Comments on: The Frannie gamble http://blogs.reuters.com/felix-salmon/2013/05/29/the-frannie-gamble/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: essay writers http://blogs.reuters.com/felix-salmon/2013/05/29/the-frannie-gamble/comment-page-1/#comment-54960 Mon, 13 Oct 2014 11:48:21 +0000 https://blogs.reuters.com/felix-salmon/?p=21898#comment-54960 You could certainly see your enthusiasm in the paintings you write. The sector hopes for even more passionate writers like you who aren’t afraid to mention how they believe. Always go after your heart. “We may pass violets looking for roses. We may pass contentment looking for victory.” by Bern Williams.

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By: donna cerca uomo Roma http://blogs.reuters.com/felix-salmon/2013/05/29/the-frannie-gamble/comment-page-1/#comment-54714 Sun, 12 Oct 2014 21:12:26 +0000 https://blogs.reuters.com/felix-salmon/?p=21898#comment-54714 I do not even know how I ended up here, but I thought this post was great. I don’t know who you are but definitely you are going to a famous blogger if you are not already Cheers!

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By: fut 15 coins http://blogs.reuters.com/felix-salmon/2013/05/29/the-frannie-gamble/comment-page-1/#comment-52551 Thu, 25 Sep 2014 21:08:33 +0000 https://blogs.reuters.com/felix-salmon/?p=21898#comment-52551 It’s genuinely very complicated in this busy life to listen news on Television, therefore I just use web for that purpose, and obtain the latest news.

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By: Krasting http://blogs.reuters.com/felix-salmon/2013/05/29/the-frannie-gamble/comment-page-1/#comment-47147 Fri, 31 May 2013 12:03:33 +0000 https://blogs.reuters.com/felix-salmon/?p=21898#comment-47147 The run-up in the common this week was pure momentum players. It had to end badly.

– IF – there is any value in the Agencies, it will be in the pref, not the common. The end result would have to be a conversion of the pref to new common. That would dilute the existing common shares by 5Xs.

Felix points to the Fannie S pref. A better benchmark is the Fannie T, last at $8.

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By: SteveHamlin http://blogs.reuters.com/felix-salmon/2013/05/29/the-frannie-gamble/comment-page-1/#comment-47143 Thu, 30 May 2013 14:41:09 +0000 https://blogs.reuters.com/felix-salmon/?p=21898#comment-47143 @y2kurtus wrote: “It’s interesting that the government never used the bankruptcy process with the GSE’s the way they did with GM.”

Isn’t that because of the “officially denied, implicitly believed, then semi-explicit” status of the GSE’s debt as backed by the full faith and credit of the United States Government?

A GM bond default was viewed as MUCH different than a Frannie bond default, by the markets and by the Fed.

And I seem to recall that China had about a trillion dollars in Frannie debt in 2008, so the Fed certainly had some pressure to find a non-bankruptcy solution to Frannie’s situation (I have vague memories of reading that the USG even explicitly promising to China that their Frannie holdings were safe).

“abandon the existing GSE’s and just start a new agency under a different name which performs the same function.”

From reporting, it sure seems that the current Congress, both sides, are very interested in winding down the government’s almost-exclusive role in housing finance. A new agency will be created, to be sure, but with strong mandates that will try to limit its market share. Frannie will be wound down, hopefully killed and carved up to form the core of the new entity, but perhaps re-privatized with a clear understanding that it is now truly and completely private with no possibility of government backstopping any new debt.

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By: y2kurtus http://blogs.reuters.com/felix-salmon/2013/05/29/the-frannie-gamble/comment-page-1/#comment-47142 Thu, 30 May 2013 02:17:36 +0000 https://blogs.reuters.com/felix-salmon/?p=21898#comment-47142 ” The government can keep on dividending out as much money as it likes from Frannie, and still hold onto 188 billion reasons why no one else should ever get anything.”

Well that’s the government’s position. It’s interesting that the government never used the bankruptcy process with the GSE’s the way they did with GM. They never pushed the exchanges to delist the stock.

To be honest the preferred looks like a pretty good bet to me. I hold no position and don’t intend to hold a position but the government doesn’t want this in the courts.

I think as soon as the government gets their money back they will abandon the existing GSE’s and just start a new agency under a different name which performs the same function. They could probably even house it all within the Federal Reserve and have the government keep the full spread the way they do with student loans.

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