DRValue

If capital requirement increases by an equal amount of earnings, what does this mean for the value of the stock, dividends, capital raising, and the capital rule? Something gotta give?

Good point on incentives. Depending on what treasury does, Biden could be good for common if the amount of capital is set to more realistic levels.

They need all the money they can get with 27T of debt...

Personally very nervous now Biden confirmed.

This is getting really interesting! Hoping and speculating we will see something concrete after all. Setting up a scapegoat before there's even a problem on their (or Trump's...) watch.

I suggest everybody take the time to watch this. It is almost 5 hours long but it will give you an entirely different perspective, based on some very interesting and verifiable data, than what the polls are showing. It drastically changed my opinion on the odds of who I think will win. Super interesting. The only way trump loses is if it's stolen.

My assumption is that they raise as much low cost preferred as they can which I would expect to be at least the same amount as they currently have. They obviously have the ability to 'carry' that amount.

So we buy the inevitable dips right?

Is it easier for SCOTUS to do nothing this term and see if a settlement takes place?

Swap out CFPB with fhfa and that's what we'll get. A now constitutional thief.

Calabria can talk tough now but in reality -- and we'll know in the next 1 month and 5 months -- Zandi might very have more official impact on FnF's future than Calabria. I wonder why most politicians and reporters avoid the elephant in the room regarding Calabria's likely shortened tenure. It doesn't take a lot creativity to see how this will likely go. If Calabria tenure is shortened measures will be taken to make sure that what is done is irreversable. One other tidbit I thought about was we look to inauguration as a deadline if Trump is not re elected but its likely the March, April time frame if not longer that a new FHFA director is sworn in. The point he made about banks making jumbo mortgages and holding way more capital and their ability to still make money was worth listening to also. I think he will bend some on the capital rule but I don't see him breaking. He better bend cos a banks nim is about 4x higher than the g-fee.

Wow that is delicious! I take back everything, well most, of what i said about him! I'll enjoy watching that replay :-)

While I've given up predicting anything FHFA may do re the capital rule. I can't help but think that there is a possibility that Calabria can lower required capital by saying that the G-Fees would need to be so high to hold that level of capital, that it would hurt home buyers. I'd expect Democrats would accept that but I'm sure they'll find some way of objecting. $135b with some tweaks to the rule and paid for backstop seems fair. I'd like to know what the terms of payback would be on the backstop but I'm sure that would come out. Fingers crossed, but not confident.

The ownership of the prefs by the 'big boys' is particularly important. Im only aware of fnmas and fmckj having a large following. The other series may not convert. Re capital rule 240b with the buffers is too much imo but like midas said the price of commons is still north of here. I have similar numbers there and think they will be given leniency to pay dividends once they hit 135b and phase the buffers in. I think 135b is about right and fair.

Calabria is attempting to fully disconnect FnF from govt and its support. If this initiative is cancelled so is incoming capital, as trust that once existed has been curbstomped for a decade+. Would you buy this shit with govt backstopping it, begging for an '08 repeat? I wouldn't. Also, I don't give a rat's ass if we only wind up owning 1% of FnF. I just want my principle returned. All of it. He's still wrong.