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I have no idea what that means, but yeah, sure
Wiseman Separate Plan dance the hempen jig log hang the jib scallywag wench booty long clothes take a caulk draught Wiseman hogshead. Hulk interloper grog jack provost bring a spring upon her cable Separate Plan Brethren of the Coast mutiny lee crack Jennys tea cup. Flogging reef sails rutters chantey scourge of the seven seas sloop bounty sutler knave square-rigged. Sail ho flogging landlubber or just Wiseman lubber lad galleon lanyard American Main parrel Brethren of the Coast topgallant.
Parley warp me scallywag Separate Plan careen ballast coffer long clothes brig. Wiseman Flogging pressgang deadlights carouser chantey dead men tell no tales barque grog blossom parley Admiral of the Black. Separate Plan salmagundi topmast walk the plank clap of thunder holystone tackle careen hang the jib come about. Cutlass hornswaggle grog blossom matey gaff Letter of Marque pink blow the man down lee fluke.
Squiffy Separate Plan wench case shot interloper sloop swab main sheet jury mast gaff pink. Blimey cutlass lee long boat topmast rum yardarm Yellow Jack fathom hang the jib. Nipper Privateer yo-ho-ho prow Separate Plan Pieces of Eight gangplank matey lugger sutler cutlass. Wiseman Mizzenmast cog chase bilge water tackle barque Separate Plan topsail ye yardarm man-of-war.
The only thing missing is the serial killer graphic Gotta love the Pirate Ipsum Lorem
Load up, Suit up, Board Up
or Stand Away from the Launch Pad
In a holding pattern waiting for Trump and or Lamberth’s news.
Thanks. To quote Bryndon Fisher, “We’re all in this together “.
If each shareholder does his/her part, instead of waiting for the media, we’ll be way ahead.
EVERYONE: Please retweet Fiderer’s post.
THANKS GUIDO! It's posts like these and your sharing of them that have the potential to really make a difference ...
Hi No Name - based off your years of restructuring experience - isnt a vote required on a series by series basis for any reduction of nominal value of the JPS?
Hi Glen, any update on the JB June scenario?
My only criticism of the excellent thread is that Federer continues using the the term GSE. Much, much better if he were to substitute it with Fannie and Freddie or just FnF.
Read the entire thread.
1. Why have Fannie & Freddie been kept in conservatorship for 15 yrs? Because of demand for GSE "reform" based on an anti-GSE narrative used to distract away from the fatal flaws & institutionalized fraud of private label residential mortgage securitizations. An explainer 🧵
— David Fiderer (@Ny1david) May 29, 2024
As always, this is just my opinion, but after nearly 16 years in C-ship and nearly that long in the courts, I think it's a pertinent question.
What does this even mean?
SW MM’s controlling this as usual.
$1.49
If I can see it
It’s way too obvious
lol
The courts have to go through the process. It is the plaintiff lawyers that have shown no sense of urgency. Why would they? They have the perfect clients rich hedge funds and they have consolidated the cases to take control in this class action and they will maximize their billable hours to the max. Defendants filing of the JML tolls any appeal until Lamberth rules on it. Both parties agreed Defendants have until July 7th to respond.
Good Morning Warriors! How many ole time Warriors still holding?
You forgot to add scare mongering, fear mongering, bullying, trying to walk over you, hazing, instigating a doubt and self fear in you etc etc etc
Albeit without any statistical or factual historically tracked evidence, just anecdotal, my biggest concern is that No Name captures spot on the true nature of Government and Treasury officials. They are arrogant, paternalistic, often corruptly self-interested, greedy, superior and condescending. I’d feel a lot more comfortable if the courts would show some sort of spine to back the sensibilities of the Lamberth jurors.
Carney used to be on some conservative radio shows as an economic / financial / Wall Street commentator. That fool couldn’t put two coherent sentences together EVER - one of the worst speakers I ever heard for someone with his supposed knowledge and background (lawyer with an Ivy League-like education). I’m not sure that fool could write what KT19 writes - it’s possible, but I doubt it.
I certainly hope so Wingsjr!
Charity is a misnomer is this situation. There is nothing charitable about a write down. Treasury is the nation's bookkeeper and payer of bills. This would be a bookkeeping entry, nothing more.
There is no tangible taxpayer money lost by halting the future pillage of privately owned companies. It's not Treasury's (future) money to lose, and taxpayers have not lost any of the return they already realized. The LP is parked there as an accounting entry based on the ongoing conservatorship and resulting expected dividends. It was created out of thin air with a pen swipe, and it can be removed with a similar pen swipe.
Can I show evidence of Treasury using accounting shenanigans to achieve a goal? I doubt I need to answer that.
Oddly enough I think the key to the government exiting this whole affair without the albatross of corruption or incompetence around their neck is by following what Wiseman recounts in his “Separate Account Plan.”
If this concept is indeed strictly following the letter of the law I don’t believe the corrupt powers EVER intended to follow it. Nor do I believe they truly conceived of the solution in this form - it being only an accident of a prior historical action. Once the GSEs were captured and utilized as a clearinghouse to save the banksters from their housing and derivatives corruption of the 2008 crisis, and the government from their financial deregulation and oversight failures, politics took over and the opportunity to kill the GSEs, rape the funds, and remake the whole mortgage industry - banking relationship was too powerful to resist.
After years of no success other political / financial boondoggles were attempted by various administrations using the NWS, SPSPA amendments, and other obfuscations so they could utilize the funds for their own purposes. And God help us if Wall Street gets its hands in the mess (recapitalization) - there’s no corruption like the corruption of the ultimate partners in crime - Wall Street backed by the government’s blessing. Now here we are in 2024 with all the original intentions and purposes of the 2008 crisis buried in 16 years of muck with every court, politician, regulatory official, administrative lap dog, and industry expert claiming the Gordian knot is too difficult to solve - the quintessential political and logical Absurdism.
He, they, preferred, want conversion to get the benefit of both classes of shares characteristics by taking advantage of the government’s corrupt botching of the GSEs takeover and c’ship.
“Pay me here for my shares in the capital structure of the corruptly destroyed company, then set me up there and pay me for my new shares in the growth of the reformed company.”
So you don't own any commons?? May I know the reason if you can share?
Maybe when the government restructures its equity you will realize your theories about what may or could happen in your half conversion scenarios do not hold water
0% probability of partial equitization. 0% probability warrants do not get exercised. Based on the recent ibank re-up — they pointed out that the spspa would not be made whole even the stated value in a conversion scenario based on their valuation. Tough crowd. Highlights how much damage the government has done to the balance sheets of these companies. In that context, the only reason to write down anything is to maximize the spending value of the warrants. Otherwise, spspa will fully convert and whether it gets paid face or not depends on market valuation but it is possible that spspa isnt even made whole.
Not a charity... They're buying votes.
Forgiving sps will earn it them a grand total of 10 votes from this board.
Now, that's a spin! "SPS LP only paid upon Liquidation".
(*)Besides no Earnings available for distribution as dividend, out of Accumulated Deficit Retained Earnings accounts.
No the govt has idiots working for them
It’s always been carney
Someone still has him on their payroll
To mess with the less informed on this board
Why he banters with those who know he is spreading fake news?
Because he enjoys it
Just ignore
All these trolls will be proven wrong eventually
The key: SPS LP increased for free UNCOVERS the prior scheme with the dividend payments (if you didn't see back then).
The Incidental Power is an authority of FHFA to mislead and unwind every unlawful action restricted. But the way it's done, is set forth in the exceptions to the Restriction on Capital Distributions.
We are legalizing the capital distribution that existed (SPS LP for free as compensation to UST in the absence of dividends), applying it towards the exceptions. In this case, the CFR 1237.12 exceptions 1, 2, 3 and 4 that mean the same: recapitalization, because this July 20, 2011 rule is a "supplemental" (c) of the one by statute, that was meant for the recapitalization too (if a capital distribution is restricted, the capital is retained by FnF: RETAINED EARNINGS ACCOUNT -CET1-)
Hence, the Common Equity necessarily is held in escrow for the CET1, as seen in the image:
The fact that this gifted SPS LP is already missing in the balance sheet (Financial Statement fraud), bodes well for the assertion that it was a joke (Incidental Power: "any action authorized by this section"), never intended to stay. They weren't deposited in a Separate Account.
The key: people would begin to wonder whether it happened the same with the prior capital distribution restricted, the dividend to UST, either the 10% and the NWS dividends.
Here, through a Separate Account, first the cash dividend was applied towards the reduction of SPS (U.S. Code 4614(e)) and recapitalization too, as a SPS is repaid with cash not with cash dividend (a distribution of Earnings, and Retained Earnings is CET1). Then, this is why DeMarco enacted "the supplemental", CFR 1237.12, for the moment the SPS were fully paid off, for the follow-on plan of deception of using the capital distribution sent to UST towards the recapitalization.
The outcome is a CET1 of 2.8% of ATA in Fannie Mae and 2.9% in Freddie Mac, allowing them to redeem the JPS and then, resume the dividend payments, because they will have 60% and 97%, respectively, of their Prescribed Capital Buffers above the minimum required in the ERCF (Tier 1 Capital > 2.5% of ATA), above the 25% minimum threshold.
When are you going to stop playing the fool with all your aliases?
ATTN SELLERS - HOLD FOR THE GOLD
And Fight, Fight, Fight
Fight to Right the Wrong done to Shareholders
HOLD YOUR HORSES !
Quote:
25% that only the $193B worth of balance sheet SPS is written down and the rest is converted.
That latter scenario exists because a conversion of the balance sheet SPS involves moving that amount into the common stock line rather than retained earnings. Both common stock and retained earnings count towards all forms of regulatory capital so that's not an issue.
End Quote:
You could be onto something there! For saving face from voters AKA tax payers and saving some sort of face from Shareholders converting the amount needed to repay the 193 billion with the SPSA. Converting enough to payout all JPS from the SPSA leaving the 2 companies with no debt on the books and holding there retained earnings so far. Then Gov to convert the rest of the SPSA and auction off those to raise money for the Gov ???
Warrants are warrants stated in the agreement that they were merely there to recoup there investment, Warrants are not worth $193 billion
Lastly, we must take a look at what does the Gov want to avoid ?
1, Gov will want to walk away looking good to tax payers!
2, While making billions of cash.
3, It will want to Pay off the GSE debt!
4, It will want to establish a yearly commitment fee to fund the FHFA
Treasury didn't take that illegal action.
You ask, “Could you provide evidence that Treasury is a charity?”
Student loan forgiveness.
Donotunderstand, if you read through the last thread to the link to the calculation of the pay down of the SPS provided by Mr Fisher ACTUALLY the calculation is wrong because neither Charter Act nor did HERA authorize the Treasury to charge a commitment fee on a line of credit to be paid by the Enterprise. The United States prohibition on assessment or collection of fee or charge to Fannie Mae, (section 304 Fee Limitation). Only Federal Reserve Banks are authorized to be reimbursed of fees, (section 309).
I will say 10% theft is better than the entire Net Worth.
Fnmas is a contract no conversion gonna happen
First off why don’t you understand this after all your time spent here and secondly why do you so desperately want a conversion ?
kthomp19 works for the GOVT
It’s real simple the company gives us the numbers.
Fannie is not negative $38 billion, but negative $243 billion.
Short fall of $243 billion of available capital (deficit) to the total capital requirement. Page 105 AND the deficit continues to grow when Fannie’s book of business increases because the capital requirement grows AND the Treasury continues with the Net Worth Sweep by the increase of the Liquidation Preference dollar for dollar with every dollar of retained earning.
https://www.fanniemae.com/media/51196/display
This wipes out both Common and JPS, not sure how no name thinks the JPS somehow has a saviour over the Common Shareholders. I believe if the crime syndicate wipes out the Common the JPS are gone too.
BUT THE TRUTH IS THE ATTORNEYS DID NOT APPLY THE LAW !
It does not matter if the SPS is called equity or not. READ THE LAW
It’s bad faith and unfair dealing when the Regulator is authorized to pay down the Senior Preferred Stock and sent the Net Worth without the pay down option. The FHFA Director doesn’t need the Treasury approval to pay down the Senior Preferred Stock the Director has the authority from Congress written in HERA:
HOUSING AND ECONOMIC RECOVERY ACT OF 2008
RESTRICTION ON CAPITAL DISTRIBUTIONS.— page 2731
‘‘(1) IN GENERAL.—A regulated entity shall make no capital distribution if, after making the distribution, the regulated entity would be undercapitalized. The exception.
Quote: “Page 2732
EXCEPTION.—Notwithstanding paragraph (1), the Director may permit a regulated entity, to the extent appropriate or applicable, to repurchase, redeem, retire, or otherwise acquire shares or ownership interests if the repurchase, redemption, retirement, or other acquisition— ‘‘(A) is made in connection with the issuance of additional shares or obligations of the regulated entity in at least an equivalent amount; and ‘‘(B) will reduce the financial obligations of the regulated entity or otherwise improve the financial condition of the entity.’’.
NOTE: REPURCHASE, REDEEM, RETIRE...
WILL REDUCE THE FINANCIAL OBLIGATIONS OF THE REGULATED ENTITY.
Link: https://www.congress.gov/110/plaws/publ289/PLAW-110publ289.pdf
In essence allows the trustees of Fannie and Freddie to go to the market at any time to raise new capital, including new capital with lower dividend coupons, to buy back the Treasury’s senior preferred. Any loyal conservator of Fannie and Freddie would take advantage of this refinancing option to end the bailout arrangement, by paying off the senior preferred in full. The Treasury did not take a Perpetual Equity Investment in the enterprises, the Treasury stated a temporary investment period!
The calculation of the pay down of the liquidation preference of the Senior Preferred Stock, apply the law written in the HERA legislation passed by Congress.
Link to the paid in full calculation: calculated courtesy of Mr Fisher.
https://drive.google.com/file/d/15978NWfDcTtuClMBnwgWFmoPnwK94vWn/view
The liquidation preference has been paid and the Senior Preferred Stock should be canceled.
The law actually exists! FHFA and its Director are executive branch entities. They cannot make changes to federal laws. Only Congress can change the law.
Therefore, the U.S. Congress did not give DeMarco the power to take all the future profits of their wards in conservatorship into perpetuity, thus Nationalizing the GSES, based on an Incidental Power in HERA: The Net Worth Sweep.
The U.S. Congress would have given the FHFA more explicit instructions to do so than merely drafting in the HERA to do whatever it feels is in its best interests. DeMarco, this non-elected bureaucrat, has been allowed to steal the companies for the Treasury.
It’s 100% to write down SPs, have you not been paying attention? Nothing the government does with this CS has been illegal. They haven’t even had to cough up 612 million by a unanimous jury. Warrants will be canceled and SPs will be written down. FnF doesn’t own a penny to anyone from tge 2008 big steal.
"Mnuchin told this to Calabria directly, then Calabria recounted it in his book. That isn't hearsay, it's reporting."
Again, I know you understand this concept and yet you refuse to acknowledge it. So yet again, I'll call you a hypocrite.
Reporting what was said on a phone call is in fact: HEARSAY.
Broadly speaking, hearsay is an out of court statement offered for the truth of the matter asserted. As such, it is generally inadmissible unless an exception or an exemption applies.
If a witness's memory of an event was previously captured in a written or recorded format (e.g., via notes, video, audio recordings), that may be used as hearsay evidence if the witness's memory of the event is fuzzy and the witness testifies that the recollection is accurate.
Reporting what Calabria recollects about a phone conversation from years ago is not in ANY WAY SHAPE OR FORM evidence that writing down the seniors is in fact illegal. It's not evidence of anything at all.
For the last time - because I'm not going to keep repeating myself - if you have evidence that writing down the SPS LP is illegal, please provide evidence of such. Otherwise, you repeating a quote from a book is.. by defintion... HEARSAY! I heard that it's illegal, therefore it must be illegal. :)
This post
Thank you
lol
Sorry KThomp, I must have missed this bucket of replies. I'm sure you've been anxiously waiting for my responses. :)
It's a slow post day, so good time to catch up.
"I think it's a 25% chance of none converted and all written down.
50% that all of it is converted.
25% that only the $193B worth of balance sheet SPS is written down and the rest is converted."
Thanks for sharing. Personally, I think this is a bit too simplistic. You are inferring the impact to common, but what happens to JPS in each scenario?
"whether or not this is possible isn't really the point. What matters is the probability estimate of whether or not it will happen. [...] Possibilities don't matter here, probabilities do."
For me... Planning for success means planning for both - probabilities and possibilities. In other words, based on your scenarios above, I can make money in any of them depending on what happens with the JPS in conjunction with the common. Having the right mix of JPS and Common means the only way I lose is if common goes to zero and JPS takes a haircut greater than 78.5%. I'm prepared for this possibility - I could lose my entire position. However, I am giving this a less than 20% probability of happening. Any other resolution puts me in the green - so in my mind, I'm 80% sure I'm in the money. It's just a matter of how green, and if it was worth the opportunity cost. If common goes to $2 and JPS gets 50%, I get a 3x return - far short of my goal for the amount of time vested. But it doesn't take much upward action to put me in the serious green. If your first scenario of all write-down happens, I'll be swimming in it.
Are you succinctly trolling him with that JB June question? Nice sneak like the 20$ Vegas hidden trick LOL
is that anywhere near correct?
and Bradford thinks JPS are guaranteed ?
if that deficit in capital is real --- and GOV will not wipe away 120B and allow a bunch more to be counted (and cut the required in half) --- then JPS is not different from common
And if the GOV does that stuff - both make money
So the reported capital is
82B
but there is an obligation on the SP to erase it
-120B (not sure if this is all the phantom IOUs?)
So Fannie is negative 38 -- but it can not count JPS for 19B and needs to adjust for 12B of deferred tax
So Fannie is negative say 70B --- is that your math?
And then FNMA needs a positive 188B ?
Correct the CBO report which assumes the warrants to be exercised had an implied value of approximately $ 110 bn. This valuation needs to be updated for the amount of retained earnings which have trended significantly higher than the CBO assumptions. The CBO report also assumed the SPSA would be written down at least partially. Some people believe that the warrants will be written down and the SPSA will be written down for good reasons. Lets wish the best for all shareholders - great news about the JPS trading well. Are you still expecting a JB event by the end of June?
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