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You make perfect sense about FnF shares.
Preferreds likely left to twist in the wind on the pinks since there voided contracts now have junk ratings not suited for uplisting.
Where will the P shares trade?
Combination reversal of grossly oversold panic selling from Covid shutdown and Preferred holders waking up to death of their direct court claims leaving massive derivative claims returning to GSEs $FMCC~ $FNMA~ that will immensely raise common equity values overnight. Word on the street is up listing is in the works and the common issues will no longer trade on the pinks
Excellent news. Of course, Judge Sweeney will see to that anyway.
Mnuchin
“We’ve had conversations with the FHFA as to what they’re going to do for Fannie and Freddie and we’ve said that to the extent that they need certain authorities from the Treasury, we will accommodate that.”
Works for me Pee
Any idea why the move up?
It's significant that Mnuchin even mentioned he talked to fhfa.
Even if they upped the capital gains tax to 30%, people that own today would sell without care.
FNF at $1000 a share would have a market cap of 1,610,000,000,000
$1.6T x 30% capital gains tax is $480B in taxes paid by investors.
Money.
Actually, FHFA is paid out of FnF profits, shareholder money.
FHFA is a COMPLETE WASTE OF TAXPAYER $
Just think how much they pay out in salaries to do nothing and think of the legal bill they and UST are hittting taxpayers with defending this fraud.
May for P shares to vote conversion to C shares
P shareholders also seem to forget that in order to be a conversion there has to be a vote. And they probably know that there is NO WAY C holders will agree to such a conversion. Or do they?
How would you vote on a conversion yay or nay?
Excellent.
They may miss that June 1 date for cfpb though
SCOTUS announced they're back in business via teleconference hearings today and for the first time in history of SCOTUS
Things are looking up with FMCC and FNMA.
ACG act like they have the inside scoop with Calabria.
Sooner or later one of their projects will be on target.
June 1 date is promising.
I don't believe anything ACG says.
So true. Calabria was hired to actually do the thinking, but instead he hires millions of dollars for experts, using our money, to do the thinking for him.
MC Humpty will certainly do it after spending millions on financial planners to advise his BIG THINK TANK BRAIN to do so! LMAO, all they have to tell him is, "Do the opposite of what FHFA has done over the past ten years this year". What a contract!
This sounds like a deadline for Calabria.
ACG consensus is GSEs relist/UP-list Fall of 2020 $FMCC~ $FNMA~
Absolutely profits from FnF, OUR dividends, go toward the salaries of 600 FHFA employees.
**** SO WE sign Calabrias pay check? What a waste of money along with the rest of the FHFA salaries which I imagine must be in the hundreds of millions. What an epic waste of money.
What I think is that Ginnie and Sallie be part of Fannie and Freddie. Taxpayers don’t need to be paying for 2 more companies plus FHFA with the same general scope of work. It’s BS.
Finally, it's more than shareholders that are angry with Calabria.
Had to sticky that.
Re legal services - SOW etc are in attachments at the bottom
They announced a winner on April 2,
https://beta.sam.gov/opp/ed6c9daad21c400c80ede0b105fd9feb/view
Calabria still talking that they won't exit cship until 2020 or 2021.
Dismiss Ianello as Rex's was already denied.
Looks like house cleaning paperwork.
That's my job too. I walk doggie jon leash alone in mornings and she does her big job then. Husband and I walk doggie (I hold leash) in evenings, she does another big job. Law is that we have to pick up the poop, can't leave it there. So I carry the doggie poop bag.
So sorry about your friend. I will pray for him and your son.
Doc, dam good one.
True story, speaking of dog crap in the yard.
That was one of my little guys "chores". Fenced yard, 2 dogs. Someone gets the job.
3 weeks ago this Thursday had to sign him into a drug/drinking rehab in Ct. 10 weeks, maybe more. I miss the son of a gun, but good days, bad days. Cant tell you the amount of shit he broke already. It sux. Me and the wife are wore out. His friend overdosed and died Saturday. Thats why my boy uh s where he is.
Anyways, your story put a smile on me. Thank you for doing it. Theres more going on in life than Covid 19, China virus.
Oh, my new job, picking up the shit.
nwo = New World Order
FnF may need significantly more than the oversweeps given that mortgages can be forgiven for a year.
The dominoes are set to fall in alignment. With the size of the stimulus Brooks could easily cut a check refunding all the over sweeps without making a dent in the fund. So courts now have financial cover to apply remedy giving political cover to all regulators involved. No one would bat an eyelash since housing is healthcare especially during the Covid emergency.
Gee, I wonder if Mr. Brooks will give any of that $6 Trillion to Fannie and Freddie.
Cash tsunami hitting the market, GSEs included. SCOTUS about to announce CFPB desicion clearing the way for lower courts to award ransoms collected by Gooberment purps to GSEs while settlement talks are running 24/7 due to COVID emergency declaring housing is healthcare.
Meanwhile back at the ranch, Fannie Mae BOD resigned last week. Mr Brooks will be the new UST Comptroller in charge of distributing 6 Trillion stimulus over the coming months beginning April Fool's Day.
Squidmore's appointing his cat to replace Mr Brooks on Fannie Mae BOD since C-ship is ending soon and Squidmore wants a few extra paychecks in his household coz he makes to much to get his own stimulus check and he's about to lose his job for cause so won't qualify for unemployment.
Charter changed. Fully capitalized. What does it take to exit cship?
This will force the gov't to push $100s of billions to FnF. Just a simple line item entry in the bill.
MORTGAGE SERVICERS WILL FORCE THE SUSPENSION OF COVID-19 BILL.
The bill stipulates that FnF's mortgages are "federally backed mortgage loans". That's false. Their Charter explicitly states that the U.S. Govt doesn't guarantee their securities and thus, their underlying mortgages.
This bill will make the mortgage servicers continue to fund the MBS obligations despite suspending the mortgage payments of borrowers (forbearance), prompting a liquidity problem.
The odds are that they will challenge the COVID-19 bill, increasing the suffering of the population.
Gov knows they are losing lawsuits, plus they don't need to steal from FnF anymore, they can steal from Boeing
rumor has it, they are going to add a line item to the virus relief bill to release fannie
Do you have a dollar number for the NWS?
$2 trillion on stimulus Package will be passed and nws will be returned.
Contract will be invalidated, as Sweeney said, they acted like the mob.
The SPSPA contains 2 things a liquidation preference and a warrant, the liquidations preference initially was given on $1B ($1,000 per share) and a warrant representing 79.9% of the common stock, so treasury cannot own more than 79.9%(sure they can buy stock themselves for market value but anybody can) as the contract does not allow it to be more, the commons indeed still own 100% of the commons now, but it REPRESENTS 20.1% of the companies as per the contract the shares are given away without any consideration and most importantly without additional funds, this is not a normal procedure(lack of fiduciary duty) as you cannot ask somebody to give you a loan and ask more(The warrant) than you physically give, let alone ask for future profits, it is depraved
A junior to common conversion, does violate the constitution as the statue of FHFA is to preserve and conserve and to put in sound and solvent condition, any action outside this statue is unconstitutional, it is unheard the government does not follow its own rules
And because they did the opposite, they cannot glue pieces together that were not broken in the first place
The FHFA/FHFA-C does have fiduciary duty to shareholders as that is the consent the BOD gave to the FHFA-C, the BOD represents the shareholders and they agreed to preserve, not to give away anything, the three judges did not do anything other than declaring they lack authority, and none of the 3 judges said there was no fiduciary duty
The government cannot escape the 79.9% ownership fiduciary duty, they are the majority shareholder if the warrant is exercised or not they have the control and this control gives them the fiduciary duty
All lawsuits are built on the case to void the SPSPAs, the mayority hold the 3th amendment is illegal, but what it actually says is because the 3th amendment is illegal the contract is “VOIDABLE” this is a much more sophisticated claim then it at first sides looks, when a contract is voidable (after a ruling the 3th is illegal) the FHFA-C is obligated due to their fiduciary duty to void the contract, and if the contract is void all funds needs to be returned and the recapitalization is a fact
The 10% dividend ranks lower to the outstanding claims and I understand why no lawsuit is asking relief on it, although important and illegal(it will be very costly for treasury to return all funds with 10% premium for 12 years) I don’t see it as crucial as when the 3th amendment is ruled illegal(and it already is) but ones declared illegal the SPSPA debacle is more or less solved because the contract becomes voidable
Sweeney never said treasury was not a controlling shareholder, she can’t because treasury is the controlling shareholders please look at context again, the context of fiduciary duty to shareholders is important while the FHFA-C does not have fiduciary duty to shareholders on regulation or individual things they implemented, they DO have fiduciary duty on giving away 79.9% of the company as it lacks consent of the BOD(shareholders)
The equity raise FHFA is talking about is imo stage crafting, the lawsuits are near completion, and I understand that FHFA is not going to say, “sorry guys we are going to lose the lawsuits and FnF will instantly be capitalized” of course he says what prior administrations said and that is why they keep fighting, the point of no return was a decade ago, it would be very stupid to have a change of mind suddenly, but legally they already lost on all fronts and that is why cooper said pressure is immense
1) All lawsuit challenge the SPSPAs and the warrants, most lawsuits challenge the 3th amendment and by that the SPSPA is voidable and can only be void out of fiduciary duty
2) The 20.1% is important as the government receives 100% of all profits in perpetually and the 20.1% minority shareholders are excluded form profits, and of course the BOD did not agree on that consent to all profits to the government in perpetually
FHFA is NOT allowed to act in its own interest (I think you talk about 12 U.S.C. § 4617(b)(2)(J).) as the FHFA now has the powers of the BOD, the FHFA has 1.000’s maybe even 10.000’s of fiduciary duties to the Fannie and Freddie and Shareholders, some of the fiduciary duties are not granted as the question presented is covered or relief can be given on other grounds( for instance “HERA preempts any state law”, then HERA is unconstitutional as the law and constitution rank higher than HERA)
Then it follows the judge says FHFA-C does not have fiduciary duty, but only because it is preempted by HERA NOT because it does not have fiduciary duty, the shareholder rights are always protected, and anybody whoever does anything to shareholders will be accountable, in this case the FHFA/FHFA-C, so either shareholders have relief on HERA declared unconstitutional as the agency cannot act out of self-interest or shareholders receive relief out of the breached fiduciary duty, however both claims come from the breach of fiduciary duty
If in the future an SPO might be necessary, the court first must make a final ruling on:
1) The FHFA/FHFA-C did not breach consent on the implied-in-fact contract they had with the BOD
(already declared illegal by the 5th circuit as it was contrary to conserve and preserve U.S.C. § 4617(b)(2)(D). and because 4617 contradicts the 3th amendment)
2) The 3th amendment is legal
(already declared illegal by the 5th circuit as it was contrary to conserve and preserve U.S.C. § 4617(b)(2)(D).)
3) The warrant is legal (because of 1 and 2 above the contract is voidable and needs to be voided by Fannie and Freddie and FHFA-C)
Not any more
Wouldn’t it be easier for government to claim 79.9% of stock per the illegal warrants?
Sure is. Buy who is going to complain if it saves our economy and lives?
That's an illegal transaction, per SEC rules
Sheila Bair was also in on the meeting with all the bank CEOs where they all accepted 'loans' at 5%
Consider this. Sheila Bair buys shares for US Treasury, FHFA uplists FnF, Sheila Bair sells shares very high to pay for part of $3 Trillion stimulus.
FnF save the day.
Are you saying Sheila Bair is buying shares?
For herself?
For US Treasury?
Zero shares for now but when ipo happens she will file form 4 to claims 10% ownership.
Please read this.
Form 3 is an SEC filing filed with the US Securities and Exchange Commission to indicate a preliminary insider transaction by an officer, director, or beneficial (10%) owner of the company's securities. These are typically seen after a company IPOs when insiders make their first transactions. After a Form 3 is filed, future filings of the same nature are filed under Form 4 (standard disclosure) or Form 5 (annual disclosure).
Sheila Bair
Another way for FnF to raise core capital is for the government to give back the $$$ they stole.
"12 USC 4502(7) defines core capital; the only way FnF can raise their core capital amount is by retained earnings, issuing new common shares, and issuing non-cumulative preferred shares. Nothing else can count, not even contingent or convertible debt."
Then, why not issue new preferred shares at 2% interest to recapitalize & release immediately ? Suppose the GSEs need $200B, 2% interest will mean $4B interest payment a year which is totally affordable to the GSEs.
Plaintiffs will give a joint roadmap to exit cship.
FHFA power has already vanished
One of the judges has to have the nerve.
FHFA unconstitutional. Will judges reverse FHFA’s actions(conservatorship)?
Now that it is ruled unconstitutional, will any judge dare to reverse the actions or decisions of the FHFA while it was thus illegally structured?
Wouldn’t that mean that the original 2008 conservatorship is now illegal for yet another reason?
And how will this affect the Wash Federal case?
But now it is confirmed that FHFA is unconstitutional.
If I were a FnF exec I'd be meeting with lawyers right now for an announcement Monday morning. But I'm not a FnF exec.
How long do you think it will be for this to happen?
Absolutely. 600 federal employees out of a job.
Why can't the FnF execs take it from here and get us uplisted?
really surprised mkt didn't react
to this 5th Circuit Ruling FHFA is
UnConstitutional - when combined
with HERA no severability provision
We Are totally Golden Willy Wonka !!!