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So the reported capital is
82B
but there is an obligation on the SP to erase it
-120B (not sure if this is all the phantom IOUs?)
So Fannie is negative 38 -- but it can not count JPS for 19B and needs to adjust for 12B of deferred tax
So Fannie is negative say 70B --- is that your math?
And then FNMA needs a positive 188B ?
Correct the CBO report which assumes the warrants to be exercised had an implied value of approximately $ 110 bn. This valuation needs to be updated for the amount of retained earnings which have trended significantly higher than the CBO assumptions. The CBO report also assumed the SPSA would be written down at least partially. Some people believe that the warrants will be written down and the SPSA will be written down for good reasons. Lets wish the best for all shareholders - great news about the JPS trading well. Are you still expecting a JB event by the end of June?
Ahaaa!!! Now we know why you don't own commons
When calab and Mnuchcin are the chosen ones, if that happens we will believe you and accept you as our leader
Exactly WHAT needs to happen for folks to realize this is not going to amount to anything?
Fnmas hit 52 wk highs today, admittedly it is higher in the capital structure and a recent i bank report forecasted a scenario where they make money from current valuations. Spspa conversion kind of is the enemy for existing commons. Not sure if the solution here is to write that down to spend the warrant money, but the original cbo report had the spspa getting paid off face and the warrants being worth up to $110b. The recent ibank report did not seem to be very bullish for the existing commons. Mostly forecasted spspa taking a haircut at an 8x earnings valuation. Oof
Quotes aren't delayed for these pieces of trash. And even if they are it's probably due to apathy.
I'm sure they were illegals!
Makes sense. Furthermore all quotes are now 15 minutes delayed. And someone stole my whale horn. Clearly there is something strange weird abnormal going on around here.
I just completed aerial reconnaissance mission.
It reveals a huge rush of new buyers so great
that you could understandably call it a STAMPEDE
Can someone throw us a bone or something ? Thanks so much.
7-2....Seven of these morons are in favor of an agency set up just to be a money sapping bureaucracy, much like another money sapping bureaucracy with which we all are familiar, FHFA. Between the two of them, several thousand people are "employed" doing repeat work of those they are supposed to be regulating.
Several things to consider. First, the GSE's won't be released any time soon, if ever. Second, the commercial crash will happen no matter what, and the GSE's play or played no significant role in either. The commercial crash that's coming is the result of the same driving factors in the residential affordability crisis.
The Supreme collapses One More Time
These clowns are getting used to hiding under a desk instead of doing there jobs !
CFPB case
https://news.bloomberglaw.com/us-law-week/cfpbs-funding-system-upheld-by-us-supreme-court-in-biden-win
Thank you
On the run but thank you and will be back to read
FYI -- not sure what page you left the PDF (link) at - but it opens to page 23 of the PDF ---- miles from 105
(and as always - just for the fun of it ---- the PDF counter (I use to search a page number) shows the DOC page 105 is PDF page 108
but - I see note 15 !!! and Thank you
I do want to better understand capital - when used to discuss F and F (witch cash reserves/capital that have for a large amount - offsetting IOUs ))
Only saw two lines - rest is blocked
but of course that is bull !!!!
it will reduce costs for homeowners
And there is zero added risk --- and likely less risk as F and F can not be as mean and ruthless as the banks were in kicking home owners out (to include the Bank MNUCHIN ran pre appointment - notorious reputation as I recall for rapid and forceful foreclosures )
and remember that time - 2008ish - is when we learned the industry tracking system on who held the real most recent deed was CRAP (and we had dozen years of banks selling mortgages to other banks to get YEAR ONE servicing fees at 2X later years - they swape them like baseball cards at a swap meet!)
"can you specify the DOCUMENT page you are using"
Page 105... I wrote in the post.
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174489275
Form 10 Q For the quarterly period ended March 31, 2024
Note 15: Regulatory Capital Requirements
https://www.fanniemae.com/media/51196/display
As you said, and you are right: "Statutory prohibitions, as a compensation with SPS is considered a capital distribution restricted." - So, tell me with the amount of money the companies have sent to the Treasury why the continued conservatorship?
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
i think all he is arguing for is the audited balance sheet.
Collins screwed everything up. If not for collins Cala ria would still have been Director.
Instead of retaining earnings, you want FnF to increase the SPS LP for free and then, convert these SPS to common stocks, so that FnF post the Retained Earnings that they should have posted in the first place for the rehabilitation of FnF at that point in time, and with your stance, it's posted a lower amount because they would have to pay Income Tax, as it's a debenture (SPS, obligations in respect of Capital Stock) that disappears.
In this image, you see the step 1 (Net Worth increase = Net Income + OCI are Tier 1 Capital) and the step 2 (the effect of the SPS LP increased for free on the Net Worth). You want a step 3 to return to the step 1 (Retained Earnings is Tier 1 Capital).
Let alone all the statutory prohibitions, as a compensation with SPS is considered a capital distribution, restricted. Besides a breach of the FHFA-C's Rehab power, that refers to Rehabilitate FnF with the initial action, not a breach and then, years later try to rehabilitate FnF.
Your stance is beyond shenanigans.
Everything is unwound and the reality is that the FHFA used its Incidental Power for this joke: "Zing!".
Humiliating indeed.
The Supreme Court required the "rehabilitation of FnF", adding "in a way, although not in the interests of FnF (awful ERCF tables), it's beneficial to (the written text states "in the best interests of") the FHFA", with the add-on "...and the public it serves", for the utilization of FnF for public policies.
Corroborated by judge Willett in the prior ruling over the same case, with "any action within the enumerated powers", which refers to the power of Rehabilitation, without saying it. This is why it was a half-baked ruling, synced-in with Justice Alito that finally said it: "Rehabilitate FnF": (may) put FnF in a sound and solvent condition", were "may" doesn't mean that the conservator is excused from complying once the capital has been generated (Legal dictionary), but about activities that make them take on more credit risk or bear losses, as explained by Freddie Mac here.
This is what the Restriction on Capital Distributions is for. A statutory provision covered up by the parties from the onset, in a clear case of collusion.
Justice Alito saw more his desire to peddle the hedge funds' Govt theft story, rather than what he was required, read the text, because there is no "monetary benefit" possible, as someone might think of with his opinion, in a regulatory agency, with respect to the entities it oversees, by any stretch of the imagination.
It's the benefit of a Separate Account plan and enjoy the pleasure of watching their Equity holders saddled with losses with their stocks trading at rock bottom prices (the stocks' fair value), and fighting against the assault attempt on the ownership by the holders of Preferred Stocks.
MAKE NO MISTAKE, the rehabilitation of FnF and actions authorized by this section, in the best interests of the Agency, go together at the same time.
You cannot take actions in the best interests of the Agency (10% and NWS dividends, and nowadays SPS LP increased for free) and then, 15 years later, claim that it's when you will "rehabilitate FnF" with the write down of the SPS that show up on the balance sheet, and the conversion to common stocks of the ones increased for free that are illegally absent from the balance sheet, which is what the government attorney, Mr. khtomp19, says in the comment that I'm replying to.
JPS are redeemed, like SPS, not converted to Commons.
This is the chart of a Non-Cumulative dividend JPS with the dividend suspended, assuming that Fannie Mae fetched the threshold 25% of Prescribed Capital Buffer for the dividend resumption (Table 8: Payout ratio), with the 3Q2022 Earnings report.
It's been estimated a 6% annual discount rate because this is what the market would have demanded.
Freddie Mac, one year earlier.
Nowadays, in overtime (Conservator Risk: "Take any action authorized by this section, in the best interests of the Agency". FHFA-C's Incidental Power) with the expulsion of the unwanted members (AT1 capital instruments holders -JPS), in time for the announcement of a Privatized Housing Finance System revamp chosen for the release by the UST in 2011, at the request of the Dodd-Frank law, which is only possible when CET1 > 2.5% of ATA, in accordance with the law and Finance (Separate Account plan).
Good luck. Keep wishing for it. You may get it. Idk. Im not betting on it
I hope the GSEs are released sooner than later. The commercial real estate crash is going to hit soon and harder than the past 2008 residential crash.
Out of all the govrats, Cat man did advance the agenda. No one did squat beforehand.
I do wear a hat, to keep the sun away from my receding hairline and bald spot. Lol
I have to deal with J rats, the most debt on the planet. No where to hide from the gov debt kitting, they sell t bills and rebuy them, rinse and repeat.
Crossing my fingers and toes we get substantial gse news.
Fnma
Show the World you're Patriotic
by Loading up on FNMA and FMCC
Good Luck to all of us
I would suggest - and you likely know - that at this point the F and F JPS are a capital gain play.
If we all win - then we should expect that as JPS* become worth $25 (or an 'offer' for 50% or 75% comes) that dividends will be stopped and the paper (JPS) called in by F and F or whatever the name is then
*note if JPS get to $25 or some solid number - I also assume FNMA and FMCC will be providing a good capital gain from today's price - likely even better yet
Can't get one over on you...you is sharp
Expect more Red, this Pom Pom is offer !
When your retired time doesn't matter ! Will in time fannie and freddie be released come Nov 5th? What's the plan going to be in time? I have all the time in the world as I'm retired !
MRJ
I agree the NWS sucked
but the big action remains the STEAL by Bush and Paulson and SCOTUS denying us any rights
The NWS was salt in the wound ---- but had there been no WOUND --- there would be no NWS
I say that as it is what i believe AND a defender or BO ----- (but a defender who does say (100 times by now) the NWS was 100% a complete Taking)
I have no idea who of JOE and DJT might free us
No real idea
But it bugs me no end when we had 4 years of nothing and even negative (re capital level) under DJT - why those who otherwise love DJT keep saying he is good for us
There simply is no such proof (other than some words early in his admin - positive words but that became a report - policy that includes the option of closing them down; and a letter very supportive but a letter to one Senator after he was out of office and talking about common stock the GOV owned - so IMO a joke)
but - I think the answer - life with value or death - is an Executive Branch action
CORRECTION in yesterday's comment: WAZEE CASE. The DOJ wanted Sandra Thompson in, not out as Defendant.
It uses same wording of the Rule 25, which is all messed up.
It doesn't change the point: blame Calabria.
CORRECTION(WAZEE):@TheJusticeDept WANTED ST IN
— Conservatives against Trump (@CarlosVignote) May 27, 2024
Same Rule25 wording "the successor is substituted"?
"Automatically" 2yrs later(It proves the point: Blame Calabria)
Last-minute substitution once the DOJ was told "no appeal" soon.
And
Blame DeMarco: ST dismissed(Lamberth)#Fanniegate https://t.co/f2gVswLo9g
Yikes! The "cash guy" that invented the concept "cash Equity", better known by the corrupt attorneys as "Hi Rum!" in private emails, strikes again.
He is happy that FnF get to keep the cash with the SPS LP increased for free, so they can make investments, notwithstanding that FnF have $8 Trillion in MBS (a MBS is called "investment in a mortgage") with the cash provided by the MBS investors.
They have also tonnes of cash for Liquidity in their Contingency Portfolios ($129B in Freddie Mac and $120B in Fannie Mae, as of end of March 2024), with investments in debt securities among their "Eligible Assets", like Treasuries, valued at fair value, not like the battered banks with their HTM portfolios, enabled by their imprudent Regulators.
Additionally, other Eligible Assets in their mortgage-related investments portfolios (investments in Agency MBSs).
All that matters is the effect in Equity or Net Worth. That's our wealth in a company.
And if you read "Common Equity Sweep", you should be worried, because "Common Equity" is the portion of the Net Worth that belongs to the common shareholders, and CET1 is what is required for the recapitalization (rehabilitation in a financial company: restore to a sound and solvent condition).
This is why the UST recommended the Basel-framework for capital requirements, for the release from conservatorship, in its 2011 Report to Congress at the request of the Dodd-Frank law.
It required guarantee fee increases that reflect their risk, so that FnF can be held to the same capital standards as the banks. Thus, don't depend anymore on the UST backup of FnF in the Charter Act.
15 years in the making.
Don't worry about the release.
You should worry about the corrupt Plaintiffs and Co that want to deplete capital in FnF with the 10% and NWS dividends, the SPS LP increases for free, etc.
I own a huge amount of Freddie $50 JPS and Fannie $25 saving them for dividend payments into my retirement later years and when / if released ! My freddie commons are a wild card play, I own more of those than JPS and have flipped them a couple of times but holding tight for a run up to Nov and into 2025 see what happens. That's my game plan everyone has there own! Trade accordly ! Happy to see everyone make a ton of $$ if they ever get released !
Yes, the government behaved like a bunch of crooks and it got worse when Geithner/Obama implemented the NWS.
If the NWS has not happened we would be released already.
Yes - several billion dollars of JPS were sold - I bought FNMAT at $ 25. The Growth Fund of America bought more. No disclosure by the UST - this memo was not public until 2013 or so as the FCIC Commission records were made public. The NEC and UST knew that this was going on all along and duped the Senate Banking Committee including Calabria that they were dealing fair. Also - they let Wall Street sell Billions to unknowing JPS investors.
i have to agree with you. i do wonder paulson, corker, demarco, alito, calabria , mnuchin who foked this, belonged where? and if they just hate these two companies philosophically that has saved our economy over and over again and still making money hand and fist?
there is optimism here only because lael has already declared that current admin isn't doing anything, so that road is closed. so can't blame everyone to look on the other side, right or wrong. they are hoping, hoping that it will happen this time. may be proved wrong. interesting that he says courts, judges, cases are all rigged but when it comes to gse's , he doesn't? the politicians are adept in making money for themselves in stock market (pelosi, djt stock, buzzfeed, mnuchin on ny bank, crypto and so on...) but when it comes to taking away hard earned retirement and 529 that has all been taken away , $1500 down to $0.40 over last 16 years, with many dead without seeing a penny. nada.
After the letter, dated March 8, 2008, the regulator declared that FNF were sound and solvent. Hank Paulson stated that treasury did not plan to inject capital into FNF. After that letter FNF sold JPS and obtained a lot of capital that way.
Yet Hank Paulson put FNF in C-ship in September, 2008 by force.
It is all lies!
Looking for big rally on Tuesday for Fannie and Freddie
Calling Strong Buy then Hold for the GOLD
Buying into Fannie and Freddie is Patriotic
because you're investing in America
You are wearing your R hat and looking through that lens
Answer this to yourself :- if you get the vibes in the next 4 months that Biden will release in 2025 and similarly you get the vibe that Trump is going again with Mnu and MC, if you think you will vote Biden, we can have a argument
Btw, I ain't no D if you think I am one. I hate politics
Calabria was appointed by DJT and was there for two years under DJT - with MNUCHIN as Treasury and Barr as Justice
So - choose of the only real two choices
DJT as POTUS - is a flunky managed by his appointees? or he is easily fooled by them? or they simply ignore him with no consequences? that would explain nothing good
Or IMO REALITY
DJT did not care one wit about F and F and equity -- that would explain nothing good
Moderator - all this political talk said in context of many posters noting an expectation of massive great gains in PPS due to ACTIONS by "DJT round two"
what about the paragraph I posted that repeats in clear language that every dollar - to the dollar - of growth in so called reserves is matched with an IOU to the LP count --- do you not understand . Holding cash but writing an IOU is not moving an inch (unless someone sometime kills the LP (wipes it out - calls it paid off) -- and THEN and ONLY then the CASH has a real worth
there was no end to paying a shitload of money to GOV - period
there was a lot of noise --- but it lead to a report - adopted by POTUS - that offered as an equal option -- bankruptcy
If you like DJT - cool ,, - but nothing in his four years as actual POTUS and head of Treasury and head of Justice proves he favors anything good for equity holders (note in your writing and that of other DJT fans ---- it is OBAMA and BIDEN who are no good - but in the case of DJT all the talk is about underlings who thwarted him ----- do you not see how that is not logical)
the NOV election has ZERO to do with anything FNMA
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