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Have you a guess on the initial duration of the zero coups invested? 20yr?
Reason I ask is the value of those may now be accruing in line with the net worth figure.
They also know there are so many such questions and complexities if they end it. That's why they are choosing to look at the other side. They don't know how to end it..
Uh oh
You are getting a 4000 worded response with lot of references to 4617e and 4614e and secret accounts. If you are lucky, may be by midnight itseld
Wise Man,
That was a lot of words about the SPS. Next time try reading what you are replying to. My posts have said the LP is not on the balance sheet. Nowhere have I said the SPS are not on the balance sheet because they are. Reading is fundamental. I guess you dont want anyone to agree with your hypothesis. Thats ok. I think you might be right. I dont understand why you post if you dont want anyone to agree with your theory. Strange behaviors.
How this c'ship ends, what happens with current shareholders, what the actual final judicial decisions end up being, what precedents are set by those decisions, and how much ownerhsip in the GSEs is utlimately "given" away or offered to Wall Street and big money players will definitely help determine how much what you talk about comes to fruition and how much progress those established powers have made in achieving their goals.
Conversely, if those powers had complete control and there were not ANY counterforces they could have completely taken control and ended this in their favor long ago. This tells me there are still road blocks to that OWO agenda. We will see with this outcome.
However, a strong indicator of what is to come in this regard - not necessarily concerning the GSEs - is what happens in November. If there is no change in Nov that will not be a good sign.
Housing policy analysts expect discussions about the U.S. debt limit and the end of tax breaks to dominate the fiscal agenda in Washington, D.C., in 2025, obscuring talks about a potential return of Fannie Mae and Freddie Mac to the private sector.
U.s. debt is now at $34 trillion, it's so high that they have confidence about these two giants Godzilla, Fannie Mae and Freddie Mac.
.."This was all planned pre 2008 "
Gses conservatorship was all planned since 2002 .
The purpose is to reinvent America in a new digital world of AI.
WHAT IF...This was all planned pre 2008 for the WEF and OWO ??
When did Blackrock start doing business? 2008.... what timing.....and they now own 80% of the SMP 500.
The plan to own the housing market and turn it into a rental market. ( BY 2030 YOU WILL OWN NOTHING AND BE HAPPY) where have we heard that before?
Banks foreclosed on 100's of 1000's of homes! Banks still own a lot of these homes and are managed by rental companies! WHO OWNS THE BANKS??? The same people/companies that are buying up properties as fast as they can!!
Put the 2 biggest mortgage companies in the world in Gov control ! until private banks and investments companies AKA: Blackrock, Statestreet, Vanguard, Google, Amazon, Bill Gate etc can buy up as many properties as possible.
After a 20 year timeframe (2 years before 2030 agenda) release the 2 biggest mortgage companies in the world and sell off the shares ( warrants) to?? GUESS WHO......... The above companies and turn the GSE into a mortgage caltel just like the banks.
THATS DOUBLE DIPPING !!
The mortgage interest on the mortgages from these homes will be paid by ??? RENTERS !!! Once these properties are paid off or 50% paid off these companies can borrow/ leverage against these properties to buy ALL remaining properties left !! The property market is going to be worth 10 fold in the next 10 years or less !!!!!!
He doesn't understand haircuts ever since he went bald.
Give me 10% and out the door I went
lol
10% of $325
$1500 ain't gonna happen but I think unencumbered, Patswil is pretty close with his figure of $325. Note I said UNENCUMBERED.
FHFA shd just show the finger to Tim Scott and say, nice try. You can change this in 6 months if you want (if you win) but right now we are moving forward with this.. now GTFO is what they shd say
Debate 1-Trap T on $400/m to FTHB for 2yrs
Debate 2-Victory lap for $400/m for 2yrs funded by released GSEs on July 4th. Lamberth time indicating July 7th is end date for filings.
Agree. There are a whole lot of other things FHFA can't t do but has done anyway without any adverse consequences to itself or it's employees. Can't tell what will happen as currently FHFA only answers to the President. Congress has no control over FHFA budget.
My personal opinion about FnF buying and bundling 2nd mortgages is that it's fine as long as they maintain the same prudent standards that they require for 1st mortgages.
I am worried about the present. Don't have the time to sing laurels of the past. I see now and the future and not look back the beauty. Sorry
The GOV can do either per the DJT policy document - which does not lean in either direction
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.
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