Privatize Fannie Mae and Freddie Mac to Access $200B for Administration Priorities while Lowering Mortgage Rates Overview Fannie Mae and Freddie Mac are extremely profitable businesses, with combined annualized profits of $28.4 Billion (2024Q3 [1] [2] ). Historical earnings ratios would indicate a combined valuation of approximately $280 Billion. The US Treasury controls 80% of the common equity and has a large senior preferred equity position. Treasury has already made more money through dividends than they invested in the companies, and now stands to make an additional profit of approximately $200 Billion which can be spent on any administration priorities , from border security to starting new cities. However, accessing this capital will require moving quickly to privatize Fannie Mae and Freddie Mac in order to establish market certainty so that valuations can return to normal and Treasury's equity position can be liquidated progressively ov...
Alright #Fanniegate Fans, let's start with a summary of Lamberth jury trial Day 1. Original Twitter Thread First, apparently a juror didn't show up (or maybe 2?) and their are now 9 jurors seated (probably a jury of 6 with 3 alternates but not 100% clear). This delayed the start of opening arguments until after 11:30am. Some brief argument over a tsy document but it was included. Ps opening was extremely clear. Tsy got $150B from NWS than the 10% original deal (explained step by step with slides). JPS Ps paid in $33B and only received $5B back in dividends, and NWS cut of all possibility of future dividends (clear and simple slides), so $27B down... ...and we're only asking for a small fraction of that. Lot's of time spend on explaining the $27B, and literally 1 minute explanation of the end of the share price pre-NWS of $2.9B and post-NWS of $1.3B for a decrease of $1.6B and "that's all we're asking for" So 30 minutes on "we're ...
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