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"The lawsuit from the lunatic plaintiff Joshua Angel,DISMISSED.
Source: click here.
I already talked here about this 84-year-old lunatic that is insulting Carlos on several internet message boards and about his flawed lawsuit."
If shareholders were to just go by CA-DC, then they would have lost everything in perry case. CA-DC is a rubber stamp court for US Gov, based on their history of ruling in favor of Gov.
CA-DC appeals court is not the final. There are other courts and SCOTUS to decide differently..
"Why? Was it an investment or a loan?"
If SPS is an equity investment as claimed by the both FHFA, UST and accounted in books by FnF, then SPS is callable at the option of FnF. All dividend payments are unlawful under HERA. So FnF only owe UST the net withdrawals less dividend payments.
IF SPS was a loan, then all loan obligations have been overpaid by about $30B. UST needs to return $30B back to FnF.
Some JPS holders are peddling conversion of SPS in to CS. But there are so many serious problems with this idea.
1. UST does not have any legal authority to convert SPS to anything else but redeem for cash.
2. SPS contracts do not have any option to convert SPS to anything else but redeem for cash..
3. Even when SPS is converted to CS, then FnF lose SPS creditline and that creates big market uncertainty. Under this situation no investor will buy UST Common shares. With the SPS conversion, FnF become Gov undertakings, and all the $5T liabilities go on to US balance sheet. But all these things can not done without Congressional law.
4. So if SPS are converted then there is no way FnF can attract any new capital from private investors.
The path to release FnF and capitalize them is very simple and straight forward. It is 100% safe and there are no risks involved.
1. Release FnF from FHFA conservatorship
2. List FnF shares on big stock exchanges
3. Set SPS LPV to zero as fully paid
4 Continue SPS as creditline similar to Fed discount window
5. Allow FnF to buy back warrants at nominal price.
Let companies be independently managed by shareholder elected BOD for few years and raise capital through retained capital. When FnF are stabilized as independent private companies then FnF can go to markets for raising capital.
"SCOTUS & THE SEILA LAW LLC case. A little bedtime reading to get caught up !"
A little bedtime thinking.
It does not matter what law congress passes or what SCOTUS has decided in previous cases.
When it comes to Constitutional matter of three independent branches Gov, and exclusive authority of POTUS over executive branch, SCOTUS can never abridge POTUS's exclusive authority over executive branch.
Constitution always wins over non-constitutional laws.
Think of it this way, if SCOTUS rules against exclusive authority of POTUS over executive branch, then what can happen next?
"CNBC’s Diana Olick reports on new moves by the Federal Housing Finance Agency to ease the strain of mortgages in forbearance.
"
Is this not different from providing liquidity to Servicers?
"Unfortunately, FHFA did conserve and preserve the assets of the enterprises. They failed to preserve the equity of shareholders. They have no mandate under HERA to preserve shareholder value or equity."
Most uninformed statements.
Robbing Companies assets is same as robbing shareholders equity and vice versa.
In what way FnF assets are not connected with shareholder equity.
"You're wasting your time trying to explain. He takes anything Gov says as gospel fact when in fact they are satanic lies."
LOL, He takes only that helps to promote JPS.
KT repeats that conservator can do what ever conservators wants to do.
But KT never tells why conservator would do anything just to benefit JPS holders.
"That is very true... unfortunately all the recent "buzz" about the capital rule has been talk about imposing "bank like" capital standards for fannie and freddie.
Opponents have been pressing for them to be held to the same standard as banks."
It is against insurance industry regulations to impose fixed capital (core capital) requirements on insurance companies like FnF. Imposing fixed capital like core capital requirements hurts consumers with higher fees and puts investors and economy at greater risk.
"The insurance industry began using risk-based capital instead of fixed-capital standards in the 1990s after a string of insurance companies became insolvent in the 1980s and 1990s."
FHFA needs to understand that it is regulating insurance companies (FnF) and not banks. Banks are regulated by other regulators and not FHFA. Some one needs to make sure that Calabria understands the basics of insurance business before he starts with another loose talk.
If FHFA wants to impose fixed capital like core capital on FnF then FnF should be allowed to do all businesses that banks are allowed.
"How does the accumulated deficit remain at $74 billion after they earned $112 billion in the interim?"
Core capital requirements applies to FIs like banks where there is run on the banks.
For Insurance companies capital requirements are different.
Th wall street crooks imposed core capital requirements to destroy FnF.
------------------------------
https://www.investopedia.com/terms/r/risk-based-capital-requirement.asp
The insurance industry began using risk-based capital instead of fixed-capital standards in the 1990s after a string of insurance companies became insolvent in the 1980s and 1990s. For example, in the 1980s, under the fixed-capital standards, two insurers of the same size in the same state were generally required to hold the same amount of capital in reserve, but after the 1990s, those insurers faced different requirements based on their insurance niche and their unique level of risk.
------------------
https://www.investopedia.com/terms/c/core-capital.asp
What Is Core Capital?
Core capital refers to the minimum amount of capital that a thrift bank, such as a savings bank or a savings and loan company, must have on hand in order to comply with Federal Home Loan Bank (FHLB) regulations. This measure was developed as a safeguard with which to protect consumers against unexpected losses.
"I do not understand your "lunacy" comment and why you think FNMA or any commany could raise public funds without a working BOD or some type of Special Committee accountable to legacy and new shareholders as a transitional step."
Not sure who is or will be crazy.
It does not matter whether FHFA has the authority or not. But it is impossible to raise any fresh equity capital while
1. FnF are under FHFA conservatorship
2. FnF shares on otc markets
3. SPS LPV is not set to zero as fully paid
4. Litigations are still pending in courts
To raise any capital the company must be independently managed by shareholder elected BOD.
"Lobbying"
Yes, MBA lobbyists.
As FnF conservators, it is the duty of FHFA Directors to work and do all the possible things for the benefit of conservatees FnF.
FHFA Directors should be boasting about how they have been helping FnF (conservatees) to overcome all the adversities created by the wall street loan sharks and their cronies in the bureaucracy.
But instead, these FHFA Directors have shamelessly acted like lobbyists for the wall street loan sharks.
"“Quite frankly, we’ve been studying this issue way before COVID and had concerns about some of these nonbank servicers not being well-capitalized, but we’re going to make sure that the market functions properly,” Mnuchin said Monday at the White House during a press briefing."
How is that some of the nonbank servicers are not well-capitalized?
FHFA Director Calabria needs to explain to why he has allowed these servicers to operate without adequate capital and explain why these service providers are blaming him.
"True, but it you're a believer that the SPS will be declared paid in full, then it doesn't really matter what the number is. Plus it's just better to have cash on hand."
The point is it is not a free capital that can be given to others for just asking.
"that would be a great tweet!
maybe navy will do for us?
hate to ask but I don't have twitter account. TIA"
Yes, if navy does it that would be great.
"FIRE HIM NOW ! ... "
It is time for Calabria to convince the White House that FnF never needed bailout in 2008 and FnF should get a deal like airlines and release them immediately.
"Seems airlines got awesome deal. 70% grants or free money 30% loan from tsy and only 3% of stock warrants."
In 2008, FnF never needed gov bailout. FnF were seized to bailout bankrupt financial establishment.
So FnF should also get similar deal retrospectively. This helps to capitalize FnF and release immediately.
FnF shareholders should petition white house, UST and FHFA for similar terms retrospectively.
"“Of course they need to step in now,” Jim Parrott, a former Obama administration official who is a consultant for mortgage companies, said of Fannie and Freddie. “If you’re not willing to allow the GSEs to step in when the private market flees and liquidity freezes, then why have government sponsored enterprises at all?”"
LOL, Fellow Traveler Jim Parrott who conspired to bankrupt FnF, now wants FnF to help his mortgage companies.
"To be sure, it’s not up to just Calabria whether mortgage servicers receive a bailout. That’s because the Fed and Treasury don’t need his sign-off to start a lending facility."
MBA lobbyists and fellow travelers are working hard to make sure that FnF deplete all their capital and delay the release. MBA is more worried that FHFA is more focused on FnF building their capital to end conservatorhip.
Forbearance is a Gov relief program and it should be the Gov (Fed or UST) that should provide necessary bailouts to these service providers.
The problem seems to be service providers are unregulated entities and the formalities need to be worked out for Fed/UST to provide help.
"RumplePigSkin - I am at a total loss what kind of agenda or whatever you mean. Its just a discussion board. I didn't mean to start a whole big to do about this. My original question - it was a question and not an opinion - relates to the AGC mention of the possibility of an uplisting this fall (sooner than I expected). If we do an uplisting, we may or may not have to do a reverse split. So my question was that I remember that some were opposed to a reverse split (saying the concept in general was bad). I always thought that a reverse split generally works out well for the current stockholders. So all I wanted to do is ask some of the reasons why this could be bad. A simple question - that's all - sorry if I was just trying to learn something.
"
nats1,
First you need to understand how wall street lenders operate. First wall street lenders let companies borrow freely until companies get in to trouble.
When companies get in to financial troubles lender start squeezing them ruthlessly. Finally Lenders wipe out common shareholders and convert debt in to common shares at deep discount. This is how lenders own the company.
But in the case of FnF, FnF were never in financial trouble in 2008 and they are not in financial trouble in 2020. If wall street thieves were not to rob FnF with SPSPA/NWS, then FnF would have been fully capitalized long time back.
Currently wall street lenders are trying to create capital shortage by imposing bank like capital requirements on insurance companies (FnF) to force FnF to raise large capital from markets.
FnF are gov economic policy instruments, so Gov will never allow any private entities to control FnF by acquiring large common stock. So private investors have no incentives to invest large sums of money in common stock with very uncertain returns and no way of controlling FnF.
12 years of lawless FHFA mob conservatorship, investor hostile lawmakers, judiciary, UST, and financial establishment have scared away the investors. Current FHFA Director has made it even worse with his reckless interviews.
There is no way any investors will invest tens of billions in FnF equity however attractive offering may be, knowing very well how investors have been treated in the last 12 years.
Unless FnF operate few years freely without the mafia FHFA conservatorship and mafia spspa/warrants, and build sufficient capital and profitability, it is impossible to attract any investment in equity. This is what investment advisers are going to tell FHFA and UST.
JPS are good investment based on the expectations that they will be redeemed at par value after few years. The is no business case for converting JPS in to CS leave alone converting at deep discount.
"Neither. They are a private research firm, but they have had actual meetings with FHFA and Treasury. They are very plugged-in and their words should carry a lot of weight. They are getting their info straight from the horses' mouths."
In the last 12 years, how many of the pro JPS holders' predictions have come true?
In the last 12 years, how many of the doom and gloom predictions of FnF haters have come true?
Most probably there will be no change in Commons capital structure. Gov does not want to scare way companies from taking Gov money in this crisis. At this time Gov needs to prove that it is not going to treat other companies like mafia conservatorship.
"Calabria's number is probably pretty large (at least $75B) given that he said it would take a decade worth of retained earnings to recap through those alone and also talked about the largest equity raise in history (Petrobras, $70B). Ackman also said that FnF will likely require the largest equity raise in history."
If amateur FHFA Director Calabria causes any economic problems with his crazy wishful thinking, then people will suffer greatly.
Probably White House will not allow Calabria to act on such his stupid thinking.
"Selling a new pshare at $100 with a few billion offered raises all capital needed. If needed. cheers
"
FnF have operated with 2% capital for many decades without any problem. This is a appropriate capital for insurance companies like FnF.
In the initial 11 years of conservatorship, loan sharks wanted to destroy FnF with large capital requirements. But now Trump administration want to end conservatorship and free FnF. So there is no need to impose large capital requirements.
With the current economic situation, there is no way Trump administration is going to agree for unnecessary higher capital requirements and disrupt the housing and capital markets. If any one has doubts about this, look at the experience of Jerome Powel with Trump.
FHFA will settle for optimal 2% capital. FnF can easily build this capital with retained earnings. There is no need for raising fresh capital from markets. This seems to be most probable outcome.
"Calabria told P holders to suck it. He’s also growing FNF. Expect 80 x 90% of all USA mortgages to go through FNF by 2021.
"
If FnF go away, then there is no need for FHFA.
May be in their own interest FHFA bureaucrats should end the conservatorship.
"BANK Shill (paidfor) Whalen crying like the BABY he is ...
NOW HE WANTS CALABRIA OUT !!! "
If MBA lobbyists are going after Calabria, then does it mean that Calabria is doing something good for FnF?
Or is it that Calabria is favoring Big banks at the cost small non banks?
"does that mean they will take it over or send it to a larger serving company-but why would another company want any of these right now?
"
Looks like:
Service providers are asking financing (loan) from FnF/Gov because FHFA has instructed service providers not to demand the payments from mortgage/home owners (during forbearance period) but service providers have to pay MBS owners interest+principal.
FHFA Directors is saying that instead of providing loans to service providers, he will transfer the servicing rights from smaller companies to bigger companies.
Probably there is more to understand when it comes to MBS matters besides politics.
"he is a doctor and believes in single epsisode evidence
take his license away"
How do you know that it is a single episode evidence?
Does science mean agreeing with majority blindly.
"how about prosecute or crucifixion? = my choice for them all. LMAO"
Who is going to prosecute the thieves when thieves are controlling the narratives?
"Remember Calabria's cute comment - WELL it'S RAINING
and you've had a YEAR TO FIX the ROOF - YOU'RE FIRED !!!
"The Time to Fix the Roof is when the Sun is Shining""
It is time to shame Calabria for not doing his job.
When country desperately needs private sector and critical services for functioning, private sector companies are hesitating to take Gov help because of the past experience of Gov mafia conservatorship.
It is time to end mafia conservatorship and return all the robbed money back to FnF and prove that rule of law still works in this country.
It also time to investigate all the people (public and private) involved in perpetuating the mafia FnF conservatorship and shame them.
"LA Dr says it works 100% if you prescribe with Zinc. only 1:30 minute video."
How dare this Doctor say so?
It is science and it works, only when US bureaucrats say so.
It is time to empower people to decide what is science and what is not, when it comes to their health.
""Fauci, Navarro reportedly got into a heated dispute over unproven coronavirus treatment
A fight broke out in the White House Situation Room on Saturday, after President Trump's economic adviser Peter Navarro clashed with Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, over an unproven COVID-19 coronavirus treatment, Axios reports."
For the well entrenched health establishment:
1. costs do not matter
2. results do not matter
3. It does not matter how long it takes
It is all about the protocols they follow to protect themselves from any accountabilities.
People are looking for cure and hope and not for science.
It is so sad that US health establishment thinks that science happens only in US and not outside. The facts show that medical science progressed very well until for profit US health establishment started making rules.
"OVER A YEAR AGO the PRESIDENT DIRECTED FHFA & TREASURY
by MEMORANDUM to END the GSE CONSERVATORSHIP ...
YOU'RE FIRED !!!
"
The problem is President appointed another hypocrite as FHFA Director.
Calabria publicly criticized Hank and Demarco as serious violators of laws but Calabria is continuing the same.
FnF never needed more capital and also never needed mafia conservatorship.
Both are imposed by the mobsters to destroy the private shareholder companies.
It is time to immediately get rid of mafia conservatorship and let FnF capitalize the best way they can.
"According to Calabria if the virus lasts more than 6 months we could see more foreclosures. "
If world falls apart, it does not matter whether if someone is millionaire or billionaire. Probably most of the economy will be in ruins if lock down lasts for more than 1-2 months.
Calabria is a total nut character even to contemplate such scenarios.
Calabria seems to be better off as an assistant to some one rather than a FHFA Director.
"To ship out the deluded preferred holders?"
LOL, Good one.
SM announced this in WH briefing.
""Is Moelis back in play? Looks like it!!"
Moelis to advise UST for helping Cargo sector.
"This shows you how full of shit Calabria really is. They're not going to do a "serious capital raise" with a company that is IN conservatorship, the circumstances of which were manufactured by the Government that placed them there. Legitimate fear would be that the threshold for capital to get them "out" of conservatorship would be a moving target by the same corrupt Government that put them there. "Oh sorry folks, we didn't raise ENOUGH money, therefore the C-Ship and NWS will continue unfettered." Period."
Calabria is not talking about how FHFA stole all the capital from FnF.
https://time.com/5814330/who-europe-over-60/"
“We know that over 95 percent of these deaths occurred in those older than 60 years,” he said, with more than half aged over 80.
Kluge said more than four in five of those people had at least one other chronic underlying conditions, like cardiovascular disease, hypertension or diabetes.
“On a positive note, there are reports of people over the age of 100 who were admitted to hospital for COVID-19 and have now — since — made a complete recovery,” he said.
"I'm not condemning anyone from making money! Pref's and common are in the same boat and should be treated the same. Pref's are hung up on a conversion because they know commons will have more potential after things are more known and accomplished. Aka release"
Very good point. All along JPS holders are peddling the narratives that JPS are better investment than CS, but at the same time JPS holders want to convert JPS to CS.
Why would any conservator or company management agree for this?
How does it benefit the companies in just giving way cheap Common shares when companies can buy JPS at 60% to 70% discount from the markets?
Even when companies are liquidated, JPS holders get nothing because SPS take everything. Can anyone tell us how JPS are better investments?
"If fhfa and treasury let the hedge funds walk away with the kitchen sink congress will go after the GSE's and make Trump's next 4 years an even worse hell if congress is still Dem controlled.
"
For a moment consider what voters will think of Trump if his friends walk away with billions. What courts will think of defendants (FHFA and UST)? In the end think what both dems and reps in congress think of Trump administration.