Frannie investors find a friend in Sen. Toomey


"While I strongly support GSE reform that protects taxpayers, such efforts should also be mindful of investors," says Senator Pat Toomey, sticking up for preferred and common stockholders of Fannie Mae (FNMA -30.6%) and Freddie Mac (FMCC -27.5%) in wake of a proposed bill to wind down the GSEs.

"Taxpayers should be fully compensated, but once they are, investors ... should not be denied their fair share of any remaining value."

"The government┬╣s actions with respect to the GSEs' profits raise serious concerns, including whether these actions lawfully respect the rights and interests of all Americans."

Previous: Fannie and Freddie plunge on wind-down proposal.

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Comments (31)
  • rob77
    , contributor
    Comments (7) | Send Message
     
    I think Senator Toomey deserves a huge amount of gratitude for speaking for the
    investors -- which were mainly credit unions in the Preferred
    11 Mar 2014, 04:24 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11050) | Send Message
     
    Buying opportunity of the year.

     

    The courts will make shareholders whole.
    11 Mar 2014, 04:26 PM Reply Like
  • GaltMachine
    , contributor
    Comments (2042) | Send Message
     
    Intriguing statement. When is the right time to enter this in your opinion?

     

    "Make Whole" relative to what?

     

    I don't follow either of these but the plunge in both really got my value antennae up :)
    11 Mar 2014, 04:49 PM Reply Like
  • oilman545
    , contributor
    Comments (64) | Send Message
     
    How can the government simply kill a profitable enterprise. They sold the stock to the public with the promise of maximizing profits for the stockholders. This will go to court and the government will lose.
    11 Mar 2014, 05:20 PM Reply Like
  • toneroner
    , contributor
    Comments (288) | Send Message
     
    Agreed its the law for the corporation to act in the best interests of shareholders

     

    Don't have any shares but don't like what happened
    12 Mar 2014, 02:29 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (11050) | Send Message
     
    "Make whole" relative to what was promised shareholders in 2008.

     

    http://1.usa.gov/PuFFCs
    12 Mar 2014, 06:21 PM Reply Like
  • jlo3605
    , contributor
    Comments (25) | Send Message
     
    I would like to see GSEs eliminated eventually. They have been fraught with fraud and accounting messes. DoesFranklin Raines ring a bell with anyone or am I dating myself?
    11 Mar 2014, 04:34 PM Reply Like
  • Nohateplease
    , contributor
    Comments (2) | Send Message
     
    Have you profited from trading these stocks...or the likes?
    11 Mar 2014, 06:14 PM Reply Like
  • Nohateplease
    , contributor
    Comments (2) | Send Message
     
    Have you made any profits from trading these stocks or the likes?
    11 Mar 2014, 06:15 PM Reply Like
  • s404n1tn0cc
    , contributor
    Comments (119) | Send Message
     
    ALL IN OR NOTHING.
    CAUTION: DON'T TAKE MY POSITIONS AS ADVICE. I LIKE RISK. IT CAN BE YOUR BEST FRIEND. THE PROBLEM MAY LAY WHEN YOU CAN NO LONGER GAGE YOUR BEST FRIEND. AND ABANDON YOU.

     

    Yup the shorters of FMCC got in there and shorted the shares to $3.38. Then officially closed at $4.04.What was omitted was .... after hours trading the shares went back up to $4.30 cents approx. Truly the market is smarter than the shorters.
    11 Mar 2014, 05:07 PM Reply Like
  • MatchlessGlory
    , contributor
    Comments (37) | Send Message
     
    However FNMA dropped to 3.55
    12 Mar 2014, 01:17 AM Reply Like
  • tunthan
    , contributor
    Comments (186) | Send Message
     
    There is no after hour trading nor pre-market trading for OTC stocks. Additionally, no one is allowed to short this type of stock. However, I strongly believe that $FNMA gonna become a game changer of my portfolio. One day it will multiple, i believe. The government can't just ignore investors and eliminate this company. Simply put, it would be a robbery. Friends, I invest in it, as I am trading it when the stock is up. Good luck!!!
    15 Mar 2014, 03:17 AM Reply Like
  • s404n1tn0cc
    , contributor
    Comments (119) | Send Message
     
    Want to bet. I get the before market and after. Yes you have to ask your broker for permission. Well at least mine does.

     

    ALL IN OR NOTHING.
    CAUTION: DON'T TAKE MY POSITIONS AS ADVICE. I LIKE RISK. IT CAN BE YOUR BEST FRIEND. THE PROBLEM MAY LAY WHEN YOU CAN NO LONGER GAGE YOUR BEST FRIEND. AND ABANDON YOU.
    15 Mar 2014, 06:03 PM Reply Like
  • oilman545
    , contributor
    Comments (64) | Send Message
     
    I am independent voter but I like Toomey's stand on this because its the right one. He should be able to find support across the isle.
    11 Mar 2014, 05:22 PM Reply Like
  • Mas Jobs
    , contributor
    Comment (1) | Send Message
     
    The tens of millions of BUYS that pushed fnma from today's bottom of abt $3 to the close of $4.03 pobably created more than a few millionnaires in one day!! Senate "news" that triggered SELL is old news back from when Sen. Corker proposed reform. Panic selling and volatility, if you ask me. Could well barrel past $5 tomorrow. Mas Jobs
    11 Mar 2014, 06:13 PM Reply Like
  • Stirletz
    , contributor
    Comments (4) | Send Message
     
    No its not old news. Proposed reform is nothing compared to an AGREEMENT on Reform in the Housing Committee.
    11 Mar 2014, 10:25 PM Reply Like
  • chriff
    , contributor
    Comments (117) | Send Message
     
    If you invested in a GSE (Government Sponsored Entity, to spell that out) expecting high profits due to the government backstop, please spare me the whining when the same government you relied on to get your profits suddenly changed its mind.
    11 Mar 2014, 07:01 PM Reply Like
  • User 16640252
    , contributor
    Comments (3) | Send Message
     
    It was a very popular day for taking short positions. Stock will bounce back and them some.
    11 Mar 2014, 10:25 PM Reply Like
  • tunthan
    , contributor
    Comments (186) | Send Message
     
    Noone can short $FNMA, $FMCC. they are OTC stocks. But I am quite sure both are BUY and I bought some more today. Keep a lot of $$$ money in your hand to buy!!!
    12 Mar 2014, 12:35 AM Reply Like
  • jhu663
    , contributor
    Comments (32) | Send Message
     
    the gov is perfectly within its rights to take away the guarantee. Lets see what the stock is worth without the gov guarantee. Who would want their mortgages insured by FNMA and Freddie Mac without the gov guarantee. I love it how supposed free-marketers like Toomey are saying how shareholders are getting screwed. The shareholders are banking on making money off the gov guarantee and know full well that if the guarantee goes away the companies are worth nothing.
    11 Mar 2014, 11:11 PM Reply Like
  • invest2bfree
    , contributor
    Comments (505) | Send Message
     
    Right on jhu these whole GSEs are scam rent seeking companies.

     

    There is no reason to have FHA and a FNMA at the same time. Just merge the two and call it a day.
    11 Mar 2014, 11:37 PM Reply Like
  • johnboyinva
    , contributor
    Comment (1) | Send Message
     
    No future company will have a government guarantee in the new proposed system until after the first loss. So by your reckoning any company doing what Fannie and Freddie do will also have worthless stock?
    12 Mar 2014, 08:57 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (11050) | Send Message
     
    Good point, johnboyinva.
    12 Mar 2014, 06:22 PM Reply Like
  • tunthan
    , contributor
    Comments (186) | Send Message
     
    US is not a communist country, and, therefore, the investors will survive and thrive. I am going to load more if there is a good entry from today and on. I can't miss this opportunity this time.
    12 Mar 2014, 12:41 AM Reply Like
  • James Myung
    , contributor
    Comments (470) | Send Message
     
    What is the % of the US government holding the shares. Can that % be higher than 90% to wipe out the current shareholder by exercising their warrant. If my understanding is correct, you can't wind up a corp if the % is less than 90%. I don't know if it is the same for wind down.

     

    I also have following questions if anyone can clarify them:
    1. who are the senators demanding the wind down? are they puppets of the bankers?
    2. If my understanding is correct, when the banks dumped the mortgages to FNMA for the last 40-50 years, there should be notes issued between the banks and FNMA to receive payments. What are the outstanding terms on those notes and are the banks still the primary notes holders.
    3. There are trillions of dollars worth of receivable and payable in FNMA's B/S. If FNMA wind down, is long term payable deemed to be transferred to the creditors. This is bothering me a lot. The banks had dumped the risk on the mortgage to FNMA, and the Fed. probably cleaned up FNMA's toxic asset by purchasing all the garbage in their book by printing 4-5 trillions last 4-5 years. If they wind down, the fresh cash will be transferred to the banks, not to the tax payers. Most importantly, the risk has been removed.

     

    Going back to my question 1, if the senators are puppets of the bankers, they can come up with all sorts of reasoning to wind this down in favor of the banks. The middle east issues, countless wars and crisis in the last decade are the proof of what the bankers are capable of. Don't get deluded by the stories on the surface. Follow where the money flows. They don't care about the value of people but the fees and profits.
    12 Mar 2014, 03:09 AM Reply Like
  • ValueMiner
    , contributor
    Comments (2) | Send Message
     
    Right on James! I have been trying to find some insights as to the bigger picture - not just the impact of the stock(s) on its shareholders. What happens to the overall economy if this is transferred from shareholders?

     

    Admittedly, I did sell off early yesterday because of the combination of the sudden fall from ~$6 and the headlines regarding the bill. There was not yet any content in the articles. I was hoping for the big announcement that the earnings were finally being released back to the shareholders, not the other way around.

     

    Now I am just trying to find that optimal re-entry point.
    12 Mar 2014, 09:54 AM Reply Like
  • Drew62
    , contributor
    Comments (10) | Send Message
     
    Panic selling from the news today! Will take some time for the merge to happen. But what Senator Toomey stated is a positive for all shareholders.
    12 Mar 2014, 04:28 AM Reply Like
  • Palenque
    , contributor
    Comments (395) | Send Message
     
    Panic selling from day traders only. There is nothing new here. Everybody knew that a new bill was coming. The guys that are here for the long run have a buying opportunity!
    12 Mar 2014, 08:28 AM Reply Like
  • cletuschukwu
    , contributor
    Comments (5) | Send Message
     
    When is the court ruling??? That's my question...
    12 Mar 2014, 10:02 AM Reply Like
  • s404n1tn0cc
    , contributor
    Comments (119) | Send Message
     
    For everyone's education
    Freddie and Fannie have gone into the Black. See here http://yhoo.it/Mhj7m3

     

    ALL IN OR NOTHING.

     

    CAUTION: DON'T TAKE MY POSITIONS AS ADVICE. I LIKE RISK. IT CAN BE YOUR BEST FRIEND. THE PROBLEM MAY LAY WHEN YOU CAN NO LONGER GAGE YOUR BEST FRIEND. AND ABANDON YOU.
    12 Mar 2014, 07:11 PM Reply Like
  • tunthan
    , contributor
    Comments (186) | Send Message
     
    Read this one "Hedge funds ignore Fannie-Freddie 'noise'" at http://cnb.cx/1nrto0a it will give you more information about why this little stock gonna to be a game changer for our portfolio.
    15 Mar 2014, 03:24 AM Reply Like
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