-5490459043943 (7203) over the unexpected sudde
Post# of 28526
Posted On: 05/01/2014 8:00:18 PM
-5490459043943
(7203) over the unexpected sudden acceleration of vehicles. </span><br /><br /><a style="color: #336699; text-decoration: none; cursor: pointer;" rel="nofollow" href="http://clicks.aweber.com/y/ct/?l=FwJgA&m=3gJrG1PugtlloMm&b=sQFOiCBeg.GKblCZ48CvNQ" target="_blank">http://www.bloomberg.com/news/2013-06-10/fannie-freddie-shareholder-suit-challenges-u-s-takeover.html</a> <br />
<br /><strong><br />16) HEDGE FUND Perry Capital Sues U.S. Treasury Over Fannie Mae and Freddie Mac Takeover</strong> <br /><br />By Joe Schneider & Clea Benson - Jul 7, 2013 8:44 PM ET <br /><br />Hedge fund firm Perry Capital LLC sued the U.S. Treasury Department claiming the government's seizure of all profits from Fannie Mae and Freddie Mac is illegal and has destroyed shareholders' holdings. <br /><br /><a style="color: #336699; text-decoration: none; cursor: pointer;" rel="nofollow" href="http://clicks.aweber.com/y/ct/?l=FwJgA&m=3gJrG1PugtlloMm&b=WWFWRWtS4RM5ezKpL8nvIA" target="_blank">http://www.bloomberg.com/news/2013-07-07/perry-capital-sues-u-s-treasury-over-fannie-mae-takeover.html?cmpid=yhoo</a> <br />================================================================== <br /><br /><strong>17)</strong> FNMA CEO is a well-known Lawyer and Former BAC Counsel <br /><br /><a style="color: #336699; text-decoration: none; cursor: pointer;" rel="nofollow" href="http://clicks.aweber.com/y/ct/?l=FwJgA&m=3gJrG1PugtlloMm&b=EonBK4.iTTKt_SB4WN.WQw" target="_blank">http://www.nytimes.com/2012/06/06/business/fannie-mae-names-new-chief.html?_r=0</a> <br />
<br /><strong><br />18) Fannie Mae CEO: We will have strong profits for the foreseeable future</strong> <br /><br /><strong>By: <span style="color: #ff0000;">Bloomberg TV interview</span></strong> ' Thu, Apr 11, 2013 <br /><br />In his first TV interview since the company reported record profits, Fannie Mae (FNMA) CEO Tim Mayopoulos told Bloomberg TV's Peter Cook today that U.S. taxpayers could see a net gain from their bailout as the <a style="color: #336699; text-decoration: none; cursor: pointer;" rel="nofollow" href="http://clicks.aweber.com/y/ct/?l=FwJgA&m=3gJrG1PugtlloMm&b=.xpCTXeKYJoz3lOiTvjghw" target="_blank"><span style="color: #0000ff;">housing market</span></a> rebounds. Mayopoulos said, "<strong> I do think, given the strength of our future profitability, that it is possible that we will be able to pay dividends that would be equal to or greater than the amount of money that we've received from the Treasury Department.</strong>" <br /><br />Mayopoulos also said, "There is a risk that policymakers will look at our profitability and say we don't need to act on this soon. I think that would be a mistake. There needs to be clarity about what the future of the housing finance system is going to be." <br /><strong><br />Mayopoulos on Fannie Mae's turnaround:</strong> <br /><br /><em>"We are obviously pleased with the turnaround and from our perspective. This is not something that miraculously came upon us. This is the result of four plus years of work that we've been doing at Fannie Mae. We've really been very focused on building a new book of business that will be profitable. We've been managing the legacy book to minimize losses and we've been focused on pricing appropriately for the risk that we take. While it probably seems like a very sudden turnaround to those outside the company, for those inside the company we've been working on this for years to try to get to this place." <br /></em><strong><br />On whether the profits are sustainable over the long-term:</strong> <br /><em><br />"<span style="text-decoration: underline;"><span style="color: #ff0000;"><strong>We do think that we will have strong profits for the foreseeable future.</strong></span></span> The degree of confidence about that varies the farther out you go because we can't predict the future years out, but for the next few years we expect clearly to be profitable." <br /></em><br /><strong>On whether taxpayers could earn a profit on their investment in Fannie: <br /></strong><br /><em>"We are paying substantial dividends to taxpayers, so the company received payments from the Treasury of $116 billion. So far we have paid dividends in excess of $35 billion. I do think, given the strength of our future profitability, <span style="color: #ff0000;"><strong>it is possible that we will pay dividends that will be equal to or greater than the amount of money that we have received from the Treasury department.</strong></span>" <br /></em><br /><strong>On whether the debate for the government to replace Fannie Mae will happen sooner rather than later:</strong> <br /><br /><em>"I'm not sure if it will happen sooner rather than later. I do think there is a risk that I think people should not accept, but there is a risk that policymakers will look at our profitability and say we don't need to act on this soon. I think that would be a mistake. There needs to be clarity about what the future of the housing finance system is going to be. I think the sooner we get there, the sooner private capital is likely to come back to this market." <br /></em><br /><strong>On whether the reality is that the better Fannie Mae does, the sooner it goes away:</strong> <br /><br /><em>"That's one possibility. I think what our return to profitability does is allow policymakers to think about a full range of potential outcomes. They don't have to start with the assumption that creating some successors to Fannie and Freddie necessarily means that we have to accept hundreds of billions of dollars of losses for taxpayers. I do think the taxpayers may well receive their money back. I think what this has done is freed policymakers to think about what the full range of possibilities should be. There is a lot of debate about that, but I think the key is getting to an answer in the foreseeable future because no matter what you think the future housing finance system should look like, everybody agrees that at the moment the taxpayer shouldn't be on the hook for 90% of the market. Between Fannie, Freddie and FHA, the taxpayers are guaranteeing 90% of all the mortgages that are being written across the country. That doesn't make sense no matter what you think the future of the housing finance system should look like." <br /></em><br />LINK: BLOOMBERG TV INTERVIEW WITH FNMA CEO <br /><br /><a style="color: #336699; text-decoration: none; cursor: pointer;" rel="nofollow" href="http://clicks.aweber.com/y/ct/?l=FwJgA&m=3gJrG1PugtlloMm&b=cLruqdMB5SdXkFVBnH6qXA" target="_blank">http://www.bloomberg.com/video/taxpayers-may-receive-money-back-fannie-mae-ceo-gE75HM8_SOCGgvHCjFEq4Q.html</a> <br />================================================================== <br /><strong><br /><span style="color: #ff0000;"><strong>19) Giant Hedge Funds lobbying for the Government Senior preferred shares.</strong></span></strong> <br /><br />According to Bloomberg and Baron news, Hedge funds offering 182 billion dollars for the government's senior preferred shares. <br /><br /><em>Based on combined 2012 pretax profits of $28 billion and a conservative 6.5 price/earnings ratio, the two could easily <strong>raise $182 billion in the stock market</strong>, according to the investors.</em> <br /><br /><a style="color: #336699; text-decoration: none; cursor: pointer;" rel="nofollow" href="http://clicks.aweber.com/y/ct/?l=FwJgA&m=3gJrG1PugtlloMm&b=i0RX6OX0hSTsFJv5FO_IdA" target="_blank">http://online.barrons.com/article/SB50001424052748704253204578466950395417708.html?ru=yahoo&mod=yahoobarrons</a> <br /><br /><em>Hedge Funds:<strong> Paulson & Co.</strong> is among funds that met with members of the Senate Banking Committee and with staff members in the House of Representatives, said two of the people briefed on the matter.<strong> Claren Road Asset Management LLC</strong> and <strong>Perry Capital LLC</strong> also have lobbied.</em> <br /><br /><a style="color: #336699; text-decoration: none; cursor: pointer;" rel="nofollow" href="http://clicks.aweber.com/y/ct/?l=FwJgA&m=3gJrG1PugtlloMm&b=SxgYWqU.Esfg5OYi6ZOWJQ" target="_blank">http://www.bloomberg.com/news/2013-04-30/paulson-leads-hedge-fund-lobby-push-to-privatize-fannie.html?cmpid=yhoo</a> <br /><br /><strong>20) If the Hedge Funds plan accepted by the government Conservator-ship will end.</strong> FNMA will be owned by shareholders. <br />The government invested 117.1 billion dollars to FNMA and got senior preferred shares. So far got 95 billion dollars dividend. Plus with new IPO the government can sell its shares on the market at 182 billion dollars. It means U.S. government invested 117.1 billion dollars it will get 277 billion dollars within 4 years. Awesome return. <br />
<br /><br /><strong><br />21) Fortune 500 list: FNMA #12, FMCC #31,</strong> <br /><br />FORTUNE 500 COMPANIES. <br /><br />Rank Company Name Revenues ($b) Profits ($mm) <br /><br />1 Wal-Mart Stores 469.2 16,999 <br />2 Exxon Mobil 449.9 44,880 <br />3 Chevron 233.9 26,179 <br />4 Phillips 66 169.6 4,124 <br />5 Berkshire Hathaway 162.5 14,824 <br />6 Apple 156.5 41,733 <br />7 General Motors 152.3 6,188 <br />8 General Electric 146.9 13,641 <br />9 Valero Energy 138.3 2,083 <br />10 Ford Motor 134.3 5,665 <br />11 AT&T 127.4 7,264 <br /><strong>12 Fannie Mae 127.2 17,220</strong> <br />13 CVS Caremark 123.1 3,876.9 <br />14 McKesson 122.7 1,403 <br />15 Hewlett-Packard 120.4 -12,650 <br />16 Verizon Communications 115.8 875 <br />17 UnitedHealth Group 110.6 5,526 <br />18 J.P. Morgan Chase & Co. 108.2 21,284 <br />19 Cardinal Health 107.6 1,069 <br />20 International Business Machines 104.5 16,604 <br />21 Bank of America Corp. 100.1 4,188 <br />22 Costco Wholesale 99.1 1,709 <br />23 Kroger 96.8 1,496.5 <br />24 Express Scripts Holding 94.4 1,312.9 <br />25 Wells Fargo 91.2 18,897 <br />26 Citigroup 90.8 7,541 <br />27 Archer Daniels Midland 89 1,223 <br />28 Procter & Gamble 85.1 10,756 <br />29 Prudential Financial 84.8 469 <br />30 Boeing 81.7 3,900 <br /><strong>31 Freddie Mac 80.6 10,982</strong> <br />32 AmerisourceBergen 79.7 719 <br />33 Marathon Petroleum 76.8 3,389 <br />34 Home Depot 74.8 4,535 <br />35 Microsoft 73.7 16,978 <br />36 Target 73.3 2,999 <br />37 Walgreen 71.6 2,127 <br />38 American International Group 70.1 3,438 <br />39 INTL FCStone 69.3 15 <br />40 MetLife 68.2 1,324 <br />41 Johnson & Johnson 67.2 10,853 <br />42 Caterpillar 65.9 5,681 <br />43 PepsiCo 65.5 6,178 <br />44 State Farm Insurance Cos. 65.3 3,159.2 <br />45 ConocoPhillips 63.4 8,428 <br />46 Comcast 62.6 6,203 <br />47 WellPoint 61.7 2,655.5 <br />48 Pfizer 61.2 14,570 <br />49 Amazon.com 61.1 -39 <br />50 United Technologies 59.8 5,130 <br /><br /><a style="color: #336699; text-decoration: none; cursor: pointer;" rel="nofollow" href="http://clicks.aweber.com/y/ct/?l=FwJgA&m=3gJrG1PugtlloMm&b=bgOWEGC8RkshgqO_q7Pt2g" target="_blank">http://money.cnn.com/magazines/fortune/fortune500/2013/full_list/</a> <br />================================================================== <br /><br /><strong><strong>hedge fund FAIRHOLME Manager Bruce Berkowitz believes Fannie and Freddie are undervalued.</strong> <br /><br />By KIRSTEN GRIND <br />And NICK TIMIRAOS <br /><br />Bruce Berkowitz, a mutual-fund manager with a history of bold bets, is doubling down on a risky wager that the U.S. government ultimately will sell mortgage giants Fannie Mae FNMA +7.32% and Freddie Mac FMCC +9.65% back to private investors. <br /><br />Mr. Berkowitz is reopening his $8 billion Fairholme Fund to look for new investment opportunities, including potentially increasing his stake in Fannie and Freddie, Mr. Berkowitz said in an interview with The Wall Street Journal. <br /><br />Mr. Berkowitz said he continues to believe Fannie and Freddie are a "very important element of the U.S. economy" and undervalued. "We haven't found a way to disprove our thesis about Fannie and Freddie," he said. <br /><br />The investor's comments come less than 10 days after a speech by President Barack Obama that was dismissive of the idea of again giving control of Fannie and Freddie to investors. <br /><br />Mr. Berkowitz, founder and chief investment officer of Miami-based Fairholme Capital Management, disclosed in June that he held a position in Fannie and Freddie. <br /><br />Fannie Mae and Freddie Mac have become enormously profitable, buoyed by a federal backstop, an improving housing market and little competition from private investors. Last week, Fannie and Freddie reported second-quarter profits of $10.1 billion and $5 billion respectively. <br /><br />Over the past year, hedge funds and other investors have bid up the shares, once considered worthless. But those are effectively political and legal bets, not financial ones, because Fannie and Freddie's bailout agreement doesn't allow them to pay back the government, meaning they can't emerge from government control without action from Congress or the Treasury Department. <br /><br />Several investors, including Fairholme, sued the U.S. Treasury last month to challenge the government's bailout terms, which allow taxpayers to recoup all of the companies' profits. <br /><br />The Fairholme Fund holds about 6.9% of its portfolio in the two companies, a position valued at $566 million as of May 31, according to the company. The fund, which closed on Feb. 28, will reopen Aug. 19. <br /><br />For Mr. Berkowitz's bet to pay off, he and other investors need one of two things to happen: persuade Congress and the White House to revamp or liquidate Fannie and Freddie in a way that will preserve value for the shares, or win a fight in court. <br /><br />Bills introduced in the House and Senate would liquidate the companies as part of a broader mortgage-market overhaul. Last week, President Obama weighed in, saying the country "couldn't have a situation in which the government" would backstop all of the loans made by "these quasi-private institutions, and then if things go wrong, suddenly taxpayers are on the hook." <br /><br />"Each of the major decision makers who has weighed in on this...has said emphatically and repeatedly that they will not allow these shareholders to be paid off," said Jim Parrott, a former White House housing adviser. Without a successful legal challenge or "an entirely different set of decision makers," he said, "your bet faces mighty long odds." <br /><br />Mr. Berkowitz said he doesn't take that view. <br /><br />"I think common sense will prevail," he said. "There's a huge win out there for all constituents-the taxpayers, homeowners and preferred shareholders." <br /><br />Under mutual-fund regulations, Mr. Berkowitz could invest up to 25% of Fairholme's portfolio each in Fannie and Freddie, although he has no plans to reach that maximum amount as it would require him to downsize his other positions, he said. A more realistic scenario would see him increasing his position to about 5% each of the portfolio, or a total of $800 million based on the value of the shares today, he said. <br /><br />Mr. Berkowitz is no stranger to unpopular bets. <br /><br />He bought into American International Group Inc. AIG -2.12% in the first quarter of 2010, when the insurer was trading in a range of $22 to $34 a share, and when many investors were still shying away from financial stocks. AIG was trading late Thursday at about $47. He eventually accumulated a position of 86.1 million shares, making Fairholme Capital Management -the management company of the Fairholme Fund-AIG's largest investor as of June 30, according to the company. <br /><br />"The seeds of great performance are usually sown in times of intense fear after a disaster," Mr. Berkowitz wrote in an October 2011 letter to investors. <br /><br />The bet didn't initially pay off, and investors pulled billions from the fund as performance plunged. <br /><br />By 2012, as the share prices of AIG and other financial stocks rose, the fund rebounded, posting a yearly return of 35.8%, compared with 16% for the Standard & Poor's 500-stock index. Fairholme is up 21% this year through Aug. 14, compared with 19.8% for the S&P 500. <br /><br />After the government seized Fannie and Freddie, it agreed to inject vast sums of aid in exchange for a new class of stock-so called "senior preferred" shares-that initially paid a 10% dividend. It also received warrants to acquire 80% of the common shares; it didn't assume full ownership to avoid bringing $5 trillion in assets and liabilities onto the federal ledger. <br /><br />Few saw any value in those shares after their collapse, but some investors, including hedge funds Perry Capital LLC and Paulson & Co., began buying the preferred shares at deep discounts. <br /><br />The government upended investors' positions last year when it amended the terms of its rescue. The revamped bailout doesn't require any dividend payment when the firms lose money, but when they turn a profit, all of those earnings are sent to the Treasury as dividends. <br /><br />Fairholme's lawsuit challenges those terms. A Treasury spokesman said, "We fully believe our actions have been lawful and appropriate." <br /><br /><a style="color: #336699; text-decoration: none; cursor: pointer;" rel="nofollow" href="http://clicks.aweber.com/y/ct/?l=FwJgA&m=3gJrG1PugtlloMm&b=tGA1koTqXJvhALSCbuTeEA" target="_blank">http://online.wsj.com/article/SB10001424127887324139404579015032274244954.html</a> <br /><em><br />FNMA/FMCC's profit bigger than APPLE, EXXON, JP MORGAN, BAC, CITI, BERKSHIRE . DO YOU THINK SHARE PRICE WILL STAY AT THIS LEVEL... NO WAY.. IMHO, C-SHIP WILL END AND FNMA/FMCC WILL BE UPLISTED. READ, CHECK LINKS AND MAKE YOUR OWN DECISION. </em></strong></em></em>
(7203) over the unexpected sudden acceleration of vehicles. </span><br /><br /><a style="color: #336699; text-decoration: none; cursor: pointer;" rel="nofollow" href="http://clicks.aweber.com/y/ct/?l=FwJgA&m=3gJrG1PugtlloMm&b=sQFOiCBeg.GKblCZ48CvNQ" target="_blank">http://www.bloomberg.com/news/2013-06-10/fannie-freddie-shareholder-suit-challenges-u-s-takeover.html</a> <br />
<br /><strong><br />16) HEDGE FUND Perry Capital Sues U.S. Treasury Over Fannie Mae and Freddie Mac Takeover</strong> <br /><br />By Joe Schneider & Clea Benson - Jul 7, 2013 8:44 PM ET <br /><br />Hedge fund firm Perry Capital LLC sued the U.S. Treasury Department claiming the government's seizure of all profits from Fannie Mae and Freddie Mac is illegal and has destroyed shareholders' holdings. <br /><br /><a style="color: #336699; text-decoration: none; cursor: pointer;" rel="nofollow" href="http://clicks.aweber.com/y/ct/?l=FwJgA&m=3gJrG1PugtlloMm&b=WWFWRWtS4RM5ezKpL8nvIA" target="_blank">http://www.bloomberg.com/news/2013-07-07/perry-capital-sues-u-s-treasury-over-fannie-mae-takeover.html?cmpid=yhoo</a> <br />================================================================== <br /><br /><strong>17)</strong> FNMA CEO is a well-known Lawyer and Former BAC Counsel <br /><br /><a style="color: #336699; text-decoration: none; cursor: pointer;" rel="nofollow" href="http://clicks.aweber.com/y/ct/?l=FwJgA&m=3gJrG1PugtlloMm&b=EonBK4.iTTKt_SB4WN.WQw" target="_blank">http://www.nytimes.com/2012/06/06/business/fannie-mae-names-new-chief.html?_r=0</a> <br />
<br /><strong><br />18) Fannie Mae CEO: We will have strong profits for the foreseeable future</strong> <br /><br /><strong>By: <span style="color: #ff0000;">Bloomberg TV interview</span></strong> ' Thu, Apr 11, 2013 <br /><br />In his first TV interview since the company reported record profits, Fannie Mae (FNMA) CEO Tim Mayopoulos told Bloomberg TV's Peter Cook today that U.S. taxpayers could see a net gain from their bailout as the <a style="color: #336699; text-decoration: none; cursor: pointer;" rel="nofollow" href="http://clicks.aweber.com/y/ct/?l=FwJgA&m=3gJrG1PugtlloMm&b=.xpCTXeKYJoz3lOiTvjghw" target="_blank"><span style="color: #0000ff;">housing market</span></a> rebounds. Mayopoulos said, "<strong> I do think, given the strength of our future profitability, that it is possible that we will be able to pay dividends that would be equal to or greater than the amount of money that we've received from the Treasury Department.</strong>" <br /><br />Mayopoulos also said, "There is a risk that policymakers will look at our profitability and say we don't need to act on this soon. I think that would be a mistake. There needs to be clarity about what the future of the housing finance system is going to be." <br /><strong><br />Mayopoulos on Fannie Mae's turnaround:</strong> <br /><br /><em>"We are obviously pleased with the turnaround and from our perspective. This is not something that miraculously came upon us. This is the result of four plus years of work that we've been doing at Fannie Mae. We've really been very focused on building a new book of business that will be profitable. We've been managing the legacy book to minimize losses and we've been focused on pricing appropriately for the risk that we take. While it probably seems like a very sudden turnaround to those outside the company, for those inside the company we've been working on this for years to try to get to this place." <br /></em><strong><br />On whether the profits are sustainable over the long-term:</strong> <br /><em><br />"<span style="text-decoration: underline;"><span style="color: #ff0000;"><strong>We do think that we will have strong profits for the foreseeable future.</strong></span></span> The degree of confidence about that varies the farther out you go because we can't predict the future years out, but for the next few years we expect clearly to be profitable." <br /></em><br /><strong>On whether taxpayers could earn a profit on their investment in Fannie: <br /></strong><br /><em>"We are paying substantial dividends to taxpayers, so the company received payments from the Treasury of $116 billion. So far we have paid dividends in excess of $35 billion. I do think, given the strength of our future profitability, <span style="color: #ff0000;"><strong>it is possible that we will pay dividends that will be equal to or greater than the amount of money that we have received from the Treasury department.</strong></span>" <br /></em><br /><strong>On whether the debate for the government to replace Fannie Mae will happen sooner rather than later:</strong> <br /><br /><em>"I'm not sure if it will happen sooner rather than later. I do think there is a risk that I think people should not accept, but there is a risk that policymakers will look at our profitability and say we don't need to act on this soon. I think that would be a mistake. There needs to be clarity about what the future of the housing finance system is going to be. I think the sooner we get there, the sooner private capital is likely to come back to this market." <br /></em><br /><strong>On whether the reality is that the better Fannie Mae does, the sooner it goes away:</strong> <br /><br /><em>"That's one possibility. I think what our return to profitability does is allow policymakers to think about a full range of potential outcomes. They don't have to start with the assumption that creating some successors to Fannie and Freddie necessarily means that we have to accept hundreds of billions of dollars of losses for taxpayers. I do think the taxpayers may well receive their money back. I think what this has done is freed policymakers to think about what the full range of possibilities should be. There is a lot of debate about that, but I think the key is getting to an answer in the foreseeable future because no matter what you think the future housing finance system should look like, everybody agrees that at the moment the taxpayer shouldn't be on the hook for 90% of the market. Between Fannie, Freddie and FHA, the taxpayers are guaranteeing 90% of all the mortgages that are being written across the country. That doesn't make sense no matter what you think the future of the housing finance system should look like." <br /></em><br />LINK: BLOOMBERG TV INTERVIEW WITH FNMA CEO <br /><br /><a style="color: #336699; text-decoration: none; cursor: pointer;" rel="nofollow" href="http://clicks.aweber.com/y/ct/?l=FwJgA&m=3gJrG1PugtlloMm&b=cLruqdMB5SdXkFVBnH6qXA" target="_blank">http://www.bloomberg.com/video/taxpayers-may-receive-money-back-fannie-mae-ceo-gE75HM8_SOCGgvHCjFEq4Q.html</a> <br />================================================================== <br /><strong><br /><span style="color: #ff0000;"><strong>19) Giant Hedge Funds lobbying for the Government Senior preferred shares.</strong></span></strong> <br /><br />According to Bloomberg and Baron news, Hedge funds offering 182 billion dollars for the government's senior preferred shares. <br /><br /><em>Based on combined 2012 pretax profits of $28 billion and a conservative 6.5 price/earnings ratio, the two could easily <strong>raise $182 billion in the stock market</strong>, according to the investors.</em> <br /><br /><a style="color: #336699; text-decoration: none; cursor: pointer;" rel="nofollow" href="http://clicks.aweber.com/y/ct/?l=FwJgA&m=3gJrG1PugtlloMm&b=i0RX6OX0hSTsFJv5FO_IdA" target="_blank">http://online.barrons.com/article/SB50001424052748704253204578466950395417708.html?ru=yahoo&mod=yahoobarrons</a> <br /><br /><em>Hedge Funds:<strong> Paulson & Co.</strong> is among funds that met with members of the Senate Banking Committee and with staff members in the House of Representatives, said two of the people briefed on the matter.<strong> Claren Road Asset Management LLC</strong> and <strong>Perry Capital LLC</strong> also have lobbied.</em> <br /><br /><a style="color: #336699; text-decoration: none; cursor: pointer;" rel="nofollow" href="http://clicks.aweber.com/y/ct/?l=FwJgA&m=3gJrG1PugtlloMm&b=SxgYWqU.Esfg5OYi6ZOWJQ" target="_blank">http://www.bloomberg.com/news/2013-04-30/paulson-leads-hedge-fund-lobby-push-to-privatize-fannie.html?cmpid=yhoo</a> <br /><br /><strong>20) If the Hedge Funds plan accepted by the government Conservator-ship will end.</strong> FNMA will be owned by shareholders. <br />The government invested 117.1 billion dollars to FNMA and got senior preferred shares. So far got 95 billion dollars dividend. Plus with new IPO the government can sell its shares on the market at 182 billion dollars. It means U.S. government invested 117.1 billion dollars it will get 277 billion dollars within 4 years. Awesome return. <br />
<br /><br /><strong><br />21) Fortune 500 list: FNMA #12, FMCC #31,</strong> <br /><br />FORTUNE 500 COMPANIES. <br /><br />Rank Company Name Revenues ($b) Profits ($mm) <br /><br />1 Wal-Mart Stores 469.2 16,999 <br />2 Exxon Mobil 449.9 44,880 <br />3 Chevron 233.9 26,179 <br />4 Phillips 66 169.6 4,124 <br />5 Berkshire Hathaway 162.5 14,824 <br />6 Apple 156.5 41,733 <br />7 General Motors 152.3 6,188 <br />8 General Electric 146.9 13,641 <br />9 Valero Energy 138.3 2,083 <br />10 Ford Motor 134.3 5,665 <br />11 AT&T 127.4 7,264 <br /><strong>12 Fannie Mae 127.2 17,220</strong> <br />13 CVS Caremark 123.1 3,876.9 <br />14 McKesson 122.7 1,403 <br />15 Hewlett-Packard 120.4 -12,650 <br />16 Verizon Communications 115.8 875 <br />17 UnitedHealth Group 110.6 5,526 <br />18 J.P. Morgan Chase & Co. 108.2 21,284 <br />19 Cardinal Health 107.6 1,069 <br />20 International Business Machines 104.5 16,604 <br />21 Bank of America Corp. 100.1 4,188 <br />22 Costco Wholesale 99.1 1,709 <br />23 Kroger 96.8 1,496.5 <br />24 Express Scripts Holding 94.4 1,312.9 <br />25 Wells Fargo 91.2 18,897 <br />26 Citigroup 90.8 7,541 <br />27 Archer Daniels Midland 89 1,223 <br />28 Procter & Gamble 85.1 10,756 <br />29 Prudential Financial 84.8 469 <br />30 Boeing 81.7 3,900 <br /><strong>31 Freddie Mac 80.6 10,982</strong> <br />32 AmerisourceBergen 79.7 719 <br />33 Marathon Petroleum 76.8 3,389 <br />34 Home Depot 74.8 4,535 <br />35 Microsoft 73.7 16,978 <br />36 Target 73.3 2,999 <br />37 Walgreen 71.6 2,127 <br />38 American International Group 70.1 3,438 <br />39 INTL FCStone 69.3 15 <br />40 MetLife 68.2 1,324 <br />41 Johnson & Johnson 67.2 10,853 <br />42 Caterpillar 65.9 5,681 <br />43 PepsiCo 65.5 6,178 <br />44 State Farm Insurance Cos. 65.3 3,159.2 <br />45 ConocoPhillips 63.4 8,428 <br />46 Comcast 62.6 6,203 <br />47 WellPoint 61.7 2,655.5 <br />48 Pfizer 61.2 14,570 <br />49 Amazon.com 61.1 -39 <br />50 United Technologies 59.8 5,130 <br /><br /><a style="color: #336699; text-decoration: none; cursor: pointer;" rel="nofollow" href="http://clicks.aweber.com/y/ct/?l=FwJgA&m=3gJrG1PugtlloMm&b=bgOWEGC8RkshgqO_q7Pt2g" target="_blank">http://money.cnn.com/magazines/fortune/fortune500/2013/full_list/</a> <br />================================================================== <br /><br /><strong><strong>hedge fund FAIRHOLME Manager Bruce Berkowitz believes Fannie and Freddie are undervalued.</strong> <br /><br />By KIRSTEN GRIND <br />And NICK TIMIRAOS <br /><br />Bruce Berkowitz, a mutual-fund manager with a history of bold bets, is doubling down on a risky wager that the U.S. government ultimately will sell mortgage giants Fannie Mae FNMA +7.32% and Freddie Mac FMCC +9.65% back to private investors. <br /><br />Mr. Berkowitz is reopening his $8 billion Fairholme Fund to look for new investment opportunities, including potentially increasing his stake in Fannie and Freddie, Mr. Berkowitz said in an interview with The Wall Street Journal. <br /><br />Mr. Berkowitz said he continues to believe Fannie and Freddie are a "very important element of the U.S. economy" and undervalued. "We haven't found a way to disprove our thesis about Fannie and Freddie," he said. <br /><br />The investor's comments come less than 10 days after a speech by President Barack Obama that was dismissive of the idea of again giving control of Fannie and Freddie to investors. <br /><br />Mr. Berkowitz, founder and chief investment officer of Miami-based Fairholme Capital Management, disclosed in June that he held a position in Fannie and Freddie. <br /><br />Fannie Mae and Freddie Mac have become enormously profitable, buoyed by a federal backstop, an improving housing market and little competition from private investors. Last week, Fannie and Freddie reported second-quarter profits of $10.1 billion and $5 billion respectively. <br /><br />Over the past year, hedge funds and other investors have bid up the shares, once considered worthless. But those are effectively political and legal bets, not financial ones, because Fannie and Freddie's bailout agreement doesn't allow them to pay back the government, meaning they can't emerge from government control without action from Congress or the Treasury Department. <br /><br />Several investors, including Fairholme, sued the U.S. Treasury last month to challenge the government's bailout terms, which allow taxpayers to recoup all of the companies' profits. <br /><br />The Fairholme Fund holds about 6.9% of its portfolio in the two companies, a position valued at $566 million as of May 31, according to the company. The fund, which closed on Feb. 28, will reopen Aug. 19. <br /><br />For Mr. Berkowitz's bet to pay off, he and other investors need one of two things to happen: persuade Congress and the White House to revamp or liquidate Fannie and Freddie in a way that will preserve value for the shares, or win a fight in court. <br /><br />Bills introduced in the House and Senate would liquidate the companies as part of a broader mortgage-market overhaul. Last week, President Obama weighed in, saying the country "couldn't have a situation in which the government" would backstop all of the loans made by "these quasi-private institutions, and then if things go wrong, suddenly taxpayers are on the hook." <br /><br />"Each of the major decision makers who has weighed in on this...has said emphatically and repeatedly that they will not allow these shareholders to be paid off," said Jim Parrott, a former White House housing adviser. Without a successful legal challenge or "an entirely different set of decision makers," he said, "your bet faces mighty long odds." <br /><br />Mr. Berkowitz said he doesn't take that view. <br /><br />"I think common sense will prevail," he said. "There's a huge win out there for all constituents-the taxpayers, homeowners and preferred shareholders." <br /><br />Under mutual-fund regulations, Mr. Berkowitz could invest up to 25% of Fairholme's portfolio each in Fannie and Freddie, although he has no plans to reach that maximum amount as it would require him to downsize his other positions, he said. A more realistic scenario would see him increasing his position to about 5% each of the portfolio, or a total of $800 million based on the value of the shares today, he said. <br /><br />Mr. Berkowitz is no stranger to unpopular bets. <br /><br />He bought into American International Group Inc. AIG -2.12% in the first quarter of 2010, when the insurer was trading in a range of $22 to $34 a share, and when many investors were still shying away from financial stocks. AIG was trading late Thursday at about $47. He eventually accumulated a position of 86.1 million shares, making Fairholme Capital Management -the management company of the Fairholme Fund-AIG's largest investor as of June 30, according to the company. <br /><br />"The seeds of great performance are usually sown in times of intense fear after a disaster," Mr. Berkowitz wrote in an October 2011 letter to investors. <br /><br />The bet didn't initially pay off, and investors pulled billions from the fund as performance plunged. <br /><br />By 2012, as the share prices of AIG and other financial stocks rose, the fund rebounded, posting a yearly return of 35.8%, compared with 16% for the Standard & Poor's 500-stock index. Fairholme is up 21% this year through Aug. 14, compared with 19.8% for the S&P 500. <br /><br />After the government seized Fannie and Freddie, it agreed to inject vast sums of aid in exchange for a new class of stock-so called "senior preferred" shares-that initially paid a 10% dividend. It also received warrants to acquire 80% of the common shares; it didn't assume full ownership to avoid bringing $5 trillion in assets and liabilities onto the federal ledger. <br /><br />Few saw any value in those shares after their collapse, but some investors, including hedge funds Perry Capital LLC and Paulson & Co., began buying the preferred shares at deep discounts. <br /><br />The government upended investors' positions last year when it amended the terms of its rescue. The revamped bailout doesn't require any dividend payment when the firms lose money, but when they turn a profit, all of those earnings are sent to the Treasury as dividends. <br /><br />Fairholme's lawsuit challenges those terms. A Treasury spokesman said, "We fully believe our actions have been lawful and appropriate." <br /><br /><a style="color: #336699; text-decoration: none; cursor: pointer;" rel="nofollow" href="http://clicks.aweber.com/y/ct/?l=FwJgA&m=3gJrG1PugtlloMm&b=tGA1koTqXJvhALSCbuTeEA" target="_blank">http://online.wsj.com/article/SB10001424127887324139404579015032274244954.html</a> <br /><em><br />FNMA/FMCC's profit bigger than APPLE, EXXON, JP MORGAN, BAC, CITI, BERKSHIRE . DO YOU THINK SHARE PRICE WILL STAY AT THIS LEVEL... NO WAY.. IMHO, C-SHIP WILL END AND FNMA/FMCC WILL BE UPLISTED. READ, CHECK LINKS AND MAKE YOUR OWN DECISION. </em></strong></em></em>
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