Quick & Easy on Fannie Mae & Freddie Mac – All You Need To Know In 3 Slides by Regal Point Capital

Fannie Mae & Freddie Mac – The Background

Before the Subprime Meltdown (1980-2006)

Fannie Mae & Freddie Mac

During the Subprime Meltdown (2006-2009)

Fannie Mae & Freddie Mac

  • On the verge of failure, the government bailed out the GSEs placing them into conservatorship
    • The federal government gained ownership of approx. 80% of the companies
    • The remaining 20% is still owned by private shareholders

After the Subprime Meltdown (2009-Present)

Fannie Mae & Freddie Mac

Bulls vs Bears

Bullish Bullets

Bearish Bullets

One of these gentlemen knows the GSEs like the back of his hand.

The other has been placed in charge of them.

Fannie Mae & Freddie Mac

RPC Investment Thesis

Regal Point Capital is long

Fannie Mae Common & Preferred Stock

Factual Underpinnings & Legal Contentions

It all comes down to the third amendment to the PSPAwhich we believe will be rejectedfor the following reasons:

Fannie Mae & Freddie Mac

See full PDF below.