Freddie Mac-No Politics (FMCC)

[EternalPatience]

Tired of all the cases

Banana republic

My kids are definitely becoming lawyers once they grow up. Perennial flow of money from each case. Guaranteed 20 years per case of revenue flow

[naveedkhan]

I'm not an attorney and don't know enough about legal proceedings to have an opinion if the certs will be used as an excuse for a delay. However, I do believe they will pull something from their bag of tricks for a delay. Like the Jewish Holidays were used earlier (I believe that was this case). as they say, the best indicator of future performance is past performance.

[955]

Only difference being Apple consented to Gov tyranny whereas the GSE's did not. Apple consented to placing a spy device in everyone's hand, an offer that was just too good for tyrannical Gov to pass up. All in compliance with Bush's Patriot Act to keep terrorist US citizens under control. The GSE's rebelled until Paulson threatened them with hostile takeover. So happy to have the watchful eye of Gov keeping us all safe. LOL!!!

BlueMoonInvestor
Friday, August 05, 2022 9:01:06 AM
Re: Robert from yahoo bd post# 728395
Post# 728396 of 728400

It's almost like taking Apple into c-ship because they had a bad quarter and it's just too important. So for the good of the taxpayer/people since everyone has an iPhone, the gov puts it into c-ship.

[FOFreddie]

Did the DC Circuit Leave and Opening for a Cert Petition From Bryndon Fisher and Mike Kelley challenging the Conservatorship itself once their cases are adjudicated at the DC Circuit?

From the Owl Creek Cert Petition:

"Next, the court accepted the Court of Federal
Claims’ recharacterization of the private shareholders’
direct claims as derivative. Pet.App.22a. The Federal
Circuit agreed that the shareholders’ claims were actually for overpayment, supposedly essentially asserting that “in exchange for [the Agency’s] conservatorship, both the [Companies] and shareholders were
forced to pay Treasury at a loss.” Id. (This statement,
although seemingly central for the court, appeared to
conflate the events of 2008, in which the conservatorship began, with the Net Worth Sweep, imposed in
2012. Petitioners here challenged only the latter.) The
court dismissed the shareholders’ arguments based on
Collins simply by distinguishing Article III standing
considerations as irrelevant to the existence of a direct
claim. Pet.App.27a–28a. The Federal Circuit similarly
rejected Petitioners’ reliance on such authority as Alleghany, 353 U.S. 151, without much discussion.
Pet.App.26a–27a."

[FOFreddie]

Senator Toomey keeps on talking GSE Reform and how the US Treasury is late on its report. Do you have thoughts on some lame duck session legislation or the US Treasury pushing forward with Admin Action after the reconciliation bill passes?

I just finished the last US Senate Banking Hearing - Warner of VA is pushing for a 15 to 20bps surcharge to fund expansion of the Housing Trust. Yentel kept on talking for the need for more public funding.

No explicit discussion of the Calhoun plan.

[FOFreddie]

Ackman always strikes me and being very thoughtful. I imagine he is as frustrated as all of us but we all will be right in the end which is usually the case with Ackman's investment.

Regarding the class action litigation, I am still sweating out the risk of dismissal on summary judgement since we have been screwed so many times by Washington DC Swamp types. Hope Judge Lamberth is as honorable as his bio.

Also -do you think the Cert petitions could be an excuse for him to delay once again?

[naveedkhan]

"...how do you think a jury is going to react?" "what kind of award?"

bill ackman interview on Visa/Mind Geek case but offers some insight into his thinking about class action suits and how they are "great for the defendants" and attorney's because they can settle for pennies on the dollar.

Very end of the interview (16:30)

https://www.cnbc.com/video/2022/08/02/billionaire-investor-bill-ackman-speaks-out-against-visa-amid-child-porn-lawsuit.html

[FFFacts]

Toomey knew his stuff.

[Robert from yahoo bd]

Too bad Toomey is retiring, this whole 14 year CONservatorship really doesn't fly with him. Unfortunately, my Senator, Mark Warner probably told SM to keep the Sweep going through the Liquidation Preference when they had dinner and went bike riding down by the Potomac in the previous administrations final months.

One thing that I will say is during the 14 year CONservatorship, Fannie and Freddie have become even more irreplaceable in the Secondary Mortgage Market and the federal government implicit guarantee on the $7T+ of GSE MBS has apparently become a nice tool for the Federal Reserve to manipulate a traditionally difficult area of the yield curve, LONG TERM INTEREST RATES!

So, I don't think these giants are going anywhere anytime soon and YES THEY NEED SOME 1ST LOSS PRIVATE CAPITAL, thanks to the transfer of $100's of billions into the Treasury IN RETURN FOR NOTHING!

[FOFreddie]

Senate Banking Committee held another Hearing on August 2nd.

https://www.banking.senate.gov/hearings/the-rent-eats-first-how-renters-and-communities-are-impacted-by-todays-housing-market

Last Paragraphs of Senator Toomey's Written Statement:

"We should get the GSEs out of the business of subsidizing single-family
home investors. And we should keep the GSEs focused on their
affordability missions by keeping them out of social policy.
Meanwhile, I hope the administration will finally engage on reform.
Treasury has still not met its obligation to deliver a housing reform plan to
Congress—it’s now 10 months overdue.
Instead of pushing a reckless tax-and-spending bill, the administration
should look to opportunities for bipartisan legislation—like housing finance
reform—that relies on free enterprise—not government—to make housing
affordable for all Americans, whether they own or rent"

Diane Yentel of the National Low Income Housing Coalition was a witness. She is an Admin Action player. Have not listened to hearing yet but wanted to share.

[FOFreddie]

Yes - it is unfortunate that Toomey was not the Chair of the Senate Banking Committee. Listened to the whole hearing which was on the short side - it is clear the Republicans smell woke Admin Action potential and are pushing back against the work moves the FHFA have already made. Douglas Holtz - Eakin made some good points about how the Fed's decision to buy MBS just aggravated housing affordability issues. The Fed was buying $ 30 bn per month - now the Fed is selling $ 30 bn per month or a $60 swing widening out mortgage spreads. Lawrence Yun from the National Association of Realtors said mortgage payments are up 50 to 60 pct since the bottom due to interest rate moves and mortgage spread widening.

[FOFreddie]

Yes - my thanks also to everyone for hanging in there - I tell my wife that one day we will make our losses back from her IRA investment in FNMAT on the new issue in May of 2008. Too bad American Funds sold their common - two of my kids graduated from College so they will never see the return from a fair outcome from this fiasco. Maybe my last kid will benefit - 6 years to go!

[trunkmonk]

Must be some kinda invisible ceiling.

[stockprofitter]

They hate it frankly lol

[955]

Still not buying it? Consider the following quote by Putin from Feb 2015:

“Russian President Vladimir Putin struck a defiant tone a day after talks in Moscow with the leaders of Germany and France failed to achieve a breakthrough in resolving the Ukraine crisis. Russia won’t tolerate the post-Cold War global system dominated by a single leader, Putin said Saturday at a meeting with the Federation of Independent Trade Unions in Sochi. “That type of world order has never been acceptable for Russia,” Putin said. “Maybe someone likes it and wants to live under a pseudo-occupation, but we won’t put up with it.” NATO is setting up military headquarters and command centers from the Baltic to the Black seas along Russia’s borders and plans to ultimately field a rapid-reaction force of 30,000 troops as relations with the Kremlin have deteriorated.”

Ukraine has indicated a desire to join NATO. Ukrainian soldiers have Nazi symbols on their uniforms. Pelosi and he entourage have visited Ukraine recently. Russia has its roots in Ukraine. Now I ask you, why has Russia invaded Ukraine? Clear now?

GSE's are mere pawns being manipulated for a much larger GLOBAL agenda. Our country has been sold out by TREASONISTS!

[955]

Housing policy in this country was hijacked well over a decade ago during the first Bush Admin (NWO) and placed on track and in alignment with WEF/Klaus Schwab NWO/Great Reset /Agenda 2030. Follow the money. Bush's, Clinton's, Obama's, Biden's all on board with Agenda 2030. In short, WEF/Agenda 2030 is all about advancing policies of The Fourth Reich. And you thought the Nazi's were dead and buried. They're all about bringing into power a one world government where financial, medical, communications, food supply, climate change, AI, transportation, military, education, depopulation are all brought under the control of a modern 'Hitler'. WEF meets regularly in Davos Switzerland, is funded by over 1000 multi-national corporations and was founded in 1971 by Klaus Schwab. Recently, UN announced it has joined forces with WEF.

"Never let a good crisis go to waste."
Modern DEM mantra. CREATE CRISIS TO EXPAND GOV CONTROL.
WEF has adopted this as well.

https://m.washingtontimes.com/news/2021/jul/20/democrats-will-never-let-a-good-crisis-go-to-waste/

As you can see, this is much bigger than just Congress, the courts or the GSE's.
2008 FINANCIAL CRISIS WAS INTENTIONAL.
Follow the money.

[trunkmonk]

I think so too, i think in the next couple months, there will be an inflection point for GSEs and government control sentiment in general. people are sick of it, they will get voted out if they dont change and my guess is a wave of change. we dont need more free stuff handed out when those who actually pay all the bills in government, taxpayers and now retired folks, are getting the shaftola. and those younger will start to turn the tide since they are next. overreach has gone too far, paying for kids college was the last straw and the democrat idiots just didnt see it. all working class make up many times more than the welfare democrats and entitled liberals combinded.
this is all aside from what the world will learn about the biggest heist in all of history, stealing hundreds of billions from companies that never needed help from the government. Morons who say anything different are just that, morons who dont know what they are talking about.

[Robert from yahoo bd]

Nice find! Senator Toomey is one of the few people in the US Congress that has a working understanding of just what the heck is going on here, too bad he's headed towards the exists soon and is retiring.

[Robert from yahoo bd]

Thanks for sharing your time and thoughts! And thanks FOF, Trunk, and EVERYONE for contributing and hanging in there as we approach the 14TH YEAR of CONservatorship,! You never know, this could get interesting. We only need 1 or more wins but our adversary has to slam dunk the ball ALL THE TIME.

So far so good for Uncle Suggy, BUT his continuous win streak is no guarantee for current and future litigation, and so long as he perpetuates the destruction of two private corporations shareholders the greater the possibility that the shareholders will continue looking for relief in the judiciary, executive and legislative branches.

[stockprofitter]

End of Conservatorship in progress #fmcc

[stockprofitter]

Less than 3 weeks away #fmcc
Show us!

[stockprofitter]

Show us the emails #fmcc

[stockprofitter]

August 19th big day

[Ace Trader]

One would wonder if there is a plan in the Trump Team. Steve Murch made the capital requirement so high that the Biden team couldn't do anything with the GSE's.

Since the Trump team new ahead of time that they were going to lose the 2020 because of the lax mail in votes etc, they still thought they could win if they got enough people out to vote to counter the Dems mail in votes.

That leaves us to 2024, With the meeting between Steve Murch and Bill Ackman makes you wonder if this is all a delay until back in office and then sell to 79% warrants to Bill and others. Think about another 4 years building capital for releasing and on top if the time needed to push these cases though the courts to win damages and potential pay out of damages it's a double payout to Bill, Steve and the Trump team.

[955]

Been going on for well over a decade now, since Clinton Admin. It's just they're no longer hiding it. Charters, Constitution no longer matter. All with support of SCOTUS. Treasonists, all of them. All brought to you by Bush's, Clinton's, Obama's. GSE's were hijacked, plain and simple. There you have the reason for the Presidential privilege docs.

[955]

Unfortunately, I'm forced to agree with you. Politicians today are not transparent when speaking policy. Then again, they rarely are. It's what's between the lines that you have to pay attention to.

[955]

2Q Net Income
FNMA $4.7 BILLION
FMCC $2.5 BILLION

Why are we still in CONservatorship?
This is what Pelosi rule-of-law looks like. Homes for the irresponsible and lawless as mandated by Pelosi policies.

CHINA PROVOCATION

“But in your judgment, senator, better for the speaker to hold off, at least for now, on that visit to Taiwan?” co-host Willie Geist asked.

“You know, I think she needs to weigh the input that she gets from the administration, from the president, from our intelligence community,” Coons replied. “I do think it risks escalating tensions with China, but I also respect the ways that the speaker over and over has highlighted human rights abuses within China and has stood up for the rights of people in the Indo-Pacific region broadly.”

https://www.breitbart.com/clips/2022/07/27/coons-warns-pelosi-against-taiwan-visit-risks-escalating-tensions-with-china/

It's what Pelosi doesn't say that one has to pay attention to. When she speaks of standing up for the rights of the people, she's speaking of LGBT, the perverted. China wants no part of it. You get arrested in China for such behavior. China is willing to go to war over it, but that doesn't matter to her. She's already 'sanitized' our military of any 'homophobic' thinking. Just ask any military veteran with morals who's been relieved of duty over the last decade.

PELOSI LGBT

San Francisco – Speaker Nancy Pelosi issued the following statement in honor of LGBTQ Pride Month:

“Every June, Americans celebrate the beauty, bravery and vibrancy of our cherished LGBTQ communities and commemorate the remarkable progress our nation has made toward full equality. Just five decades ago, proud activists at the Stonewall Inn boldly rejected centuries of hatred and persecution in a moment that changed America and, indeed, the world. During Pride Month, we carry on what began in the streets of New York City, proudly marching to demand an end to bigotry and to advance the cause of justice.

“Our nation has taken important strides toward full equality, thanks to generations of leaders and activists who rallied support for the gay community during the HIV/AIDS crisis, passed protections against discrimination and hate crimes, defeated the appalling ‘Don’t Ask, Don’t Tell’ policy, secured the right to marriage equality and more. Tragically, hatred and bigotry still linger today: an alarming wave of anti-LGBTQ legislation is sweeping statehouses across the nation, while transgender women of color are suffering rising violence in our communities. As these dark forces threaten to erode our hard-won progress, we cannot relent until our LGBTQ friends, family and neighbors can live with safety, dignity and pride.

“That is why, in February, the Democratic House once again passed the landmark Equality Act, which must become law. The House salutes President Biden and Vice President Harris for their leadership, ensuring that LGBTQ Americans are protected against discrimination under the Civil Rights Act, ending the shameful ban on transgender servicemembers, working to protect transgender youth and stopping anti-LGBTQ discrimination in our health care system. This Pride Month, let us recommit ourselves to finally realizing our nation’s founding creed: that all are equal.”

https://www.speaker.gov/newsroom/6121

China warns of 'forceful measures' if U.S. House Speaker Pelosi visits Taiwan
https://www.reuters.com/world/us/china-warns-forceful-measures-if-us-house-speaker-pelosi-visits-taiwan-2022-07-19/

Former Obama adviser gets 1 year prison in school theft case
https://www.reuters.com/world/us/former-obama-adviser-gets-1-year-prison-school-theft-case-2022-07-28/

[955]

DNU

by the way - with calling out BO idiocy and evil with NWS ---- 100 times

whom have I protected ????

which guilty party have I protected ??? you learn well from your autocrat --- you project your failing on the other party as you say two years is not enough time

Yes, I suppose when you're surrounded by BO henchmen it is rather difficult to get things done in a timely manner. But, you know what they always say, good always triumphs over evil.

[trunkmonk]

Nagoya, I can give u example. Germany repatriated their gold a while back, they had every bar marked, they didn’t get back their bars. It’s a filthy mess and rats run it. They caused the bank crises, the Fed mainly, and blamed the GSEs. GSEs have been the biggest government heist in history. I will stand with that statement in front of God because he sees it all.

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=169532357

[FOFreddie]

Prepared Statement Excerpt from Ranking Member Senator Toomey at today's US Senate Banking Committee Hearing

The White House plan also proposed pushing Fannie and Freddie into activities that prior administrations understood created too much risk for taxpayers. In a break from decades of bipartisan efforts to reform the GSEs, the White House has embraced the GSE conservatorships as a means to socially engineer its housing and racial equity policies.

Senator Toomey called for the end of Conservatorship.

Obviously not much is going to get done. Seems like Admin action also dead?

Video Link: https://www.banking.senate.gov/hearings/priced-out-the-state-of-housing-in-america

Fairholme DC Circuit Cert Petition tomorrow.

News Release link:https://www.banking.senate.gov/newsroom/minority/toomey-bad-policies-and-reckless-spending-have-fueled-soaring-housing-costs

[clarencebeaks21]

“I have always thought of this as being related to the implicit fair dealing for the public securities markets but I dont think that was in the pleadings right?”

Correct. It was the DC Circuit appeal that instructed Lamberth on remand to rebrief the remaining claim as now styled.

“Sounds like Judge Lamberth will have to decide to impute Delaware law or not?”

He could decide that. But he also can first write to the VA state supreme court, and request that they weigh in.

“Will will probably know soon if summary judgement is granted?”

Honestly I don’t think anyone can accurately handicap that date.

“Do you think Judge Lamberth may just stay his case once the Cert petition is filed until SCOTUS decides to take up the appeal or not?”

Possibly. But property law and contract law are rarely 100% coterminous. So one does not necessarily control or inform the other.

[trunkmonk]

Volume tapering off with higher prices. Even if selling stops there has to be MMs bidding it up from here.

[FOFreddie]

Thanks for the reply clarencebeaks21.

I did not know about the choice of law issues with the implied covenant that you highlighted. Thanks for sharing. You are probably right regarding the summary judgement - I have always thought of this as being related to the implicit fair dealing for the public securities markets but I dont think that was in the pleadings right? Sounds like Judge Lamberth will have to decide to impute Delaware law or not?

There has to be some reason why they sold all of the FNMA and kept FMCC and we will probably get a better understanding this quarter. It is my understanding that all the tax loss selling has to be done by Oct 31 so we should know by the end of the year. Perhaps it is the potential outcome of the Lamberth case but when will we know that outcome? Will will probably know soon if summary judgement is granted?

Do you think Judge Lamberth may just stay his case once the Cert petition is filed until SCOTUS decides to take up the appeal or not?

[clarencebeaks21]

I can think of three reasons. All which may be wrong. That said:

(1) the recap shortage favors Freddie: Freddie is a bit closer to its minimum recap target than Fannie is, according to Timothy J Howard (former FNMA CFO). I’m nowhere near a finance expert, so I defer to TH’s blog.

(2) the current contract claim litigation could cause a ‘fork in the road’, putting Freddie further ahead to stay. How?

The USG’s current brief in the DC Circuit argues that the state of Virginia (Freddie’s domicile) has never truly adopted the doctrine of breach of implied duty of good faith (in VA’s common law of contracts).
My Observations?
(a) I think this is the first time that this key issue has been formally raised. That might suggest it’s a hard row to hoe; but another thought is that for public policy reasons, the USG did not want to stick this likely recap-fork into the ground— until it was absolutely necessary.
(b) Delaware’s adoption of this doctrine—particularly as a stand-alone claim*— is not accepted by all states(!!!)

So, in this scenario, Freddie commons likely lose on summary judgment in the DC District (as a matter of law). Any appeal would be a waste of ink (such polar-opposites are a favorites of courts for efficiency reasons- and thus rarely misunderstood). Given more uncertainty toward the FNMA contract merits outcome, Freddie gains now an incremental legal lead, on top of its financial lead.
Hmmm.

[Ace Trader]

This is a risky call. Even if it’s clear the Gov broke the law I do not trust the SCOTUS to get it right .


Law/shareholders 0 SCOTUS/Gov 1

[Ace Trader]

The selling has stopped for now and FMCC is way over sold so expect a rebound back to mid 70’s. If the Hedge continues to sell in Q3 then the price will slowly drop. I also think the price should increase as we get closer to trail on the hopes of a out of court settlement which I believe will never happen .

[FFFacts]

Will have to see what the actual arguments are in their petition. If this is a nationalization, we know approximately what the remedy would be and it is less than then current trading price. If it was some other sort of exaction the remedy would presumably be more. However, if there is a resolution to this before any other meaningful outcome/appeals then this case would set the benchmark to moot everything else.

[EternalPatience]

Wait until the 13Fs are out

[FOFreddie]

Interesting that Growth Fund of America had sold all of its FNMA common but had FMCC as of 6/30. Why keep FMCC and why not sell down both proportionally?

Wash sale rule would only apply to FNMA and FMCC common separately? 61 day period - sell FNMA then sell FMCC and buy FNMA back if want to keep overall exposure? Probably not but something to think about?

https://www.investopedia.com/terms/w/washsalerule.asp

[FOFreddie]

Regarding the Cert Petition it will be interested who files Amicus Briefs. The Chamber of Commerce has been active in CFPB litigation - it will be interesting how much of the 5th Circuit Separation of Powers issues will be referenced in Cert Petition. Perhaps we will have a wide swath of Amicus this type for the Fairholme Cert Petition?

[FOFreddie]

Next up is the FHFA Response for Collins at the Southern District of Texas on Monday - the 18th

https://www.glenbradford.com/2022/06/fnma-fanniegate-1150/

[trunkmonk]

everyone is an expert these days, lol. 65c on the dot. i see this run just starting. everywhere i look or read, there is a Johnson. happy friday.

[FFFacts]

Notional trading value is only about $2 million. That is nothing.

[FFFacts]

There is the scotus petition coming up in a few days.

[EternalPatience]

Be back to regular red programming tomorrow.

[trunkmonk]

Have not seen a 10c + day in a long time. Also weird seeing a 25%+ day. Lol.

[trickybiz]

Someone's buying, but why, this is a treasonous government at work...suggest to stay away from this toxic low level "enterprise." Get your mortgages from anywhere else...so sad.

[trunkmonk]

Pattern has changed for a little bit anyhow, 2 up 1 down, penny wise anyhow.

[Ace Trader]

More of the same buying today! Or shorts exiting ??? One thing is clear will all this buying something’s got to give right ??

My gut tells me it’s linked to the trail. Here goes……

[trunkmonk]

Times are changing. Fnma always normally has as much as twice the volume. Fun to watch.