Does anyone think the government will let them out of conservatorship? I may by a few lotto tickets and get ready for 2018 talks.
If a federal tax reform bill is signed into law, a reduction in the corporate tax rate — from 35% to as low as 20% — will force some companies to take a big writedown due to the forced remeasurement they’ll have to do of the deferred tax assets on their balance sheets. One article reported on the significant profit hit, and potential capital infusion needed, for Fannie Mae FNMA, +2.22% because of their large deferred tax balances. The deferred tax assets, currently worth about $45 billion combined, would be reduced to about $20 billion, according to an analyst estimate based on a corporate rate cut to 20% from 35%.
Word is there is a plan to cap and release... https://www.marketwatch.com/story/t...c-likely-to-be-released-next-month-2019-08-22 Treasury plan for Fannie Mae, Freddie Mac reportedly near completion Fox Business Videos•August 22, 2019 FBN's Charlie Gasparino on the Treasury Department's potential plans for Fannie Mae and Freddie Mac and Patrick Byrne resigning as CEO of Overstock.
"This latest plan is to return the two back to private hands. But as part of the plan, there would be a Treasury backstop in place. But this hasn’t come without pushback. Senate Banking Committee Senator Sherrod Brown has issues with this plan. The concern stems from possible risks that could arise by giving up control." - Source: 2 Penny Stocks To Buy Or Avoid This Month: FNMA & FMCC It's time to watch for fireworks I think haha. People complained these were penny stocks but what will they say when or if FNMA/FMCC actually take us for a wild ride?
I've already been banking on trades. I currently have 15K shares at average of 2.93 with a 3.73 stop loss. I'm not sure if they ever get released, but it looks more promising.
