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


twacowfca

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It's a setback because the pressure is off for a few more months. Earlier is better.

 

 

Fairholme's the ones that wanted the extension.

 

I know that. I just can't figure out why.

 

And Luke, you can't assume that on the motions to unseal. If it's premature, she doesn't even have to consider the legal arguments, so it wouldn't be incongruous to say later that the legal reasoning doesn't fly. Even if I think that's unlikely.

 

Thanks for the explanation, merkhet.  Always appreciate your input.

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I guess not really rumors, but the reported golf outing leading to a settlement. The Obama Administrations lawyers have only seen the documents for 2 weeks now. Thats a pretty big reason why not to release the sealed documents and for the extension, but then again Fairholme is the one that wants the extension.

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I guess not really rumors, but the reported golf outing leading to a settlement. The Obama Administrations lawyers have only seen the documents for 2 weeks now. Thats a pretty big reason why not to release the sealed documents and for the extension, but then again Fairholme is the one that wants the extension.

 

I doubt the Ron Kirk thing is anything.

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I guess not really rumors, but the reported golf outing leading to a settlement. The Obama Administrations lawyers have only seen the documents for 2 weeks now. Thats a pretty big reason why not to release the sealed documents and for the extension, but then again Fairholme is the one that wants the extension.

 

If a settlement conversation is taking place, perhaps the following agreement was made:

-Administration gets more time to review the documents

-Plaintiffs get to dig deeper and uncover more dirt (to strengthen their chances of winning the case in the event the government backs out of settlement talks or a deal can't be reached)

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So next Tuesday Ackman, Bethany Mclean, and Franklin Raines (former CEO of Fannie) are at Columbia to talk about Bethany's new book and F&F in general I believe. Anyone plan on going?

 

http://globalreports.columbia.edu/events/launch/

 

Thanks for posting, I'll definitely be going. Would love to shake hands with Ackman though I'm not sure what the likelihood of that is

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I just dont buy the rumors of a settlement.  Think there are going to be more depositions?

 

Yup, Dougie. Mo' Depositions.

 

"Fairholme lawyers are also planning to depose former White House National Economic Council senior adviser Jim Parrott, who was directly involved in the sweep decision, sources told The Post."

 

 

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Received a new e-mail from Fairholme today.

 

Dear Shareholder,

 

Earlier this summer, you read Bethany McLean’s New York Times op-ed in which she pointedly asked “isn’t it time to fix what we have and ease Fannie and Freddie out of conservatorship?”

 

Ms. McLean reveals the full story in her new book, Shaky Ground: The Strange Saga of the U.S. Mortgage Giants, set to be released next week.

 

The author highlights that “most American homeowners don’t know that they are in an intimate financial relationship with these enormous companies,” and that the U.S. Government’s decision to keep Fannie and Freddie in perpetual conservatorship is “fundamentally unstable” for our economy and could prove to have devastating consequences for the housing market.

 

If you are interested in better understanding our investment in these two systemically important financial institutions, we recommend that you add this book to your Fall reading list.

 

Kind regards,

 

Investor Relations

 

The Funds' investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the Funds, and it may be obtained by calling Shareholder Services at 1-866-202-2263 or visiting our website www.fairholmefunds.com. Read it carefully before investing.

Fairholme Distributors, LLC (9/15)

 

Fairholme Funds, Inc.

4400 Biscayne Blvd.

9th Floor

Miami, FL 33137

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Received a new e-mail from Fairholme today.

 

Dear Shareholder,

 

Earlier this summer, you read Bethany McLean’s New York Times op-ed in which she pointedly asked “isn’t it time to fix what we have and ease Fannie and Freddie out of conservatorship?”

 

Ms. McLean reveals the full story in her new book, Shaky Ground: The Strange Saga of the U.S. Mortgage Giants, set to be released next week.

 

The author highlights that “most American homeowners don’t know that they are in an intimate financial relationship with these enormous companies,” and that the U.S. Government’s decision to keep Fannie and Freddie in perpetual conservatorship is “fundamentally unstable” for our economy and could prove to have devastating consequences for the housing market.

 

If you are interested in better understanding our investment in these two systemically important financial institutions, we recommend that you add this book to your Fall reading list.

 

Kind regards,

 

Investor Relations

 

The Funds' investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the Funds, and it may be obtained by calling Shareholder Services at 1-866-202-2263 or visiting our website www.fairholmefunds.com. Read it carefully before investing.

Fairholme Distributors, LLC (9/15)

 

Fairholme Funds, Inc.

4400 Biscayne Blvd.

9th Floor

Miami, FL 33137

 

 

I'm gonna overstep my bounds a little bit but one thing i think that Berkawitz and Ackman could do is empathize with America a little more. F&F arnt out to hurt Americans there there to help. But that message is lost. I read quotes like “most American homeowners don’t know that they are in an intimate financial relationship with these enormous companies,” and that the U.S. Government’s decision to keep Fannie and Freddie in perpetual conservatorship is “fundamentally unstable” for our economy and could prove to have devastating consequences for the housing market." and all I think about is that this basically tells Americans that they are to stupid to realize that they are being hurt. I'm sorry I would be pretty pissed if someone said, "Your too dumb to understand all this financial stuff, leave it to us to tell you what you should think." So naturally all I'm gonna see is "enormous companies," remember how I lost my job in 2008 because of these companies, still have to write checks to these companies for my home and then turn around and listen a wall street guy tell me I'm supposed to love these companies.

 

Is as if we've enter a Financial Cold War. That we (as shareholders) asked Americans to go out and fight the Financial crisis of 2007–08, ie. suffer the consequences, and now tell them that they dont know shit.

 

Why scare Americans more with lines like "perpetual conservatorship is “fundamentally unstable” for our economy and could prove to have devastating consequences for the housing market?". Its.....Its....elitist is what it is.

 

I get really cocky(and un-empathetic) at times but there has to be a better message to send. After all these companies were originally chartered in the grips of the Depression to give hope.

 

Edit: Sorry for going all meta.

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I've written books about Enron and the financial crisis. But Fannie Mae is the scariest of them all.

By Bethany McLean.

 

http://www.linkedin.com/pulse/ive-written-books-enron-financial-crisis-fannie-mae-scariest-mclean

 

“The GSE world is a cross between Monty Python and Shakespeare.” Right now, a group of investors is suing the U.S. government over how it has handled Fannie and Freddie, and while you might think that the investors, which are mostly powerful hedge funds, are only looking after their own dollar—and they are—I’ve also come to believe that they’re looking after the rest of us by providing a check on the government’s behavior that otherwise wouldn’t exist.

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Hi Merkhet

 

Not sure if I'm daft or whether there's some subtlety I don't get. The Bloomberg piece states that the proposed law would forbid Treasury to sell its GSE holdings and that in turn would make it impossible for the hedge funds to get paid for their stakes. I don't see why one would follow from the other? Also, my understanding was that the current cases are principally about whether the sweep was illegal and must be reversed. Granted, if the GSEs then still have to pay an inflated pref dividend to Treasury then that reduces return to shareholders but I'd expect the main part of the value uplift as the sweep being removed ...

 

Thanks - C.

 

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The point of the bill is to prevent Treasury from taking action to reform and release the GSEs w/o action from Congress. This bill was introduced months ago and stalled. Now, all of a sudden, we have the GOP trying to fast track the bill in an effort to get it passed.

 

The implication here is... why the sudden rush?

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