Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
If they are in government assume they are lying until they prove they are not lying.
If Congress is truly corrupt all they need do is buy something like $25k of shares at current prices; amend Hera to deem the SPs paid under the plaintiffs formula in fifth circuit and boom … Congress critters will have 20x their money (Say $5 million). If they work in language to consider the warrants paid then boom … 5 times their money. A cool $25 million each for a hundred bagger. And it would all be legal as they are just making slight tweeks to Hera.
Not saying you are wrong … I don’t have Joe’s connections to get me off.
You do know that trading on inside info gets you an all expense paid holiday at Club Fed?
I know him. He was an ally.
Typically these resignations happen when there are disagreements in a change of direction or when something unethical is going on that those resigning do not want to be associated with. Or both simultaneously. CEO and chair resigning at same time with no succession plan means something happened in a board meeting. I would not be surprised if the Biden people proposed something illegal or unethical.
Hugh Frater is a very good CEO and a believer in free markets. He had previously led companies prepping for sale/ipo. His departure is bad news for shareholders.
Wachter wrote a book about not let FNMA back into private hands.
https://prospect.org/economy/mortgage-market-deja-vu/
Wachter opposes “privatization.”
https://www.twitter.com/susan_wachter
Yes. Calabria has packed his bags and left the building.
Biden to replace FHFA Director Mark Calabria today
Calabria announced his resignation within hours
June 23, 2021, 1:23 pm By Georgia Kromrei
After a Supreme Court ruling paved the way for the Biden administration to fire Federal Housing Finance Agency (FHFA) Director Mark Calabria at will, President Joe Biden is taking swift action.
In a statement, a White House official told HousingWire that Biden planned to replace Calabria, a Trump appointee and vocal critic of the Government Sponsored Entities (GSEs), before the end of the day.
“FHFA has an important mission of oversight of Fannie Mae and Freddie Mac as well as the Federal Home Loan Bank System,” the White House official said. “It is critical that the agency implement the Administration’s housing policies. As a result, in light of the Supreme Court’s decision today, the President is moving forward today to replace the current Director with an appointee who reflects the Administration’s values.”
A spokesperson for the FHFA said they did not know who would immediately take Calabria’s place.
In a statement announcing his resignation, Calabria said he respected the Supreme Court’s decision and the President’s authority to remove him.
“During my tenure, FHFA has fulfilled its mission as the economy fluctuated from record-low unemployment and a strong housing market, to a pandemic-triggered recession that spared house prices but contracted supply. Through this cycle, FHFA has acted quickly and effectively to provide relief to homeowners and renters impacted by the COVID-19 pandemic, and to ensure Fannie Mae, Freddie Mac, and the Federal Home Loan Bank System operate in a safe and sound manner, all while supporting historic growth in homeownership, especially among minority households,” said Calabria.
He added that “much work remains,” and warned that Fannie Mae and Freddie Mac will fail at their current capital levels should the housing market experience a significant downturn.
“I wish my successor all the best in fixing the remaining flaws of the housing finance system in order to preserve homeownership opportunities for all Americans,” Calabria wrote.
The Biden administration has not seen eye-to-eye with Calabria on the role the GSEs play in the mortgage market. Calabria has sought to build up the entities’ capital reserves and reduce their footprint in the market.
Fannie and Freddie guarantee about half of the $11 trillion U.S. mortgage market. Upon the Supreme Court ruling, shares for the GSEs initially tumbled 40%.
Calabria had pushed to remove the companies from conservatorship, but ran out of time to do so in the twilight of the Trump administration. The Biden administration has not shown any interest in ending the arrangement.
In recent months, as exiting conservatorship appears increasingly unlikely, Fannie Mae and Freddie Mac have seen a string of high-level departures. In June, the FHFA launched a review of executive compensation at the GSEs.
After the Supreme Court decision, few rose to defend Calabria, a Trump-appointee whose recent actions have drawn ire from many corners of the mortgage industry. Trade associations, housing advocate groups and Washington, D.C. insiders urged the Biden administration to replace Calabria without delay.
Mortgage Bankers Association President Bob Broeksmit said in a statement that the trade group appreciates the impact of the Supreme Court decision.
“We expect President Biden will move quickly to appoint a successor, and we look forward to working collaboratively with the administration, FHFA, and other stakeholders to ensure those markets function well for lenders and the American consumers they serve,” Broeksmit wrote on Wednesday.
Housingwire has his resignation letter and comment
Calabria is already out of office.
Calabria has resigned
Biden will fire Calabria by end of day: Housingwire reports
Gorsuch dissent: “The only lesson I can divine is that the Court’s opinion today is a product of its unique context—a retreat prompted by the prospect that affording a more tra- ditional remedy here could mean unwinding or disgorging hundreds of millions of dollars that have already changed hands.”
Why would Treasury just not buy all the preferreds and then cash them at par? For that matter, why not spend $4-5 billion, buy all the commons and take the GSEs private?
Is there any reason to think that Yellen would do the right thing? She is a former Cal Berkeley prof after all.
How likely is a settlement to happen before Yellen is confirmed. Could an acting Treasury Sec pull a deal off? Will any confirmations happen until impeachment is over? The Supremes ruling may be on a faster track than any administrative action even if Biden’s people want to get a deal done. Or am I wrong?
I don’t see any case were the commons triumph and the preferreds don’t also go to par. Am I missing something?
You are correct. So the issue becomes how to get the Biden people and Congress to see it is in their best interest to unencumber the GSEs. The only other hope is the the Supremes remand to Collins to determine whether the senior preferred’s are paid. The court path will take years more.
Frankly, I am surprised the stocks are not down more considering the Mnuchin move.
Perhaps this is why Maxine gets so emotional about the twins:
“The ethics committee valued Williams’s stock holdings at over $350,000 at the end of 2007, between 4.6 and 15.2 percent of the couple’s net worth, according to Waters’s financial disclosure reports. By the end of September 2008, the stock’s value plummeted more than 50 percent, to $175,000, because of the collapse of Fannie Mae and Freddie Mac.”
I admit, I think most politicians are corrupt.
The last hope is that once Trump is gone the Democrats will load up on shares, free the twins and cash in as they know the media won’t report on their greed ... At least I can hope they are as corrupt as they look. Buy Maxine! Buy!
Gasparino just said after market today will be news, but not end of conservatorship
It means more capital needed.
I’m pretty sure Ackman and Berkowitz are sitting in mansions whenever they want to. More than one I think.
such old news.
Your lips to God’s ears ...
Reading Mnuchin’s quotes out of context is to entirely trust the reporter’s interpretation. There is really no excuse other than laziness or bad-faith to not publish the entire text of the interview if it was a full on-the-record interview. My guess is that the interview was not a sit-down and took place as a quick sidebar when Mnuchin spoke with reporters on Dec 9 and Ackerman is trying to spin a market-moving exclusive for his end-of-year review out of Mnuchin’s quickee responses to rushed questions.
Can’t find any coverage of the hearing yet, there may well be a second reaction in price when word spreads.
That was Breyer playing devil’s advocate on shareholders “nationalization” claim. I seem to recall Paulson using that very word though, not that it is relevant to Breyer.
Wasn’t that during the questioning on constitutionality of director and not whether the shareholders claim is derivative? I
Breyer is most skeptical, but he sees that as his role.
I though Thomas rarely asks questions ... he has made more than one here.
Too bad lawyers are economic ignoramuses
Seems justices don’t like third amendment and think that shareholders claim is not derivative but are worried about ruling FHFA structure is unconstitutional.
FNMA falling .... FMCC holding.
Mnuchin said that Treasury has made no decisions (contemplating) and they could be released at less than 100% capital with a consent decree but that capital would need to be “significant”. Around 1:47:00 mark on c-span in response to Timmons.