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All of you keep one thing in mind. Although external happenings look very bullish on the surface, absolutely nothing has been done, to this moment, in regards to remedy. Only lots of hot air being blown around!
The NWS needs to be ended immediately followed closely by the release of Fannie and Freddie from the "Rip Van Winkle" version of conservatorship.
As I mentioned earlier, I hope the NWS matter is put out of its existence BEFORE the financials are read.
Mnuchin's first order of business with Fannie Mae and Freddie Mac is to put a STOP to the net worth sweep. It's easily done and I hope he does so before Friday's release of financials.
Then, he can move on to removing the two of them from conservatorship so that they can apply and be relisted on the exchanges and get off this Mickey Mouse exchange as well as removing the government's members on the BODs and getting our people back in those seats.
Finding irregularities in HERA should be easy to determine and when those are found, by statute, HERA becomes a dinosaur to be returned to the museum. Its terms become moot, as I understand it. We have recapitalization money and shareholders can be compensated for the dead period when illegalities dominated the playground. Then, I hope the "players" who were directing this immaculate takeover are prosecuted to the fullest extent of the law.
The swearing-in of Mnuchin might signal that he's suppose to report to work tomorrow morning, bright and early.
Remember not to throw Manchin under the bus in the next fours years.
His fellow Democrats, toss all you want.
Winner! Winner!
Chicken dinner......and then some!
My thoughts exactly on the Cabinet choices. All of them have actually worked at a job and are being questioned by many that have never gotten dirt under their nails much less done anything remotely close to work. What a joke. Trump, with his nominations, is, essentially, hiring employees, and he's pretty good at that chore.
"Who do we HATE more--Shumar or Obama?"
That's one of those six of one, half dozen of the other questions. Both are absolutely WORTHLESS to the human race.
X-Men
The Accountant
Sully
Superman
& about 20 others
Dune Entertainment
Senate now in Quorum Call. The dimwits didn't even show up for the Noon executive session!
Mnuchin's confirmation will be strong news but I can't call the effect on share price. His confirmation signals that SOMETHING is going to be done with Fannie and Freddie whereas nothing has been done for 8 past years. No way to read "bad" into all of that!
The polar ice caps will melt before Fannie goes to 0 so don't worry yourself about that pipedream.
A large number of foreclosures during the recent 8 year period can be attributed to people living beyond their means as well as all the other "reasons" that have been put forth. I saw plenty of people in low level employment living in high profile homes, driving expensive cars, and all the other trappings such as vacation homes, boats, big RVs, etc. and I had a good idea about their incomes. All I could say was No Way!
Nope, but the clock is running on the Democratic BS so that a good thing! 7 hours of the BS on Monday and then the vote.
The new coalition of twinkies require that "the government will take care of you"! What a load of horse manure....citizens no longer have to be responsible for their actions.
Calabria was the architect of HERA.....Calabria this...Calabria that, Calabria wasn't smart enough to view the big picture and see the cause and effect of the economic problems of Fannie and Freddie.
If he was capable, there would have been no call for HERA.
As for Mnuchin, he's not sitting idly by. My money on a bet would say he already has a plan formulized and is just waiting for the launch.
Watch and learn. Price is confirmed and the vote on Mnuchin will be Monday night because of cloture and so-called more important things to do for the senators this weekend.
"And they can sell shares for $40-$50+ to raise capital and cut down on dilution."
Not needed.....government returns overage confiscated plus settlements from TBTF banks and lenders.....instant capitalization.
Don't need to sell a thing!
Welcome to the world of the United States judicial system! Take a half day sometime and go to your county's courthouse and watch the proceedings in district or superior court and you will understand.
The inefficiency is embarrassing!
Flipped on C-SPAN a few minutes ago and the dunce, Sherrod Brown, was on the soapbox attacking both Price and Mnuchin. Said the zip code in which he lived in Ohio had the highest number of foreclosures in the nation and was implying that Mnuchin had a lot to do with that while at OneWest. I talked to the television set and told Brown to go back to Ohio and tell his constituents to pay their damn bills and there would be no foreclosures!
Any suits that were filed just to stop the NWS would be withdrawn if that's all the suit was seeking, should the NWS is rescinded. I believe some of the suits might be after damages for the period 2012 to now (NWS period) when shareholders' rights were usurped and now allowed to participate in that period of great earnings by Fannie and Freddie both. Four + years of financial damages to all shareholders will have to handled as if dividends were being paid to compensate for the unlawful act. The NWS was the high point and last ditch effort to continue the conspiracy to shutter the GSEs.
It ain't over.......until the NWS and Conservatorship are dead and buried.......and I witnessed it by attending the funerals.
Sort of like Obama's "we killed Osama bin Laden". A good argument could be made that they found out he had been dead for years and staged the whole thing to get some points. I sure as heck didn't attend the funeral so I've seen no body.
Show me that the equity holders are back in charge of their own corporations and you can gain my trust.
With such a sorry assemblage as the United States Senate, there's no telling when they might get around to business.
.....and you think a big drop is on the menu?
Where do these people come from?
The exercising of the warrants triggers a violation of the 5th Amendment and a tractor trailer load of class action lawsuits; with the possibility of treble damages if malice can be shown. I think within the 11,000 documents that will see the light of day, there will be an overwhelming amount of guilt to be spread around to show malice so the government's "fight" will wither on the vine.
Just wait, see, and learn port-a-john! HERA will be rescinded and there goes your warrants. POOF!
.......or, as in my example posted a number of times, to the pawn shop owner I say "Here's your money and the pawn ticket. Where's my watch?"
"It was my understanding that warrants were set in place to reduce the ability of shareholders to profit from any of the activities of the conservator that ended up making them profitable until the treasury got it's money back. This is why I thought the warrants were insurance to treasury that they could minimize their losses if the GSEs liquidated and were unable to be saved."
That fits right in the mold marked COLLATERAL perfectly.
I would rather this information be provided to Mnuchin just in case he is unaware and/or could be points that his underlings might miss in due diligence.
When the one directing this operation was once a member, in good standing, of the band of thieves (banking/lending executives),a dab of gray matter would lead anyone to suspect a conflict of interest.
This group was above the law and could wield power as they wished.
I hope the whole house of cards comes crashing down.......just as repayment in kind.
"I think the Net Worth Sweep was conceived as a way to accelerate the demise of the GSEs so the whole affair could be covered up."
Thank you......you're spot on!
GUARANTEE
Many here are looking for some kind of guarantee that things will go exactly as they believe they will or should. I think the majority would say that with Steve Mnuchin as Treasury Secretary, things will move swiftly towards resolution of Fannie Mae and Freddie Mac's "problems" with the government.
That said, I will guarantee all of you that by the end of the upcoming work week, Steve Mnuchin will be the Secretary of the Treasury. Make of that what you will.
The best and quickest route to normalcy in my opinion is to immediately stop the NWS, rescind HERA in its entirety, give back excessively paid dividends to establish a new capital buffer, and remove both Fannie and Freddie from conservatorship. They will get themselves relisted on the major exchanges quickly. Then, the nationalization has to be addressed where shareholder rights were usurped from 2012 to present. A remedy would be to pay shareholders of record a cumulative quarterly dividend as they would have collected during that time period with profitability as it was. This, I believe, would get us to a point that's very close to being made whole again.
Sure it's cheaper to settle. What irks me is not a one of the settlers paid back as much as they swindled. That's my perception of how the government does business. Quickly pay back a negotiated amount, sign the papers, and run for the hills. The banks and lenders were then exonerated and got to keep some of the ill gotten booty. Am I wrong?
Naturally, on a much larger scale but no different than you hocking something at your local pawn shop. You pawn your watch, are given cash money, you pay back that cash advanced with interest, and your watch is returned to you.
.....and what a gain it was............for now.
Again, if the warrants were to be exercised, the thieves WON. The warrants were one of the elements of the conspiracy to shutter both Fannie and Freddie. Don't think it was a setup? Look at the strike price of the warrants. It was set at a exercise price where they practically got 79.9% of both corporations for virtually nothing.
The Washington AG should have said they need to follow the rule of law in any cases that benefit the snowflakes (ditzy dunces) of this developing asylum in which we find ourselves over the past few years.
The Senate has to vote twice just to show the judicial system that they aren't the only ones who CAN'T make a timely decision!
Olson's order of events are wrong and his leaving the door open on exercising of the warrants would mean that the crooks won. The warrants, no matter what anyone says, were used as if they were collateral so when the instrument has been fully restored, the warrants have to disappear.
Everyone's solution seem to originate with the thought that the GSEs caused all this mess. The mess was caused by corrupt bankers and lenders taking advantage of Fannie and Freddie's generous terms and piling on until both entities were almost smothered. Setting the GSEs back on their feet, with the cause in mind, requires full restoration.....full meaning as they were before they were screwed with by the bankers/lenders. Exercising of the warrants means 79.9% of the businesses were stolen for a song.....and that happened through no fault of the GSEs.