Fannie Mae-No Politics (FNMA)

[Wise Man]

Bill Ackman is exposed. The thread below explains the factors that determine the current stock valuation, and for the different share classes.

Remember that Ackman is in the epicenter of the Fanniegate conspiracy, when he refers to the current NWS 2.0 as "FnF continue to build capital through Retained Earnings", a big lie based on the Financial Statement fraud in FnF. Adjusted for the gifted SPS LP and its offset, absent from the Balance Sheets, the RE just built (CET1), is wiped out or, I should say, held in escrow (image shown in one of the tweets below) in order to comply with the "Recap FnF" in the exceptions 1, 2, 3, 4 to the Restriction on Capital Distributions (SPS LP increased for free as compensation to UST in the absence of dividends, appears as #1 in the statutory definition of capital distribution), seen in the CFR 1237.12, the "(c) the supplemental" of the one by statute U.S. Code 4614(e).
Something repeated by Sandra Thompson in her recent testimony to the Senate.
ST changed it in the FHFA 2023 Report to Congress released a few days ago, for "FnF continue to build Net Worth through Retained Earnings", because she thought that "capital", that refers to "Capital Reserve", can't be said if it's an invalid Capital metric in FnF (ERCF). Still a lie. FnF build NW, but it's SPS, not Retained Earnings account which is the only item necessary for the "Rehabilitate FnF" required by Justice Alito and one of the boxes in the Fed's Jerome Powell's 3-box checklist that he pointed out for the pending proposed Capital Rule for the banks:
1- Capital ratios.
2- Enough liquidity.
3- A plan to take the losses that you are going to take in the future. That would be Retained Earnings account (Balance Sheet = Picture of a company at a determined date) that absorbs the future losses that will come from the Income Statement -Net Income during a period-, currently adjusted $-216B in FnF, but $252B under the Separate Account plan (after the Treasury Stock -stock buybacks- is retired).

He also implied that the Supreme Court said that FHFA has absolute discretion in its actions. The hedge funds' playground. Another lie. More if he is interpreting an Incidental Power to come to that conclusion.

Here is shown a thread comprised of 4 tweets, debunking another gaffe in his GSE slides: "The common stocks of FnF are permanent options". Later he portrays himself as an options trader expert on Twitter. He is capable of paying for a SA article to push his flawed stance.

No one in his right mind says that a security converts to a different security.
The underlying security in a Preferred is a fixed-income security(an obligation to be more precise).
But the specifications of the same fixed-income security have changed. Now 0-coupon (div suspended) pic.twitter.com/yiTpUiq4Kd

— Conservatives against Trump (@CarlosVignote) June 30, 2024

On the other hand, the driver for JPS,is:
-The $402B Core Capital shortfall mentioned before,plus 25% of Prescribed C.Buffer marks the day of div resumption👇and par value valuation.
Hence,17yrs more, at 6% discount rate= $9 in $FNMAS.
Every yr,17yrs(Sweep)→$4.5@TheJusticeDept pic.twitter.com/bDFVns9whh

— Conservatives against Trump (@CarlosVignote) June 30, 2024

I'm not surprised to see that one of the recruiters for the Bitcoin scam (an unbacked token trading on Stock Exchanges), was also chosen for the Fanniegate scandal.

[jcromeenes]

Doesn't matter if supply goes up as investors buy them for cash.

[TightCoil]

In that case,..
Load up
Suit Up
Strap yourselves in...

or stand away from the Launch Pad

[HappyAlways]

In between now and November election, it is happy hour to all Fannie and Freddie investors. We all know that DJT will release Fannie and Freddie. Let’s wait for this to happen.

[HappyAlways]

Charge people 50% extra buying second property, like Singapore. Rent is eventually decided by demand. If supply increases, rent will go down.

[HappyAlways]

Do some meditation ?

[juicyjuice10002]

Put your money where your mouth is.

[Barron4664]

Can’t do it. I’m too lost wandering in the woods. Twice now this weekend I am misremembering things. First Trump is firing Mell Watt. And now Im remembering the dissent opinion of Collins and turning that into there being a non-severability clause when in fact Congress did not include either a severability clause or a non-severability clause. Thank you for correcting me. Barron should refrain from thinking on FNMA for a while. Brain is getting stale.

[FOFreddie]

.@realDonaldTrump is going to win in a landslide. The country should rally around Trump and help him succeed.

Trump didn’t expect to win the first time he was elected. As a result, he was totally unprepared. The lack of preparation, the Russia investigation and the ensuing…

— Bill Ackman (@BillAckman) June 28, 2024

[jog49]

I was reiterating what you said. Sorry if it was above your pay grade.

[clarencebeaks21]

Interesting. Can you cite the location of this clause in HERA?

What Section? Or more simplistically what page number out of the 261 PDF pages?

https://www.congress.gov/110/plaws/publ289/PLAW-110publ289.pdf

TIA

[The Man With No Name]

He just repeats whatever Barron says.

[The Man With No Name]

Yeah and then you have a parrot named Rodney repeated the exact same falsehood over and over. Both of you aren't doing a service here.

[jcromeenes]

Wall Street puts $$ in the politicians pockets. That's the only politics that matter to them.

[jcromeenes]

But what if hedge funds own over 50% of single family homes and charge exorbitant rates? Is that not an issue? They buy entire developments then dictate the rent, others simply follow. It is a true monopoly at this point. In CA, 35% of all single family homes are owned by investors. With this level they DO dictate rents. It's gone to far in my opinion. Let them buy apartments but leave single family homes owner occupied or put a very reasonable cap of say 3-5 home ownership in the state.

[Boat Shoes From Yahoo]

Warriors!
No political post? This stock been “politically” controlled for the past 16+++++++ years! The company was taken over by “political” ………well, i won’t say it.

[Donotunderstand]

We can agree - that at least this group of 9 - do whatever and whenever they want

precedent - who cares
speed needed --- oh cool your jets

if it was done a certain way in 1880 - then good enough for 2024

[Barron4664]

The reason I think the SCOTUS was wrong was because HERA as written in plain as day language by Congress includes a non sever-ability clause at the beginning of law. SCOTUS did the very thing Congress instructed not to be done. Sever a clause from HERA and leave the rest in direct contradiction to the written words Congress included in the law. All of HERA should have been found Unconstitutional. But the Supremes do whatever they want.

[Donotunderstand]

below - two sentences that each are said in a way to be meaningless and indeed contradictory

but - more importantly ---- the author writes about a 2% hit - and poof their goes positive value

but - the author - never discusses the various stress tests !!! I forget their parameters - but do they not test a default rate or such that is 2% > then normal and how F and F do. F and F have passed all such tests ----- so I assume the author is flat out wrong !!! that F and F are so close to the edge ?????????

here are the two sentences that sort of refute each other - shame on the author (creating available lift out quotes that they do not believe tell the full story)

Historically, Trump is far more likely to end FNMA's conservatorship than the Biden administration.

--- There are no guarantees that Trump will successfully end the conservatorship, having not done so in his last term. Further, FNMA's fundamental risks would not necessarily decline in this scenario.

[Donotunderstand]

while FHFA has never fought to free F and F

I suggest for larger consideration they do not matter

no POTUS no Secretary of Treasury no Court has tried to END the conservatorship

it is not like FHFA is the main problem --- IMO IMO - they have the least power of all the players on the board for 15 years

[Donotunderstand]

I think the decision was later

And the thoughts - copied below are just that copied

But first ----- who would have revisited the dumb ass killer SCOTUS decision ?

If so many here - hating the conservatorship love courts stepping in ---- why did SCOTUS not do any of the below ---- (This SCOTUS decides when to correctly deal with the case/facts/question before it - narrow scope(correctly) and when they want to expand to a broader approach --- as they see fit - so they could have done it !!!! and why anyone has faith in this SCOTUS blows my mind)

copied and not done by SCOTUS
They should have nullified all the decisions done up to that point by unconstitutional single directors and sent HERA back to the drawing board at Congress etc. etc. etc.

[Barron4664]

Hey thanks for looking out. Im pretty sure I typed up my thought backwards. Error is all on me. I truly am lost sometimes. Was trying to say that Trump had to wait to appoint Catman because of the unconstitutional clause in HERA. Catman should have been in the job on day 1 of the Trump Administration awaiting Senate approval. But Trump had to wait for Mels term to end. I think I have the chronology correct now. But if I screwed that up again. Please correct it for the board.

[TightCoil]

Don't Give Up The Fight
Fight to Make It Right
Fight To Right The Wrong done to shareholders.

[NeoSunTzu]

You are COMPELTELY lost if you think my post said ANYTHING about politics not playing a role in the GSEs outcome. Its just not the politics the powers that be want you to think. It is their politics - wall street and the financial establishment - they don't give a rats ass about main street politics other than what they can manipulate in their favor.

[Rodney5]

I said “Typo error on my part. I should have said, “would have allowed” I know Trump couldn’t fire Watt. ”. Read the whole thread.

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174682473

[jog49]

Rest assured, politics is involved in Fannie and Freddie remaining in conservatorships because the big banks and big lenders want it to be that way. There was never any threat of the GSEs sucking the U.S. Treasury dry of taxpayers' money. It was the fact that both entities would get financially healthy again and those with their eyes on those books of business would not be able to take them over. Congress has been more than happy to oblige that intent.

[RickNagra]

Yes I saw that on X this morning and I was taken back. I was going to respond to Calabria but I got busy with Gaby.

[stockanalyze]

and how do you think this will play out in this election? who are mega donors from these establishments and donating to whom?

[jog49]

It was the kettle calling the pot black.

[NeoSunTzu]

It is a complete smoke screen that the government worries about taking political heat for releasing the GSEs back to shareholders. It's nothing more than a cover story for not doing the bidding of Wall Street and the financial establishment - that is where the real "political heat" would come from if Wall Street does not get their cut either through an offering of new shares, a large ownership slice, or some other slice of the market that the GSEs would do more effectively. In other words, when they talk about political heat they are really referring to Wall Street and the financial establishment. After all, did they worry about the polictical heat for bailing out Wall Street, the banking system, or for any of the bonuses they paid out, or for not demanding jail time for the financial criminals after the 2008 crisis? Washington politics is nothing more than a smoke screen - taking from the massess for the benefit of the financial elite.

[jog49]

"JUDGEHonorable Royce C. Lamberth"

Begs the question "what's honorable about Royce?"

[nagoya1]

There's nothing honorable at how Fudge Sweaty has been dragging this lard azz FNMA_FMCC case. He's been sabotaging it for over 8 years (if memory serves me right) and it continues to take the longest time for this slower than molasses judge to do his job.

Let's not forget his biased opinions demonstrating his ignorance of facts in court and obvious incompetence, shareholders have been screwed twice at least by this clown. Prolonging this past Halloween once again!

Even with a 8-0 jury verdict choosing defendants, shareholders continue to get the "Sweeneyed".

FNMA

[stockanalyze]

the lamberth gse trial with a verdict by 9 panel unanimous jury with so much detailed evidence has spoken that it is all wrong. this does give any admin an outlet to rewind and release them without taking political heat of any kind. but would they? need guts and not a spineless person like we have so many

[stockanalyze]

citation please?

[stockanalyze]

brilliant response.

[tutt1126]

JUDGEHonorable Royce C. Lamberth already ordered that any personal from any government agencies ARE NOT ALLOWED TO BUY any stock securities of Fannie and Freddie.

[blownaccount9]

You are wrong. Trump had to wait for the term to end. SCOTUS allowed Biden to fire Trumps pick. This is recent history I don’t know how you can be so wrong when you can literally google it.

[Guido2]

Classic Calabria:

However lawless you suspect federal agencies might be, I can assure you from first hand observation, it’s a lot worse

— Mark Calabria (@MarkCalabria) June 29, 2024

And my response:

Is this a confession? Feel free to add to my list of your sins as @FHFA Director:
Sent your wards equity to @USTreasury.
Hid stress test results mandated by law.
Purposely established an unreasonable high capital requirement.

— Guido da Costa Pereira (@GuidoPerei) June 30, 2024

[tutt1126]

Bravo !!
I should have said this long time ago.
But the reason that I say now is to refresh our memory..

[EternalPatience]

Any updates on restructuring or JPS conversions? Eagerly waiting for expert opinions

[stockanalyze]

2014 you bought in knowing well of nws. what are you crying about? you and pglara said this admin is going to release it. did you forget? now you go to the other side? credibility please.

[stockanalyze]

he should be ashamed to write a book that has failed and trying to grab attention through x. sick. look what he did on jan 14, 2021, read it carefully

https://home.treasury.gov/system/files/136/Executed-Letter-Agreement-for-Fannie-Mae.pdf

[Donotunderstand]

I hear you and it is a problem

Is it the role of GOV in a capitalist system to intervene ? this is capital searching for good or best use ?

I have no answer to the concern - even when I share it - . University of Chicago economists would argue this will ONLY continue until TOO MANY houses are bought for rent out and rents go down and vacancies appear and the practice comes to an end as it becomes UNWISE use of capital. That will occur as markets go to excess and correct. Should the GOV be socialist - authoritarian and intervene sooner is a GREAT question !!!!!!! (I caution - what happens when some one finds another problem - you do not agree - but the GOV intervenes in the free market)

this could be the famous slippery slope

Now - as a capitalist who is left leaning --- maybe some REGULATION that slows it down ? Makes it more expensive? and then maybe tax subsidies for homes that get bought by those who live in it --- would be wise right now

[stockanalyze]

in light of the letter agreement on his way out that still gave treasury every penny i am finding it hard to believe that there was an intent to release them. calabria was there for 2 years, doesn't take that long when they were in conservatorship for 10+ years at the time, what was not known to delay it? hide the stress test? i rest

https://home.treasury.gov/system/files/136/Executed-Letter-Agreement-for-Fannie-Mae.pdf

[tutt1126]

I am on your side.
It would be against law to stop Calabria from commenting about gses on x.

Or and also

It would be against the law , if governments try to stop or cancel this
CASE Number 13-mc-01288


JUDGEHonorable Royce C. Lamberth
Must serves the verdicts of those 8 jurors .
Due to the violations in shareholder contracts during the 2nd trials, conservatorship is almost ended.

[Donotunderstand]

yes the headline is misleading - political - wrong - and a lie

[Donotunderstand]

I hear you

I simply noted that safety nets ARE SOCIALISM ---- and that those safety nets show we have a bunch of WISE socialist programs - much needed . More importantly - if you read fair history you will find that the final vote may have been two party the initiation is solely DEM. And most recently with the ACA (Obamacare) the R side did not vote for this helpful program and only now - as 65% of the population says they like it does the R side stop talking about repeal. So - that hand (of on the one hand) is the product of D --- and then over time - ff they become accepted by the population and indeed loved --- the R side has joined in. To contrast with respect --- when Paul Ryan wanted to cut SSA and Medicare he did it with a true sense of conservative economics and while I disagree violently - I understand how he was truly and with honesty driven by an effort to balance the budget. Today - as R beats up select programs like Medicaid - I do not buy there is an honest - intellectual based budget constraint philosophy --- not after the R party in four years created nearly 9T in deficit and debt and want to do the same again.. Or said another way - it is not correct to claim that deficit spending and tax cuts for the rich is capitalism --- and deficit spending and efforts to reduce income inequality and solve true problems -- socialism.

The second concern is one I can understand. At same time - when the programs are a helping hand they are called socialism and when they support Big Tech -- Big Oil (one dollar leases) -- Big Ag (called the "family farm") - etc. they are called needed subsidies

And -- of interest as i read a post that starts with there are two concepts at play here ---- is the below copied sentence
What many people fear is a transformation of our form of Government to some form of authoritarian regime using the tactics of Marxism to bring us “socialism” through the equitable redistribution of wealth from a formerly sovereign people to an authoritative state.

I think we can all agree the jailing of F and F is an authoritarian state - across two R and two D presidents. And bluntly - is it an effort at Executive control (v free market) or Authoritarian ----- ? or is it an effort to make them public and GOV run (socialism) ----- or maybe it is both and thus it lasts and lasts. I do not want Marxism and I would suggest if that would be a real threat it is from the left (but Bernie and Elizabeth and now the SQAD are not the majority of D). I do not want a supremely powerful authoritarian White House (or now SCOTUS) and I would suggest that if that is a real threat it is coming from the right.

[stockanalyze]

correct.
“There are no guarantees that Trump will successfully end the conservatorship, having not done so in his last term. “
i agree and have said this before.
history speaks. paulson, corker, demarco, mnuchin, calabria. may be in for a disappointment.
the solution comes from somewhere else and not from either party.
i think the market is going to drop big , very frothy. may be even time for a rate increase than a decrease. michelle bowman of fed is right on. inflation is going to go up with all these freebies of 10k, 25k in buying a house by those who cannot afford, offering a 9% freddie home equity loan by undercapitalized freddie mac that is in 16 year conservatorship. disaster in making. stock up your groceries.

[Rodney5]

Typo error on my part. I should have said, “would have allowed” I know Trump couldn’t fire Watt. Thanks Guido

[The Man With No Name]

The SCOTUS decision enabled Trump to fire Mel Watt that’s the reason Mark Calabria got the job. The Trump letter to Rand Paul explained it.

Who in their right mind would not agree with Barron’s statement

Wow, more of the clueless. Collins was decided June 23, 2021. Who was President then? Who was Director of FHFA then? Hint, it wasn't Mel Watt.

Mark Calabria was fired June 23, 2021

Trump never fired Mel Watt.