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Barron. Robert and Clarence are both on here and are both very good resources to tap! That is if they don't mind. There's also Brandon (sp?) Fisher, who has his own suit going, so not sure if he could help or not??? He would be an excellent source since he's been through the ringer with courts.
As a poster stated... Many on here would be interested in helping, joining, financing. Possibly others on Twitter also.
I'm not sure who gets in, in 2024, but I am hoping they expose EVERYTHING, EVERYTHING!, so that these clown posse judges and administrations are called out in public to the max. Bush deceivership, Obama hidden docs NWS, Trumps two idiots Calabria and Mnuchin and their agreement letter, plus outrageous capital and hidden stress tests..., I hope someone gets the bawls to put all of these idiots terrible decisions in the publics faces, that would especially include these judges and their criminal interpretations of words. There's got to be a full disclosure to resolve this, in my mind, because there's been nothing but dodge, weave and cover going on, to the extent that nothing is getting done because the web has been weaved complicated beyond belief by all the idiots involved, so far. Truth eventually....hopefully, gets us free.
Well...with the powerball exactly the same thing happens almost. Government(s) take like 50-60% of your winnings. GSE's it's100%. Notice anything similar between the two?
Banning to one post and silencing based on one persons view is never a good procedure to follow. There should be more than one persons opinion and decision before someone is muzzled, expressly there should be a vote on the board by actual posters whether an individual should be silenced or curtailed. A single moderator or administrator CAN have a very biased opinion themselves (which is never even considered on this board), therefore affecting the important free flow of information and fairness.
Someone complaining about a poster to admin may be the one who is the problem! Let the board posters decide. Are we democratic or are we not? Allowing only one person or those not completely submersed in the daily chats to act as a supreme dictator and judge is akin to living the 1984 saga.
The minute an administrative release is attempted, congress will spit out laws to prevent it. Trump/Mnuchin/Catman knew this, and is why they only beated a drum, then retreated just before the election, but made sure to spin the web ever messier.
This has to be a priority of whoever the next president is, and they will need the Congress in their court, so if a republican president, then a majority republican congress is a must. The Senate, if the same can be worked by the next president. Buyoff a few dem senators with the housing reform they istitute, if not enough of a republican majority.
The current administration is DOA on this, if they move on it at all, quick definite retaliation will be the result. Possibly another SCOTUS suit! Yes! Let's hope for that. Best case would be to pit the current administration against the current congress, in front of SCOTUS with CONservatorship front and center, and in the headlines! That would be great for us captives.
JPS keep losing the legal challenges because of THEIR attached remedies. The judges will never rule for what they are asking because it assumes the judicial branch can step in and delegate to the government/FHFA/treasury/Congress how to usurp capital to make JPS holders rich! NEVER going to happen.
The Congress, Treasury and the FHFA director are very much like those three monkey's you see, one with its eyes covered, one with its mouth covered and one with its ears plugged. But...instead of hear no evil, speak no evil, see no evil, it's more apropriate to say they hear no reasonable common sense, speak no reasonable common sense, or see no reasonable common sense. Jmho.
Contract claims mean jack squat in conservatorship! What is it that JPS holders do not understand about the term "FHFA conservator assumes all shareholders rights?" It does not say ONLY commons rights. They own the majority of preferreds (seniors) and commons, if warrants are exercised, therefore they can do to the JPS holders whatever they want.
The one lawsuit both share classes should have done was go after the old BOD who allowed this catastrophe. Put them under oath and let them finger, call out the governments lies and theft.
Their leadership team could be veryy well quickly replaced if real shareholders have their say and the GSE's are not wholey owned subsidiaries of the government at release. No true shareholder here (I think), wants a bunch of hand selected government stooges running our companies.
If government ends up the primary apex voter on all things GSE after release then pref's and ommons will definitely get screwed on a dividend longer term.
But, but, but, but Sandra?...but, but, but but, cram down?.....but, but, but wolf! Wolf! Wolf!
lol, ha ha ha. Well, I guess another useless prediction to be chalked up.
There in lies the biggest legal problems! The boards where FORCED into agreeing to CONservatorship, and the CONservatorship they signed on for is nothing like what is in force today because of rogue, unaccountable government hitmen doing things like NWS and amendments to HERA which is a specific congressional duty to make and change laws.
It does not say anything in the constitution about people appointed by government (congress) being able to make laws or rules on the fly that affect a very large or even small number of us. This is why we elect our lawmakers. The courts have put themselves in a catch22 by not protecting those that they need to from government over reach, thereby ceding their own powers to the other two branches and muddying the hell out of existing law (constitution).
If you read through the actual charter, FHFA the treasury and the government have blown many parts of it to hell. Quite possibly why treasury and FHFA keep pointing to Congress to fix the charters, but I would guess that will never happen. Much smarter and non-partisan law makers long ago made that charter. We have far too many idiots now, proof is in the FHFA HERA law and the many inept FHFA heads that have been appointed.
The charter never foresaw a rogue government situation, or the level of dysfunction we currently have in all three branches.
https://www.google.com/url?sa=t&source=web&rct=j&url=https://www.fhfa.gov/SupervisionRegulation/FannieMaeandFreddieMac/Documents/Fannie_Mae_charter_Act_N508.pdf&ved=2ahUKEwiohMjVuKP_AhUFuYkEHdNRCCYQFnoECAgQAQ&usg=AOvVaw0svFX1HAXkSGi_-VyfDjYW
Robert, will you be able to give us any play by play on the next Lamberth trial? Your last tour of duty as an FNMA/FMCC court reporter was much appreciated! You gave great, clear, concise feedback on the court goings on. I know it's got to be time consuming, a lot to ask, and quite a bit of work for you to do that, but hoping you'll be able to once again. This shareholder appreciated the hell out of the info last time, FYI.
10 hours after giving 5k shares to all the congress and Senate members, this would be fixed with a stellar outcome. The whole protecting taxpayers is a bunch of garbage. If they truly wanted to protect taxpayer money they would not have us where we are now! In hock up to our eyeballs. They're all FOS!
Concerning the Lamberth second trial....has anyone received a NEW class action flyer yet? I am also trying to find out if indeed a new class action flyer needs to materialize since first trial failed as a deadlock and now a new one. My thought process is since the first trial deadlocked and new information was revealed, then a new flyer requiring a new decision for stake holders on becoming part of the class or not, would be required.
Does anyone know the exact legal procedure affecting this? I've been trying to find out without success. I would think since the original trial was voided, then the original class flyer would be voided and in need of updated information, so resubmitted to the shareholders to make a new choice.
Anyone knowing about this please feel free to respond! Thanks
If government truly wanted to protect taxpayers, the majority of them would commit hari-kari voluntarily.
Read on a public board: how to resolve our debt and deficit, every time a politician lies, charge them 10k. A guy worked out the numbers! We'd be debt free in two years.
Sooo... how many companies in conservatorship, taken over by government illegally, have you restructured in your many, many years of consevatorship restructuring experience?
Seeking Alpha articles, kite flying, and skateboarding don't count as conservatorship experience. Sorry.
Fannie runs! Lmao. Lol you been chugging that Mexican agua?
In the many years that I have been investing, Buffet leaves those who follow him holding the bag! Those in Berkshire do well from his crooked antics, but not the lemming followers. He loves buying up preffereds mostly, but usually a sweetheart pref concocted to his uber benefit. When he does this, somehow it gets leaked to many business news outlets (wonder how?), thereby increasing share price (which he also buys up), then once enough lemmings come in and drive it up, he bails from the regular shares pulls the rug out), but either hangs onto or sells part of his pref shares, depending on his arrangement and or special pref dividend that he swindles. He's a crook who depends on special pref arrangements and the lemmings who continually follow him outside of his fund tgat buy commons, which he loves burning via an insider type trading scheme. It's amazing he's never been reported to the SEC, but he's in bed with government 9 times out of 10. This is why he beats the market. He rigs his purchases with his reputation, the more he makes playing his game, the bigger his rep gets.
Be careful what you wish for with Buffett, he has no qualms about screwing all shareholders at tge benefit of himself and his fund. He could basically, right now, buy up all the commons and JPS for probably less than 3 billion, a small pittance of the cash he's sitting on. And....yes end up with much higher JPS and common price just by doing that. He invested heavily in the GSE's many years ago, but was dealing with an unfavorable administration at the time, so he bailed because he couldn't pull the rug out from under like he wanted to, or get the sweetheart deal on prefs.
Correction, conservatorship, not a restructure. Restructure happens during bankruptcy, which we are not. Consevatorship requires a reorginization. See the definition below:
However, 'restructuring' indicates changing the structure of something completely. It is based on long-term goals. Basic and essential changes are made to the whole structure of something, whereas, 'reorganization' refers to small but important changes to something with the goal of improvement.
I think the original meaning of the acronym NWS was Nationalization While Stealing. The accepted definition net worth sweep was probably meant to cover up and obfuscate the truth, as always.
Is that why JPS are getting their dividends? Back dividends? You guys are so lost. I guess they can cherry pick apart your contract claims based on what you guys say? Lol, ha ha ha
If your contract is any good, then why no dividends?
Aaking courts to remedy with a conversion, cram down or any other flavor of the day is nonsense, and is why the JPS cases will fail. The courts in no way are going to involve themselves in determining the conservatorship OUTCOME and which share class wins, by putting the government at a disadvantage in how they manage it. It's a wet dream on JPS holders parts! The proper legal challenge is not an outcome by "share manipulation" , but a direct challenge of all shareholders ownership of the company, so any award falls to the companies bottom lines, derivative, expediting a release. But JPS can keep believing that their greed approach is going to work when government has stated numerous times about the hedge funds and their plans. You guys think that greed is good credo works...maybe IN the free market, but NOT in a conservatorship.
Stay grounded...still not said by anyone who ACTUALLY makes the decison.
More fluff to create tiny gains for the big money manipulating.
I don't think any analyst would be first to break a major thing like a dividend continuation. That definitely would need to come from government with a grand explanation
Sandra pissing off not just the mortgage bankers but people applying for mortgages too. Now we all know what to do to get a cheaper mortgage. Miss a payment so your credit score gets trashed, plummets, so you can save a bundle on your mortgage rate. Subsidizing is socialism, socialism you run out of others money, or they find other more fair ways. This is all the Biden administration is tasking ST to do, she's not doing jack for release. ST is to find ways to subsidize those who don't qualify by punishing those who do. Probably going to work like a 2008 greatest hits!
https://nypost.com/2023/04/16/how-the-us-is-subsidizing-high-risk-homebuyers-at-the-cost-of-those-with-good-credit/amp/
So all those suits want conversion before ot after release? Before or after non cancelation or cancelation of seniors? Brfore or after exercise of warrants? Before or after government converts their seniors to commons? Lmao. You guys keep pushing this conversion nonsense, so okay,... let's say they offer the jps crowd twice what their shares are currently worth than convert to commons. Rough example, one jps worth $1.50 now goes to $3 and then $3 converts to common at 0.40 some cents. Or are you saying those suits get to dictate converting at full par, like bradford wants, when they're no where near par because not released, no rights? Lmao. Oooh oooh wait a minute, I get it, you jps guys get to dictate through the courts how the capital raise, conversion and conservatorship ends by the courts dropping everything into the jps holders hands. Another lmao.
NO court is going to enforce on government anything concerning share conversions, creations, cancelling, dillutions, not-a, period. It is not any courts job to determine how government treats shareholders coversions or anything else that affects GSE equuty/capital and the conservatorship outcome. These suits asking for a conversion remedy are a disaster, won't happen. Courts will shoot down because government will say the GSE's ARE IN CONSERVATORSHIP and anything affecting capital will not be used to appease any law suit, because any shares and their worth will be TBD at release or when government decides what it's next step is.
Trying to convince people here to convert to jps just because a couple suits ASK for a conversion is just wrong. Anyone thinking about this logically realizes the courts will absolutely stay in their own lane! Conversions are the governments lane while the companies are under them because, and let me state this loudly, THE GOVERNMENT HAS ASSUMED ALL SHAREHOLDERS RIGHTS. not very smart at all to think a law suit is going to bring a jps conversion windfall, it's even more remote than Bradfords jps conversion windfall by Biden, and man, thats as remote as the middle of the Gobi desert.
Buy out and full nationalization is an option, to create a utility or to re-ipo.
It is among a handful or more options the government has in this. They are not cornered by jps as some here believe. Those who think the government will windfall those hedge funds a cash ticker tape parade fail to recognize the animosity towards that by most of congress. If anything has been taught on this, it's that government has not been consistent through many bail outs (AIG, GM, Chrysler, Savings and loan), including this last bank one which you would also need to include FTX, and also government is neither consistent at creating and interpretations of law. The social experiment is a failed work in process!
At some point the majority in government will recognize the experiment as a failure and will see the need to follow constitution & laws and do the right thing to hasten further erosion of investor faith in markets, and more importantly, the countries severely lacking faith in government.
It would seem the GSE's are the only bipartisan game in town! No matter who you try to push or nudge in government, media they ALL ignore the facts and isuues. Why is this? Why has now 4 administrations marched along and done nothing but lip service at best, but some have actually made the situation far worse?
Maybe all legislation should be attached to the GSE debacle, and then maybe things will get done for taxpayers. It's beyond suspicious and anyone's scrutiny of this easily recognizes that no matter where you turn in the government microcosm you find zero help. So why is this a locked up bipartisan issue? My guess...There's an agreement between the parties for having a lid kept on it, just like news on the GSE's has had a lid kept on it for years along with the stock price. I bet there's a fairly good size crew in the basement of the fhfa that only monitors everything GSE. News, emails to government people, courts, you name it, but not anything mortgage wise. I fully believe this is happening, too many coincidental things and people who were vocal but are no more. The surveillance state is alive and well concerning everything GSE! It's been proven with the FBI, Twitter, etc so what's to say it's not here?
I've always contemplated what would happen if a suit was structured to push for full nationalization by forcing them to recognize those trillions on the nations debt. How would you describe standing to bring this suit? Since the GSE'S shareholders have no rights recognizable by any court so far, the only way to do it would be via/through the companies like a few of the other suits have done. Sue the government into fully nationalizing and assuming the debt, for the companies, to unlock the twins from conservatorship and over bearing financial risk due too the conservator.
Would it work? Or backfire?
On the one hand you pigeon hole the government into nationalizing 2 american companies and it getting media exposure, which would not look good at all, especially now with these banking and FTX failures. Then also there's the risk they won't care and would gladly do it. It might give them an unforeseen way out of the mess they created. There's always the rule of unintended consequences.
With the current messy situation though, this is a good time to strategically attack using a tactic like this....
There's the fallacy in your view " the only way they can put the screws to JPS is in receivership", there's a hundred ways for them to screw JPS, thinking otherwise is naieve. Every one of those JPS certificates of designation are suspended as of 2008. You only need to see the current price of JPS to understand that. In that designation certificates it gives government ways to screw the JPS, the government lawyers are way smarter than a blogger on Seeking Alpha and the courts have proven the blogger wrong numerous tines AND they work with the government! So what makes you think they can't or won't take the JPS holders, who are primarily hedge funds, out behind the wood shed before this is done?
If government does a utility, you better read that certificate again. It has a clause in there pertaining to JPS if any merger, or new company (see below). That would allow them to issue new preffered and facilitate a trade for the JPS. So if they wanted to screw JPS, the scenario wished upon common could very well happen to them, lol 25-50 JPS for 1 pref share of the new utility.
(d) Neither the sale, lease or exchange (for cash, shares of stock, securities or other consideration) of
all or substantially all of the property and assets of Fannie Mae, nor the merger, consolidation or combination of
Fannie Mae into or with any other corporation or the merger, consolidation or combination of any other corporation
or entity into or with Fannie Mae, shall be deemed to be a dissolution, liquidation or winding up, voluntary or
involuntary, for the purposes of this Section 4.
Happy coincidence? I doubt it. Myopolis gets seated again in a crisis bank, more NWS coming for treasury coffers?
https://www.reuters.com/business/finance/us-fdic-corp-transfers-svb-deposits-new-bridge-bank-2023-03-13/
https://www.reuters.com/business/finance/us-fdic-corp-transfers-svb-deposits-new-bridge-bank-2023-03-13/
Are you watching this SVB silicone valley bank? Where's the FHFA saying conservatorship, and we will NWS this bank? Could it be too many rich liberal silicone valley venture capitalists are affected, so the government will bail them out instead?
Those last 3 words I've been saying for many years! It is what this CONsevatorship boils down too.
Please keep us posted on any suit you decide to follow through with. Some of us on here may be interested in joining, helping, or other support.
Clarencebeaks21, yours (and a few others) is the only legal analysis I care to listen to on here since you approach this unbiased. I have a question regarding best case scenario.
If the student loan forgiveness is shot down as over reach (as it should be), and the CFPB is found to be unconstitutionally funded, how do you see GSE litigation being affected and would these other two court decisions affect some of the cases that were denied?
I believe as others on here do, that the judicial has dug itself a hole, and is losing any credibility by backing this administrative state nightmare that some are pushing for lately. It would seem SCOTUS keeps backing itself further and further in a corner everytime it defends administrative government actions. Im curious as to how it would pan out for us if SCOTUS finally grows a pair and does what is needed instead of being political.
No it's not. We went into this with NO ONE being treated special, both shares classes crapped on. We come out tye other end the same. Look at your share price! If you think the skies the limit why is your JPS not at par or par plus? Mr. Market telling you that you are stuck in a rut, just like commons. BUT, when release news does start to be leaked, commons will definitely defy their gravity suit. Because value is in the increased price speculation. This is not how JPS (preffereds operate) , they are based on income, dividends,mwith that being cut indefinitely, there's a whole lot less value to invest for. All need to understand is the basic concepts on why people buy commons and why people buy Prefs. It's real simple.
Prefs had zero advantages going into this, so did commons, and that is how we come out. There is no definite reason or advantage to converting anyone.
The REAL PROBLEM Robert is these rogue agencies become a one party good'ol boys club when they start handing out jobs to one parties friends& cronies, and the elite party backers from the different business sectors and universities. We end up with what we have now with FHFA, an organization that is pushing the agenda and beliefs of only one part of our society and not doing the right thing for all. An FHFA board made up of equal parts of party representation makes way more sense (Republican, Democrat, Libertarian and Independent). Having it so each and every administration walking through the doors every four years changing everything, does a service to nobody. Its one step forward and two steps back every new administration with FHFA since the head can be fired, and you know once the party preferred FHFA head is installed, then there's a top down shake up of people being fired, replaced, etc. Then new policies get implemented that go against the past administrations 4 years. It makes zero sense having a head hancho at FHFA or CFPB. Its counter productive for tax payers. Mixed boards would be much better decision makers and far less turn over to lower ranks after administration swaps. The inherent and apparent bias that the FHFA and CFPB instills is reason enough to change their structures from a single head to a multi head board.
Was not the FHFA head position found unconstitutional? Why is there still a single director position? Why has congress not corrected what the courts pointed out!
Now that sounds like a plan! It's too logical and fair, the government will probably not like it.
Good news for your brokerage account! Lol A little something good about tge 5th circuit at the bottom of this article. Hopefully they are AGAINST ALL OVER REACH.
https://www.foxnews.com/opinion/bidens-sec-is-coming-your-investment-account
Tim's pretty good at slap downs too! Ya gotta love this one from his blog, see the two comments below, guess who the first guy is?...
Fanniegate Hero (@DoNotLose)
FEBRUARY 1, 2023 AT 9:59 AM
[Edited] Fannie Mae and Freddie Mac now have no pending litigation preventing the conversion of the [Treasury senior preferred] to common and exercising the warrants. The government can do this and move forward with recapitalization and release where JPS [junior preferred stock] dividends turn on to settle their pending litigation or convert to common. No pending legal challenges would object to this outcome.
Sorry that the judges did not stand up for your rights, but there is still a path forward. Biden admin can lock in its perspective on housing finance reform and allocate the proceeds that the Trump admin unlocked when it stopped the sweep (began retaining earnings).
Common have no security as there is no pending litigation against the net worth sweep anymore.
Reply
jtimothyhoward
FEBRUARY 1, 2023 AT 12:06 PM
I have accepted this comment (which required approval) in order to emphasize an important point about “Howard on Mortgage Finance”.
I began the blog seven years ago tomorrow, with the goal of providing a source of factual information and fact-based analysis about Fannie, Freddie and secondary mortgage market finance that I’d hoped might improve the prospects for the companies to be released from conservatorship in a way that maximized their value to their key stakeholders—homebuyers, shareholders, and the government.
I recognize, however, that some readers of this blog seem to have just one objective: to make money on their investments in the companies’ common or junior preferred shares. And it’s not difficult to identify the comments of those readers: they predict or advocate for actions that (conveniently) will produce the investment result they seek, but give little or no analysis as to why those actions are in the best interest of Fannie and Freddie’s other stakeholders (the government and homebuyers), or are likely to be taken.
In the past I have consistently deleted those comments, and I’ll continue to do so in the future. There are other forums in which people can “talk their book,” and try to convince other investors to agree with them. This is not the site for that.
And I’ll reiterate that there are no “taboo topics” for this site, including the conversion of Treasury’s senior preferred to common stock. If someone is able to present a cogent and credible argument for how and why such a conversion could help the administration achieve a defined and plausible resolution of Fannie and Freddie’s conservatorships, I’ll accept that comment, and probably respond to it. But I’ll also still reserve the right to delete (or not approve) comments that I believe have embedded misconceptions or misstatements of fact, and thus would not be of value to the broader reader base
Navy, could you please post the full lower portion that talks about receivership and transfer to new entity, please. Much thanks for this and all your other posted info in advance!
This is spiking my curosity! The whole first part under the receivership topic you could apply to our bankrupt government. The topic goes into a new entity though which I don't know how they'd be able to swindle assets to a new entity over one bad quarter, if it happened, when FNMA has been profitable for years. But it sounds like they can set us up for a catch 22 anytime they want, which I would hope puts them in court for extortion.
Extortion is the wrongful use of actual or threatened force, violence, or intimidation to gain money or property from an individual or entity. Extortion generally involves a threat being made to the victim's person or property,
The receivership section seems to be pointing to a new entity transfer of assets but ends abruptly where your capture ended.
Notice how that says zip about JPS? Could it be capital stack matters about as much as discarded excrement to the government and the companies? Most likely, lol. It's a major dream at this point to think these mafia like government azz clowns are going to do anything for any shareholder. I think that has been plan #1 agreement by the insiders on this.
He who makes the rules wins. JPS are not making any rules, BUT courts sure are! And they're making up stuff most no one involved with this could have foreseen. JPS contract is doing nothing but holding there place until they get back to value and dividends (not anytime soon). No dividends, conversions, or anything else until release, recap, relist.