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The FNMA/FMCC shareholders time is coming in the near future. The years and years of waiting for Fannie and Freddie (FNMA/FMCC) stocks (FNMA $1.7 Billion in Market Capitalization) to be worth the value of their company business revenue ($82 Billion) will soon be reality to most FNMA/FMCC shareholders. Here is Paul Mampilly's video explaining why we stand to see a very bullish (up) stock price movement from here:
Watch, Learn, and Enjoy if you are a FNMA/FMCC shareholder:
Sherwin Williams strikes again end of day one second before the closing. We as shareholders need to ban this store. Spread the word.
The whole process may take that long, but Lamberth's decision should be soon.
The Ham Humish dude said the appeals process will take 1-2 years.
Next move will be from Lamberth's decision on government's motion to dismiss the 8-0 verdict.
I believe the motion will be denied.
Then the government may still be able to go an appeals court. I am not sure about that, but maybe someone else knows.
Glad you weren't around to advise the Continental Congress. If they paid attention to such defeatist attitudes, we'd still be a part of the British Empire.
Good point, thanks for your post. GLTU
AMAZING
did you hear anything?
anyone else you can send to
send a second time
Thank you for the time and effort
BOOM
just posted this is what I heard - a month or so ago
the normal press - related to finance - will be screaming !!!
politicians who do not need those donations should jump on fast --- Do you Hear me JOE !!!!
inside that article
In a column for the Financial Times on Friday, she noted that mortgage finance giant Freddie Mac asked its regulator last month to enter the secondary mortgage market, or home equity loans, which allow homeowners to borrow against the equity in their houses.
Had trouble reading but best I understand first sentence was not accurate
Freddie suggested - a month ago - that it wanted to directly loan to those whose mortgages they had information on
Banks and Wall Street will hate it - as the idea is to AVOID second bank or third pary mortgage - but to lend (yes by F and F) some portion of the equity on mortgage one !!
???
that would not be a good thing for banks and such to compete with
not sure justice comes to all that deserve it - if a big enough lie is told for long enough
I can think of other examples besides F and F
This is how it is done... where the cold hard facts are ordered, summarized, supported, established, etc. etc. These are NOT and NEVER have been the result of some half-assed social media posts. I argue that we DO have allies, they are established financial players, or policy-makers or govt players who know what needs to be addressed first, they know when and how to speak, who to address, what facts to present, what the channels to use. See my other post and what ways including the shareholder plight from our perspective can help in this process. Intelligent, focused appeal regarding housing, FnFs role, and the heavy-handed treatment they received.
In the end I do believe we will prevail and it will be due to much of what is in your post.
Too many here completely misunderstand the nature of this FnF-Govt-TSYHeist-C'ship fiasco. Most of you have been here long enough to understand some basic facts about the ability of shareholders to move the needle, but emotion and pollyanna beliefs too often carry the day, and a few of you are completely delusional about what posting here, or contacting officials, or the media will or can do.
- NOBODY, I repeat NOBODY, other than shareholders, especially any Congressmen, agency official, or influential policymaker, cares about the plight of shareholders. In fact, I contend that it is counter productive to contact ANY government official seeking any relief SOLEY on the basis of an appeal to shareholder plight. If you haven't learned why this is there is no hope to educate you in one or a hundred posts, but some of the following may help.
- Better and more effective would be to address the problems this country is facing with housing and high interest rates, then argue FnF's traditional role (the beneficial functions they provide to the market and home buyers), slide in there some facts on the egregious captial requirements, FnF's earnings power, their "retained capital", stress test successes, and finally the uneven, heavy-handed mistreatment vis-a-vis other financial institutions Treasury has executed. (All of these make a backdoor case for treating shareholders fair and respectfully.) THEN AND ONLY THEN mention constitutional issues regarding property rights, or takings, or other shareholder supporting arguments.
-------BUT BUT BUT - even if EVERY SINGLE SHAREHOLDER made this appeal I still contend it will not be enough to be a decisive factor UNTIL whatever is guming up the process on the inside is worked out by the insiders (NONE of us know what these issues are.)
------- Why do I believe this? There are multitudes of housing groups, including the non-establishment banking organizations which have been making these arguments, lobbying Congress, sharing their facts and figures with the media (and congress) putting their weight behind the effort on the HOUSING RELATED ISSUES AND FACTS. Even some congressmen and the former CFO have put their weight behind the housing related facts to move the process along, and NONE, I repeat, NONE to date have made a dent. See the bolded excerpt above. Treasury and the insiders will move WHEN AND ONLY WHEN ready or forced to do so by economic or legal forces.
- Cheerleading here is fine, on social media - meh - counterproductive other than rallying other shareholders to hang in there and maybe long-term a residual effect when they finally resolve this issue. But your ill-equipped soldiers face nothing but a mowing down against this government arsenal.
- If you all love the cheerleading here more power to you, if it helps you hang in there and find camaraderie, great! As they say misery loves company, but don't be fooled for an instant that you are making a difference to the powers with the boots on your neck. You have a better chance appealing as above, through the backdoor, but for Christ's sake do it smarter!
Fannie Mae and Freddie Mac both posted stellar 1Q24 earnings last week, the former posting a net profit of $4.3 billion, the latter $2.8 billion. But the price of their common each trades for under $1.50 a unit…
Market Makers have been keeping Fan and Fred at current
price levels now for a couple of weeks because they're
getting ready for the BIG WHAMMY and it';s coming
sooner than later...Load up now to beat 'em to the punch
back up to the gray now. Hopefully it swings upwards
Oh wow. Mr. Williams came early today.
Guys go to sleep and come back when Trump wins.
and they will have to increase cap rate to what ? 8% as they are taking more risk and will need to hold more capital, more than banks? banks basically unloading on gse's if this happens. another 100 years of conservatorship? i don't see this going through as fannie mae and freddie mac are deemed 'undercapitalized' , the reason for perpetual 16 year conservatorship, that would be another dereliction of duty by the conservator.
crazy idea. it will cause hyperinflation and fed will have to increase interest rates and older retirees will have even harder time making interest payments. suck every penny out of working class with more debt? modern day slavery in making.. a recipe for worst disaster than 2008 unless allowed to issue reverse mortgages.
most mortgages are below 3%, so why would your borrow at a rate higher than 7%?
just to get votes for the upcoming election and then we go into great depression? looks like it.
a solution: stop blackstone and other hedge funds from owning homes in every neighborhood and turning them around for rental at exponential prices. we know that 16 yr conservatorship with $1500 down to $0.40 is due to bank lobby that feed the fellow travelers.
re: FMNA - Raise the Ask
They will gladly pay it
how will fhfa allow this when they claim fannie and freddie are undercapitalized? can someone explain this?
this will make treasury and banks banks richer and consumers poor. no impact here as everything is swept. correct?
At $2 Million Per Minute, Treasuries Mint Cash Like Never Before
https://www.bloomberg.com/news/articles/2024-05-06/at-2-million-per-minute-treasuries-mint-cash-like-never-before?
Here I am to save the day! RALLY, RALLY, RALLY SALLY
if this was true, the pps won't be stuck , right? as they say follow the money
We are unable to breakthrough $1.50 for some strange reason. We need The TightCoil to help us.
I sort of read that differently. I figured they tap in to that $3T market then, at 4%, need another $120B saved in order to exit conservatorship. Felt like the Gov't finding a way to move the goal further out.
Captain TightCoil will we be visiting the moon today ? Please advise.
Great info post! Thanks for sharing! We should see some nice GREEN this week!
;)
IMO this has a real chance to happen due to the sheer size of $$$ involved. FJB is desperate to get the economy rolling, and stimulus this large is exactly what they need.
Thanks HappyAlways,
I have to give credit to Barron for his excellent knowledge and willingness to share it here. In addition thanks to Robert from yahoo board, Mr Howard and countless others on this board for contributing the truth. (not sure about Mr Howard anymore seems he’s given up caving in to the theft).
If you or anyone else care to send to all members of Congress, and the lawyers of all GSE related litigations in the form of a letter do it. Regards
I believe you actually didn't know.
You are speaking to a bunch of social rejects, societal freakshow, degenerates. They will never understand.
Are all you degenerates ready for an exciting week?
Analysis of the liquidity in FnF.
In the midst of a banking crisis caused by a liquidity and solvency crisis, it's worth having a look to this analysis posted every quarter since many years ago.
Fannie Mae has reduced its Restricted Cash in Q1 from $33B held since long time ago, to $21B, reinvested in Securities Purchased under Agreements to Resell. This is why its Liquidity ratio increases from 3.5 to 3.8.
This analysis is also key if the shareholders are proposing a Leveraged Buyout of FnF.
A Liquidity ratio of 1 to cover a credit crunch event, is a normal ratio.
Then, their business requires more liquidity to repurchase delinquent loans from their MBS Trusts, that won't be recovered until the end of the Loan Modification trial period where, if it succeeded, the loans are bundled into MBS again (RPL), instead of being sold to Goldman Sachs & Co at a deep discount like nowadays, or, in NPL, the sale of the collateral after taking possession (taking into consideration the rebel states, where the courts delay the foreclosures).
Assuming that the Restricted Cash is pledged for the redemption of the JPS, we could be talking about $80B in Freddie Mac and $75B in Fannie Mae of spare Liquidity that can be monetized for the acquisition of the common stocks (the Private Equity firms use debt to acquire the companies and later they use the Assets to service the debt. In this case, due to spare Liquidity, they pay off the debt on day one).
With less Assets, FnF aren't leveraged if, at the same time, FnF redeem their JPS which are obligations (debentures recorded in Equity).
RESTRICTED CASH AND CUSTODIAL ACCOUNTS.
— Conservatives against Trump (@CarlosVignote) May 6, 2024
Screenshots: pic.twitter.com/DR3Bvyzq08
Rodney, thanks for the effort. It sums up the whole thing perfectly. It should be sent to all members of Congress, and the lawyers of all GSE related litigations in the form of a letter. And, possibly the main stream media may be interested in running a special programme. Thanks again, it must take you a lot of extra effort to come up with something in this detail.
It's funny that neither the low profile WSJ Editorial, always with the "taxpayer's risk" when it's null in FnF, as it only buys obligations SPS from companies that buy mortgages with maximum 80% LTV at origination, which took 5 and 6 years for FnF to pay them down (exception to the Restriction on Capital Distributions), respectively, and as a result of fabricated losses, nor Meredith Whitney, mention that the proposal by Freddie Mac is a Personal loan at a whopping 9.5% rate, and with the collateral valued at all time high.
Double risk increase.
Likely, this was the reason why the CEO of Freddie Mac, with 30+ years of experience in mortgage finance, resigned effective March 15th, before it was unveiled.
This product has nothing to do with a mortgage, like a cash-out refinancing as a result of refinancing the entire UPB of the mortgage when interest rates are low.
On the other hand, the shareholders proposed many years ago, that FnF could repurchase the second-lien mortgages that were a business stolen by the banks, as they used the collateral owned by FnF.
This collateral-sharing was the reason of the robo-signing case in 2009-2010, where the banks (mortgage servicers) wanted to foreclosure on fast, in order to protect their second-lien mortgages, disregarding that a first mortgage gets paid first.
It's estimated that currently, there are $2+ Trillion second-lien mortgages outstanding at low rates, with the collateral owned by FnF.
This could free up the battered balance sheets of the banks, that could start lending again or boost their sound condition, currently with hidden unrealized losses (unaccounted for in Equity, either with change in AOCI or fair value change reflected later in the Retained Earnings account).
(*) Commingled securities since 2022, not 2020.
Thank
FNMA And FMCC To Tap Into $3 Trillions Of New Market , NEW Revenue Stream!!! $$$$$$$$$$$
https://finance.yahoo.com/news/3-trillion-could-injected-u-192408915.html
In other words, it's ready to exit conservatorship soon.
NeoSunTzu you ask for facts? Here’s you some facts. And may I ask what you have personally done in attempt to help our cause? Best Regards
Published October 9, 2023
FINANCIAL SERVICES
Committee
Committee Members
118th CONGRESS
The purpose of this letter is to bring attention to the Committee violations by the Federal Housing Finance Agency (FHFA) violating of the Charter Act, and the Federal Housing Enterprises Financial Safety and Soundness act of 1992 (FHEFSSA); Both as amended by the HOUSING AND ECONOMIC RECOVERY ACT OF 2008, (HERA). The Charter Acts are Fannie Mae and Freddie Mac's enabling statutes. FHEFSSA and HERA are regulatory statutes, governing the companies' regulators. All are laws passed by Congress.
The conservatorship of Fannie Mae and Freddie Mac has continued for over 15 years. I am not sure if Committee Members understand the history of the takeover of the companies and pray the Committee will of your clemency hear me in a few words.
Before the take down of the companies Treasury Secretary Paulson was unaware that the FHFA Regulator had sent both Fannie Mae and Freddie Mac letters saying the companies were safe and sound and exceeded their regulatory capital requirements. Paulson told FHFA Director Lockhart that he had to change his agency’s posture on the two companies, and FHFA did exactly that. FHFA sent each company an extremely harsh mid-year review letter, and two days later, Paulson, Lockhart and Fed chairman Bernanke met with the companies’ CEO's and directors to tell them they had no choice but to agree to conservatorship.
When Paulson met with the directors of Fannie Mae and Freddie Mac to inform them of his intent to take over their companies, neither entity met any of the twelve conditions for conservatorship spelled out in the newly passed HERA legislation. Paulson since has admitted he took the companies over by threat.
HOUSING AND ECONOMIC RECOVERY ACT OF 2008 Page 2734 Twelve Conditions
APPOINTMENT OF THE AGENCY AS CONSERVATOR OR RECEIVER
Link: https://www.congress.gov/110/plaws/publ289/PLAW-110publ289.pdf
The FHFA freely admitted the companies were adequately capitalized.
SECOND QUARTER CAPITAL RESULTS
Minimum Capital
Fannie Mae’s FHFA-directed capital requirement on June 30, 2008 was $37.5 billion and its statutory minimum capital requirement was $32.6 billion. Fannie Mae’s core capital of $47.0 billion exceeded the FHFA-directed capital requirement by $9.4 billion.
Freddie Mac’s FHFA-directed capital requirement on June 30, 2008 was $34.5 billion and its statutory minimum capital requirement was $28.7 billion. Freddie Mac’s core capital of $37.1 billion exceeded the FHFA-directed minimum capital requirement by $2.7 billion.
Link: https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Announces-Suspension-of-Capital-Classifications-During-Conservatorship-and-Discloses-Minimum-and-RiskBased-Cap.aspx#:~:text=During%20the%20conservatorship%2C%20FHFA%20will%20not%20issue%20a,submit%20capital%20reports%20to%20FHFA%20during%20the%20conservatorship.
The FHFA forced Fannie Mae and Freddie Mac into a contract with the United States Treasury by Senior Preferred Stock. The Senior Preferred Stock Purchase Agreement is not a law: The SPSPA is an illegal contract between Treasury and FHFA as conservator of the two companies. The Charter Act, FHEFSSA and HERA passed by Congress is the supreme law of the land that governs the two companies.
Fannie Mae and Freddie Mac's regulatory guidelines would have prohibited the companies form paying dividends to the Treasury while severely under-capitalized, but the FHFA suspended those guidelines because the regulator wanted the companies to have to draw more senior preferred stock from the Treasury to pay the annual dividends in cash, ballooning their outstanding senior preferred stock and increase their required annual dividends. FHFA and its Director are executive branch entities and can not make changes to federal laws. Only Congress can change the law. Neither the Charter Act nor did HERA authorize the Treasury to charge a commitment fee.
When Fannie Mae and Freddie Mac were taken over by the FHFA no emergency existed and the FHFA had no authority granted by Congress to take over the companies, no authority written in the Charter Act that gave the FHFA right to take down the companies.
Charter Act: SUBSECTION (g) TEMPORARY AUTHORITY OF TREASURY TO PURCHASE OBLIGATIONS AND SECURITIES; CONDITIONS.— EMERGENCY DETERMINATION REQUIRED. Page 16
Under this subsection no emergency existed.
This leads to the question, who authorized the appropriation of taxpayer debt to provide the 200 billion commitment? Certainly not Congress. Treasury took it upon themselves and authorized a 200 billion commitment available in exchange for One Million Shares (1,000,000) with an initial liquidation preference of $1,000 per share. Shares of senior equity illegal and unconstitutional.
Page 5
Link: https://www.fhfa.gov/Conservatorship/Documents/Senior-Preferred-Stock-Agree/FNM/SPSPA-amends/FNM-SPSPA_09-07-2008.pdf
Charter act prohibits the commitment fees (Seniors, warrants, variable liquidation preference). More importantly the actions of Treasury to appropriate 200 billion in taxpayer debt, take non regulatory control of the companies through the SPSPA (require Treasury permission at least 10 separate times) and ownership of more than 50% of the companies requires them under the GAO act and the CFO act to consolidate the GSEs onto the nations balance sheet. The fact that that hasn't happened means the Treasury has violated the 14th amendment to the Constitution by repudiating the 5 trillion plus in debt the Treasury has acquired through their actions since 2008. Their actions have resulted in a takings of the entire enterprise value of the formerly private companies. These actions have necessarily turned the GSEs back into agencies of the executive branch as they were originally created. This is the definition of a major question and also a separation of powers problem since Congress did not authorize the actions Treasury took and continues to take.
In addition 'Deferred Tax Assets' the Treasury forced the companies to write down and record these non-cash expenses making the companies appear bankrupted. Fannie Mae and Freddie Mac were no where near bankrupted.
Mr. Howard wrote below,
Quote: “Between the time Fannie and Freddie were put into conservatorship and the end of 2011, well over $300 billion in non-cash accounting expenses were recorded on their income statements. These non-cash expenses, most of which were discretionary, eliminated all of the Companies’ capital and forced them, together, to take $187 billion from Treasury. But because accelerated or exaggerated expenses cause losses that are only temporary, Fannie’s and Freddie’s non-cash losses began to reverse themselves in 2012. Coupled with profits resulting from a rebounding housing market, the reversal of these losses enabled both Companies to report in August 2012 sufficient second quarter income to not only pay their dividends to Treasury but also retain a total of $3.9 billion in capital. As soon as it became apparent that a large percentage of the non-cash accounting losses booked during the previous four years was about to come back into income, Treasury and FHFA entered into the Third Amendment to the PSPA. The Third Amendment substituted for the fixed dividend payment a requirement that all future earnings—including reversals of accounting-related expenses incurred earlier—be remitted to Treasury. From the time the Third Amendment took effect through the end of 2014, Fannie and Freddie paid Treasury $170 billion, $133 billion more than they would have owed absent the Amendment.” End of Quote
The United States was not obligated after 1968 to back debt of Fannie Mae. The United States Taxpayers became obligated when the government took over the two companies.
Originally, Fannie Mae had an explicit guarantee from the United States government; if the entity got into financial trouble the government promised to bail it out. This changed in 1968. Fannie Mae became a private stockholder owned company. Fannie Mae securities received no actual explicit or implicit government guarantee. This is clearly stated in the securities themselves, and in many public communications issued by Fannie Mae.
Quote: “Although we are a corporation chartered by the U.S. Congress, the U.S. Government does not guarantee, directly or indirectly, our securities or other obligations. We are a stockholder-owned corporation, and our business is self-sustaining and funded exclusively with private capital. Our common stock is listed on the New York Stock Exchange and traded under the symbol “FNM.” Our debt securities are actively traded in the over-the-counter market.” End of Quote.
Information from: Fannie Mae form 10K Dec 31, 2007
part I, page 1, item 1.
https://www.fanniemae.com/sites/g/files/koqyhd191/files/migrated-files/resources/file/ir/pdf/quarterly-annual-results/2007/form10k_022708.pdf
Where is "maximize profits for taxpayers" written in the Charter Act? Specifically, in this provision entitled Fee Limitation of the United States:
Neither the 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).
SEC. 304. SECONDARY MARKET OPERATION
Fee Limitation
Quote: “(f) PROHIBITION ON ASSESSMENT OR COLLECTION OF FEE OR CHARGE BY UNITED STATES.—Except for fees paid pursuant to section 309(g) of this Act and assessments pursuant to section 1316 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, no fee or charge may be assessed or collected by the United States (including any executive department, agency, or independent establishment of the United States) on or with regard to the purchase, acquisition, sale, pledge, issuance, guarantee, or redemption of any mortgage, asset, obligation, trust certificate of beneficial interest, or other security by the corporation. No provision of this subsection shall affect the purchase of any obligation by the Secretary of the Treasury pursuant to subsection (c) of this section.” End of Quote. Page 16
Only Federal Reserve Banks are authorized to be reimbursed of fees, (section 309).
SEC. 309. GENERAL POWERS OF GOVERNMENT NATIONAL MORTGAGE ASSOCIATION AND FEDERAL NATIONAL MORTGAGE ASSOCIATION
Federal Reserve Banks to Act as Fiscal Agents (Fannie Mae and GNMA)
Quote: “(g) DEPOSITARIES, CUSTODIANS, AND FISCAL AGENTS.—The Federal Reserve banks are authorized and directed to act as depositaries, custodians, and fiscal agents for each of the bodies corporate named in section 302(a)(2), for its own account or as fiduciary, and such banks shall be reimbursed for such services in such manner as may be agreed upon; and each of such bodies corporate may itself act in such capacities, for its own account or as fiduciary, and for the account of others.” End of Quote. Page 29
Link:
FEDERAL NATIONAL MORTGAGE ASSOCIATION CHARTER ACT
As amended through July 25, 2019
link: https://www.fanniemae.com/sites/g/files/koqyhd191/files/migrated-files/resources/file/aboutus/pdf/fm-amended-charter.pdf
The Senior Preferred Stock, with a variable liquidation preference outlined in the SPSPA and its amendments and share certificates is a new product for the purposes of the Safety and Soundness Act of 1992 as amended by HERA.
Congress directed the Director of FHFA to apply the Administrative Procedures Act to the new products sold to Treasury. The FHFA did not follow the administrative procedures congress required in the plain language of the safety and soundness act.
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
The CFO act requires the Treasury department based on published accounting standards to determine if their actions of funding through appropriations, ownership of 100% of the GSEs net worth and non-regulatory control of the GSEs through the SPSPA require the consolidation of the GSEs liabilities onto the nations balance sheet. Do the actions of Treasury under the SPSPA require such consolidation under the plain language of the Chief Financial Officers Act?
The Congressional Budget Office publication states, “Federal Government effective ownership of Fannie Mae and Freddie Mac.”
The Enterprises have been Nationalized by the Government according to the CBO: The liabilities have not been added to the National Debt nor have the Shareholders been compensated by U.S. Law of the 5th Amendment.
Congressional Budget Office
From: Estimates of the Cost of Federal Credit Programs in 2023
Page 1, Foot Note 1.
Quote: “Fannie Mae and Freddie Mac have been in federal conservatorship since September 2008. CBO treats the two GSEs as government entities in its budget estimates because, under the terms of the conservatorships, the federal government retains operational control and effective ownership of Fannie Mae and Freddie Mac. For more discussion, see Congressional Budget Office, Effects of Recapitalizing Fannie Mae and Freddie Mac Through Administrative Actions (August 2020), www.cbo.gov/publication/56496; and Congressional Budget Office, The Effects of Increasing Fannie Mae’s and Freddie Mac’s Capital (October 2016), www.cbo.gov/ publication/52089” End of Quote
Link: https://www.cbo.gov/system/files/2022-06/58031-Federal-Credit-Programs.pdf
The United States Treasury in violation of the Charter Act has failed to treat as public debt the transactions of the United States when the FHFA placed Fannie Mae and Freddie Mac into conservatorship. This obligation was never recorded as public debt as required by law.
The Charter Act the Law of the Land.
Charter Act SEC. 304. SECONDARY MARKET OPERATIONS
(c) Terms and Rates
Quote: “All redemptions, purchases, and sales by the Secretary of the Treasury of such obligations under this subsection SHALL BE TREATED AS PUBLIC DEBT TRANSACTIONS of the United States.” End of Quote Page 14
Link: https://www.fanniemae.com/sites/g/files/koqyhd191/files/migrated-files/resources/file/aboutus/pdf/fm-amended-charter.pdf
IF THE FHFA / TREASURY are allowed to continue with the violations discussed in the above writing, and the illegal contract of the SPSPA agreement is allowed to stand the Committee should give consideration to the FHFA Breach of Contract Bad faith and Unfair Dealings actions of the government in litigation that took place in Judge Lamberth's Court. It took 8 random DC Jurors only 10 hours of deliberations to see right through the Government's false narratives.
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, I am asking this committee to apply the law written in the HERA legislation passed by Congress.
https://drive.google.com/file/d/15978NWfDcTtuClMBnwgWFmoPnwK94vWn/view
The liquidation preference has be paid and the Senior Preferred Stock should be canceled.
The law actually exists! FHFA and its Director are executive branch entities. They can not 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.
The SCOTUS upholding the NWS does not change the fact the liquidation preference can be paid down and the Senior Preferred Stock redeemed under the terms of the law of HERA. The money kept by the Treasury by the NWS should be applied to principle and 10% interest and over payment should be returned to the companies. $301 billion is more than enough to pay the liquidation preference and redeem the Senior Preferred Stock.
I'll take ill equipped soldiers to our cause any day over well educated, knowledgeable defeatists.
We can go at this all night. Congressmen have NO power over Treasury or this process - NONE. ANYTHING you see in the media on ANY issue where the plebians or Congressmen appear to be making the decisions, running the show, influencing, or making any meaningful move on an issue is ONLY because it fits the narrative the higher powers are wanting behind the scenes. This is ONLY going to play out when whatever is going on in the background (economic, banking, financial, judicial, corruption, etc.) is resolved and the higher powers are ready to make that move. In the end if Treasury wants to screw shareholders they will do so and NO AMOUNT of lobbying Congress or the media will change that.
Do you know why? The media is run by the shadow powers (the same powers backing or hanging with Treasury) and they do NOT CARE about this issue. Do NOT fool yourself that the media is unaware, they media knows - every attempt by ANY journalist sympathetic to our cause has run its course without ANY success. Again, this is because the higher powers are running this process and they do NOT care about shareholders. The American people DO NOT CARE about this issue because it is above the paygrade - they are clueless and, in general, cannot be educated on it because they do NOT care and they do NOT have the bandwidth for it - Ukraine, Inflation on EVERYTHING, barely hanging on to jobs, caught up in socio-political nonsens of the day, and on and on and on.
In the meantime saying stupid shit only moves concern for shareholders further down the ladder rung and not a thing you or I say has any power to sway those who have no interest in being swayed. The deciding factors: banking, economic, funding, housing supply and affordability, judicial decisions (especially the jury decision) will in the end - when these finally become the overriding factors then Treasury (FHFA) will move.
G fees have been about 45 basis points so this is a potential revenue stream of $13.5 B ($3 T ) between fnma and fmcc.
Its $4.5 Billion in Revenue this summer added for fmcc!
Thats $9 B in revenue added by Fall…
HOLY SMOKES !!!! $$$$$ thats like $27 a share eps assuming 1 yr is $18 B added.
FNMA And FMCC To Tap Into $3 Trilion Of New Market , NEW Revenue Stream!!! $$$$$$$$$$$
https://finance.yahoo.com/news/3-trillion-could-injected-u-192408915.html
"law and justice will win. always does."
- Yikes. You are ignoring a ton of history!
True. But knowing all the details and remaining quiet doesn't help. Add your voice with all the correct details. Contact the legislators and the media.
That’s true, but ya better have your facts in order. They don’t give a shit about theft in D.C. - especially if it were only 8000 victims when the thief is the govt - unless these 8000 were mega donors. Better to speak up knowing what you’re talking about, putting some intelligent force & appeal in your message and for Christ’s sake reference the masses of potential voters holding these shares.
Actually, we need more shareholders to speak up. Staying quite when you're being swindled makes you either a saint or a coward. Those who aren't saints, MAKE SOME NOISE!
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