Select Page

Hedge-fund manager John Paulson, who made a fortune betting against the U.S. housing market before the crisis a decade ago, was a big fan of Donald Trump when he was running for president and remains a big fan despite the controversies swirling around the White House these days.

John Paulson On Freddie And Fannie And His Tip For Trump Supporters Living In New York: Stay Calm

Q4 hedge fund letters, conference, scoops etc
Yeah it’s unfortunate that people think that you know somehow.
Protecting shareholder rights is asking for a favor. You know Freddie and Fannie first of all the largest financial enterprises in the world larger than any other U.S. financial institution. Every single U.S. financial institution that required federal aid or went bankrupt every single one has been restructured. The only companies that are still left over ten years after the financial crisis that haven’t been restructured are Freddie and Fannie.
Now who’s benefited from this. The government put in 185 billion of senior preferred. And today they have taken out two hundred eighty five billion in dividends. It’s the largest financial gain in U.S. history.
And you know it’s about five times greater than the gains on all the other financial restructurings they did. Meanwhile the former preferred holders and we are former preferred as the total preferred is 30 million billion.
So one tenth the amount of dividends the Government’s taken out. They have not received a dividend in 10 years and trade it more or less 25 cents on the dollar. So the public preferred holders are not rolling in the dough here have been severely impaired. Plus the dividend on the public preferreds are not. Q So you haven’t got a dividend in 10 years. You’ll never get any of those dividends. Regarding the comment the comment peaked at ninety dollars

Article From: "Jacob Wolinsky"   Read full article