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"Will the shares be locked out tomorroww?"
Not sure, but surely help the mood.
"Why do preferred have to convert to common as part of settlement? Tia"
There are no valid reasons to convert JPS to CS.
Since JPS are non-cumulative, FnF can continue to build their capital with retained earnings without paying any dividends even with NWS canceled. JPS holders have no leverage on getting dividends paid until FnF meet FHFA capital requirements.
Also FnF can buy back JPS at deep discount from markets instead of redeeming at par value. Once FnF are out of conservatorship, FnF management is required to do this as matter of sound business practice.
https://www.fhfa.gov/AboutUs/Reports/ReportDocuments/FHFA-2018-PAR.pdf
Page7:
The Agency operated with a budget of $199.8 millionin fiscal year (FY) 2018, and ended the fiscal year with 600 employees on board. For FY 2019, FHFA’s budget is $208.8 million. FHFA’s Office of Inspector General (OIG) operated with a FY 2018 budget of $49.9 million and ended the fiscal year with 126 employees. The OIG’s FY 2019 budget remains thesame at $49.9 million, million, which supports 155 positions.
--------------------------------------------------
For 2018 the FHFA spent about $250m and for 2019 the budget is $259m.
LOL, FHFA is charging $250m (x 11 years) to FnF/FHLB for stealing $300B from FnF over a period of 11 years. Raise the hands, who wants this job?
"A voluntary delisting at this time simply makes sense and fits with the goal of a conservatorship to preserve and conserve assets," said DeMarco."
LOL, Crooks of highest order.
"This is inaccurate. Legislation has been proposed and even written by lobbyists (ie. Corker/Warner) to do this. However, all failed to pass."
Obi, Thanks,
Yes, no bill has become law. This is as good as failure to get what Financial Establishment wanted to get.
"Sorry but I do not see F and F lending money. The provide liquidity via purchase arrangements that then provides money to the bank. But banks can get cash via equity offerings - borrowing - or selling assets or .."
Donotunderstand,
Loan originators are basically middleman (brokers), they take their fees and wash off the hands. FnF set the standards for the loan and everything is done as per FnF standards.
"It’s a joke, they sweep all profits then say ok we now have to screw u again by showing court our pitiful attempt of recap instead of giving stolen profits back.
"
The problem is, it is taxpayers, FnF and FnF shareholders who are paying the price for continued conservatorship and Financial establishment is merrily playing the games with all.
Financial establishment used the Gov to rob FnF capital and now Financial establishment wants to help Gov to recapitalize FnF.
" In other words, the inaction of the legislature over the years is due to their confusion and conflict about what to do. "
Obi,
Thanks, In some way this is true.
This means that lawmakers and administration do not see any better alternatives than the FnF working mode. It is easy for Congress and Administration to settle for incremental reforms.
Even after 11 years of vicious conservatorship and many decades of lobbying, Financial establishment has failed to convince the Congress to cancel GSE charters and provide explicit Gov guarantees to PLMBS.
"yes
F and F own the loans - but they never LEND that money
F and F are not lenders"
LOL, Big distinction without any difference.
FnF business model is to buy the loans and sell MBS to promote affordable housing loans. Banks originate loans to sell to FnF.
"TBTF banks want equal access to GOV explicit guarantee on their paper - their private MBS - PLMBS"
Are you out of your mind? Currently who is getting GOV explicit guarantees?
"FHFA Contractor/Financial ADVISOR- (complete JOB Description):
"
Once again drag and delay tactics. Once again this is invitation to wall street crooks.
Recapitalization is the responsibility of FnF and not of UST and FHFA. FHFA needs to end conservatorship immediately and let FnF manage their corporate tasks.
"FnF loans ? do you mean the underlying bank loans?"
Donotunderstand,
FnF own the loan assets after buying from originators. After this originators have nothing much to do with loans.
Not sure whether SLM were like FnF or GNMA. But it makes no difference.
"As the Treasury plan states, this is done to increase competition in the secondary mortgage market."
Obi, Thanks,
Financial establishment is working very hard to get Gov explicit guarantees for private MBS using every possible trick. This is the main reason for continued Conservatorship. FHFA Conservatorship has violated every possible law but still all three branches Gov and media have done nothing much to end this lawless conservatorship.
There is no way any one can trust financial establishment (Wall street bankers, traders, MBA and think tank lobbyists). When was the last time the financial establishment ever promoted competition to make things better for common people? This is how financial establishment has fooled the people all along.
One can clearly see what happened when the financial establishment was freed from the Glass-Steagall Act. Within few years, financial establishment created worst financial crisis (2008) of the century through dishonest and fraudulent profiteering. Also one has to look at how the financial establishment has used its iron grip on Gov, to destroy the competition though lawless FHFA conservatorship.
GSEs were started decades back to help common people to own homes and escape from the clutches of loan sharks and evil landlords. There is no way competition is going to substitute Gov affordable housing policies.
Most lawmakers know these facts, and there is no support for removing the GSE charters. Also there is no way lawmakers will approve Gov explicit guarantees for private MBS. This is the lesson all have to learn from 11 years of lawless conservatorship.
"Privatization of the Housing GSEs"
Obi,
FnF and SLM are fundamentally different in many aspects.
FnF loans are based on Physical properties whose prices varies over a period of time. In case of SLM there is no such thing to compare even though repayment depends on good employment market in both the cases.
Home owners can wipe out their loans through bankruptcy but not students.
FnF end consumers are much diverse and much more in numbers compared to SLM market. FnF consumers need to have good credit history but students have hardly any credit history.
So applying SLM real privatization experience may be simplifying to much to apply to FnF.
"Yes, two or more cases can be consolidated/combined and heard by SCOTUS (Rule 27.3)."
Obi,
Thanks, If SCOTUS opts for consolidated hearing then, resolution would be far quicker.
"Compare Questions Presented to SCOTUS:"
Obi,
Can SCOTUS combine all these law suits and hear them together?
"My recollection is that he posted a couple times that he would sell if the stock reached a certain level. I suppose he did"
He had posted saying that he sold FnF at low PPS.
"Therapies !!"
LOL, yes realist needed Therapies. Hope it helps him.
"Relax, LET IT RIDE boys and girls and freaks."
There are no posts from realist about polar express.
Does any one know what happened to realist?
FnF are safe irrespective of who is potus or who is in majority in House and Senate.
" As of now what is preventing FHFA to end conservatorship?
Treasury and FHFA."
So basically Treasury and FHFA are the road blocks for ending conservatorship.
Now some one needs to ask MC and SM on why conservatorship is necessary to continue once decision has been taken to end it.
FnF are no longer under obama wind down. So FHFA conservatorship has no role to play.
"Capital Requirements met "before" 2020 election ? - RELEASE ?"
$6B retained capital + $25B excess payment to UST + 5B 2nd qtr profit + 10B 4th and 5th qtr profits -> $46B by end of Dec 2019.
"I don’t think people appreciate how difficult it would be for us to do a re-IPO or secondary offering. Last years total IPO market was $30B. Largest single IPO for a company was Alibaba at $25B in 2014. And everyone thought that was a lot of money. After 4 years of retained earnings our re-IPO would be $75B. Still a massive amount of money. Even with a staged IPO spread over a few years that is a lot of money to raise."
RickNagra,
FnF do not need capital more than $30B, double the maximum loss in a severe crisis. FnF have already that much capital.
It is time to end lawless conservatorship and end control of loans sharks on conservatorship. After ending conservatorship, FnF can continue to build fortress capital using retained earnings.
It is time to end conservatorship NOW.
"If you look on the bottom of my post it says " Tim Howard" and today's date. You will have to take it up with him on his blog. Personally I trust him more then any poster including myself on any FNMA matters. https://howardonmortgagefinance.com/ Here is a link for you. Enjoy"
I have posted the URL for SPSPA and SPS. Please take a look.