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LIBOR Litigation Itself is Only an Interest Rate Adjustment.
Currency Manipulation…
The Bigger Story.
The litigation cleans up the Derivative market insurance payments.
Conservative Estimate;
8% of $500 Billion between F&F.
Ron
"Yes F&F are whole!" what do you mean? how much from libor as settled amount? when? why is no one talking about this?
I got one word for TightCoil,
MAGA
Nearly $500 Billion in Derivative Notables Insured RMBS.
The losses are covered!
According to the FDIC; “WMB securitized $2 Trillion in RMBS of which $500 Billion was sold to F&F.”
To protect themselves from the Community Reinvestment Act, the banks like WaMu rolled her load portfolio into securitized trusts as bonds. The Bonds are then insured by Derivative Contracts.
Most all of the ABS Market is insured by the Derivatives.
The Derivative contracts are required to cover the losses. It’s a Contract!
The Derivative contract writer’s are buying time for the settlement, but at what interest rate? Just do the math at WMI bankruptcies FJR of 1.95%? Adds up fast. It’s now very painful to be a contract writer!!!
JPM owned 57% of the 2008 Derivatives contracts of $83 Trillion.
Yes F&F are whole!
Ron
Libor? Wasn’t Fannie supposed to get some. Only from the settlement whatever happened to that?
What happened with the GSE news coverage you mentioned yesterday, anything good or more of the same old junk.
TIA
FNMA
Look for stinkstack in wildwood , NJ! At the RALLY right now! I am the one wearing a Red Trump hat!
LOL
you say that every day of the week, so kind of not material. may be want to add why.
Super NOVA BOOM ! $$$$
Next Week?
Greeen Booom Booom Time
Masheeens in Action -
Mooon Booom
absolutely, on day one. question is who will take over and the agenda or will they be busy again in giving cnbc interviews, printing their ugly face on dollar bills or taking mid east trip when country is in crisis or drafting another letter agreement or busy in drafting 1000 page plan or busy hiding stress test or increase capital required to 5% as now they are getting into home equity loans so more is needed?
bottomline is that either option is not good, they both love status quo, job security, free money at the expense of shareholders who saved for their retirement all their lives and funded it : $1500 down to $0.40 over last 16 years when apple, micrsoft, amazon went to 2 trillion market cap each. top it off with skyrocket inflation
.
did they contact mcdonald to get a full meal for $5 just till nov 5 and them fok it all over again? i can't get a french fry for $5 let alone the whole meal (a mcchicken or mcdouble, four-piece chicken nuggets, fries and a drink). see how far they will go to get votes?
https://www.cnbc.com/2024/05/10/mcdonalds-working-on-5-value-meal.html?
F and F is the subject
not HUD
F and F is the main source of liquidity for say 90% of the available for purchase homes in the USA
why do people keep talking about F and F as if it gives away money or insures loans for those without a job or means?
the profit F and F make each year - good or bad (other than crazy bad or crazy good) is very good profit
that does not happen if F and F are focused on the poor or minorities --- rather than supporting banks that give out legit mortgages to most of America
Sandra Thompson will hopefully get Trumped------You're fired!!
Yes 1977, Carter! BO Sued a Chicago Bank.
In the 90’s, And won.
It was all just as set up. The democrat family that owned the bank made a fortune as their shareholders lost everything.
That suit forced the Banks to make loans to unqualified applicants.
Ron
baloney
that simply is not true
That ACT was passed in 1977 - way before the 2008 collapse
And it did not change much in terms of housing availability or anything else
WHY?
aside from being mostly PR and HOT AIR ---- the number of loans that happened because of the ACT is the hair on the tail of the dog
https://www.investopedia.com/terms/c/community_reinvestment_act.asp
he would not be. only objective : shut them down so that they cannot be misused for various programs, affordable housing to get votes. that is why mnuchin, calabria all were on cnbc and did nothing but foked even more. paulson would be no different (if). why not ask him a question in a town hall meeting " you or mnuchin or calabria did not do anythng on gse's in 4 years, what is your plan to get them out of 16 year fake conservatorship imposed by bush where $1500 is down to $0.40 with retirement and 529 money gone?"
blame the rating agency ??? (some people ask why F and F were AAA)
anyway - I would suggest the BANKS that gave out liar mortgages and 5 year interest only - and the infamlous 80-10-10-10 -- no money down mortgages - re sold as strips (imagine owning the first 10% decline ?)
BANKS got greedy and dirty --- and some just plain dumb
hey double x triple the SQ FT and why not?
would have to see them - but no one is going to solve a housing crisis with single family homes that with land etc. cost 200K to build
20 x 14 -- 280 SQ FEET
Indeed - if one could replicate that - in say 25-30 by 20-25 (( 600-750 SQ FT house) - for say 35-40K ---- they should be used
Who knows
What baffles me - is why those who love DJT ---- are sure he will be good - after the reality of four poor years .
i have been with tis from the start NEVER have seen this ever to me something is coming down time will tell
they may put another calabria type in place to fok fannie and freddie and the shareholders to get rid of affordable housing. many here do not get this and keep rooting. either party would not do a thing and i have no clue who would. courts are in their pocket if we still haven't learnt so.
i would not read so much into it, this is a deep rooted conspiracy. when and if it turns around, those in congress will be rich as they are openly allowed insider trading and you will be the last to know
I'll go out on a limb and forecast that
FNMA and FMCC will each gain 20 cents
this coming week...LOAD UP early in
da mornin''
i wonder if anyone watch short squeeze it was minus 26 and then minus 5 so
that tell anyone something
Appointed picks have not helped the GSE's at all, this is not a political post, but only showing the persons who have done nothing to help the GSE's or put more cement boots on them.
last term DJT picks
his 3 worst picks- Mnuchin, Calabria, and Pence
this term JB
his worst picks- Yellen and ST
we really need someone like Paulson as Treasury Sec. and a much improved FHFA person or no FHFA at all would be best.
Go FnF
they are above the law, so legal or not legal does not matter, if you havent learnt that in last 16 yrs
who is patrick? you all are so positive, still. is it a good time to get in? serious question. why? after losing so much don't have the heart. wondering if they will keep showing you lolipop till nov 5th and them a boot
yups, he wants receivership and close them down. he does not like affordable housing and doling out for votes. so shutter them. why do you think he was put in place? he thinks shareholders should not exist. he is the worst. look at the letter agreement he put in place. he is the architect of hera and i believe he started writing it since 2004, a long range plan to do this, well coordinated with heritage foundation and fellow travelers funded by large banks : free money for banks at the expense of taxpayers
Man you are well researched… The CRA was enacted in 1977 and I had zero Biden or Obama was President… Man I just learned a lot thanks!!!
New FHFA director can fire CEO when GSE is Conship.
ST just fired CFO of Fannie Mae.
If Dems wants to keep current CEO longer under Trump then Dems needs to release GSEs and have recap funded by Dem leaning investors.
The answer to this question is in the 10K and the conservatorship rules on the CEO pay ceiling (600k). Hint : look at the pay for CEO and what the president makes in the GSE. You will get your answer on the loophole..
Oh wow. We are all gonna get the runs.
$FMCC $FNMA Setting Up For A Run
— Patrick (@InvestIt3) May 10, 2024
Holding two positions in the hierarchy remained me of Director Lockhart Regulator, and Director Lockhart Conservator at the same time.
The Director of FHFA as regulator violated the safety and soundness act and the administrative procedures act by not following the statutory duty to approve new products issued by the GSEs to Treasury for the purpose of stabilizing the secondary mortgage market.
The law required the publication in the federal register of the SPS with their variable rate liquidation preference tied to the commitment. It requires a public comment period, and a rule making process to make the SPS legal. It is the same law that required the capital rule. And the same law that required FHFA a year ago issue the new products law for MBS products. They have ignored this requirement for 15 years.
Director Lockhart Regulator, and Director Lockhart Conservator. Holding both positions as Regulator and Conservator; Conservator Lockhart is required by law to file notice to himself as Regulator.
The Safety and Soundness Act required Director Lockhart as regulator not conservator to approve a new product issued by Director Lockhart acting as conservator FHFA-C (SPS with variable liquidation Preference) to Treasury under the terms of the SPSPA for the purpose of carrying out the secondary mortgage market. He was required as regulator to file notice in the federal register, seek public comment and issue federal regulations for the new product we call the Senior Preferred shares sold to Treasury.
HOUSING AND ECONOMIC RECOVERY ACT OF 2008
Page 2689
SEC. 1321. PRIOR APPROVAL AUTHORITY FOR PRODUCTS.
Link: https://www.congress.gov/110/plaws/publ289/PLAW-110publ289.pdf
EXACTLY
imagine if he had - not - created the IOU at the LP ?
granted we (equity) would still face the original "investment" but not another 100B or so of mythical obligation !!!
what a total con - smoke and mirrors help for equity that choked them - and then he put them in a box with a needed capital ratio greater than our national debt
he was ugly - during his time under DJT
?
So - Calabria - 12 years ago - wanted RECEIVERSHIP ? I assume that would be their end?
? move on the GSEs --- Are those his words ? (Which can mean anything at all)?
why is it wrong, its not, as long as they work for no other company there is no conflict of interest. I had a cousin, who was on Bank of Americas BOD for a couple years. that kind of company is different, everyone is their competition, so he could do nothing but sit on the BOD. They actually pay about equal to minimum wage to sit on that board, that i know for a fact. He couldnt afford to live since BOA stock went all the way down to 6 back then, he had a lot of it. He had to quit the board and go to work for himself.
I have seen everything, and to date, GSE conserve is the epitome of corruption in our country today. until its over, and commons are made whole, there is nothing good about what happened or is happening.
You are wrong WISEMAN.
It is a common practice in large corporations that the company CEO also serves as Chair on the Board of Directors. While some will argue a conflict of interest, others feel that it is very beneficial for the long term health of a Company.
I assure you, this practice is quite legal.
"Regulatory policy": ST, responsible for the absence of the Critical Capital level in the ERCF.
HERA amended the FHEFSSA's Risk-Based Capital requirement, the Minimum Leverage Capital level and allowed the FHFA to include new capital metrics like the CET1 and the Tier 1 Capital, along with the concept of Capital Buffers, but nothing about the Critical Capital level that remains as is: 1.25% of the Retained Portfolio and 0.25% of the off-balance sheet obligations (MBS Trusts), which is met with Core Capital.
The Critical Capital level triggers a Conservatorship, established for Critically Undercapitalized enterprises.
Now it's when
President, CEO and serves on Fannie_Mae's board of directors.
You can't make this shit up.
The same person holding the job of President and CEO has always been controversial and it's discouraged, as the President serves as a balance position to counter the power of the CEO.
The CEO is in charge of long-term goals.
The President is in charge of the corporate picture: costs, marketing, etc.
But a CEO serving on the BODs is even more controversial. The BOD oversees the management. This can't be done if a CEO is in the same table with other board members.
It could be one of the reasons of the Financial Statement fraud in FnF, with the SPS LP increased for free and its offset, absent from the Balance Sheets since December 2017 (not the initial $1B SPS LP issued for free and its offset with reduction of Additional Paid-In Capital account -Core Capital-)
, in order to peddle the lie of "FnF continue to build capital through retained Earnings", later echoed by the hedge fund managers like Bill Ackman and his clerk, Bradford, along with the FHFA director, ST.
We are witnessing how the CEOs of both FnF grab more power in order to conceal this fraud that, in turn, would unveil the prior Separate Account plan with the dividend payments, as both divs and SPS LP increased for free are capital distributions restricted, and the exceptions kick off to legalize them. It works as follows:
- Pay down the SPS (U.S. Code §4614(e)) and recapitalization outside the balance sheets (CFR 1237.12), with the dividends (assessments sent to the Treasury)
- Common Equity held in escrow, with the SPS LP increased for free, as we can see in this image:
Also in compliance with the FHFA-C's Rehab power.
We see that FnF build Capital Stock (SPS) not regulatory capital, and not even the FHEFSSA-invalid capital metric "Capital Reserve" (Capital Surplus in the Federal Reserve System).
Don't expect the FHFA to bring it up, with its long track record of breaking the laws: PLMBS, CRTs, artificial losses, etc. Actually the FHFA is behind this fraud, knowing that ST arrived at the FHFA in 2013 as Deputy Director in charge of "regulatory policy, capital policy and financial analysis". Jackpot!
The PLMBS rallied after FnF were placed in Conservatorship, as we can see in this image, the trough date was three months later, then, a rally in price to the extent that Freddie Mac commented in a report, that it will halt the pace of PLMBS sales.
Freddie Mac posted in the 3Q2010 results an increase of $3,947 million in AOCI (Accumulated Other Comprehensive Income: unrealized losses in AFS securities. Equity), "primarily resulting from fair value improvements on available-for-sale securities". In other words, the PLMBS market was improving dramatically.
Maybe many billions worth of write-offs would have been avoided in the prior years, had they kept the position, or this sale at fire-sale prices was planned.
It seems that she made up this quote:
You hit it. She would be fired BECAUSE she wants the conservatorship to end while many others in DC want the gravy train to keep funding unfundable projects.
Hope Trump cans them all
Of course most of them shouldn’t be there anyways.
I don't expect most of you will believe this: But at 10:30am
Pacific Time, i made two posts here on IHub, but neither got printed...
I made a prediction that Fannie would close at $1.45 to $1.48
and Freddie would close at $1.33 to $1.38
Cross my heart, i'm not just making this up
ST fired not the CEO
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