Trending This Week: FNMA, FMCC, TWTR, YHOO
Federal National Mortgage Assctn Fnni Me (OTCMKTS:FNMA), Federal Home Loan Mortgage Corp (OTCMKTS:FMCC) had a double dose of good news yesterday as a MDL panel denied the government’s motion to consolidate the numerous shareholder lawsuits the government faces in its treatment of the companies. The government was hoping to consolidate cases to a DC Court that had already found in favor of the government (that case is currently under appeal) and deal a crippling blow to lawsuits. The ruling means that the many cases put on hold waiting for the MDL Panel are back on.
The government has claimed that the Fannie Mae and Freddie Mac were in the midst of a death spiral in the years following their $187.5 billion dollar bailout and that they enacted a net worth sweep to protect tax payers. Unsealed court documents have pointed out that executives of the companies characterized the next eight years as golden years of GSE profitability just prior to the Government enacting the 2012 Net Worth Sweep, contradicting the government’s position.
Additionally Jon Prior the CFPB reporter for Politico reported that:
32 lawmakers ask Watt, Lew to “reassess” profit sweep and declining capital buffers at Fannie, Freddie https://t.co/URoifcPsea
— Jon Prior (@JonAPrior) June 2, 2016
He later shared a letter signed by the 32 members of congress, available here , which urges Treasury Secretary Jacob Lew and FHA Chair Mel Watt to take a different course. The members of Congress reminds them that they do not need to wait for Congress to act, and that HERA gives him authorization to do so.
A NYPost article indicated that several weeks ago Yahoo! Inc. (NASDAQ:YHOO) and Twitter Inc (NYSE:TWTR) kicked the tires on a combination. The article cited a source who indicated that Twitter is a destination for instant news and the fact Yahoo has a lot of eye balls as a reason that the combination may not be so crazy. Jack Dorsey reportedly did not show up for the Yahoo meeting, which shows that Twitter was not so serious. A source cited fear of the response by Twitter shareholders over the combination as a reason to count them out.
In not so good news for Twitter Inc (NYSE:TWTR), a Bloomberg report indicates that roughly 150 million people use Snapchat each day, which would make the messaging app more popular than Twitter, which is estimated to have less than 140 million users daily. The numbers would indicate that Twitter has now fallen behind Instagram, Facebook Messenger, and WhatsApp.
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