 ET “It’s hard to find any reasonable outcome that’s really terrible for the preferreds, given what I perceive to be the value of the business that’s already there," says portfolio manager Jeffrey Lewis, an owner of the shares. Investors in the common stock, however, are making a bet Fannie Mae (FNMA +12.4%) and Freddie Mac (FMCC +13.4%) will be allowed to become dominating private companies again and keep their profits.It's up to the courts to decide how investors will be treated, says Sen. Mike Crapo, who co-wrote the bill to wind the GSEs down. "We are not necessarily going to dictate the outcome."As for whether a bill actually becomes law anytime soon, former Senate banking panel aide Mark Calabria gives it maybe a 10% chance of getting to the president's desk this year. The dim prospects look to be giving a boost to the common shares today. http://seekingalpha.com/news/1625313-frannie-wind-down-could-spare-preferreds-faces-hurdles-in-any-case
I wouldn't count on the courts to favor investors, either, but that's just me.
Comments
Frannie wind-down could spare preferreds; faces hurdles in any case
Mar 13 2014, 11:20 ET
“It’s hard to find any reasonable outcome that’s really terrible for the preferreds, given what I perceive to be the value of the business that’s already there," says portfolio manager Jeffrey Lewis, an owner of the shares. Investors in the common stock, however, are making a bet Fannie Mae (FNMA +12.4%) and Freddie Mac (FMCC +13.4%) will be allowed to become dominating private companies again and keep their profits.It's up to the courts to decide how investors will be treated, says Sen. Mike Crapo, who co-wrote the bill to wind the GSEs down. "We are not necessarily going to dictate the outcome."As for whether a bill actually becomes law anytime soon, former Senate banking panel aide Mark Calabria gives it maybe a 10% chance of getting to the president's desk this year. The dim prospects look to be giving a boost to the common shares today.
http://seekingalpha.com/news/1625313-frannie-wind-down-could-spare-preferreds-faces-hurdles-in-any-case
I wouldn't count on the courts to favor investors, either, but that's just me.