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Interesting, because as I recall a statute of limitation can be tolled until the fraud was discovered. But here's a tough legal question: Did PWC ADMIT TO FRAUD OR DID THE FHFA JUST AGREE TO ACCEPT A MONETARY SETTLEMENT?
Great response, counselor! You should post more often if you have the time! You and I both know just how loathsome Judges feel about denying people (and I think corporations are viewed as people in the courts) ACCESS TO THEIR CONSTITUTIONAL RIGHTS SPECIFICALLY THOSE ENUMERATED IN THE BILL OF RIGHTS (thanks George
Mason, et. al.)!
If in fact Corporations are viewed as people in the courts does the derivative versus direct issue matter especially since FHFA would have to sue itself?
I think statutorily under HERA, there was a very short 30 day statute of limitation to sue to challenge the conservatorship. Although at orals in the Court of Appeals 3 Judge panel one of the Plaintiff attorneys argued that the SOL didn't apply to them because (as I recall) the SOL applied only the corporations.
The theory of Communism may be summed up in one sentence: Abolish all private property.
Karl Marx
https://www.brainyquote.com/quotes/karl_marx_157954
Nobody knows exactly how this will play out. The Legislative and Executive branches of government seem reluctant to act until the Judicial Branch rules on some of these Constitutional and Contractual Issues. At least the retained earnings are staying on the corporate books during the litigation.
There are some great arguments for both, that's why maybe the Delaware court system is more readily equipped to dig deep into the weeds on this.
I'm pretty sure that the SCOTUS said that the anti-injunction and succession clauses DO NOT APPLY TO CONSTITUTIONAL VIOLATIONS SUFFERED BY THE SHAREHOLDERS. That seems to naturally include the 5th Amendment Takings Clause.
All Judges are sworn in to take an oath to uphold the US Constitution at their investitures and you could hear the hesitancy in the Judges after the government lawyer suggested to them that the Succession Clause includes Constitutional Claims.
I thought Rosenberg came across as extremely polished and knowledgeable!
Why not kick the derivative versus direct over to the Delaware Court System, they deal with that issue quite a bit?
With the large dollars at stake it would be worth it for the court to get the right answers now instead of later...
When the government created the theft they did it by trying to create the "variable dividend" theory that the SCOTUS dubiously took hook, line, and sinker!
BUT WE KNOW VIA DISCOVERY THAT THE REAL MOTIVATION BEHIND THE NWS WAS TO DESTROY SHAREHOLDERS PROPERTY AND ENRICH THE GOVERNMENT INSTEAD!
I think the derivative/direct issue should be determined by the best experts out their and it appears that it could be Delaware...
When you are talking numbers that would be the LARGEST TAKING BY THE GOVERNMENT IN US HISTORY, I AM SURE THEY WILL WANT TO CROSS THEIR T'S AND DOT THEIR I'S. So, it wouldn't surprise me if this takes awhile.......
I'm sure the line at Costco for a dog is very long these days.....
Remember, ALWAYS DIFFICULT TO READ THE TEA LEAVES AT ORAL ARGUMENTS! We learned that painful lesson from the head fake 9 Supremes! But, the reason SO MANY CORPORATIONS INCORPORATE IN DELAWARE IS BECAUSE OF THEIR OUTSTANDING DEPTH OF LEGAL PRECEDENCE IN CORPORATE LAW!
So given the complexities and various legal posturing on the derivative versus direct it certainly seems plausible.
I mean multi billion dollar Litigation takes a long time...
In the meantime we accumulate retained earnings on the books of the nationalized entities...
A 1,000 mile journey begins with the 1st step. I'm just guessing we are at mile marker 589, we where close to finished but the SCOTUS decided their was plenty more lawyer work to be paid for here !
Don't you think that the ongoing litigation influenced the structure of the 4th Amendment or was it just DJT denying JB MO FREE MONEY?
I think the litigation is a good thing and can influence governmental decision making down the road...
I think one of the Plaintiffs suggested just that yesterday to the 3 Judge panel: "federal court to certify the direct/derivative issue to the Delaware Supreme Court, which is the only court in the US which can authoritatively rule on this question of Delaware law."
You mean 4,716 days isn't Temporary? But the government officials at the time assured us it was just temporary! In COMMUNISM WE TRUST!
MCLEAN, Va., Aug. 05, 2021 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey® (PMMS®), showing that the 30-year fixed-rate mortgage (FRM) averaged 2.77 percent.
“With global market uncertainty surrounding the Delta variant of COVID-19, we saw 10-year Treasury yields drift lower and consequently mortgage rates followed suit,” said Sam Khater, Chief Economist at Freddie Mac. “The 30-year fixed-rate mortgage dipped back to where it stood at the beginning of 2021, and the 15-year fixed remained at its historic low. This bodes well for those still looking to refinance, renovate or even purchase a new home.”
News Facts
30-year fixed-rate mortgage averaged 2.77 percent with an average 0.6 point for the week ending August 5, 2021, down from last week when it averaged 2.80 percent. A year ago at this time, the 30-year FRM averaged 2.88 percent.
15-year fixed-rate mortgage averaged 2.10 percent with an average 0.6 point, unchanged from last week. A year ago at this time, the 15-year FRM averaged 2.44 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.40 percent with an average 0.4 point, down from last week when it averaged 2.45 percent. A year ago at this time, the 5-year ARM averaged 2.90 percent.
The PMMS® is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit. Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, investors and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog FreddieMac.com/blog.
MEDIA CONTACT:
Chad Wandler
703-946-0004
Chad_Wandler@FreddieMac.com
https://www.housingwire.com/articles/after-rebound-30-year-mortgage-rates-slip-to-2-77/
I thought the three Judges were a little skeptical about the Uncle Suggys lawyer suggestion that Congress meant to include Constitutional Takings Claims into the Succession Clause.
Thanks FOFreddie and thanks to Navy and others for providing the YouTube link! I am 1/2 way through Uncle Suggys lawyer, AND HE IS ACTUALLY SUGGESTING TO THE COURT THAT FHFA SHOULD BE THE ONE SUING UST UNDER THE 5TH AMENDMENT TAKINGS CLAUSE!
Seems far fetched to me, I'll go back and listen to some more!
https://www.cnbc.com/amp/2021/08/03/cdc-to-issue-new-eviction-ban-effective-through-october-3.html
Did the CDC JUST GIVE THE FINGER TO THE SCOTUS! WHATCHA GONNA DO BOUT IT!
MAYBE IF THE SCOTUS WOULD STOP BEING SO SUBSERVIENT TO THE EXECUTIVE AND LEGISLATIVE BRANCHES THEY WOULDN'T WALK ALL OVER THEM!
With rulings like Collins it's pretty clear which branch of government is at the bottom!
This is from the 1st two sentences of the Introduction from todays 2Q21: "Fannie Mae is a leading source of financing for mortgages in the United States, with $4.2 trillion in assets as of June 30,
2021. Organized as a government-sponsored entity, Fannie Mae is a shareholder-owned corporation."
So $4.2T in Assets and a Net Worth of $37B, that's close to a 1% (0.9) Capital Ratio.
Table 5 from the June 2021 Summary Statistics which are published at the end of each month states that Fannie Mae holds approximately $165B in Other Investments. What is that?: "Table 5
Other Investments. Primarily consists of cash and readily marketable instruments such as certificates of deposit, federal funds sold, securities purchased under agreements to resell and Treasury bills."
YOU CAN BET THESE ASSETS EARN NEXT TO NOTHING BUT I AM QUITE SURE $37B OF THEM WOULD QUALIFY AS CET1 CAPITAL.
He may have agreed to something like that.... Did you see him grinning from ear to ear in the video as BA was making his point?
UST'S TAKE TODAY: (1) .75B TCCA FEES (2) 1.8B FEDERAL INCOME TAX (3) 7.2B LP! Uncle Suggy, the partner who just keeps taking and taking and taking....
2Q21 10q: p. 135: "Oral argument in the Fairholme Funds case that is on appeal is set for August 4, 2021."
P. 136: "The
conservatorship, the uncertainty of our future and limitations on executive and employee compensation have had, and
are likely to continue to have, an adverse effect on our ability to retain and recruit talent. Voluntary attrition of our
executives and employees as a whole has increased in 2021. Attrition in key management positions and challenges in
finding replacements could harm our ability to manage our business effectively, to successfully implement strategic
initiatives, and ultimately could adversely affect our financial performance."
CASH AND CASH EQUIVALENTS TO THE EXTENT IT CONSISTS OF RETAINED EARNINGS (CURRENTLY $37B) IS THE SAFEST CET1 CAPITAL A FINANCIAL INSTITUTION CAN HOLD!
Both parties are culpable of the largest theft of shareholder property in US HISTORY! Shame on Uncle Suggy for destroying a relationship/partnership which he setup in 1968 to put private capital in a 1st loss position TO KEEP TRILLIONS OFF THE GOVERNMENT BALANCE SHEET!
EXACTLY! REMEMBER THE BASIC ALWAYS TRUE FORMULA WHENEVER YOU LOOK AT A CORPORATIONS BALANCE SHEET, ASSETS = LIABILITIES + STOCKHOLDERS EQUITY!
The $100B in cash equivalents (i.e., an ASSET) MUST BE SETOFF WITH A COMBINATION OF LIABILITIES AND OR STOCKHOLDERS EQUITY PERIOD!
Ask Guido, he knows!
As an asset that yields less than 1 or 2 basis points, CASH EQUIVALENTS AIN'T PULLING THEIR WEIGHT WHEN IT COMES TO INCREASING EARNINGS!
As a matter of fact, with inflation running currently above 2% it's a loss in purchasing power!
Franklin D. Raines (former CEO) really has been pretty quite throughout the approximately 13 year "conservatorship", I wonder what he thinks about the whole thing?
"Its net worth to asset ratio also increased from 0.7% in the first quarter to 0.9% in the second quarter."
https://www.housingwire.com/articles/fannie-mae-lifted-by-low-rates-purchase-mortgages-in-q2/
I saw him walking out of the bar the other day with his dog eared copy of HERA, I said "Mark, are you still the accountable to NOONE in government head of a federal agency?" !
The humongous cash holdings of 100B+ are a drag on earnings simply because they are assets but funded by retained earnings and/or debt. These cash like, highly liquid assets mostly consist of highly liquid treasuries, overnight repos, etc AND EARN A PALTRY 1 OR 2 BASIS POINTS. The twins, like banks, live off the spread of what their assets earn less the costs of their funds. The spread currently is around 60 to 70 basis points.
MC insisted about 2 years ago that the gses hold humongous balances of liquidity much to the dismay of management, knowing it would be a drag on earnings.
This seemed convincing in the Plaintiff Shareholders brief (page 6-7): "The Court in Collins, after finding standing, did not expressly discuss whether the
plaintiffs’ separation-of-powers claim was direct or derivative, and concluded that the
claim could proceed because the substantive right the plaintiffs asserted was not
“distinctive to shareholders of Fannie Mae and Freddie Mac.” Collins, 141 S. Ct. at 1781.
The same is true for the Private Shareholders’ takings claims. Unlike shareholder rights
to choose management, inspect books and records, and participate in annual meetings, a
right in the Fifth Amendment is one shared by “everyone in this country.” Id. The
government argues that the ability to deploy the procedural device of a derivative lawsuit
is a right “distinctive to shareholders” that transfers to the Agency during
conservatorship. Gov. Supp. Br. 13. But that cannot be correct. Otherwise, the Collins Court could not have ruled as it did without first expressly holding that the separation-
of-powers claim was direct, not derivative.
Finally, the government badly misses the mark if it means to suggest that, after
Collins, the Succession Clause extends to direct shareholder claims. Collins left
undisturbed the uniform rule in the lower courts, which is that the “rights . . . of any
stockholder . . . with respect to the regulated entity and [its] assets” do not include direct
shareholder claims. 12 U.S.C. § 4617(b)(2)(A); see, e.g., Perry Capital LLC v. Mnuchin,
864 F.3d 591, 624 (D.C. Cir. 2017). A contrary rule would effect a taking of the Private
Shareholders’ direct claims and dramatically expand a statutory provision that the
government was already reading “too broadly.” Collins, 141 S. Ct. at 1780."
"The suit, NAA et al. v. The United States of America, is open to all rental housing providers who have been damaged by and are operating in a state or locality under the federal eviction moratorium. It argues that the CDC order has curbed several rights under the U.S. Constitution including: The right to access the courts, the freedom to contract with others absent government interference, the right to demand compensation when property is taken by government action and the limits of federal government power."
https://www.naahq.org/news-publications/naa-sues-federal-government-recover-industry%E2%80%99s-losses-under-nationwide-eviction
"The COVID-19 pandemic was devastating, and if we do not act, the housing affordability crisis may grow into a catastrophe where the government could invoke more “emergency” remedies. With the meter on rent debt still running, political will waning and Congress moving past COVID-relief measures, NAA is putting up the greatest fight yet and asking the courts for two things: Fair compensation for damages suffered under the unlawful CDC order and an assurance that the federal government can never do this again."
"The rental housing industry cannot be held solely responsible for an unfunded rent debt while the federal government trades one crisis for another."
"The National Apartment Association and several others this week filed a federal lawsuit asking for $26 billion in damages because of the impact of the moratorium."
https://www.cnbc.com/amp/2021/08/01/anger-mounts-as-biden-congress-allow-eviction-ban-to-expire.html
I think to read the briefs already filed one needs access to PACER, the Federal Courts online case information system....
It seems like a difficult endeavor picking which electric transportation companies will end up being long term players and profitable.
Did you see the video where Warren Buffet listed ALL the companies that were automotive start ups? As I recall it was more than 100...
Trust and veracity are essential ingredients in business and if the allegations are true (e.g., did they really just roll the truck down a hill to make it look like it worked?) it could be problematic. Does GM have a big contract with them and/or are they equity investors?
https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Encourages-Landlords-of-Enterprise-Backed-Properties-to-Apply-for-Emergency-Rental-Assistance-Before-Evicting-Tenants.aspx
https://www.fhfa.gov/mobile/Pages/public-affairs-detail.aspx?PageName=Phyllis-K-Fong-Named-Acting-FHFA-Inspector-General.aspx
Well, typically the case is started with a Complaint or lawsuit at the trial court level, here, the Trial court of federal claims (i.e., COFC). The next level is the Federal Court of Appeals (e.g., to hear any interlocutory appeals). Then the SCOTUS (only if the SCOTUS accepts the Writ of Certerrori).
I thought it might be in the Court of Appeals here...
http://www.cafc.uscourts.gov
When I did a search for Fairholme, I found this:
http://www.cafc.uscourts.gov/search/node/Fairholme
From June 2020
This is a great documentary on the life of Nikola Tesla:
https://www.pbs.org/video/american-experience-tesla/
I was watching an interview with Bill Gates yesterday and he says electric semi's will likely require so many batteries that weigh so much that they could be uneconomical.
https://www.economicclub.org/media-alerts/david-rubenstein-show-peer-peer-conversations
Warren Buffett listed all the startup American auto companies 100 or so years ago (it was the internet of the day) and was quite extensive, his point was that it ain't easy picking the right one...
https://finance.yahoo.com/news/warren-buffett-picking-winners-really-165150277.html
But I am wishing you the best in your trade.
https://www.cnbc.com/2021/07/29/us-prosecutors-charge-trevor-milton-founder-of-electric-carmaker-nikola-with-three-counts-of-fraud.html
It's kinda funny because yesterday I watched the press conference where DOJ and the SEC went after the "Evil hedge fund billionaire" who did the Nikola truck SPAC/IPO. There the government alleges he MADE MATERIAL FALSE STATEMENTS and got an indictment and will go to trial to see if the allegations stick.
It would be nice if the government used that same standard on itself, but like Judge Brown said, "THEY ARE NO BETTER THAN A BANANA REPUBLIC"!
https://www.azlyrics.com/lyrics/harrybelafonte/dayothebananaboatsong.html