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Conservatorship.....in a word.
Another marginally adequate week down the drain inside the Beltline.
Been observing this for way too many years!
The Treasury is never empty and if it was, we have currency printing presses. Also, I am not sure we have seen all the lawsuits that might be associated with Fannie Mae and Freddie Mac. Out of conservatorship, both entities might want back from the government unjustly gotten proceeds from equity holders during a great period of prosperity......a period when equity holders were completely banned from participation in the operations of corporations they owned.
Just the return of "stolen" money during the NWS would take care of recap.
That's a ridiculous statement even for a novice investor.
"All they have to do is Revamp FNMA a little bit to make them a well running oiled machine and profits will take off!"
That revamping to which you refer was done about the time the NWS was initiated. Both Fannie and Freddie have been well oiled machines with great profits for over four years now.
"the official said that under the Obama administration, "some of the rules may have even been unconstitutional, creating new agencies that don't actually protect consumers."
IMAGINE THAT! LOL!
At the very least, he can suspend the sweep but I feel sure he can rescind the sweep.
Yes, I don't care if Chuck Schumer steps in and stops the NWS as long as it gets done. And, as of this moment, nothing has been done. The NWS could be ended with an executive order. Mnuchin needs to direct his attention to ending conservatorship and nullifying the warrants. Without a shareholder vote, control of 79.9% of $5.3 Trillion corporations were sold to a crooked, corrupt assemblage of officials of the government for a paltry $189 billion. Shareholders, if our vote counted, couldn't possibly be that dumb on the worst of occasions. They got the mine, we got the shaft!
I thought, even without Mnuchin in place, an early executive order would have been to halt the NWS. So far.....nothing.....so that might give some indication of our importance in the scheme of things. Everyone is giddy and anxious, but nothing at all has REALLY been done to the benefit of F&F.
Good ol' court system, giving the government three weeks to get their lies together. Using the courts, this thing may NEVER get settled! Why not call them in front of the bench right now and make them explain? They already know. But no, let's waste some time!
Maybe all current shareholders will be dead of old age before matters are settled.
I saw mention that one Democrat needed to be at the committee meeting to have a quorum. The party line vote would be 14-12 so why isn't there a quorum anyway? In committee, isn't a simple majority a quorum?
"So the question really is when the PPS reaches $70 where will you be dining ?"
Anywhere I please!
Aren't members of MBA some of the same banks/lenders who stuck it to Fannie and Freddie in the first place and now want to offer their suggestions for reform?
Isn't that the fox guarding the hen house?
Easiest route would be to declare FHFA a useless, bureaucratic pile of dung with 600+ moochers on the government payroll and do away with it in a cost cutting move. Suddenly, Watt would have nowhere to work. It was only created in 2008 to help supervise the destruction of F&F in the conspiracy anyway, under the guise of being beneficial to the government.
Maybe so. I contend that the creation of the FHFA was nothing more than a store front for all the illegal activities going on in the backroom by Hank Paulson and his connected, band of thieves. The public would believe there was a watchdog on duty with the FHFA and all it was actually doing was acting as a shield. In eight years, they have put 600+ people to work doing what, I do not know. It's a great candidate for Trump's hammer!
By the way, the FHFA has over 600 employees. Imagine what a savings with all of that gone in DC!
My hope is that the FHFA, created in 2008, will have served its nefarious, poltical purpose and will be deemed unnecessary under the Trump administration......and quickly eliminated. Then, Mel Watt can get in the unemployment line.
I'll concur with obiterdictum's comment:
"The bill is a piecemeal approach that does not fully relieve shareholders equity concerns or the future status of the GSEs."
Fannie and Freddie shareholders have been wronged and no half-ass fix should be acceptable to any one of the equity holders. Every person owning a share during the past eight + years should be made whole. Particularly disturbing has been the "dead time" from 2012 to present when both GSEs have made tremendous profits and the shareholders have been ignored and completely shut out sharing that prosperity. There should be nothing less than a quarterly dividend given to equity holders during that period as a penalty for the illegal seizure.
I believe the committee count is 14 Republicans and 12 Democrats. Some of the Republicans were swaying a bit earlier but the stalling tactics (with the endless questions) by the Democrats probably have solidified the count strictly by party lines.....14-12.
Wrong as usual there Rick. Mnuchin is in our camp as much as anyone can be. His financial friends are shareholders. His service will benefit all involved with F&F. He will pass muster with the finance committee on Monday in spite of a few of the a**holes on that committee and could be confirmed even on Tuesday. That said, share price will move up.
You do know that the dimwit Corker is a Republican? He is a POS though just like Warner, Crapo, and that ilk!
If Brown and Waters are against something, then I'm all for it. Doesn't make any difference what it might be.
Patience, my son!
There is only one reason to fight the release of the documents so vigorously. Those documents will expose illegal activities and circumvention of laws by the individuals involved; both in the conservatorship as well as the net worth sweep. As the guy at The Men's Wearhouse says........I GUARANTEE IT! I concur.
Is the "C" in your user name Corker?
I would think Grassley is pretty much senile by this time. No telling what he might say.
With 12 years tied up here, I hope you are completely wrong. There was no "mess" at Fannie and Freddie until the banks/lenders decided they could use them as a trash dump,and did so vigorously. There was no law in place in regards to acceptable bad paper limits, the banks/lenders abused the gentleman's agreement on that bad paper,
Fannie and Freddie were knocked off kilter. Their only mistake was lax enforcement of the levels of risky mortgages, and that was corrected, I believe, about 2012. Since that time, they have once again become the giants in the industry (although they never really left). But members of Congress want to "reform" them. They either don't know all the facts (causes and effects) or they have some nefarious reasons for the consistent holler for reform.
If the vote has taken place, does anyone know the vote count on Mnuchin by the Senate finance committee?
Sherrod Brown says he would vote no which doesn't surprise me. He's a Democrat who has never earned a dime in his working life away from the public trough.
Let's hope they have to pay out a settlement because of the NWS. Between 2012 and now, shareholders' rights have been suspended and legally violated. Someone or something needs to pay.
Whew! We thought, for a moment, that you had become a brain-dead Democrat tossing about the word receivership......or Crapo, incognito.
Of course your example would be ill gotten gains. The warrants, to anyone with a brain, were a financial fallback in case F&F couldn't fulfill their obligations. Problem is, in any similar type of financial arrangement for any corporation in the country except F&F, the government tried to structure the agreement with it in mind that Fannie and Freddie were going to fail. The monkey wrench was that they did not fail but actually prospered.
That said, and although not stated, the warrants served as an instrument of collateral for the government. No shareholder should be satisfied that the government reaping benefits from the backs of said shareholders when it could be surmised that the warrants were stolen from the shareholders. On such grave matters, equity holders should have had a say in the terms of the agreement and I don't recall any of us being afforded that opportunity. I sure as heck voted on nothing!
Carson is a Republican, black, educated, and a former candidate for President. None of that qualifies him to expertly comment on housing, finance, Freddie and Fannie. If medicine, then perhaps but Fannie and Freddie need a different type of remedy.
How are you able to make a distinction when everything coming from the government seems to be lame? LOL!
"What a court system."
Some people say it's all we've got (which is true) but that doesn't keep it from being a joke!
The exercise of warrants would be ill gotten gains and doesn't mesh well with legality and transparency. If the warrants weren't collateral, as some contend, then the government stole $5T from two corporations for $189B. That makes mafia loan sharking look like child's play and was put together by only a few power players in the government against all the citizens of the country.
If you detect a foul odor, it has been around since the period 2005-2008, the time of formulation.
Yeah right! Try to sell that malarkey to the real equity holders.
One way to help solve our problems would be for Trump and Mnuchin to eliminate FHFA, an agency, which was only created in 2008. It is bureaucracy at its finest with 600+ employees just wasting taxpayers' money, as all the jobs there are quite high paying jobs. FHFA may have been part of the master plan to assist in killing off the GSEs anyway. If FHFA would no longer exist, then Mel Watt would no longer exist. Then Mnuchin could get to work doing the real business of government.
Somebody tell the dunce Capuano that we're pretty sure the government has already been paid......and to kiss shareholders' butts!
You know, I must have missed reading this article at its time of writing but Parloff doesn't miss the nail with his hammer!