something me and you share , fun.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
“Simply put, Dodd-Frank has failed,” Mr. Hensarling said in prepared remarks that he is set to present at the Economic Club of New York on Tuesday. “It’s time for a new legislative paradigm in banking and capital markets.”
His proposals will call for replacing the financial reform law’s “orderly liquidation authority” for winding down a failing financial institution with a new chapter of the bankruptcy code.
http://www.nytimes.com/2016/06/07/business/dealbook/republicans-to-unveil-plan-to-revamp-dodd-frank.html?_r=0
STRONG BUY Federal Home Loan Mortgage Corp (FMCC) Analyst Review
http://www.risersandfallers.com/2016/06/07/federal-home-loan-mortgage-corp-fmcc-analyst-review-3/
They are charged with a variety of crimes, including securities and accounting fraud, and the cases are expected to drag on right along with their already-bloated defense funds. In fact, the inspector general suggests the government only work to “limit” (not stop) legal expenses “to the extent possible and reasonable.” Another brilliant suggestion from the FHFA’s watchdog, which supposedly is looking out for taxpayers, is to “control costs of legal expenses.”
It’s like there’s no end to the Freddie and Fannie madness. Political corruption of epic proportions is at the heart of the scandal. The lenders collapsed because those who operated them played fast and loose with accounting, risk assessment and executive compensation issues while Congress looked the other way and protected them from much-needed regulation. For years Freddie and Fannie backed risky mortgages and implemented a policy of lending to high-risk individuals with poor credit.
Lawmakers, including then-Senator Barack Obama, protected Fannie and Freddie from proper oversight because they got political contributions from the mortgage giants. In fact, Judicial Watch uncovered records that show for more than six years members of Congress were aware of the massive problems at Fannie and Freddie yet they did nothing. As a result taxpayers are on the hook for at least $400 billion and $5 trillion in mortgage liabilities.
Not surprisingly, the Obama Administration has worked diligently to keep secret all records related to Freddie and Fannie’s political contributions. In 2009 JW sued to obtain them and the FHFA admitted it might possess the documents but said it’s not obligated to release them to the public. Because Freddie and Fannie are wholly operated by the federal government, JW maintains that the records are subject to the Freedom of Information Act (FOIA). The case is still active in the U.S. Court of Appeals for the District of Columbia Circuit.
http://www.judicialwatch.org/blog/2012/02/defense-of-corrupt-freddiefannie-execs-200-mil-and-growing/
OUR CORRUPT GOVERNMENT
http://www.claremont.org/crb/article/our-corrupt-government/
The regulatory state, says Murray, only seems strong. In fact, because it is democratically illegitimate, widely disdained, and contrary to America’s individualistic spirit, it is weak. His reform coalition comprises not good conservatives and good liberals among members of Congress and other political elites, but rather Hillary Clinton’s “everyday Americans.”
A Republic No More is the most capacious of the three books, presenting a vivid interpretive history of Madisonian decline from the First Congress down to Fannie Mae, Freddie Mac, and the financial crisis of 2008. Jay Cost has a theme and a theory. His theme is corruption, where he begins with the famous distinction, propounded by Tammany Hall boss George Washington Plunkitt in 1905, between “dishonest graft” (bribes, kickbacks, blackmail) and “honest graft” (e.g., purchasing land for cheap near a planned city park that only a few insiders know about). Even Plunkitt’s honest graft is dishonest today—insider trading is illegal, albeit policed much more vigorously in private markets than in government. But legislators and public officials have contrived subtler, more insidious forms of self-dealing, forms often justified with lofty rhetoric about the public interest. Cost defines corruption quite broadly: “when government agents sacrifice the interests of everybody for the sake of a few,” and when presidents and Congresses “distribute scarce resources in ways that run contrary to the public interest.” This corruption is the antipode of Madisonianism: it is the success of factions in turning government to selfish advantage, overcoming the Constitution’s design and assumptions.
Rampant Corruption Plagues Washington: Why Fannie and Freddie Are Not Completely to Blame for the Credit Crisis
http://www.bu.edu/writingprogram/journal/past-issues/issue-1/acharya/
‘The Big Short’: A Tale of Stupidity, Greed, and Corruption
http://www.huffingtonpost.com/dean-baker/the-big-short-a-tale-of-s_b_8971184.html
In latest development relating to plaintiff between Timothy J. Pagliara and Federal National Mortgage Assctn Fnni Me (OTCMKTS:FNMA)’s Federal Housing Finance Agency (“FHFA”), Peter Chapman writes to Judge sleet transfer Multidistrict Litigation (MDL) to United States District court of Columbia. Earlier on 2nd June’16 the court had declined to transfer MDL motion completely.
http://investcorrectly.com/20160607/valeant-pharmaceuticals-intl-inc-vrx-woes-verizon-vzs-interest-ralph-lauren-corp-rls-comeback-plan/
FINANCIAL CONDITION: EARNINGS
Total Cash on hand sits at $106.42 billion with $1.97T in debt. When a firm has enough cash on hand to cover its debt it is in a much stronger financial position than a company that does not.
http://news.cmlviz.com/2016/06/06/federal-home-loan-mortgage-corporation-x-fmcc-financial-condition-compared-to-s-p-500.html
Banking groups distance themselves from investor-led lobbying effort to recapitalize the GSEs
Two mortgage banking trade groups that support the so-called "recap and release" of Fannie Mae and Freddie Mac say they have not taken money from Wall Street hedge funds that have reportedly bankrolled a lobbying campaign in Washington focused on the same goals of bulking up the agencies' capital reserves and freeing them from government conservatorship.
The Community Mortgage Lenders of America (CMLA) and the Community Home Lenders Association (CHLA) ultimately want the government-sponsored enterprises (GSEs) to play a major role in housing finance after they are reformed, but they are not associated in any way with the investor-driven lobbying effort, the trade group's executive directors told Scotsman Guide News.
“We don’t get any funding at all, have never taken any money from any sort of hedge fund,” said CMLA Executive Director Glen Corso on Friday.
Recent articles in the Huffington Post and the Wall Street Journal reported that hedge funds and investors that bought Fannie and Freddie stock cheap during the downturn have intensified their lobbying efforts. According to a Wall Street Journal report, The Raben Group, a Washington lobbying firm, offered the National Association of Hispanic Real Estate Professionals (NAHREP), $25,000 to sign its name last year to an editorial supporting the recapitalization of the GSEs. NAHREP’s Executive Director Gary Acosta told the Wall Street Journal that the organization turned the offer down.
CHLA Executive Director Scott Olson said he has not been approached by any group associated with Fannie and Freddie’s investors.
“I myself and the staff of CHLA have not talked to the hedge funds or other stock investors, to anyone in that world, in over three years,” Olson said. “I did it three years ago when we were doing Johnson-Crapo [a GSE reform bill] to get their impression, and I have not even talked to anybody in that segment for three years, much less them having any influence on me.”
http://www.scotsmanguide.com/News/2016/06/Banking-groups-distance-themselves-from-investor-led-lobbying-effort-to-recapitalize-the-GSEs/
WASHINGTON, D.C. – (RealEstateRama) — The National Community Reinvestment Coalition applauded a letter from 32 Members of Congress to FHFA Director Mel Watt, and Treasury Secretary Jack Lew, urging them to ensure that Fannie Mae and Freddie Mac are adequately capitalized. NCRC members first introduced and urged Members of Congress to sign on to this letter at the 2016 NCRC Annual Conference Hill Day. NCRC President and CEO John Taylor made the following statement: “We applaud Congressman Mike Capuano for his leadership and the Representatives from across the country for bringing attention to this critical issue, and we applaud the many NCRC members and others who have worked hard to get this issue on the radar of their Members of Congress. We believe this letter provides Director Mel Watt with Congressional support to take action on what he has identified as ‘the most serious risk’ facing the Enterprises — their lack of capital.” “For some time, NCRC has been advocating for the recapitalization of Fannie Mae and Freddie Mac. With their current paper-thin capital buffer, a complete loss of capital at Fannie and Freddie is a real danger. This would be a further detriment to the GSEs’ mission of supporting affordable housing for low- and moderate-income borrowers and securitizing loans for millions of middle class people.” The letter to Director Watt and Secretary Lew can be read here. Earlier this week, NCRC and other groups sent a letter to FHFA Director Mel Watt calling for the recapitalization of the GSEs. Also earlier this week, NCRC President and CEO John Taylor authored a piece for the Urban Institute’s Housing Finance Reform Incubator series. In 2015, NCRC released a white paper calling for the recapitalization and continued reforms of the GSEs and an end to their conservatorship. - See more at: http://www.realestaterama.com/2016/06/06/ncrc-applauds-letter-from-32-members-of-congress-to-fhfa-director-and-treasury-secretary-urging-adequate-capital-at-fannie-and-freddie-ID034513.html#sthash.J02sOEmN.dpuf
http://www.realestaterama.com/2016/06/06/ncrc-applauds-letter-from-32-members-of-congress-to-fhfa-director-and-treasury-secretary-urging-adequate-capital-at-fannie-and-freddie-ID034513.html
JANET YELLEN TO CONGRESS: GET GSE REFORM DONE
While some opponents of GSE reform argue that Fannie and Freddie are turning record profits, Counselor to the Secretary for Housing Finance Policy Director Michael Stegman recently remarked that Fannie and Freddie’s earnings may be “significantly overstate” the true financial status of the enterprises. Significant portions of the earnings are the result of one-time tax reversals, litigation settlements and investment portfolios that are mandated to shrink over time.
http://fsroundtable.org/janet-yellen-to-congress-get-gse-reform-done/
Janet Yellen added the voice of the Federal Reserve to the growing call for Congress to move swiftly to decide the future of Fannie Mae and Freddie Mac.
Yellen told the House Financial Services Committee during a hearing yesterday that it was “very important” for Congress to create a new system that will address the future of government sponsored enterprises, which currently finance more than 90 percent of all residential mortgages in the United States.
“I think we still have a system that has systemic risk, that government funding remains critical to the mortgage sector, and I think to get the housing market back on its feet, it’s important for Congress to put in place a new system and to explicitly decide what the role of the government should be in helping the housing sector.”
http://fsroundtable.org/janet-yellen-to-congress-get-gse-reform-done/
REUTERS REPORT SNAPSHOT : FMCC price $25.00 https://commerce.us.reuters.com/purchase/showReportDetail.do?docid=52665655
Jacobs and King argue that much of the weak recovery for Main Street was the result of the Federal Reserve being too close to banks. Yet the failures of mortgage refinancing and modification programs directly fell on the Treasury Department. There was more than sufficient room to think boldly there, and the Obama administration failed to act on it. The Federal Reserve was able to get 30-year-mortgage interest rates down to very low numbers; if the administration was interested in fixing the housing crisis, the Fed was already there to help.
Yet there’s a very important initiative Jacobs and King point to as a solution to their concerns: the way Canada regulates its banking system. Canada has large, universal banks, banks much larger than ours in terms of GDP. Yet they haven’t had the problems the United States has had, because their banking regulators are independent of their monetary authority. By separating the two, and having the banking regulators much more accountable, we can tame the financial sector.
There’s a lot to be impressed with in this approach. Certainly the Federal Deposit Insurance Corporation has been aggressive in pushing for financial reform, much more than the Federal Reserve in the wake of the passage of the Dodd-Frank Act. Since it is responsible for covering costs of bank failures through its insurance system, the FDIC’s incentives to be a strict regulator are well aligned. Certainly the pre-crisis era also showed that fragmentation of regulators leads to a regulatory race to the bottom and a less coherent regime.
However, we should be careful about terms of accountability. The notion that the Federal Reserve had been “captured” by financial interests before the crisis is a major theme of the book. This argument is important, yet it deserves pushback. Congress and leaders of both political parties had been creating a deregulatory environment for decades before the crisis, pushing for a presumption of deference to the financial sector.
http://prospect.org/article/bankers-bank
(Yellen speaks) in few minutes, Markets will react ...FNMA will go up if interest goes up!
TARP Update; SEC Investigating Deutsche Bank; FDIC Settles; Arizona Attorney Pleads Guilty to Mortgage Fraud
http://www.mortgagenewsdaily.com/channels/pipelinepress/06062016-mortgage-legal-settlements.aspx
Government Suffers A Setback in Fannie and Freddie Litigation
Chalk up a win for the plaintiffs in the legal fight over the profits of Fannie Mae and Freddie Mac.
The U.S. Judicial Panel on Multidistrict Litigation Thursday rejected a request by the Federal Housing Finance Agency to transfer four cases brought in federal courts around the country to a federal court in Washington, D.C.
http://blogs.wsj.com/moneybeat/2016/06/02/government-suffers-a-setback-in-fannie-and-freddie-litigation/
For new investors : http://billmoyers.com/episode/too-big-to-jail/
This Fannie-Freddie resurrection needs to die
The latest iteration of recap and release is a hedge-fund-backed bill sponsored by Rep. Mick Mulvaney (R-S.C.), which would set Fannie and Freddie, unreformed, loose on the marketplace again and do so under terms wildly favorable to the hedge funds. Specifically, shareholders would be charged nothing for the government backing the entities would retain, supposedly to save scarce resources for the capital cushion. But as the Wall Street Journal recently noted, capital could be “risk-weighted” so forgivingly that the actual cushion required might be considerably less than headline numbers suggest. It’s true, as the bill’s backers say, that this could be tweaked in committee, but that would still mean expending precious political time and energy on resurrecting the old, failed business model.
This bad idea’s undeadness illustrates the risks inherent in perpetuating the institutional limbo around the U.S. housing finance system, which is, unfortunately, what Congress and the administration have done so far. Fundamental reform would be a good idea, but you already know what happens to that.
https://www.washingtonpost.com/opinions/this-fannie-freddie-resurrection-needs-to-die/2016/06/03/c8ad5162-282f-11e6-b989-4e5479715b54_story.html
you should wait longer , buy@1$ is better ... lmao
Monday open 20$...warrants ex....!
CORKER: PROBE WON’T HURT ME WITH TRUMP — POLITICO’s John Bresnahan: “Sen. Bob Corker insists that the federal investigation into his personal finances won’t hurt his chances of being tapped as Donald Trump’s vice president — not that he’s angling for the job, anyway. ‘In some ways, you could look at what has happened over the course of the last year — if that was something that was gonna matter — you could almost look at it as a blessing,’ the Tennessee Republican said in an interview, referring to the inquiries by the FBI and [SEC]. ‘From the standpoint of my finances, I will be the most vetted person here.’”
“Federal investigators are looking into possible financial irregularities involving CBL & Associates Properties, Inc., a Chattanooga, Tennessee-based real estate investment trust that owns or manages dozens of shopping centers and malls across the country. Corker has bought and sold millions of dollars in CBL stock since he was elected to the Senate in 2006, but failed to disclose several of those transactions. … Corker has ties to senior CBL officials — some of whom have donated to his election campaigns — and after he graduated from college, worked briefly for a contracting company that did business with CBL. Several of his CBL transactions occurred around the same time that UBS Securities made ratings changes on CBL stock. Corker said he had no inside information” http://politi.co/1Ug1hvu
Read more: http://www.politico.com/tipsheets/morning-money/2016/06/pro-morning-money-214574#ixzz4AMBWyXi2
Follow us: @politico on Twitter | Politico on Facebook
The continued stock-market vitality of housing finance giants Fannie Mae and Freddie Mac has been a puzzle to some. Perhaps none more than Sen. Bob Corker, the Tennessee Republican, who came out on Wednesday calling for investors to make bets that the companies’ shares will fall in value
http://www.marketwatch.com/story/sen-bob-corker-says-investors-should-short-fannie-and-freddie-2015-10-07
The influential federal appeals court overturned a lower court jury verdict that said Countrywide Financial, now owned by Bank of America, and one of its employees committed fraud when they sold toxic mortgages to Fannie Mae and Freddie Mac.
But Judge Richard Wesley, a Bush appointee, writing for a three-judge panel, ruled that when Countrywide substituted toxic subprime mortgages for investment grade mortgages — something Fannie and Freddie specifically forbade — it wasn’t doing so to defraud Uncle Sam.
It was simply a breach of contract, Wesley opined.
The government, at trial, showed the jury that one Countrywide executive, Rebecca Mairone, was told by subordinates that the shoddy mortgages weren’t supposed to be in the packages sold to Fannie and Freddie — but she shoveled the shoddy paper into the securities anyway.
Get this: Judge Wesley ruled that if Countrywide didn’t intend to defraud Fannie and Freddie when it first signed its deal to sell the companies mortgages, then Mairone and her cronies, legally speaking, could never defraud the government-sponsored entities.
Crazy, right?
http://nypost.com/2016/05/25/trump-only-dummies-believe-feds-unemployment-rate-figure/
only Gov.s shares @ 0.001 ...I don't think they could sale it with out Congress approval...too big to jail again!
Signals are trading again?
Rating Action: Moody's assigns definitive ratings to STACR 2016-HQA2
Global Credit Research - 01 Jun 2016
New York, June 01, 2016 -- Moody's Investors Service has assigned definitive ratings to nine classes of notes on STACR 2016-HQA2, a securitization designed to provide credit protection to the Federal Home Loan Mortgage Corporation (Freddie Mac) against the performance of approximately $18.5 billion reference pool of mortgages. All of the Notes in the transaction are direct, unsecured obligations of Freddie Mac and as such investors are exposed to the credit risk of Freddie Mac (currently Aaa Stable).
https://www.moodys.com/research/Moodys-assigns-definitive-ratings-to-STACR-2016-HQA2--PR_349732?WT.mc_id=AMRG93X0pvbmVzX05ld3NSb29tX1NCX1JhdGluZyBOZXdzX0FsbF9Fbmc%3d20160601_PR_349732
Someone traded FNMA 15.08k shares @$0.001 ....signals News after markets close again?
http://www.google.com/finance?q=OTCMKTS%3AFNMA&ei=XSNPV5noLpa-mAHG5IPgCg
Appeals Court Denies Tilton’s Challenge to SEC Case
http://www.wsj.com/articles/appeals-court-denies-tiltons-challenge-to-sec-case-1464797677
JOINT MOTION FOR LEAVE TO FILE JOINT STATUS REPORT OUT OF TIME
The parties respectfully request that the Court grant this joint motion for leave to file the
joint status report due on May 27, 2016 one day out of time. On May 20, 2016, the Court issued
an order construing Defendant’s notice of apparent violation of the protective order effective in
this case as a motion and denying it (Doc. 326). The Court also ordered the parties to file, no
later than May 27, 2016, a joint status report advising whether the Court’s Order should remain
unsealed. Due primarily to the press of other deadlines, the parties inadvertently neglected to file
the joint status report on time. Accordingly, we respectfully request that the Court permit the
parties to file the joint status report, which is attached, on May 31, 2016.
http://gselinks.com/Court_Filings/Fairholme/13-465-0329.pdf
Why a Billionaire Hedge Fund Manager Is Betting Big on Fannie Mae and Freddie Mac
Is it possible that major mortgage reform could end the era of Fannie Mae and Freddie Mac? It's possible, albeit unlikely.
Could the Treasury Department's dividend requirements survive in court? Yes, the common shareholders might lose this battle as well.
And, yes, the government to this day still controls 80% of Fannie and Freddie. With the feds running the show, the rules can change at the drop of a hat and not necessarily in favor of private investors.
But for Bill Ackman and Pershing Square Capital, the upside of owning the two most significant companies in the U.S. mortgage industry is too much to pass up. Consider that the two stocks today trade just below $2.50 per share. Before the financial crisis each traded well above $60 per share. With even a marginal return to normalcy, the upside could be tremendous. Ackman believes that outcome is likely, and he's putting $475 million where his mouth is to back it up.
http://www.fool.com/investing/general/2015/06/25/betting-big-on-fannie-mae-and-freddie-mac.aspx
"FMC and its senior executives abused their privileged access to Ginnie Mae’s securitization program by allowing greed to corrupt their business practices," Andrew Ceresney, director of SEC enforcement, said in a statement. "It is critical that we hold senior management fully accountable for this kind of misconduct, which we were able to accomplish here quickly due to the cooperation of company insiders.”
The managing director of FMC's servicing department, Edward Joseph Sanders, who cooperated with the investigation, agreed to disgorge $51,576.51 plus $6,811.19 in interest, according to the SEC.
The lender stopped originating loans a year ago and began winding down operations, 40 years after it was founded.
The SEC agreement was also with FMC President Clement Ziroli Jr., who will pay more than $500,000 total. Chief Financial Officer Pac W. Dong will pay a $100,000 penalty. The head of the company's capital markets department, Ronald Vargas, will pay $60,000.
(Reporting by Lisa Lambert in Washington and Suzanne Barlyn in New York; Editing by Leslie Adler and Steve Orlofsky)
http://www.reuters.com/article/us-fraud-firstmortgage-idUSKCN0YM2JC
uplisting on NASDAQ woo woo
5$ is coming !
Clear ! Nice blue sky
Cokers friends sell again ...lol
Anyone who wonders why Donald Trump and Bernie Sanders have been so popular in this election cycle needn’t look any further than the unfairness of the justice system since 2007.
The influential federal appeals court overturned a lower court jury verdict that said Countrywide Financial, now owned by Bank of America, and one of its employees committed fraud when they sold toxic mortgages to Fannie Mae and Freddie Mac.
But Judge Richard Wesley, a Bush appointee, writing for a three-judge panel, ruled that when Countrywide substituted toxic subprime mortgages for investment grade mortgages — something Fannie and Freddie specifically forbade — it wasn’t doing so to defraud Uncle Sam.
It was simply a breach of contract, Wesley opined.
The government, at trial, showed the jury that one Countrywide executive, Rebecca Mairone, was told by subordinates that the shoddy mortgages weren’t supposed to be in the packages sold to Fannie and Freddie — but she shoveled the shoddy paper into the securities anyway.
Get this: Judge Wesley ruled that if Countrywide didn’t intend to defraud Fannie and Freddie when it first signed its deal to sell the companies mortgages, then Mairone and her cronies, legally speaking, could never defraud the government-sponsored entities.
http://nypost.com/2016/05/25/trump-only-dummies-believe-feds-unemployment-rate-figure/
Barclays Capital U.S. MBS Index: Measures the performance of investment-grade fixed-rate mortgage-backed pass- through securities of Government National Mortgage Association ("GNMA"), Federal National Mortgage Association ("FNMA") and Freddie Mac ("FHLMC") that have 30-, 20-, 15-year and balloon securities that have a remaining maturity of at least one year, are investment grade and have more than $250 million or more of outstanding face value. In addition, the securities must be denominated in U.S. dollars and must be fixed-rate and non-convertible. The Index is market-capitalization weighted, and the securities in the Index are updated on the last calendar day of each month.
http://seekingalpha.com/article/3977966-opportunistic-investing-case-merger-appraisal-rights
The magical world of Fannie Mae accounting
Fannie Mae converted a huge non-cash profit into a deficit-reducing payment to the Treasury by borrowing the money without having it count as part of the national debt even though taxpayers guarantee it. Too bad we can’t all use that stratagem to pay our own bills.
FORTUNE — Here I am, sitting around in the middle of summer, listening to my air-conditioning system labor and wondering which pot of money to tap for the generator I’ve ordered to provide backup power to my house during the next big storm. And it hits me: I need to think the way the federal government does when it deals with Fannie Mae, the giant “government sponsored enterprise” mortgage finance outfit. You gotta love it. Fannie, which has been in federal conservatorship since 2008, created a paper profit of $50.6 billion during the second quarter of this year. Then it borrowed $50.6 billion in the financial markets and sent that borrowed money to the Treasury on June 28. This ended up reducing the federal budget deficit, as calculated by most people in Washington, despite the fact that the government is on the hook for every penny of the $50.6 billion that Fannie borrowed. What’s more, this money doesn’t show up as part of the national debt. Pretty slick, isn’t it?
The non-partisan Congressional Budget Office, quite properly in my opinion, treats Fannie and Freddie as if they’re owned by the government. Therefore, the CBO doesn’t count money they pay to the Treasury as revenue. It treats it as just a transfer from one part of the government to another.
However, the rest of official Washington considers Fannie’s and Freddie’s payments to the Treasury to be the equivalent of tax revenues, and uses them to reduce the stated budget deficit.
Heaven knows, the payments are certainly cash that the government can use to pay its bills. The big payment from Fannie to the Treasury last month bolstered the Treasury’s cash position, and extended the time we have to resolve the debt-ceiling problem. Not, of course, that it will be resolved in any rational or timely fashion.
MORE: What’s behind Perry Capital’s Fannie & Freddie gambit?
Now, watch. The $50.6 billion non-cash profit that Fannie took offset $50.6 billion of previous non-cash losses. When Fannie was hemorrhaging cash, it seemed that it would never earn enough money to utilize its tax losses. So Fannie, as required by accounting rules, took a $50.6 billion paper loss by declaring that its “deferred tax assets” had no value.
Now, though, Fannie FNMA 4.88% is making record profits, primarily because it and Freddie FMCC 3.50% are about the only game in town when it comes to converting mortgages into mortgage-backed-securities.
So in March, Fannie decided it would likely make enough money to use its tax losses, and reversed the $50.6 billion charge, as required by accounting rules. This created a non-cash profit.
Someday soon, I expect Freddie Mac to produce a non-cash profit of $30 billion or so by reversing the charge it took when it declared its deferred tax assets to be worthless. Then, I’m sure, Freddie will borrow an amount equal to that non-cash profit, send it to the Treasury, and do its bit to help reduce the deficit by using borrowed money without adding to the national debt.
Now, back to my house generator. I’ve tried and tried, but can’t figure out how to create a non-cash profit, borrow an offsetting amount, not have it count as debt, and use it to pay for my generator. So I’m going to have to use actual money that my wife and I have saved, and set aside for capital projects.
Unless, of course, I can move to Washington, and pick up some federal budget accounting skills …
http://fortune.com/2013/07/12/the-magical-world-of-fannie-mae-accounting/?iid=sr-link4
US Government is taking private property , UnConstitutions ....Too big to jail ...Too big to lie !
http://billmoyers.com/episode/too-big-to-jail/
Breaking NEWs ...US Government is taking private property ! UnConstitutions ....Too big to jail ...Too big to lie !
http://billmoyers.com/episode/too-big-to-jail/
Fannie Mae and Freddie Mac Shareholders Just Got Some Good News
http://www.fool.com/investing/general/2015/08/04/fannie-mae-and-freddie-mac-shareholders-just-got-s.aspx