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Pressure and scare tactic with a bully attitude. -- that's one way of scare mongering technique
"Never gonna happen."
There you go again trying to be some kind of a prophet! Never??
Every time I hear someone say what will or will not happen that's a red flag! I think you are a con artist pushing the theft.
The prayer of relief Treasury declares Liquidation Preference paid in full and Senior Preferred Stock canceled.
nonsense
The Student Loan debt is not paid to colleges - !!!!
If they are in trouble - they need to attract more students or cut costs - or go out of business
Possible that college - if really educating with enough variability in courses with solid teachers and labs and ....- is not a business that can self fund (unless it is QUAK no education for profit diploma mills )
May be that State Universities - with some GOV help plus tuition is the only solvent business model for a REAL college education
link please
FNMA can not pay off student loans
Barron
yes - these are unique !!!
The GOV has called them equity and the money "sent" to F and F is called an investment not a loan
I imagine the GOV books reflect this
At same time - normally Preferred Stock are issued without an expiration date - for last 20 years or so (in prior years most JPS had maturity dates).
I do not think the SP have a maturity date but --- but ---- I do believe the GOV has the right to demand payment as if they matured - a put on F and F (this put might be after x years like 10 years OR OR when F and F have X in capital OR OR before F and F can again return to ---- ====== . Thus while an investment the GOV has a right to demand they be redeemed !!! So that cost to F and F - about 200B in cash sits on them as if it were debt and maybe more like DEBT that is matured --- but redemption is delayed while dividends are paid?
Nothing is getting “converted”. 15+ years of this & status quo.
$4
book value
or is this - earnings x 10 per share - with 1B shares and then with 5B shares
Companies trade at a price that reflects future earnings (discounted) -- or if you prefer - future dividends (a function of earnings) discounted
They do not trade on reserves or BV
These types of emotional answers are common when folks hold a security that's out of the money.
Will this theft ever end?
Housing affordability is at an all time high and getting worse and gov rats don’t care by allowing big corporations to steal single family homes.
Release the gse’s and at least make it look like you care about housings future.
Go FnF
Local colleges are being shut down. Professors lost their jobs, and other faculty members.
Vicious cycle of the "forgiveness" student loan promise. 💤 😴 💤
FNMA just paid 160,000 Student Loans off !
Treasury’s Liquidation Preference calculated value is more valuable RIGHT NOW than the calculated value of the entire business! Both JPS and Common are wiped out!
The danger of the conservatorship continuing in time the Liquidation Preference continues to grow and the SPS remains outstanding. Money owed to the Treasury becomes much larger.
The prayer of relief Treasury declares Liquidation Preference paid in full and Senior Preferred Stock canceled. Turn the companies back to the Shareholders. $301 Billion has been collected by the Treasury. It’s the ethical thing to do. Therefore both common and JPS holders are made whole.
the SPS LP increased for free is missing, because it carries an offset with reduction of Retained Earnings account, and shows that FnF are not building regulatory capital but SPS LP)
THAT’S EXACTLY WHAT EVERYONE HAS BEEN SAYING ON THIS BOARD FOR YEARS mr wise man and you think you’re the only person that gets it with your sheeeet emoji’s !
No one is confused by the SPS cumulative dividend feature. It’s stealing.
BOTTOM LINE. In order to see "Changes in Equity" now we have to look at the Income Statements, not the actual Equity (Balance Sheet). Huh?
SPS LP is stuck to $73B every quarter. Yet, the actual SPS LP outstanding stands at $123B as of March 31, including the $2,741 million scheduled to be increased on June 30th.
$50B SPS LP is missing, equal to the $50B Net Worth.
The 2 Extended Versions of the Income Statements include "Changes in Equity". Then, only one of these "Changes in Equity" is shown in Equity (Balance Sheet).
The idea that Trump wanted to end the Conservatorships, written in a Presidential Memorandum, is laughable, because he was just continuing with the same Separate Account plan adding the 3rd phase, otherwise every action is unlawful and a also a breach of the FHFA-C's Rehab power: restore soundness (build capital) and solvency (build capital and reduce the SPS).
The Trump Administration is behind the scheme: SPS increased for free as compensation to UST, that began with a one-time $3B in December 2017 with Mel Watt, after being warned in a tweet by a shareholder that the SPSPA is void as of 2018 ($0 NW target in the 3rd PA amendment, a breach of the Charter Act that requires a minimum).
He wanted to meet the capital requirements increasing the SPS LP every quarter while posting $0 EPS,
when it's precisely this $0 Net Income Attributable to Common Shareholders, the Common Equity (plus the OCI that I will talk about next) that should have been posted on the Net Worth of the Balance Sheet (fixed picture of a company at a determined date), because this information appears in a separate extended version II of the Income Statements created, precisely, for these Changes in Equity, that is shown below the original Income Statement "result of operations" (revenues and expenses during a period).
You can't post "Changes in Equity" on the Income Statement version II, and later you are reluctant to post the actual "Changes in Equity" on Equity (Net Worth), that is, on the Balance Sheet (all the SPS LP increased for free is missing, because it carries an offset with reduction of Retained Earnings account, and shows that FnF are not building regulatory capital but SPS LP)
This accounting rule exposes the plotters' Financial Statement fraud.
There is also an extended version I of the Income Statements, where the "result of operations" (revenues and expenses) should stop on the Net Income line item, but the companies add another line item: Other Comprehensive Income (OCI: fair value changes in AFS securities when a company has the intent to keep those securities to maturity and thus, avoid the volatility in Net Income and Net Income Attributable to Common Shareholders for the EPS. Thus, the HTM portfolio is BS), that is another "Changes in Equity" that shouldn't have been posted on the Income Statement if it's an Equity transaction shown on the Accumulated Other Comprehensive Income (AOCI) of the Balance Sheet (Equity), but, the same accounting rule (reflect accurately what really was earned by the shareholders) compels the companies to post it here and thus, they don't post just an Income Statement (result of operations) but the Comprehensive Income (adding up changes in Equity).
This is why it's been created this adjusted table: We see how the $2,741 mll in Comprehensive Income (Net Income + OCI) is swept to UST (as seen in the Income Statement too), the very moment that it's substituted for SPS LP worth $2,741.
The shareholders have earned $0 ($0 Common Equity built), as correctly seen on the Income Statements.
It's important to see it because, necessarily, this Common Equity is held in escrow, as the capital distributions (SPS LP increased for free) are restricted, and we use the exceptions to this restriction to legalize them. In this case, the CFR 1237.12 tells us, either in the exception 1, 2, 3 and 4 because it supplements and shall not replace or affect the restriction in the statute USC 4614(c) meant for the recapitalization, that it has to recapitalize FnF ("to meet the minimum capital level and risk-based capital requirement").
It also uncovers that it occurred the same with the prior capital distribution restricted, both the 10% and the NWS dividends. The exceptions are activated to legalize these payments:
-To reduce the SPS (obligations in respect of Capital Stock -SPSPA-)
-For their recapitalization: July 20, 2011 CFR 1237.12, in time for the moment that the SPS were fully paid off (Dec 2013/2014, resp.). It was needed another exception to apply the dividend towards (assessments sent to UST in the form of capital distributions, not actual dividends), knowing that the coming NWS dividend (2012) was going to repay them fast (fastest speed possible, as the 10% dividend prompted the losses and more SPS increased)
The FHFA-C's Incidental Power "any action", allows this plan of deception.
The capital requirements aren't met with the Net Worth, otherwise you would see low profile officials handing out SPS LP for free every quarter, equal to the NW increase, which coincides with the Common Equity increase.
Therefore, these people want to meet the capital requirements piling up SPS.
These people later want good deals from the administration in the sale of securities on the market later on. They can throw in Making Home Affordable programs to sweeten the deal and draw more politicians into their plan. Another Public-Private Partnership with secured deals for investors (Chamber investors), that began with the 1989 FHLBank scheme, that saddled the taxpayer with $30B in losses (The principal of the 40-year RefCorp obligation remained outstanding, as the bailout was renamed "obligation to pay interests" by the FHFA. Thus, considering it "satisfied". Good. But you have only paid the 40 years in interests, not the principal of a RefCorp obligation that only paid interests. Oops!), recovered in full recently with the seizure of $SVB after being leveraged to the max with FHLB's advances (loans) and the ongoing Fed's HTM portfolio scam (the eligible assets for Liquidity in their Contingency Porfolios aren't recorded at fair value).
Under accounting rules and, in order to give a more accurate information about what really has happened during the quarter and what the shareholders have really earned (the Preferred Shareholders are "the others", because they have "other ownership interest" -upon Liquidation-, as stated for instance, in the FHEFSSA definition of capital distribution), there is this separate extended version II, below the original one that ends with the Net Income and below the extended version I with OCI.
In this double Income Statements don't appear the compensations to the shareholders, because the objective is to know what they really earned in the quarter (without showing the volatility with OCI, commented before), not to show the compensation to themselves as the shareholders. That is, they own all the remaining Net Income Attributable to Common Shareholders, regardless that later it's distributed to them as dividend, or kept by the company as Retained Earnings.
The compensation with dividends and others like the SPS LP increased for free, are distribution of Earnings are "Changes in Equity", not items "result of operations".
Seek help, bro.
I and my other 35 pro se aliases don’t understand you.
You're dang right I'm sure and there's nothing novel about them. Senior/junior, etc. only denotes seniority in rights. Just because you have an ownership interest, i.e. - SPS, JPS, Commons......that doesn't mean the ownership interest has any value (in the case of negative net worth).
You seem to be confused by the SPS cumulative dividend feature.
A wise person would study how Treasury dealt with AIG and then understand 'fiduciary duty' is not at play here, as it was there. Occam's razor.
You say the SPS are equity. Are you sure? The SPS are a novel financial product that has never existed before 2008. (Violation of the Safety and Soundness act of 1992) If anything the SPS are more like obligations. Afterall, if the Companies are obligated to pay back the LP that has been accumulating since day one, how can you consider them to be equity? Isnt equity the residual ownership after all debts are paid off? The SPS LP is a debt that is owed to Treasury. The current value of which is greater than the company. So what equity do the SPS have in GSEs of a negative net worth of a couple hundred billion?
The only things that guy is good at are3
1. Making money off taxpayers or from some BS think tank
2. Getting fat
3. Talking about fixing roofs when the sun is out
4. Petting his kitty
nice nickname
I like bradforcommons or badforcommons
LOL
just a question- with this much of the commons value getting diluted in this jps pipe dream
the dividend payouts, if any, would be pennies as well
right?
tia
Then I would agree with your outine that converting the SPS to common would be a credit to Capital. Commons would end up with 5% where JPS would end up with 14% of the companies?
Write off of the warrants and conversion of the SPS then commons would see $4 ? and JPS 70% par ? with release ! I'd take that just to get the dividends turned back on and back to private ownership !
Brandfordamus will never say that SpSa is gone .. that's his bread and butter
I do not believe the two of them (Mnu and calab) would have the guts to violate the presidents order if he wanted it to happen. Particularly, if Paulson and Icahn were having his ears
The SPS are equity.
He didn't release FnF when ordered to by his President
nonsense
indeed if Mnuchin wanted them freed it would have been done - pronto
the desire by DJT became a study and report - look back about 10 posts
then read that report ----- lukewarm dish water (90% similar to BO and his lukewarm dish water
protect taxpayer
foster competition
thin F and F so others can compete
yada yada yada
neo - what you gonna say when someone posts the link
Here's what Calabria said before he was appointed Director of FHFA:
The Conservatorships of Fannie Mae and Freddie Mac: Actions Violate HERA and Established Insolvency Principles http://t.co/ujWQYLPiFI
— Mark Calabria (@MarkCalabria) February 9, 2015
mentioned in Calabria's book and nowhere else ... you ought to know better than to respond to donotunderstand by now ... the most apt name on this board
The $125b is existing current net worth, not spspa related. This is from retained earnings
"some one posted an official page (a report or SEC or ?) with the footnote from Calabria or maybe Mnuchin - illegal to write down"
I'd love to see this footnote if anyone has a reference. I've been trying to find anything supporting the "illegality" theory and cannot find anything.
I once got stuck between the moon and New York City. I know it's crazy but it's true. The best that I could do was to slap the ASK.
I'm back. FNMA to the moon!
Is it booked as DEBT or Senior PFD equity ? The GOV has always called this equity - an investment not a loan or debt
I do not know the accounting. But, as I understand it - Treasury can "force push this paper" on F and F making F and F have to pay the GOV back their investment (anyone?? - this is not typical Senior Preferred - it is defined in various unique documents)
As such the investment and added LP dollar IOUS - hang over F and F as a probable (at some point eventual) use of cash (when GOV demands to be called out of the Senior paper - traded if you will - cash for extinguishing the paper)
With this "cash use overhand" ---- a NET NET count of capital at F and F takes the (supposed or declared) reserves and subtracts the LP --- which takes us to negative land
Kill that potential for GOV to ask to be "bought out" --- kill the expected pay back to GOV to extinguish the Sr Preferred Pape --- and THEN the capital that F and F have ---- is golden and real for the first time (all the original is gone and all the IOUS in the LP disappear but F and F keep their cash)
Anyone --- show me the correct way to say this - which in its message I believe is accurate
When you pay off your debt, the debt no longer exists. Nevertheless, your personal balance sheet will look better afterwards
This article shouldn't be considered a political post. It just discusses what was/is being done by two different administrations to release Fannie Mae from conservatorship.
https://www.americanactionforum.org/insight/comparing-trump-and-biden-administration-policy-housing/
What goes down must go up
Fannie Mae all the way
Is ST gone yet?
any news on that?
Can't wait for both ST and Yellen to be gone.
go FnF
That doesn’t make sense. Something that no longer exists (SPS in this case being presumed written off) can not count as equity.
Fannie Mae has recruiters looking for Finance Data Analysts to develop SME in QRM and to pull back data sets / create user documentation to prepare for audits - they'll do remote as well
Nice to see the bid on the variable 50s go up!
If he's still associated with the snake-in -the-grass, he probably needs to be in concrete.
Traders and market players with real money to throw around know perfectly well how and when to manipulate this stock. It's happened repeatedly throughout the life cycle this trade with legal decisions, congressional mouthings, and the election cycle. So it WILL become a Trump trade if he is somehow NOT eliminated as a candidate.
How high can the manipulators take it? Well, hit an intraday high of $5 on Trump's first go around, it may definitely go higher based on a few new elements at this point: "retained" capital levels, most court cases decided, Lamberth decision, not killed yet and most likely not killed, blah blah blah, etc. But rest assured without real activity from Congress, FHFA, UST, or the courts, however high the manipulators take this be prepared for them to pull the rug out from under it at any time.
Could it go to $6? $7? without any real news? ... who knows, but you can bet heavy profit-taking and selling driving it back down without any real news on a compromise or a solution. Congress, UST, and FHFA will NOT let the market price dictate their actions towards a solution.
Otting is now the president of the New York bank that Mnuchin just took over.
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