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BLUE is pumping BAA, Banro Corp.
My message to Larry Kudlow:
Hi Larry,
There are numerous lawsuits against the government for the way they are handling the conservatorship. It is hard for me to understand that the media does not give this more attention. The duty of conservator is return the company to sound and solvent condition and then when the company is in sound and solvent condition to return the company to the owners.
The government is blatantly ignoring the rules of conservatorship and dealing all the profits of FNF to the treasury, even after the initial investment of 187.5 billion is already recovered.
The media does not make a big issue over this. Are we accustomed to the fact that is okay for the government to do what they want to, even if they are stealing. It’s okay if the government does it?
Judge Sweeney does not think that’s okay.
Quote of another message:
WHY do you CONTINUE to REFUSE to cover such an IMPORTANT CASE ???
JUDGE Margaret SWEENEY just ruled in the Discovery issue in the
Fairholme FUNDs Suit vs the FHFA
The GOVT arguments HOLD NO MERIT & CONTRARY TO LAW !
The GOVT is ILLEGALLY SWEEPING ALL profits from the GSE's
Into the GOVT TREASURY !
THE RULE OF LAW STILL PREVAILS in AMERICA !
Unquote
Exactly, plenty of value here.
Do not listen to all the noise.
Hi Blue,
Good to see you here.
I have been in FNF and BAA for a while.
I think there's great opportunity here.
Maybe you can help get BAA back on track.
It is time for a government shake-up.
They are stealing wherever they can to fix up their budget problems.
Awesome article; the pressure is on the government.
The FNF train is leaving.
Thanks.
I was actually surprised to get a response from John Cornyn.
I will certainly follow up and share any info with the board.
I received correspondence from John Cornyn regarding FNF, see below my response and Cornyn’s.
May 6,2014
Dear Mr.Cornyn, esq.
Thanks for your response; very much appreciated. However, my concerns are not fully addressed.
• The conservator’s duty is to return the companies to sound and solvent condition, not to wind them down. The conservator is independent from the government; there is no reason for the conservator to wait for a resolution of the government. Once the GSE’s are sound and solvent they should be released from conservatorship.
• The 3rd Amendment "net worth" Sweep of all of Fannie Mae’s and Freddie Mac’s profits must be immediately abolished. The GSEs have effectively paid back all the tax payer debt and any net worth profit sweep from now on is an un-constitutional taking.
• In the face of 20+ lawsuits from various parties the government is still making an effort to wind down/replace the GSE’s. As un-constitutional as this act is the government is still pursuing to replace the GSE’s, without just compensation to the owners. How can we ever trust the government? This is an un-constitutional taking.
• I am a shareholder, but also a tax payer. I do not want tax payers to be on the hook for bailouts. This applies to the GSE’s, but also to the TBTF banks. Reform is necessary, but there is no need for abolishing and replacing the GSE’s with another entity. Higher reserves and more transparent accounting should be all that’s required and this applies to the TBTF banks also.
We appreciate you listening to our concerns regarding rule of law and respect for shareholder private property. I hope that my comments are kept in mind with any new legislation towards the GSE’s and the TBTF banks.
Cordially yours,
M. Robert Junier, P.E.
May 2, 2014
Dear Mr. Junier:
Thank you for contacting me regarding Fannie Mae and Freddie Mac. I appreciate having the benefit of your comments on this matter.
Fannie and Freddie are America’s two largest mortgage-finance companies, and their activities played a large role in causing the recent housing bubble and subsequent financial crisis. Prior to September 2008, they were “government-sponsored enterprises” (GSEs). Since then, they have been in federal conservatorship and have effectively become government entities.
As you may know, the leaders of the Senate Committee on Banking, Housing, and Urban Affairs recently released a discussion draft of the Housing Finance Reform and Taxpayer Protection Act. Among other things, the draft legislation would replace Fannie and Freddie with a new government entity called the Federal Mortgage Insurance Corporation (FMIC). The FMIC would act as a new federal regulator of the mortgage industry, designed to monitor the safety and soundness of various financial institutions. Proponents argue that proposal will shift more of the risks of mortgage lending to the private sector. Therefore, the federal government would only serve as a final backstop in the secondary market for mortgage-backed securities, helping to maintain the 30-year fixed mortgage. This proposal is expected to be considered by in the Senate Committee on Banking, Housing, and Urban Affairs in the near future. Although I am not a member of this Committee, you can be sure I will keep your views in mind should this legislation be considered by the full Senate.
I have long advocated reforming both Fannie and Freddie to protect taxpayer interests. In 2006, after we learned that Fannie had intentionally overstated its earnings by $10.6 billion, I urged the Senate Majority Leader to bring reform legislation before the full Senate that would have subjected GSEs to stricter oversight and regulations. Regrettably, the Senate did not consider these reforms.
Congress must reform GSEs to make sure that taxpayers’ money is not used to bail out those who made bad investment decisions. Unfortunately, according to the Congressional Budget Office, the mortgage guarantees that GSEs are expected to issue from 2015 through 2023 will cost federal taxpayers almost $20 billion.
You may be certain that, as a member of the Senate Finance Committee, I will continue to advocate for the reform of Fannie Mae and Freddie Mac to protect taxpayers. I am honored to represent Texas in the United States Senate. Thank you for taking the time to contact me.
Sincerely,
JOHN CORNYN
United States Senator
517 Hart Senate Office Building
Washington, DC 20510
Tel: (202) 224-2934
Fax: (202) 228-2856
http://www.cornyn.senate.gov
April 12, 2014
Dear Mr.Cornyn,
The current handling of the conservatorship of Freddy Mac and Fannie Mae is of great concern to me and all other concerned shareholders. It is the conservator's duty to return the companies to sound and solvent condition, not to wind them down. We appreciate you listening to our concerns regarding rule of law and respect for shareholder private property.
I want to reiterate our concerns that none of the bills being contemplated take into consideration shareholder's rights, and would wipe us all out of our hard earned retirement savings. Bills including Crapo Johnson, in draft form, are NOT acceptable to shareholders, and do not include consideration of shareholder rights. The Crapo Johnson bill is basically Obama care for the mortgage finance system. We don't need to change a housing finance system that has worked for many decades. Say NO to Crapo Johnson, Corker Warner, and Hensarling's PATH act.
Moving forward, our immediate concern is that the communistic like, 3rd Amendment "net worth" Sweep of all of Fannie Mae’s and Freddie Mac’s profits must be immediately abolished. The GSEs have effectively paid back all the tax payer debt and any net worth profit sweep from now on is an un-constitutional taking.
Tax payers are not blind to blatant disregard of basic property rights being perpetrated by the Treasury and the FHFA. The communistic net worth sweep of all of Fannie Mae's and Freddie Mac's profits must stop. We would be very grateful for your willingness to investigate what is going on at the Treasury, and for your willingness to consider shareholder interests in any legislation of the GSEs.
Very Sincerely,
M. Robert Junier, P.E.
I received a response from Mr. John Cornyn on one of the letters sent to the senators. Below is a copy of my letter, Mr. Cornyn's letter and my counter response.
May 6,2014
Dear Mr.Cornyn, esq.
Thanks for your response; very much appreciated. However, my concerns are not fully addressed.
• The conservator’s duty is to return the companies to sound and solvent condition, not to wind them down. The conservator is independent from the government; there is no reason for the conservator to wait for a resolution of the government. Once the GSE’s are sound and solvent they should be released from conservatorship.
• The 3rd Amendment "net worth" Sweep of all of Fannie Mae’s and Freddie Mac’s profits must be immediately abolished. The GSEs have effectively paid back all the tax payer debt and any net worth profit sweep from now on is an un-constitutional taking.
• In the face of 20+ lawsuits from various parties the government is still making an effort to wind down/replace the GSE’s. As un-constitutional as this act is the government is still pursuing to replace the GSE’s, without just compensation to the owners. How can we ever trust the government? This is an un-constitutional taking.
• I am a shareholder, but also a tax payer. I do not want tax payers to be on the hook for bailouts. This applies to the GSE’s, but also to the TBTF banks. Reform is necessary, but there is no need for abolishing and replacing the GSE’s with another entity. Higher reserves and more transparent accounting should be all that’s required and this applies to the TBTF banks also.
We appreciate you listening to our concerns regarding rule of law and respect for shareholder private property. I hope that my comments are kept in mind with any new legislation towards the GSE’s and the TBTF banks.
Cordially yours,
M. Robert Junier, P.E.
May 2, 2014
Dear Mr. Junier:
Thank you for contacting me regarding Fannie Mae and Freddie Mac. I appreciate having the benefit of your comments on this matter.
Fannie and Freddie are America’s two largest mortgage-finance companies, and their activities played a large role in causing the recent housing bubble and subsequent financial crisis. Prior to September 2008, they were “government-sponsored enterprises” (GSEs). Since then, they have been in federal conservatorship and have effectively become government entities.
As you may know, the leaders of the Senate Committee on Banking, Housing, and Urban Affairs recently released a discussion draft of the Housing Finance Reform and Taxpayer Protection Act. Among other things, the draft legislation would replace Fannie and Freddie with a new government entity called the Federal Mortgage Insurance Corporation (FMIC). The FMIC would act as a new federal regulator of the mortgage industry, designed to monitor the safety and soundness of various financial institutions. Proponents argue that proposal will shift more of the risks of mortgage lending to the private sector. Therefore, the federal government would only serve as a final backstop in the secondary market for mortgage-backed securities, helping to maintain the 30-year fixed mortgage. This proposal is expected to be considered by in the Senate Committee on Banking, Housing, and Urban Affairs in the near future. Although I am not a member of this Committee, you can be sure I will keep your views in mind should this legislation be considered by the full Senate.
I have long advocated reforming both Fannie and Freddie to protect taxpayer interests. In 2006, after we learned that Fannie had intentionally overstated its earnings by $10.6 billion, I urged the Senate Majority Leader to bring reform legislation before the full Senate that would have subjected GSEs to stricter oversight and regulations. Regrettably, the Senate did not consider these reforms.
Congress must reform GSEs to make sure that taxpayers’ money is not used to bail out those who made bad investment decisions. Unfortunately, according to the Congressional Budget Office, the mortgage guarantees that GSEs are expected to issue from 2015 through 2023 will cost federal taxpayers almost $20 billion.
You may be certain that, as a member of the Senate Finance Committee, I will continue to advocate for the reform of Fannie Mae and Freddie Mac to protect taxpayers. I am honored to represent Texas in the United States Senate. Thank you for taking the time to contact me.
Sincerely,
JOHN CORNYN
United States Senator
517 Hart Senate Office Building
Washington, DC 20510
Tel: (202) 224-2934
Fax: (202) 228-2856
http://www.cornyn.senate.gov
April 12, 2014
Dear Mr.Cornyn,
The current handling of the conservatorship of Freddy Mac and Fannie Mae is of great concern to me and all other concerned shareholders. It is the conservator's duty to return the companies to sound and solvent condition, not to wind them down. We appreciate you listening to our concerns regarding rule of law and respect for shareholder private property.
I want to reiterate our concerns that none of the bills being contemplated take into consideration shareholder's rights, and would wipe us all out of our hard earned retirement savings. Bills including Crapo Johnson, in draft form, are NOT acceptable to shareholders, and do not include consideration of shareholder rights. The Crapo Johnson bill is basically Obama care for the mortgage finance system. We don't need to change a housing finance system that has worked for many decades. Say NO to Crapo Johnson, Corker Warner, and Hensarling's PATH act.
Moving forward, our immediate concern is that the communistic like, 3rd Amendment "net worth" Sweep of all of Fannie Mae’s and Freddie Mac’s profits must be immediately abolished. The GSEs have effectively paid back all the tax payer debt and any net worth profit sweep from now on is an un-constitutional taking.
Tax payers are not blind to blatant disregard of basic property rights being perpetrated by the Treasury and the FHFA. The communistic net worth sweep of all of Fannie Mae's and Freddie Mac's profits must stop. We would be very grateful for your willingness to investigate what is going on at the Treasury, and for your willingness to consider shareholder interests in any legislation of the GSEs.
Very Sincerely,
M. Robert Junier, P.E.
Thanks for your response. Really, appreciate your efforts.
Time will tell what really prompted Crapo to delay the vote.
It is possible that Crapo did not have the 12 votes anymore and is buying time trying to get the votes back.
It appears that there were a lot of unhappy faces. Maybe the committee wanted to vote it down today and get this over with.
IMO.
Please, mark me as platinum. 135k since April, 2013.
Geitnher's proposals were also written up in Paulson's book, "On the brink".
Neil Barofsky's book "Bailout" mentions Geithner many times as pushing the envelope. Not much regard for the law.
That's why, I think, there will be some settlement; Geither et al do not want to go court.
FNF long and strong.
I get these requests also and I post very little.
Why would someone want to follow me?
Must be some alterior motive.
I am not going for that.
Too many crooks in this world.
Jack's comment means to me that they want to make more money of FNF and use the taxpayer's interest as a justification for doing so. Governemnet is doing this for the taxpayer! LOL.
We will see how long the government can keep this up.
Good thing these lawsuits are in place.
This soap opera is called the "FNF blues".
What a deal. LBJ sells FNMA to the public and the current administration takes it back for free!
Still wrong.
The earnings need to be divided by the number of shares.
32 billion divide by 1.5 billion shares = 21.33 $/share.
Now multiply by PE of 9.5: 9.5 x 21.33 = $ 203 pps.
I agree 100%. Getting ready to roll big time.
IMO.
I do not understand why the board of directors are not more active. Citibank or GM would not have let this drag on for this long.
What restricts the board of directors from speaking up?
Long and strong, solid gold.
I questioned MOJO4899's motives a couple of days ago.
His reply was through a private message that he is here to help rookies!
LOL
Liquidation value of 200 billion equates to $ 107 pps without dilution of warrants.
With full dilution (unlikely) this equates to $ 21 pps.
Great news.
That's funny!
FnF could go straight back up; fundamentals have not changed.
Be on the FNF train.
I you do not own any shares of FNMA then what do you do on this board? What is your purpose and motive?
I bought in last year in April.
First thought this was too good to be true, so maybe not true.
The more I studied this the more I realized that there is also a saying: too good to pass up. So, I stuck with it.
The DD on this board and your encouragement was a lot of help.
135k at $ 0.72.
Smiling more all the time.
In post # 160994 somebody stated the market maker signals with their meaning.
500 shares with an up-thick means gapping the stock up.
Check the post I referenced.
We will get to see, if this is true.
Me too.
Wondering what happened to the scorecard.
Mayopoulos and Layton must be talking to Watt.
Something must be going on behind the scenes.
Good point. If the government keeps taking money from FNF then they may owe money, upon losing the lawsuits.
Time for the government to make a settlement out of court.
I believe the judge does not want to decide and forces an out-of-court settlement.
FMCC has not released ER yet. Maybe after the FMCC ER an announcement by Watt?
IMO.
Last year in May the big run-up started 2 or 3 days after the ER.
And the OTC is still functioning!
PopandLock is a major gap upwards, which never gets filled.
OOHH, what did I just say.
I agree; the financing no big deal. In fact good for reducing debt.
Great opportunity.
IMO.
Should come out to 192 million.
All your assumptions are conservative. So it's very good compared with appr. 120 million sales over the last 12 months as reported by MSN Money. With increasing gold price it will be a lot better.
Government has to come up with something to get out of the law suits and save face. The government may not like it, but the law suits will not go away by themselves. Justice will prevail.