Freddie Mac-No Politics (FMCC)

[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.

[FOFreddie]

You are right from a trading perspective but since these are less than 0.1% positions they probably have more incentive to move on and take the tax losses. It is my understanding that they held the common positions from pre Conservatorship and have never purchased any additional common since then. They probably got scared out of their common by those who said that the stock is going to 10 cents. Just thoughts but I thought you may be interested in the work that Kthomp19 has done - thanks Kthomp!

[Ace Trader]

Going by this I don't think so. If I was them I would re invest at these prices average down or double. Then they could sell 50% get there money back and keep 50% for long term. They did increse there JPS in both GSE

We sore today the largest volume so far and no price movement so I'd say it ws shorts covering from $0.50 all the way down. Trade tape shows huge buys today.

[FOFreddie]

Yes - definitely tax efficient. Dont you think they will sell all of their commons for FNMA and FMCC?

[Ace Trader]

They sold commons to buy Fannie JPS and Freddie JPS

[Ace Trader]

No I haven’t let me have a read. Thanks. Yes waiting for an update of there holdings sure will be interesting. What we are seeing today is shorts covering as most likely got in before $0.50.

[FOFreddie]

Have you seen this spreadsheet by Kthomp19 regarding GFA holdings?

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=169315330

Interesting that no common was sold in Q1 We will see updates in the next week or so.

[FOFreddie]

US Chamber of Commerce is focusing on structure of CFPB

https://www.foxbusiness.com/politics/consumer-finance-bureau-out-control-under-bidens-director-critics-say

FHFA and CFPB have many of the same Constitutional problems

[Ace Trader]

Building nicely today with volume. Shorts are exiting or they should be or they are going to be in trouble. Won't able to drag it down to exit.
The up coming cases will just build on support over the next few months until Octobers trail.

[Ace Trader]

Fannie is 2 days ahead of the up swing from Freddie. There will be no drag down damit I was hoping 25 if not 32 cents.
It will be intersting to see what the hedge fund sold in commons v JPS in the 2nd Q from the results from 1st Q. https://www.capitalgroup.com/individual/investments/quarterlyholdings/agthx

Fannie is ahead from Freddie so we should see a continue up swing then sideways until news comes out from court cases. It's going to be a busy 6 months ahead.

[trunkmonk]

Wow kept 2c gain today, having said that, it’s starting to look like a run may be forming. I would love to see a run to 65c. Settle for any green run.

[955]

Good to hear. Time to take back our Constitutional Republic! Thanks for posting that.

[Ace Trader]

Hopefully ! Well theres alot going on in the courts between now and Nov. So we should see some price movement. Hence why I brought another big chunk this morning. Taking a gamble on a short term price jump while keeping my core in commons in Freddie and my core in JPS , FMCCI, FMNAT.

[Ace Trader]

Thank you for the valuable input. Yes love to get more info on the cases and how they are linked and what when goes first as far as rulings etc. I would like to see the collins case go back to SCOTUS but I bet they won't take it. Rop is our best bet and shortest too so we have about 10 days before any news and any movement in price. Hence why I loaded BIG this morning and yesterday at 4:59.

[trunkmonk]

Some think it’s going to $5 again. I’m not gonna rain on that parade, I’m sure with the next 14 years it’s possible.

[FOFreddie]

Thanks 955. The new Director at the CFPB - Chopra is getting a lot of attention for being an activist and the US Chamber is actively involved in raising administrative law and Constitutional issues. They have filed Amicus briefs in two separation of powers cases for next term. I am wondering if they will file an Amicus for the Fairholme Cert? Maybe Kelly also? As noted in the 5th Circuit by Judge Edith Jones a lot of the CFPB Constitutional separation of powers issues are the same for the FHFA and we will see this in the interplay between Collins an All American on Remand in the 5th Circuit.

[FOFreddie]

Thanks for the quick reply. I got to think you have made a good trade and if it turns out you never are able to get a full position at lower prices that is a good thing!

Regarding the GFA Holdings it is my understanding that they should be disclosed within 2 to 3 weeks after quarter end so we should have an update what's left to go. Kthomp seems to monitor this closely and perhaps he could confirm.

Regarding news events - I am waiting for the Govt filings in Collins as the likely next event. I believe they are due a couple of days before the DC Ct of Appeals Cert Petition which I believe will be important to see how they incorporate the 5th Circuit cases regarding the separation of powers issues. I would not expect that the 6th Circuit will NOT rule in the Rop case until after the DC Cert Petition is filed. Although it is a low probability I am hopeful for a big ruling invalidating the 3rd Amendment on the Appointments Clause separation of powers from the Rop 6th Circuit because I think Judge Thapar understands the issues and could share in the positions taken by Judge Edith Jones in the 5th. Basically I am looking for the 6th to look to the 5th for separation of powers guidances. Bhatti in the 8th needs to get back the Ct. of Appeals to be impactful unless we get a surprise favorable ruling at the District Ct. level. I dont know if you have read my thoughts on the DC Cert Petition that I have previously posted here but I think the DC Circuit wrongly relied on the 5th's position regarding retroactive damages in Collins and would expect the Cert Petition to highlight that.

I am not so hopeful with Bhatti since the Judge at the District Ct has already dismissed once but we probably wont see the transcript for 90 days since it is being redacted and it is my understanding that it is sealed for 90 days but I could be wrong.

[Ace Trader]

Some people want the price to go down to load up as like me they are greedy!!! I just brought another 105k Freddie commons this morning.
These things I think will go sideways until we here from the Rop case by July 14th anytime after that for info.

Lamberts case is Oct 17 so that’s when the fireworks hits

[FOFreddie]

Thanks Ace Trader. Selling could continue until Oct 31 end of fiscal year. Although they are small positions in USD amount still a lot of shares to go as of March 31. I see 38 million FNMA and 48 million FMCC? Is that correct.

The question I have is why some continue to want to see the common stock price go down ? I used to think it was that they thought a conversion period would be imminent but that was a couple years ago. Some one is buying these shares and it would seem that it is not just retail because retail probably has been stuffed with GSE common for years and have had a miserable time holding.

Looking forward to June 30th holdings release.

[955]

Unloved due to hijacking and unspoken change in their charter. Not what the GSE's were ever intended to be, handouts to the irresponsible and unqualified ala Maxine Waters, the queen of societal destruction. NGA, National Ghettotization of America.

[955]

Meet the Q-tip of the crypto world,
Washington's 'Crypto Queen,' a Republican senator who owns $100,000 in bitcoin and wrote a bill to finally regulate the industry:

Any similarities? A RINO to be sure.
Janet Yellen, Nancy Pelosi, Kamala Harris, Sandra Thompson and many more like them coming up the ranks. Unqualified, incompetent bigots which is what qualified them for their positions. All planned, all intentional.

Meet Washington's 'Crypto Queen,' a Republican senator who owns $100,000 in bitcoin and wrote a bill to finally regulate the industry
Katie Canales Jul 4, 2022, 7:55 AM
sen. cynthia lummis
Republican Sen. Cynthia Lummis. Tom Williams/CQ-Roll Call, Inc via Getty Images
Republican Sen. Cynthia Lummis is Congress' resident cryptocurrency enthusiast.
She' owns a large bitcoin stake and co-sponsored a significant crypto bill.
The bill would help classify coins as either commodities or securities, and decide which agency should regulate them.
The Refresh logo
Listen to The Refresh: Insider's real-time news podcast.
Sen. Cynthia Lummis is known on Capitol Hill as the "Crypto Queen."

The Republican from Wyoming has earned a reputation as a cryptocurrency educator in Congress, demystifying and advocating for the technology among her older colleagues.

She's a self-described HODLer, crypto-speak for someone who invests in bitcoin as a way to get in before it takes over larger swaths of the financial system. In June, she introduced a bill, alongside Democratic Sen. Kirsten Gillibrand, to some of the first federal guardrails for the growing and largely unregulated world of decentralized finance.

"There are groups who want no regulation. There are other groups that want to completely ban digital assets," a spokesperson for Sen. Lummis told Insider. "We need to meet somewhere in the middle to make sure that bad actors are not taking advantage of the lack of regulatory clarity, but also that innovators can continue to develop new technologies that make our world better."

From Wyoming to Washington
sen. cynthia lummis
Sen. Lummis in 2008. Douglas Graham/Roll Call/Getty Images
Sen. Lummis (pronounced as though it rhymes with "hummus,") served as the state treasurer in her home state of Wyoming from 1999 to 2007 before winning the Wyoming seat in the US House. She served as vice chair of former President Donald Trump's presidential transition team after he won the 2016 presidential election.

In 2020, Sen. Lummis, 66, became the first woman to be elected senator from the state of Wyoming. That same year, she also became the Senate's first crypto owner.

Sen. Cynthia Lummis
Former Vice President Mike Pence and Sen. Lummis in a mock swearing-in ceremony in January 2021. Pete Marovich / POOL / AFP) (Photo by PETE MAROVICH/POOL/AFP via Getty Images
Lummis bought bitcoin in 2013, and she reported in October 2021 that it amounted to somewhere between $50,000 and $100,000. She told Protocol last week, however, that she put her bitcoin holdings in a blind trust after receiving blowback for owning the digital assets.

But her passion for the technology — and eagerness to learn — puts her leagues ahead of many of her colleagues.

"I'm catching up, and I need to help my colleagues in Congress to catch up," Sen. Lummis told Reason in October 2021.

So what would the bill do?
cynthia lummis
Sen. Lummis. Tom Williams/CQ-Roll Call, Inc via Getty Images
A key component of the Responsible Financial Innovation Act is how to classify digital assets (commodities or securities) and which agency should regulate them.

It's a question that's long plagued the industry. Many companies have long scowled at the idea of the Securities and Exchange Commission overseeing digital assets, with many preferring the Commodity Future Trading Commission's oversight instead.

The legislation partially agrees.

"Digital assets that meet the definition of a commodity, such as bitcoin and ether, which comprise more than half of digital asset market capitalization, will be regulated by the CFTC," reads the bill.

However, Sen. Lummis has said the SEC will still play a key role to warn consumers of smaller cryptocurrencies that could be scams.

"These are assets that need disclosure, where the public needs consumer protection because some of these are just fraudulent," she told Protocol.

Is she the best person to write the bill?
cynthia lummis
Sen. Lummis in 2021. Kent Nishimura / Los Angeles Times via Getty Image
Some are skeptical about Sen. Lummis' unabashed pro-crypto fervor, given her influence in Congress and fanfare in the industry.

It "calls into question whether she is approaching this bill from the perspective of wanting what is best for society as opposed to wanting what will benefit an industry that she is closely tied to and directly invested in," Dylan Hedtler Gaudette — government affairs manager at the Project on Government Oversight — told Insider. "It's a classic conflict of interest, plain and simple."

But on the other hand, some believe her enthusiasm is an asset in policymaking.

"Senator Lummis' interest in crypto reflects the position of many in the industry, and it's important that all parties be represented in the regulatory conversation as it unfolds," Kenneth Goodwin — director of regulatory and institutional affairs at the Blockchain Intelligence Group — told Insider. "That being said, the bill is substantial in its stance on how to designate crypto assets and enforce breaches accordingly."

As for the nickname bestowed upon her, the "Crypto Queen" of Congress, Sen. Lummis is all for it.

"It makes her laugh," a spokesperson for the senator told Insider. "This community is so passionate

[Ace Trader]

I found a good read to see who they had in there fund. One would think there cost v tax loss would be better than Gov cashing in the warrants then letting them rip! I think the selling will continue into 2nd Q.

About all are JPS with a little common.

https://www.capitalgroup.com/individual/investments/quarterlyholdings/agthx

Page 181-195

Federal Home Loan Mortgage Corp., Series Z, 8.375% noncumulative preferred shares 71,493,658 $221,630,340.00

Page 196-210
Fannie Mae, Series S, 8.25% noncumulative preferred shares
62,266,695 $200,498,758.00

Page 361-375
Fannie Mae
37,644,295 $29,550,772.00

Page 316-375
Fannie Mae, Series T, 8.25% noncumulative preferred shares
6,954,484 $18,672,790.00

Page 399
Fannie Mae, Series O, 7.00% noncumulative preferred shares
1,739,366 $8,783,798.00

Page 399
Fannie Mae, Series P, 4.50% noncumulative preferred shares
190,000 $452,200.00

Page 399
Fannie Mae, Series R, 7.625% noncumulative preferred shares
837,675 $2,077,434.00

Page 399
Federal Home Loan Mortgage Corp., Series V, 5.57% preferred shares
212,500 $478,125.00

Page 399
Federal Home Loan Mortgage Corp., Series X, 6.02% noncumulative preferred shares
239,000 $587,940.00

[trunkmonk]

GSE stock has almost never been so unloved, and i think some understand it.

[FOFreddie]

You are right trunkmonk. Justice Alioto did everyone a disservice in his " special conservatorship" finding under HERA. It is a playbook for future nationalizations - next up will be the Farm Credit system which also has a private public legal structure.

My take away from the grant of Cert for the two separation of powers cases is that the 5th Circuit under the philosophical leadership of Judge Edith Jones has decided to take an active stand on preserving the separation of powers engrained in the Constitution. Based on the timing of the Remand for Collins and the text of All American, it is my hunch that the Fairholme DC Circuit Cert Petition will incorporate much of what the 5th has laid out.

The Fairholme shareholder lawyers will have a peak into the arguments of the US Govt to deny retroactive relief at the Southern District of Texas for Collins a couple of days before the DC Circuit Cert Petition is due. It is my hunch that the 6th Circuit Panel will wait for the US Govt Collins complaint and DC Circuit Cert Petition before filing.

Unfortunately, I dont think any positive legal development will do much for common prices until the American Funds Group is done selling. I am not sure when the tax selling period ends but I think we will have several more months of price pressure. I wonder who is buying all of this common? - in some ways it is amazing that the price has not gone to near zero at this point given all the uncertainty and selling pressure.

[trunkmonk]

the Dumbocrats are attacking SCOTUS and wanting to either eliminate them, or have oversight, this should be where SCOTUS sides with all separation of powers issues because its the Dumbocrats that are overreaching everywhere, and i mean everywhere. SCOTUS needs to start doing what our founding fathers expected of them and stop the madness at every corner of our country and constitutional rights.

[FOFreddie]

Wonder what the 6th Circuit Clerk Deborah Hunt thought about being called " Mr. Cayce". ? Lyle Cayce is the Clerk for the 5th Circuit.

https://www.glenbradford.com/2022/06/fnma-fanniegate-1152/

Kind of sloppy and arrogant at the same time?

There are two separation of powers cases on the October 22 SCOTUS docket related to Rop. Difference between 5th Circuit and 9th Circuit.

5th Circuit Case:

https://www.scotusblog.com/case-files/cases/securites-and-exchange-commission-v-cochran/

9th Circuit Case

https://www.scotusblog.com/case-files/cases/axon-enterprise-inc-v-federal-trade-commission/

Discussion about the two cases:

https://www.scotusblog.com/2022/05/justices-grant-review-in-two-cases-that-test-jurisdiction-of-district-courts/

Thapar wants to be appointed to SCOTUS and Rop is his chance to prove that he believes in the Separation of Powers.

[trunkmonk]

6th circuit gave it a couple penny bump today.

[FOFreddie]

Thanks Trunkmonk.. According to the link provided by Ace Trader, The Growth Fund of America had approximately 38 million shares of FNMA and 48 million shares of FMCC as 3/31/22. It was my understanding that these shares were acquired pre-Conservatorship so the tax basis could be over $ 20? Assuming a 30 pct effective tax rate we are looking at a tax benefit for investors of approximately $ 6 a share for each share sold. Could be lower but could be higher. Cant blame them if they are listening to Glen Bradford.

Here is the link from Ace Trader:

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=169278806

This could go lower but the reason seems to be the selling by American Funds. They could have owned more in other funds also. Do you see any scenario which leads to delisting of FNMA and FMCC commons - seems impossible right? They need to raise public capital so if you buy now you have forever to wait for upside? Seems like a great option on two of the most important companies on the planet? Maybe we get crammed down - maybe not?

[trunkmonk]

Oh no I was off by .4c.

[trunkmonk]

Headed towards 2c loss at 44c today. No hurry folks.

SCOTUS change, he done Thursday with latest opinions.
https://www.foxnews.com/politics/supreme-court-justice-stephen-breyer-retire-thursday-my-great-honor

[FOFreddie]

Good Reference Links from tutt1126

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=169245815

[FFFacts]

Means nothing in relation to shareholders.

[Ace Trader]

Latest release from Freddie Mac
https://finance.yahoo.com/news/freddie-mac-issues-monthly-volume-203200105.html

[FOFreddie]

Appropriations Clause Queries Continued.

Admin Action should raise Appropriation Clause issues because it will be directly spending UST monies without Congressional Oversight. The actual normal operation of the FHFA is also an issue based on the CFPB v All American Check Cashing decision in the 5th Circuit. I have noted before that the very next day after the DC Circuit Decision was released Collins was Remanded to the District Ct by the 5th and in May the 5th Circuit issued the All American Opinion.

After the All American decision was rendered, the Collins Plaintiffs cited All American in an amended complaint before Judge Ellison who is hearing the Collins suit on Remand as an additional basis to invalidate the 3rd Amendment.

What will be most interesting to me is how the separation of powers claims are handled in the DC Circuit Cert Petition by the Shareholders because it seems clear that the 5th Circuit has not rendered judgement yet on whether the 3rd Amendment should be overturned due to the Appropriations Clause or if the SPSA should be canceled as a retroactive remedy allowed by the SCOTUS Collins Opinion.

The DC Circuit questionable reliance on the 5th Circuit to dismiss the separation of powers claims:

https://cafc.uscourts.gov/opinions-orders/20-1912.OPINION.2-22-2022_1911455.pdf

Here is the last paragraph from the Opinion cited above

Given all these realities, especially the Supreme Court’s description of the extreme limits on the possible relief available to similarly situated shareholders, we agree with the Fifth Circuit that the shareholders have already been afforded the only possible remedy available for Bar-rett’s alleged separation-of-powers violation. We thus conclude that Barrett no longer can assert such a claim on which relief can be granted and that his separation-of-pow-ers claim must also be dismissed under Rule 12(b)(6)

The 5th Circuit has not yet decided what the appropriate remedy is in Collins for the separation of powers claims.




Here is the cite for the most recent Complaint filed by the Collins shareholder plaintiffs at the Remand before Judge Ellison in the Southern District of Texas

https://www.glenbradford.com/2022/06/fnma-fanniegate-1144/

Here is the Appropriations Clause Claim:

Violation of Congress’s Constitutional Power of the Purse Against All Defendants
103. Plaintiffs incorporate by reference the allegations of the preceding paragraphs. Case 4:16-cv-03113 Document 80 Filed on 06/03/22 in TXSD Page 37 of 48 38 104. The Supreme Court has recognized a cause of action for equitable relief to redress constitutional violations by federal officials. See Free Enter. Fund v. PCAOB, 561 U.S. 477, 491 n.2 (2010). 105. Article I of the United States Constitution grants Congress the “power over the purse,” FED. NO. 58;see also FED. NO. 78, including control over the funding of Executive Branch operations via periodic, temporally bound appropriations. 106. The American Colonies inherited, as part of fundamental constitutional tradition, the core axiom that the Executive Branch regularly depends on the Legislative Branch for funding. CFPB v. All Am. Check Cashing, Inc., 33 F.4th 218, 225–32 (5th Cir. 2022) (en banc) (Jones, J., concurring). 107. The Founders codified this principle in the Constitution, particularly in Article I, Section 9, Clause 7: “No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law; and a regular Statement and Account of the Receipts and Expenditures of all public Money shall be published from time to time.” 108. An executive agency that lacks constitutionally authorized funding to operate lacks the authority necessary “to carry out the functions of the office,” Collins, 141 S. Ct. at 1788; see also All Am. Check Cashing, 33 F.4th at 242. 109. Under Collins, FHFA is an executive agency with a single person who heads the agency. 141 S. Ct. at 1786, 1787. 110. “FHFA actions with respect to [Fannie and Freddie] could have an immediate impact on millions of private individuals and the economy at large.” Id. at 1785. 111. FHFA possesses the power to self-fund by drawing assessments from Fannie, Freddie, and the other entities FHFA regulates. 12 U.S.C. § 4516(a); id. § 4502(20). Case 4:16-cv-03113 Document 80 Filed on 06/03/22 in TXSD Page 38 of 48 39 112. Indeed, FHFA’s assessments are within the Director’s discretion, limited only by the Director’s determination of the “reasonable costs . . . and expenses of the Agency” and the funds necessary for “a working capital fund.” 12 U.S.C. § 4516(a). 113. FHFA’s funding structure is not temporally bound. The agency’s power to self[1]fund is a permanent power. See 12 U.S.C. § 4516. 114. While Fannie and Freddie have been in conservatorship since 2008, the FHFA has had control over these central sources of its own funding, including, for example, their ability to petition Congress. See 12 U.S.C. § 4617(b). 115. The FHFA adopted the Third Amendment at a time when it lacked constitutionally authorized funding to operate. 116. Accordingly, the Third Amendment must be vacated and set aside

[FOFreddie]

Thanks it really doesnt matter what we think but probably what is included in the upcoming Cert petition and what Congress may think about an Administrative Action concerning the UST Equity Stake. The Appropriation Clause issue highlighted in All American is definitely on the mind of French Hill who is on the House Financial Services Committee. Check the 2:54 clip from CSPAN regarding
Chairman Powell's testimony yesterday.

https://www.c-span.org/video/?521122-1/federal-reserve-chair-testifies-inflation-monetary-policy

Comments by Representative French:

HOW HAS IT BEEN SINCE CONGRESS HAS IMPOSED ON THE FED AND OBLIGATION TO PAY FOR THE CONSUMER FINANCIAL PROTECTION BUREAU, ALL OF THEIR OPERATING EXPENSES? THEY SEND YOU A MEMO AND ASK YOU TO PAY FOR THAT WHEN YOU DON'T HAVE CASH. IS THAT ADDED INTO THAT DEFERRED COUNT?

I AGREE WITH YOU, I THINK IT SHOULD BE ON APPROPRIATIONS. I HAVE ALWAYS FELT THAT WAY. I THINK IT PUTS THE FED IN UNUSUAL SITUATION. HERE AS EARNINGS RISE...

Bottom Line is that Admin action could be challenged in Court and it could fail leaving DJTII to clean up the mess.

[Mnemonic]

Interesting perspective. I'm afraid I don't know enough about this to say one way or another, but neither would surprise me.

[FOFreddie]

Thanks Mnemonic. Definitely just have ideas and not answers but want to engage in constructive discussions to help shareholders come to their own decisions.

My thoughts are that the payments to the GSEs were pursuant to HERA and all the repayments and excess payments were to the general US Treasury. What would be different under the Calhoun plan would be taking US Treasury assets and spending them on a program authorized by an Administrative Action only. The stated purpose of Administrative Actions is to avoid Congressional Oversight because the Administration knows it cant get approval for what its policy objectives are. Here there would be a special stash of US Treasury money that is intended to be spent without Congressional oversight. Seems like it would be right on point for a Appropriations Clause challenge using the All American decision in the 5th Circuit as precedent for such an act as being Unconstitutional. Perhaps I am really off base but I would expect that the upcoming Cert petition for the DC Circuit case would lay the groundwork for this challenge.

[nagoya1]

Waiting to see what you propose?. TIA
FNMA

[Mnemonic]

This probably would run into an Appropriations Clause issue

$300B in dividend payments were made, and Treasury spent that money without going through the appropriations committee, correct? Why would this be different?

EDIT: Btw, I appreciate your comprehensive reply to the other poster. *thumbs up*

[955]

Conservatorship allowed to stand under false pretenses guarded under lock and key by TRAITOR Obama. Is it any wonder big Mike will be 2024 DNC nominee? That is the result of accountability pushed to the side by a weak and inept congress made up of DEMS and supported by RINOS. I believe SCOTUS got sick and tired of their Constitutional duties and responsibilities being trampled on (1st and 2nd Amendments, Biden claiming Constitution not absolute) by the other 2 branches which led to their recent overturning of Roe v Wade for the good of humanity. SCOTUS beginning to wake up and push back by exercising their authority. There's still hope for us IMO.

[FOFreddie]

We should see soon if Chairwoman Waters is relying on the Calhoun Brookings plan for the $ 100bn. Calhoun also talked $ 100bn. The idea is to establish a new subsidiary jointly owned by FNMA and FMCC where the UST stake is held and monetized for equitable housing solutions. The UST equity would be sold off over time. This assumes that the UST could sell its position which probably implies an exit from Conservatorship - it may be possible for the UST to sell its stake to a private equity group in Conservatorship but any investor is going to want freely trading stock which implies an exit.

This probably would run into an Appropriations Clause issue because the reason for Admin Action is intended to avoid Congressional oversight. The All American decision may ultimately have to be decided by SCOTUS. It will be interesting what the shareholder's lawyers include in the Cert petition.

Time is running short. Republicans are likely to control the Senate Banking Committee and the House Financial Services Committee in the next Congress. Admin action would still be possible but Republicans would have incentive to challenge based on Appropriation Clause issues - basically Admin would be spending $ 100 bn of UST funds without Congressional approval

[nagoya1]

I don't know how Maxine will be able to monetize the GSEs with all of the court cases going on. How to suppose they can do that. TIA

I'd answer on FNMA but I'm limited to 1 post a day (until the GSes are released,lol)

[trunkmonk]

I guess when u start day strong, and slip slope from there, someone always puts a limit to keep profits. One big one anyhow.

[trunkmonk]

Agreed, watch and wait.

[FOFreddie]

Do we know when the fiscal end of year is for mutual funds like American Funds. I thought they were holding common positions that date back to pre-conservatorship. Probably $ 15 to $20 unrealized losses that would be distributed to shareholders. Gigantic sellers - kind of hard to hold positions in common with the DC Circuit decision overturning Sweeney and the likes of Bradford talking 10 to 25 cents. Maybe they are looking to unload before fiscal year end?