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I think this is just - just FNMA alone - from that link (I put in BOLD what I call the smoke and mirrors nonsense by Calabria and Mnuchin and DJT ---- one pocket is filled and the other emptied - MAGIC
Under the terms governing the senior preferred stock, no dividends were payable to Treasury for the first quarter of 2024 and none are payable for the second quarter of 2024.
Under the terms governing the senior preferred stock, through and including the capital reserve end date, any increase in our net worth during a fiscal quarter results in an increase in the same amount of the aggregate liquidation preference of the senior preferred stock in the following quarter. The capital reserve end date is defined as the last day of the second consecutive fiscal quarter during which we have had and maintained capital equal to, or in excess of, all of the capital requirements and buffers under the enterprise regulatory capital framework.
As a result of these terms governing the senior preferred stock, the aggregate liquidation preference of the senior preferred stock increased to $199.2 billion as of March 31, 2024 from $195.2 billion as of December 31, 2023, due to the $4.0 billion increase in our net worth in the fourth quarter of 2023. The aggregate liquidation preference of the senior preferred stock will further increase to $203.5 billion as of June 30, 2024, due to the $4.3 billion increase in our net worth in the first quarter of 2024. See “Business—Conservatorship and Treasury Agreements—Treasury Agreements” in
our 2023 Form 10-K for more information on the terms of our senior preferred stock, including how the aggregate liquidation preference is determined. Increases in our net worth improve our capital position and our ability to absorb losses; however, increases in our net worth also increase the aggregate liquidation preference of the senior preferred stock by the same amount until the capital reserve end date as discussed above.
I have seen the LP (which is investment and then the phantom capital gain at F and F) quantified as about 300B
I suggest you look back to 1950 to say about 1990 or whatever
Both parties aimed to grow - get votes - from the middle of America which was HUGE !!
So compromise was not just feasible it was a way of life
BUT
NOW that both R and D are scared of their extreme voters in a primary - much of what you say is becoming true ---- but it is not the nature of a two party system - it is the nature of the last 30 years of growing R and D or D and R extremists with growing power due to gerrymandered districts in particular
all IMO
so we know who is in the pocket for the TBTF banks
T Scott
Hagerty
ok
sit down
from KT
From what I understand, a senior pref writedown would be accounted for by reducing the senior pref line in the balance sheet to zero and adding that amount to retained earnings. Since retained earnings do count towards all forms of regulatory capital, that writedown really would increase CET1/Tier 1/core capital by $193B.
I do think this is a viable path forward because it would allow FnF's retained earnings account to accurately reflect the reality of the company's health, rather than having a huge negative number for retained earnings (accumulated deficit) and a huge positive number for common stock.
I can handle split adjusted $1,500
LOL
What is this $1500 you keep harping on? Released and relisted, it would never reach such a number because there would be a split way before $1500.
the key point they are making is fhfa can't do it as they are undercapitalized and under conservatorship: you cannot load them up with more risk . i wonder how fhfa will counter this? do you know? or may be they don't follow the law, so they will go ahead and do it anyways. the right way is to rewind and let them be free.
we are at 0.1% of $1500, long ways to go. but why 5 yrs? the market will see through it if the fix is in and we can have amc/gme moment
i may be in the minority here, but i am not too sure he will fix it either.
why? there would not be any hair cut. fannie mae and freddie mac is making money hand and fist, they have helped wither away pandemic, shore up the banks, provided affordable housing, given back close to 300 billion, i can go on and on. why does tresaury need more? no warrants should be exercised, no more money, in fact they should refund the excess. the thing is i have no clue who is going to fix it. do you?
question is who will end this charade. everyone knows it is wrong.
How do we prevent scams perpetrated by our own government? In 2008 @FHFA put Fannie Mae and Freddie Mac in a "temporary" conservatorship and refuses to release them although they are among the most profitable corporations. It has already swindled $301 billion of their equity. https://t.co/lPyxpZaU0p
— Guido da Costa Pereira (@GuidoPerei) May 25, 2024
Kthomp19 is the one who dumps a load of BS posts every time
In 1993, we watched Bill Murray in Groundhog Day being caught in a time loop. The movie ended about 2 hours later. In 2008, we watched F&F shareholders in Groundhog Day II being caught in a time loop. Soon to be 16 years, this sequel has never ended!
Rick will be the arbitrator for 0.5% holding fee from both sides...
You didn't quite finish your statement'
"Yep, Pat the government can do pretty much whatever they want." . . . . legal or illegal.
Ala, Brandfordamus, he explains it every week to some fan or the other.. All you need to do is, go back to the last time he dumped 20 posts (he dumps 20 everytime he visits ) and one or two of it will be to his fan club on why this is doomed..
Dont waste his free posts on repeats
Why does it bother you that I share my opinion on his opinion? It's the truth sadly and unfortunately. The Mafia is corrupt and has no plans to release. Why have false hopes? Yes Hope is what drives and helps some folks (including me, which is why I am still in this garbage) but at the end of the day, little realism helps too. Otherwise we can keep shouting 1500/share 3000/share and world will look at us weirdly
You're good at copy and pasting but apparently you don't understand the difference between a capital waterfall in conservatorship and receivership.
2 months
2 years
2 decades
No hurry
Nothing changes
lol
Have you been to the beach lately? Next time leave the sand behind as it seems you have some in your crack.
If you're so confident big boy then surely you'll give me odds? While the price may exceed $325 within five years of release, it'll only do so because of a reverse split.
You think the conservatorship will end before 2026? Did Bradford tell you that?
YES
BY GAAP - not by politics or Treasury decsions which IMO can PREVAIL --- the payments to Treasury have been dividends that do not reduce the obligation of these relatively unique SP Preferreds (e.g. they do not trade and seem to have a permanent PUT to F and F (or FHFA as F and F )
can you walk through the steps IF sr converts to common --- that common still comes out at 8
thank you in advance
if you believe that - without doing serious math on most recent prices - is not common a great spec ((I assume you mean 8 dollars)
at 50% of PAR - I will take off 50% of JPS
It took you 2 months to reply?
May 20, 2024 - Sherrod Brown calls for new FDIC chair, breaking with Warren
https://punchbowl.news/article/finance/economy/brown-fdic-gruenberg-new-leadership/
yes Re: trunkmonk post# 710426
Do you think FMCC really wants to buy 2nd mortgages? Remember, FnF can lobby or try to publicly bring attention to the GSE’s plight. What they can do to get congress paying attention is to push plans that grab their attention. If I was one their CEOs I would try getting them to bring me in front of Congress. Then all bets are off.
Which lawsuit do you see having any chance of triggering this part of the agreement. I don’t see one having a chance of being heard before release.
no name nonsense Quote: “ The only real question is what kind of haircut the JPS are willing to take.” End of Quote
Willing to take??
Somehow the JPS will be miraculously saved, but the common shareholders are wiped out into oblivion. Seems this is the conversation repeated every day.
What makes the JPS so sure the Treasury will not demand payment in full on the Liquidation Preference wiping out both JPS / Common in receivership?
The Treasury’s LP continues to grow the regulator is authorized or required to place the companies into receivership under specified conditions, which would result in our liquidation. Money received by the Treasury pays off the LP by confiscation of our companies. Leaving nothing for JPS or Common.
As we speak the value of the LP is greater than the entire business operation of Fannie and Freddie.
Company’s Financial Statement
Risk Factors Summary
GSE and Conservatorship Risk
Quote: "Our business activities are significantly affected by the senior preferred stock purchase agreement. Our regulator is authorized or required to place us into receivership under specified conditions, which would result in our liquidation. Amounts recovered by our receiver may not be sufficient to pay claims outstanding against us, repay the liquidation preference of our preferred stock or to provide any proceeds to common shareholders." End of Quote Page 33
Link: https://www.fanniemae.com/media/46276/display
"In the event the assets legally available for distribution to stockholders are insufficient to pay the liquidation preference of all Preferred Stock in full, the assets available for distribution will be divided among all holders of Preferred Stock on a pro rata basis, based on the value of the liquidation preference of each series of Preferred Stock." Page 5
Link: https://www.sec.gov/Archives/edgar/data/310522/000031052220000121/descriptionofsecuritie.htm
Page 105 Quote: Regulatory Capital Requirements we had positive net worth under GAAP $82 billion. EXCLUDES the stated value of the Senior Preferred Stock $120.8 billion.
Short fall of $243 billion of available capital (deficit) to the total capital requirement.
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.
As for wise man hatred towards everyone on this board thinking he’s the only person that understands the LP is legally and properly accounted for in a distant footnote far removed from the make believe consolidated balance sheet, fact is numerous investors on this board has pointed this out for years. Mr Howard dedicated a whole writing on the fact. It’s not a secret. .
Barron, I appreciate your contribution to this board.
Well keep shaking - no one really cares.
But you are wrong and it's funny to think you're here either to shill PFD stock and say you're smarter than the other Billionaires who know the way that the company makes its money and spits out dividends like a broken ATM - but please keep saying things anyone could say who has no idea how the process works all the way down to the most rural single branch community banks and 30 year fixed rates to buy a home in a town of 250 people. Because you don't strike me as a banker.
https://www.yahoo.com/news/ken-griffin-bill-ackman-appear-172113739.html
This is definitely what a common shareholder would want then. Ackman is rallying for Trump and Scott wants to be VP at said rally. Paulson is fundraising for Trump is mentioned as Treasury Secretary when Trump wins NH Primary. All good with me.
Why do you have to point that out?
"The big money is not in the buying and selling, but in the waiting."
How long can you wait on a long? Sometimes the waiting is 20 years. Let people who don't do much waiting and more posting say what they wish. Why should it bother you when it's true?
Then DM me and let's put a few hundred thousand in escrow and if it doesn't pass over $325 in 5 years after 2025 when it will be released from conservatorship - you win, just like that. We just need to set it up with a mutual agreed agent and it's easy like that I'll sign and everything and show proof of income and assets. We can get a DM here and I'll give you my signal for my business number.
Give me your name in a Private Message I'll give you mine. I'll wage a good six figures in cash that we can put into escrow for a 5 year period after ending the conservatorship by 2025 that it will pass $325. That's nothing for you right? Won't cost me much I'll miss but it's enough to say I'll do this with you privately. I can bet over $325. Won't be right away. But it will be in play. I'll keep it to a short 5 years too- try to give you a good chance.
Actually yeah - that's exactly what will happen. Because Ackman, Paulson, Icahn are all people who have been supportive of Trump - Ackman even raising money for GOP with Trump possible VP Tim Scott, Paulson being the guy Trump mentioned in NH primary victory speech as his Treasury pick potentially and also Paulson his original Wall St support in 2016 and set a one day record hosting a Trump 2024 fundraiser. Icahn a friend of Trump. You really are stupid thinking you can just think the Treasury can screw over people for making a great play. You're also an idiot to think even if there's 200 or so regulars here that relative to the nation that's a large number of people who would get "windfall" as most of the United States - a good 99%+ have zero idea what Fannie Mae is and if they know of it no clue how it works. Moron.
The SPS aren't in Separate Account, plaintiff Joshua Angel.
The Separate Account is where the capital distributions under the guise of cash dividend payments have been deposited for the redemption of the SPS (a capital distribution #2, but it has an exception in the Restriction on Capital Distributions, U.S. Code §4614(e)) similar to the SEPARATE ACCOUNT FOR THE PAYMENT OF PRINCIPAL OF THE REFCORP OBLIGATION statutory provision in the 1989 bailout of the FHLBanks (Source)
A provision inserted in the FHEFSSA in this Chapter of HERA:
All the Preferred Stocks are redeemable at the option of the issuer by definition, and the repayment of the taxpayer's assistance is another Prompt Corrective Action, that is, first thing to do in layman's terms.
And then, once they were fully redeemed, FHFA's DeMarco had already enacted "the supplemental" in July 20, 2011, to use this separate account for the recapitalization with the same trick of using the exceptions in the plan of deception (CFR 1237.12).
This amount ($110B SPS overpayment) that aims "to meet the minimum capital level and Risk-based capital requirement" (Exception 1 in the Restriction on Capital Distributions. Also 2, 3 and 4 as it "(c) supplements and shall not replace or affect the one by statute" posted before that is meant for the recapitalization too) along with the PLMBS settlement and the illegal CRT expenses, net (Charter-unauthorized in the Credit Enhancement clause), are assumed that have been reinvested in "zero coupon Treasuries" like the FHLBanks did, and this is why we are requesting interest payments on the $152B owed to FnF. This amount due is netted out with the cumulative dividend on SPS that FnF owe to the Treasury (estimated at a weighted-average 1.8% rate) in its 5- and 6-year investments in Freddie Mac and Fannie Mae, respectively.
The hedge fund manager Donald Trump's plan with the 3rd phase, currently in place, is about the SPS LP increased for free considered a joke. Another capital distribution restricted (#1), they were never meant to stay, with the evidence that they are already missing on the Balance Sheets (Financial Statement fraud though).
Only the layman plaintiff Joshua Angel would say that it's in a SEPARATE ACCOUNT precisely the only thing that it's not: the gifted SPS. They are illegally absent from the balance sheet, so that Bill Ackman and ST in congress, can repeat the lie: "FnF continue to build capital through retained earnings".
Sandra Thompson in charge of Financial Analysis since she arrived at the FHFA in March 2013 as Deputy Director.
Also, Regulatory Policy: Critical Capital level absent from the ERCF.
Capital Policy: Adjusted $402B core capital shortfall over minimum Leverage capital requirement. A Separate Account behind. She is now obsessed in attempting to pass the Net Worth off as the capital that has to meet the capital requirements, as seen in her written testimony to the Senate one month ago. Also, as seen with how FnF calculate the capital metrics beginning with the Net Worth and subtracting the SPS, instead of the sum of their components, attempting to conceal also the Accumulated Deficit Retained Earnings account deep red (Also in her job in charge of Financial Analysis).
We don't need more laymen playing the fool and wearing diapers in this board. The Diapers Gang says that the SPS will "diaper", which is "disappear" in layman's terms.
Yep, Pat the government can do pretty much whatever they want.
The SPS are redeemed, not converted to Cs. Hello?
'Thank you' notes from other plaintiff, won't save him.
Thanks Rodney. If you look at page 59 you will see that the SPS are listed as 120 billion of liability and equity. I don’t know what that means. I do know that the LP is factored correctly in footnote 15. Here the proper accounting under the statutorily required regulatory capital rules of the Safety and Soundness act of 1992 is done. Not GAAP. It is shown here, using very poorly worded sentences, to result in a shortfall of greater than 200 billion. So much for a positive net worth. If you read this footnote they say something to the effect that “awh man, Do we have to follow this law? but but If we use GAAP we can show a 80 billion positive net worth”. Therefore as wiseman has been saying, the LP is legally and properly accounted for in a distant footnote far removed from the make believe consolidated balance sheet. Financial statement fraud at its finest brought to you by our helpful friends from the government running our companies for us.
You are dreaming every week something or the other. One week may be it will become true but not this dream or this week
Biden may release GSE to give new product to homeowners
R is smelling release & recap next week & hence on last day before week off they are trying to oppose FMCC new product under Cship.
They are currently waived until 2028
Changing/waiving any capital requirements here requires an actual act of Congress and the President's signature. That isn't likely to happen in this environment. Look to AIG, not a utility in California.
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