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The Federal Housing Finance Agency hired PWC in May to formulate contingency plans for putting...

The Federal Housing Finance Agency hired PWC in May to formulate contingency plans for putting Fannie Mae and Freddie Mac into receivership, which would involve liquidating the companies. The FHFA says the plan "is routine and does not indicate any condition of the current status of the regulated entities."
Comments (11)
  • DeepValueLover
    , contributor
    Comments (8211) | Send Message
     
    This means that stock in these two GSEs are going to zero, right?
    24 Jul 2012, 07:00 AM Reply Like
  • David Sims
    , contributor
    Comments (304) | Send Message
     
    I believe FHFA has a duty to explore two options, receivership and a release from c-ship. When will they release the real plan?
    24 Jul 2012, 08:12 AM Reply Like
  • sr1977
    , contributor
    Comments (319) | Send Message
     
    When we get a real congress...don't hold your breath.
    24 Jul 2012, 08:36 AM Reply Like
  • sr1977
    , contributor
    Comments (319) | Send Message
     
    The FHFA says the plan "is routine and does not indicate any condition of the current status of the regulated entities."

     

    Truer words were never spoken: After having sucked $190 billion in aid from the U.S. Treasury, the current condition of these two regulated entities in the underwater limbo of conservatorship is "comatose with outlook negative".
    24 Jul 2012, 08:25 AM Reply Like
  • David Sims
    , contributor
    Comments (304) | Send Message
     
    Comatose entities don't report operating profits. Fannie and Freddie did in the 1st Q.

     

    The government paid for 2.5 consultants to spend the past year writing a white paper on how to dismantle a $5 trillion mortgage market. That's the real waste of government funds.

     

    Jim Millstein's plan actually saves money and didn't cost taxpayers anything.
    http://seekingalpha.co...
    24 Jul 2012, 08:32 AM Reply Like
  • sr1977
    , contributor
    Comments (319) | Send Message
     
    Yes about 3 billion in profits between the two of them. But against the backdrop of having Trillions in "assets" and having received 190 biollion in aid it seems almost inconsequential.
    24 Jul 2012, 01:27 PM Reply Like
  • BigHossJLP
    , contributor
    Comment (1) | Send Message
     
    if you own stock in fnma does this mean it will be worth nothing? or will they be taken over by private banks and the stock will be converted? sorry for a rookie question.
    24 Jul 2012, 12:17 PM Reply Like
  • Danielvincer
    , contributor
    Comments (82) | Send Message
     
    Why have none of the major Gurus like Berkowitz bought any FMCC ?? Are the risks too great?
    24 Jul 2012, 01:24 PM Reply Like
  • siriusmarine
    , contributor
    Comments (3) | Send Message
     
    Stock has hit it lows...Can't see it going anywhere but up.
    24 Jul 2012, 10:43 PM Reply Like
  • illum.land
    , contributor
    Comments (14) | Send Message
     
    Fannie and Freddie stocks aren't as low as the can go. If they go into receivership the stock is delisted and goes to 0 for all common shareholders. Investing in either one is like playing Mega Millions. Yes if they are allowed to survive on their own in 5 years down the road they will be one of the most profitable companies but the uncertainty and risk is so great that you have to treat the investment as a sunk cost. Fannie and Freddie's outcome is also tied to the political game now.
    25 Jul 2012, 04:12 PM Reply Like
  • David Sims
    , contributor
    Comments (304) | Send Message
     
    If they go into receivership, taxpayers will get nothing in return. Jim Millstein's plan (AIG bailout architect), says that taxpayers can be paid back in full. I think existing shareholders get a seat at the table, but I can't say for sure.
    http://seekingalpha.co...
    25 Jul 2012, 04:44 PM Reply Like
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