FNMA and FMCC preferreds. In search of the elusive 10 bagger.

[Mephistopheles]

So now Bruce Berkowitz, John Paulson, and Carl Icahn are publicly supporting Trump. Probably giving him good money as well. Highly likely that a Trump win = win for us.

[Spekulatius]

So now Bruce Berkowitz, John Paulson, and Carl Icahn are publicly supporting Trump. Probably giving him good money as well. Highly likely that a Trump win = win for us.

 

These guys are all on loosing streaks. I doubt they will do better betting on election outcome.

[Mephistopheles]

So now Bruce Berkowitz, John Paulson, and Carl Icahn are publicly supporting Trump. Probably giving him good money as well. Highly likely that a Trump win = win for us.

 

These guys are all on loosing streaks. I doubt they will do better betting on election outcome.

 

?

 

They are not betting on an election as they've held shares well before Trump entered the race. It's a good bet regardless of his win or not. But if he wins, the influence of these guys over him, particularly Icahn, makes it highly likely we get a win from the Executive Branch (rather than just the Judicial).

[hardincap]

i take this back. berko seems to think theres something in the docs sweeney reviewed that clearly makes the case for the Ps. if so maybe govnt will give up the fight and settle

 

settlement is wishful thinking. these bureaucrats have no skin in the game, and have backed themselves into a corner with their dogmatic fannie must die rhetoric. yes, emails made public will be embarrassing, but does the public really care about 8 years ago? most ppl have no idea what fannie even does. the Ps have tried to rile the public to no avail.

 

that said, we can still wish.

[Sunrider]

For the legal guys and for clarification (apologies if these are daft questions):

 

How long does it typically take for the order to be redacted and released? Why is it being redacted in the first place? If Sweeney (likely) ordered that privileges don't apply, why would there be redactions in that order? Will the other courts be given the redacted or the full order?

 

Thank you - C.

[Guest cherzeca]

@sunrider

 

govt has asked for sealing of all evidence produced in case.  so all evidence produced now that privilege(s) have been defeated will be under seal.  sweeney has granted several requests to have other Ps counsel in other cases to review sealed evidence. she has also lifted seal for certain evidence. redaction shouldnt take long, though if parties have to agree between themselves as to what should be redacted govt could stall...not that govt should test patience of an already pissed off judge. not clear who is doing sealing tho. fairholme counsel has already filed with perry appeals court the order under seal.  the order, which likely has a full opinion attached, likely refers to various pieces of evidence that govt wanted not to be produced under claim of privilege, so perry appeals court has access to sweeney's opinion in full .

[ValueMaven]

What are the Preferred's are people look at? 

 

Relatively new to this idea...apologize

 

Sincerely,

VM

[Luke 532]

What are the Preferred's are people look at? 

 

Relatively new to this idea...apologize

 

Sincerely,

VM

 

Pretty much any of them.  It just depends on your need/desire for liquidity, price relative to par, dividend rate (if it gets reinstated), etc.  Go to Fannie Mae's or Freddie Mac's investor relations page for a prospectus on each one.

 

Personally, I own FNMAS, FNMAH, and FMCCL.

[merkhet]

i take this back. berko seems to think theres something in the docs sweeney reviewed that clearly makes the case for the Ps. if so maybe govnt will give up the fight and settle

 

settlement is wishful thinking. these bureaucrats have no skin in the game, and have backed themselves into a corner with their dogmatic fannie must die rhetoric. yes, emails made public will be embarrassing, but does the public really care about 8 years ago? most ppl have no idea what fannie even does. the Ps have tried to rile the public to no avail.

 

that said, we can still wish.

 

I think this is the case as well. Take a look at the Director of Investment Research @ Fairholme. He left the Treasury in 2011, but my guess is that he has some knowledge of things that transpired re the NWS.

 

http://www.fairholmecapital.com/daniel-e-schmerin/

 

Daniel Schmerin is the Director of Investment Research at Fairholme Capital Management. In this capacity, he assists the Chief Investment Officer in executing Fairholme’s proprietary investment strategy across all asset classes, and manages a team that is responsible for conducting research and analysis on existing portfolio positions as well as sourcing and evaluating new investment opportunities.

 

Mr. Schmerin previously served as Chief Operating Officer for the Legacy Securities Public-Private Investment Program in the Office of Financial Stability at the U.S. Department of the Treasury.

 

Before joining the U.S. Department of the Treasury, Mr. Schmerin served in the Executive Office of the President at the White House and in the Bureau of Economic and Business Affairs at the U.S. Department of State.

 

Mr. Schmerin earned a Bachelor of Arts degree, magna cum laude, from the University of Pennsylvania, where he received the Norman D. Palmer Prize for best senior thesis in International Relations. He subsequently earned a Master of Science degree with highest honors from the London School of Economics, and a Master of Arts degree with distinction from the Walsh School of Foreign Service at Georgetown University.

 

Mr. Schmerin is a Term Member at the Council on Foreign Relations.

[doughishere]

i take this back. berko seems to think theres something in the docs sweeney reviewed that clearly makes the case for the Ps. if so maybe govnt will give up the fight and settle

 

settlement is wishful thinking. these bureaucrats have no skin in the game, and have backed themselves into a corner with their dogmatic fannie must die rhetoric. yes, emails made public will be embarrassing, but does the public really care about 8 years ago? most ppl have no idea what fannie even does. the Ps have tried to rile the public to no avail.

 

that said, we can still wish.

 

I think this is the case as well. Take a look at the Director of Investment Research @ Fairholme. He left the Treasury in 2011, but my guess is that he has some knowledge of things that transpired re the NWS.

 

http://www.fairholmecapital.com/daniel-e-schmerin/

 

Daniel Schmerin is the Director of Investment Research at Fairholme Capital Management. In this capacity, he assists the Chief Investment Officer in executing Fairholme’s proprietary investment strategy across all asset classes, and manages a team that is responsible for conducting research and analysis on existing portfolio positions as well as sourcing and evaluating new investment opportunities.

 

Mr. Schmerin previously served as Chief Operating Officer for the Legacy Securities Public-Private Investment Program in the Office of Financial Stability at the U.S. Department of the Treasury.

 

Before joining the U.S. Department of the Treasury, Mr. Schmerin served in the Executive Office of the President at the White House and in the Bureau of Economic and Business Affairs at the U.S. Department of State.

 

Mr. Schmerin earned a Bachelor of Arts degree, magna cum laude, from the University of Pennsylvania, where he received the Norman D. Palmer Prize for best senior thesis in International Relations. He subsequently earned a Master of Science degree with highest honors from the London School of Economics, and a Master of Arts degree with distinction from the Walsh School of Foreign Service at Georgetown University.

 

Mr. Schmerin is a Term Member at the Council on Foreign Relations.

 

Every-time you do something wrong there's always someone willing to sellout...dont to the wrong thing. Merk, Im a little upset I didnt think of this.

 

Nice find.

[merkhet]

If I add this to the conversation that another CoBF poster and I had w/ Berkowitz roughly two years ago where he said that he hoped he could embarrass the people involved into doing the right thing -- it starts to make some sense that Berkowitz might know what's hidden.

[doughishere]

If I add this to the conversation that another CoBF poster and I had w/ Berkowitz roughly two years ago where he said that he hoped he could embarrass the people involved into doing the right thing -- it starts to make some sense that Berkowitz might know what's hidden.

 

 

My honest to God conspiracy theory is that it goes all the way to the President. I just dont hope i end up on bagholderquotes for it.

 

Edit: I will say its possibility...im just not sure what percentage. Real small.

[doughishere]

If I add this to the conversation that another CoBF poster and I had w/ Berkowitz roughly two years ago where he said that he hoped he could embarrass the people involved into doing the right thing -- it starts to make some sense that Berkowitz might know what's hidden.

 

Mr. Schmerin served in the Executive Office of the President at the White House

 

My honest to God conspiracy theory is that it goes all the way to the President. I just dont hope i end up on bagholderquotes for it.

 

Edit: I will say its possibility...im just not sure what percentage. Real small.

 

 

Could this be ground for impeachment if it goes to the president?

 

 

His linkedin

 

https://www.linkedin.com/in/schmerin

 

[merkhet]

He worked on the Homeland Security Council.

 

And it's unlikely that this is grounds for impeachment. There are specific things, treason, etc. that are impeachable offenses.

[doughishere]

schmerin on the approved list of for those that can view the redacted documents?

[doughishere]

schmerin on the approved list of for those that can view the redacted documents?

 

The Sweeney documents.....

[merkhet]

IIRC, only the lawyers can view the documents unless they're unsealed.

[doughishere]

His liked-in (like you say)says he left as the Chief Operating Officer, Public-Private Investment Program, Office of Financial Stability

U.S. Department of the Treasury

August 2008 – March 2011 (2 years 8 months)

 

That would place him right in the middle of the Fannie and Freddie issue...he could be our whistle blower.......straight to Fairholme right after that. He didnt even take some time off.

 

Im so pissed I didnt put this together like a year ago.

 

 

Were the talks of screwing the shareholders going on at this point? He may have not been popular if he was the only one to speak up for the shareholders at the time.

 

Public-Private Investment Program

https://www.treasury.gov/initiatives/financial-stability/TARP-Programs/credit-market-programs/ppip/Pages/default.aspx

[doughishere]

Youre right. He is not... Interestingly Leucadias old CFO is.

 

 

 

 

 

http://www.palisadeshudson.com/2016/09/sweating-out-a-ruling-on-fannie-and-freddie/

[Eye4Valu]

Perry Capital Liquidating Funds; Quote from Bloomberg: "Perry Capital’s less liquid positions will be sold over the next year, or longer. Some of them, including its remaining preferred shares in Fannie Mae and Freddie Mac, “will take time, energy and capital to successfully realize an appropriate result,” Perry wrote in the letter. The core team will remain in place to aid in the liquidations and capital will be returned quarterly as transactions are completed."

[investorG]

by using the word 'remaining' in the letter, it appears Perry has been selling shares lately, obviously contributing to the decline in recent months.

 

in a march 2014 bloomberg article, his estimated stake was $500mm.  Prices are 60-70pct lower now, which suggests around $175mm, prior to any recent sales.

 

there are 33bn of face value jr preferred, if the combined amount is trading around 15 cents on the dollar, that's 5bn of market value.

 

so Perry likely owns around 3pct of the preferred shares. 

 

Most importantly, I am grateful for his efforts on behalf of all GSE public shareholders --- thank you to you and your team.

[undervalued]

In the bloomberg article, it says Perry made money on FNMA.

[Mephistopheles]

What does this mean for the Perry charges in the court of appeals??

[Guest cherzeca]

i read the bloomberg article on perry and you can't tell how long the liquidation will take, or what % of the fund is his own funds. he did appear to indicate that he views GSEs as a holding that requires additional time, so i dont think you can conclude that perry has been selling GSEs...and he said that it would require additional capital...what he meant by that i dont know....maybe just more legal fees

[TwoCitiesCapital]

i read the bloomberg article on perry and you can't tell how long the liquidation will take, or what % of the fund is his own funds. he did appear to indicate that he views GSEs as a holding that requires additional time, so i dont think you can conclude that perry has been selling GSEs...and he said that it would require additional capital...what he meant by that i dont know....maybe just more legal fees

 

I certainly hope this doesn't mean that he's all but given up on the case. It seems like this is his flagship fund. Are there other funds that Perry manages to sell the interest to so that he remains incentivized to continue with the case?