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David Sims

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  • Government Profits From Continued Control Of Fannie And Freddie [View article]
    Notice that Mr. Wall does not talk about the benefit provided by the GSEs, just theoretical costs that cannot be determined without much debate. Mr. Bill Gross of PIMCO stated in September 2010 that the GSEs save borrowers 300 to 400 basis points on mortgages. On assets of $5 trillion, this amounts to annualized savings of $150 billion to $200 billion per year. Name one other program that provides so much stimulus to the economy using a private market mechanism. Housing is 20% of GDP.
    http://bit.ly/1fAL83W
    Apr 3 12:57 PM | 12 Likes Like |Link to Comment
  • Government Profits From Continued Control Of Fannie And Freddie [View article]
    Thanks to Robert for finding the legal text included above from the Fairholme case.
    Apr 3 12:23 PM | 8 Likes Like |Link to Comment
  • The Good, The Bad, And The Ugly Of Mortgage Reform [View article]
    Attack Ads are starting
    http://bit.ly/O8U8lO
    Mar 31 12:17 PM | 1 Like Like |Link to Comment
  • More on Ackman's GSE stakes [View news story]
    If Ackman is correct, the government doesn't lose a dime because they hold 79.9% of the stock through warrants. At least that's how I see this.
    http://seekingalpha.co...
    Mar 31 11:48 AM | Likes Like |Link to Comment
  • The Good, The Bad, And The Ugly Of Mortgage Reform [View article]
    http://1.usa.gov/1hK2yrN

    KEY SENIOR STAFF:

    Director
    Melvin L. Watt
    Director@FHFA.gov

    Senior Deputy Director
    Edward DeMarco
    202.649.3800

    Chief Operating Officer (COO)
    Richard (Rick) Hornsby
    COO@FHFA.gov
    202.649.3800

    Deputy Director for Bank Regulation
    Fred Graham
    DeputyDirector-FHLBank...
    202.649.3808
    202.649.1608-FAX

    Deputy Director for Enterprise Regulation
    Jon Greenlee
    DeputyDirector-Enterpr...
    202.649.3809

    Deputy Director for Housing Mission and Goals
    Sandra Thompson
    202.649.3800

    Deputy Director for Office of Strategic Initiatives
    Wanda DeLeo
    202.649.3401

    Deputy Director for Supervision Policy and Support
    Nina Nichols
    202.649.3800

    General Counsel
    Alfred Pollard
    OGCPublic@FHFA.gov
    202.649.3804

    Associate Director Office of Minority and Women Inclusion (Acting)
    Nancy Burnett
    OMWI@FHFA.gov
    202.649.3806

    Ombudsman
    Michael J. Powers
    Ombudsman@FHFA.gov
    202.649.3805
    888.665.1474
    Fax 888.370.0869

    Inspector General (Acting)
    Michael P. Stephens
    http://1.usa.gov/1hK2yrO
    1.800.793.7724
    Mar 29 12:57 PM | Likes Like |Link to Comment
  • The Good, The Bad, And The Ugly Of Mortgage Reform [View article]
    General follow-up....

    I have placed some inquiries with Treasury and FHFA asking how they plan to uphold their fiduciary duties to shareholders, including a release from Conservatorship.

    I spoke to another shareholder yesterday that personally dropped off a letter at the FHFA offices. I'm not sure what his letter said, but I believe this is a good time for Mr. Watt to go on the record on how he can do his duties under the original C-ship agreement.

    Please contact him.
    Mar 29 12:53 PM | 3 Likes Like |Link to Comment
  • The Good, The Bad, And The Ugly Of Mortgage Reform [View article]
    I am not assuming that. Under this scenario the shares represented by the unexecuted warrants would be IPO'd. I realize that there is a large group of shareholders that are fed up with the government right now and believe that the warrants would be struck down in court. They may be right, but this also may take many years to happen. An IPO can be accomplished within a few months and everyone would win in some respect.
    Mar 29 11:49 AM | Likes Like |Link to Comment
  • The Good, The Bad, And The Ugly Of Mortgage Reform [View article]
    Hi James,
    I know you are drawing comparisons to the Sallie Mae wind-down. Please point me to evidence of this in any of the existing legislation.

    I have also not seen anything that changes the perpetual dividend to an accumulated dividend.
    Mar 29 08:02 AM | Likes Like |Link to Comment
  • Shareholders Of Government-Sponsored Enterprises Get Maxine Waters's Respect [View article]
    Understood. Author's pick made.
    Mar 28 07:13 PM | Likes Like |Link to Comment
  • The Good, The Bad, And The Ugly Of Mortgage Reform [View article]
    Maybe I am reading this wrong about the IPO scenario, but the way I read it is this.

    The government gets $118 billion from their warrants. This 79.9% of the diluted 9 billion shares. That's a total market cap for both entities of $147.5 Billion on the common stock. $147.5 B/ 9 Billion shares = $16.38. The junior preferreds would still be outstanding too.
    Mar 28 01:02 PM | 3 Likes Like |Link to Comment
  • Shareholders Of Government-Sponsored Enterprises Get Maxine Waters's Respect [View article]
    Yes. I have a more detailed analysis coming. My initial reaction was positive, as it included wording that preserved some shareholder rights, but as I got into the details, I realized that this bill would essentially hand the mortgage system over to a whole new group of people. Meanwhile, the existing system would be destroyed and rebuilt.

    This sounds like Obamacare, which was disruptive to the health insurance market, but this is even worse because it does not rely on the existing pieces that are already in place (Fannie and Freddie).

    I'll chalk this up to a rookie mistake. Please excuse me. Thanks for the comment.
    Mar 28 09:23 AM | 1 Like Like |Link to Comment
  • The Only 20 Companies That Matter [View article]
    I have an idea. Let's take Fannie and Freddie and wind them down to 0 over the next 5 years... And we'll replace them with something more expensive that fixes none of the problems that we had with the last system. That's the plan proposed in Congress.
    Mar 26 08:56 PM | 17 Likes Like |Link to Comment
  • Why Does Ackman Think Fannie Mae Is A Ten Bagger? [View article]
    Please sign this new petition on the White House site.
    http://wh.gov/lpgjd

    Tweet and post to facebook too.
    Mar 21 10:34 PM | Likes Like |Link to Comment
  • Fannie And Freddie Poised To Break Out [View article]
    Sorry that I have not been able to respond to all posts. Great link. Bove is a legend.
    Mar 21 10:32 PM | Likes Like |Link to Comment
  • Fannie And Freddie Poised To Break Out [View article]
    Please sign this new petition.
    http://wh.gov/lpgjd
    Mar 21 10:31 PM | Likes Like |Link to Comment
COMMENTS STATS
277 Comments
286 Likes