a word about $FNMA as OTC stocks are not what Dip
Post# of 22755
Posted On: 11/30/2016 10:09:31 AM
a word about $FNMA
as OTC stocks are not what Dip and Rip is about.
$FNMA is a "special" situation as it has assets in the billions and is a "gse" government sponsored Entity. in 2008 when we had the housing/mortgage meltdown both FNMA and FMCC were forced to take bad loans from banks on to their books. the government took them both onto conservatorship and the stocks plummeted from 60+ to around .25
since 2008 both companies have paid back every penny the govt. gave them plus close to 50 billion.
the shareholders with a handful of hedge funds brought several lawsuits against the government arguing that these are private shareholder owned companies and need to be released from conservatorship. The last few months the courts have been pro shareholders as the govt. has no basis on holding on to these companies and using them as a cash cow. With Trump as POTUS and recent comments made by the new Treasury Secretary:
Confirming that he's Trump's pick to be Treasury Secretary, Steven Mnuchin (appearing with Trump's Commerce pick Wilbur Ross) tells CNBC his first priority will be tax reform. There will be a middle-class tax cut, he says. As for the corporate rate, Mnuchin and team feel 15% is the right level.
On bank regulation: "We have to kill many aspects of Dodd-Frank." KRE +1%, KBE +0.4% premarket
On the GSEs: Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC) cannot be government-owned. FNMA +7.15%, FMCC +7.6
It has taken 8 years to get to this point. The Obama regime wanted to rape them of all profits and then wind them down!
as OTC stocks are not what Dip and Rip is about.
$FNMA is a "special" situation as it has assets in the billions and is a "gse" government sponsored Entity. in 2008 when we had the housing/mortgage meltdown both FNMA and FMCC were forced to take bad loans from banks on to their books. the government took them both onto conservatorship and the stocks plummeted from 60+ to around .25
since 2008 both companies have paid back every penny the govt. gave them plus close to 50 billion.
the shareholders with a handful of hedge funds brought several lawsuits against the government arguing that these are private shareholder owned companies and need to be released from conservatorship. The last few months the courts have been pro shareholders as the govt. has no basis on holding on to these companies and using them as a cash cow. With Trump as POTUS and recent comments made by the new Treasury Secretary:
Confirming that he's Trump's pick to be Treasury Secretary, Steven Mnuchin (appearing with Trump's Commerce pick Wilbur Ross) tells CNBC his first priority will be tax reform. There will be a middle-class tax cut, he says. As for the corporate rate, Mnuchin and team feel 15% is the right level.
On bank regulation: "We have to kill many aspects of Dodd-Frank." KRE +1%, KBE +0.4% premarket
On the GSEs: Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC) cannot be government-owned. FNMA +7.15%, FMCC +7.6
It has taken 8 years to get to this point. The Obama regime wanted to rape them of all profits and then wind them down!
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