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Bethany McLean on CNBC. covering Chesapeake.
Thank you for the info stock analyze! I'm going to try and attend the event.
Yikes, Starmocity, I remember RBS giving the same warning in the spring of '08. It was enough for me to move out of stocks for a while. I thought I was such a genius, except I got back in again too early, in October instead of spring of '09, like Buffett.
I'll still be buying Fnma, Fmcc here though, crazy cheap right now!
Thank you patrick821, nice job!
Hopefully, we'll continue the conversation. It might be in the Cayman Islands, but we'll make it work. :)
True, I don't think he lost any sleep. Although, he might wake up, thinking what the heck was that about? :) Then fall back asleep. At least I can verify that he has heard from the "common folk." We never get a response to our emails. They're still worthwhile, but I prefer face to face.
Kudos to the company, Galvanize, that provided the meeting spot. They have a really nice set up there. It was a beautiful Colorado day, big glass windows, free coffee, water, beer on tap. I'll be working on seeing if we can get him back to that spot for further discussion! They also have wine on the first floor for you Lumpina, a lovely Chardonnay, Gruner Veltiner, Nero D'Avola and a Pinot Noir.
It was interesting Rk3. I don't think he was expecting it.
And their money they invest in the MyRa goes into t bills. So, really, the public should be aware that they are supporting whatever the current government expenses are, which were voted on by congress.
I'm not sure people really get that part. No one asked any questions about transparency, accountability today. They were all very ra ra MyRa. How should I get my employees to sign up? Can I sign one up for my kid?
Unfortunately, Fannie, Freddie don't have a choice. All profits are sent in perpetuity to the Treasury. That money then covers government expenses. It's not even earmarked for future bailouts, etc.
I'm sure the gov is thrilled about the new MyRa. It can potentially be a lot of money for them. No wonder they are having roadshows. :)
I shook hands and asked him personally, what kind of transparency will be involved with MyRa? How will we know how our money is being managed? He said it'll be in Treasury bills. I said for instance the Treasury just took another $2.2 billion of Fannie, Freddie profits a few days ago. That money is not being earmarked for Fannie, Freddie, etc. He started to run when I said F and F. :). He said MyRa will be in Treasury bills, and looked at me like, why would you be concerned about that?
Lew is taking questions after presentation.
Lew looked straight at me. I got off on the wrong floor, oops! I didn't think he'd even be here yet. :)
If you can't beat 'em, join them! Might as well head for the Cayman, put it on Lew's tab.
I agree Rocco. That seems to be the plan.
And moves to the Cayman Islands...
"During his first presidential campaign, U.S. President Barack Obama referred to Ugland House, raising questions over the number of companies with a registered office in the building."[2][3]
President Obama subsequently nominated Jack Lew to Treasury Secretary in 2013, despite objections that Mr. Lew had invested heavily in funds in Ugland House while he worked as an investment banker at Citigroup during the 2008 financial meltdown, with President Obama stating that he was not concerned about Mr. Lew's past financial transactions.[4]
In 2008, the United States Government Accountability Office, an independent body of the U.S. Congress, investigated the nature of entities registered in the Cayman Islands and at Ugland House.[5] The investigation involved reviews of documentation as well as interviews with officials from the Internal Revenue Service, Securities and Exchange Commission, the Department of the Treasury, the Department of Justice, the Overseas Private Investment Corporation, and the Export-Import Bank of the United States.
The GAO found that only 5% of the entities with a registered office address at Ugland House are wholly owned by U.S. persons. Also, the GAO validated the reasons why the Cayman Islands has become a popular jurisdiction for international finance and business, including the country’s reputation "as having a stable and internationally compliant legal and regulatory system." In an interview with the GAO, representatives from the U.S. Internal Revenue Service (IRS) cited "the Cayman Islands’ reputation for regulatory sophistication" and "legal protections for creditors and investors" as factors that might attract legal financial activity.
In addition, the GAO report explained how U.S. government trade promotion agencies use the Cayman Islands and entities registered at Ugland House. The Export-Import Bank told the GAO that it has used the Cayman Islands to support the sale of aircraft manufactured in the United States. Between 2003 and the time of the GAO investigation, the Export-Import Bank had been involved in supporting 42 aircraft financing deals in the Cayman Islands. Also, officials from the Overseas Private Investment Corporation (OPIC), another U.S. government agency, told the GAO that "one-third to half of private-equity funds in which it has invested have been organized in the Cayman Islands." OPIC officials also said that "foreign investors in private-equity funds that they are involved with value the Cayman Islands' reputation for legal neutrality towards investors from different jurisdictions."
The Cayman Islands have worked to promote governance and regulation and have over the years collaborated with governments in the major economies to introduce tax information agreements such as FATCA[6] and co-operation agreements with securities regulators, aimed at promoting a transparent legal regime for global business."
https://en.m.wikipedia.org/wiki/Ugland_House
Still have to get through Jack Lew, a master of the revolving door himself.
"In June 2006, Lew was named chief operating officer of Citigroup's Alternative Investments unit, a proprietary trading group. The unit he oversaw invested in a hedge fund "that bet on the housing market to collapse."[22] During his work at Citigroup, Lew had invested heavily in funds in Ugland House while he worked as an investment banker at Citigroup during the 2008 financial meltdown."
Ugland House is a building located in George Town, Cayman Islands. Located on South Church Street, the building is the registered office address for 18,857 entities, including many major investment funds, international joint ventures and capital market issuers."
https://en.m.wikipedia.org/wiki/Jack_Lew
Wow, interesting how they're calling on three at once to be investigated. Someone will probably crack under pressure, spill the beans!
That case started July 2013. He ruled September 2014.
Mikoli007, I'll do my best with the news crew! :) If called upon at the meeting, I'd like to ask how we're supposed to trust the UST with MyRa funds after their track record with Fannie, Freddie net profits. If you have any questions you'd like me to throw out there, lmk. Thanks!
And now they want us to get our employees to sign up for MyRa, more money to the Treasury.
Denver is my hometown. He'll be here tomorrow for a town hall meeting. I was just passing on info for other Denverites. Take it or leave it.
You're right Cockster, Lew has nothing to do with Fannie, Freddie.
Secretary Lew to Travel to Mountain View, California and Denver, Colorado
12/31/2015
WASHINGTON - On January 4, 2016, Secretary Lew will be in Mountain View, CA to meet with community and business leaders to discuss the state of the U.S. economy and highlight initiatives aimed at spurring innovation and supporting financial inclusion.
While in Mountain View, the Secretary will participate in a policy forum on innovation with Congresswoman Anna Eshoo. The event will include remarks from Democratic Leader Nancy Pelosi, followed by a moderated Q&A with Congresswoman Eshoo and Secretary Lew on innovation policies that will drive American progress into the 21st century.
On January 5, 2016, Secretary Lew will be in Denver, CO to meet with senior government officials and community leaders to highlight initiatives supporting financial inclusion.
While in Denver, the Secretary and Denver Deputy Mayor and Chief Financial Officer Cary Kennedy will hold a town hall meeting for members of Denver’s small business and non-profit communities on the importance of financial inclusion and myRA.
Press Logistics:
January 4, 2016
2:00 PM PST
Secretary Jacob J. Lew
Moderated conversation on innovation policy
Computer History Museum
1401 North Shoreline Blvd.
Mountain View, California
January 5, 2016
2:15 PM MST
Secretary Jacob J. Lew
Town hall forum on myRA
Galvanize – Platte
1644 Platte St.
Denver, CO
Credentialed media who plan to attend the event, please RSVP to courtney.law@denvergov.org.
###
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Last Updated: 12/31/2015 5:54 PM
Obiterdictum, this is an old article, but it brings up some of the Basel issues with respect to the GSE's.
http://www.americanbanker.com/bankthink/basel-treatment-of-gse-securities-poses-risk-to-housing-recovery-1057858-1.html
Obiterdictum, do you have any concern about the latest Basel requirements in respect to the GSE's? In one of the last congressional hearings, it was mentioned that maybe by springtime, we would see some US modifications? Do you see the release of US conservatorship of Fannie, Freddie, BEFORE progress is made in that area? TIA
Bigstocksnbonds,
http://portfolios.morningstar.com/fund/holdings?t=FAIRX®ion=usa&culture=en-US
http://www.morningstar.com/funds/XNAS/FOCIX/quote.html
http://www.morningstar.com/funds/XNAS/FAAFX/quote.html
"Fannie Mae and Freddie Mac. We believe that these two companies may be the most important financial institutions in the United States – perhaps the world – and directly support housing affordability and accessibility, including the uniquely American 30-year fixed-rate mortgage. They are a major reason why our country did not descend into a second Great Depression. Millions of American families depend on Fannie Mae and Freddie Mac to lower the costs and improve access to homeownership. In times of stress, these two have helped to ensure the continued functioning of the U.S. housing market. They have no substitutes. Fairholme’s investment in Fannie and Freddie demonstrates a commitment to ignore the crowd and invest in valuable, systemically important institutions – even those that are politically unpopular."
Happy New Year from Bruce Berkowitz
Dear Fellow Shareholders,
Over the last few weeks, all of us at Fairholme have been asked about expected performance. My response is both simple and consistent: We buy when most feel they should sell. This advice may sound counterintuitive, but it has proven most wise when we have invested in ideas that were most out of favor.
At Fairholme, we buy securities perceived to have no future when, after our own thorough analysis, we conclude that underlying assets – even when they cannot produce hoped-for income streams – can be run off for substantially more than purchase price. In other words, we aim to buy bargains to profit and help guard against making a poor investment.
Our strategy requires remarkable patience during volatile periods when we look wrong, but has shown that perseverance will be well rewarded. This may be especially true at year-end, when accountants advise selling to defer or offset taxes. Of course, this perversely creates the best opportunities.
I don't want to belabor the point, but we believe successful investing requires seeing facts and consequences far ahead of the crowd. Warren Buffett may yet again be the first to affirm this with his recent purchase of Seritage Growth Properties before this REIT redevelops to obtain market-based rents. And, what is true of Seritage is true of former parent, Sears, which holds more than three times as much low-risk real estate and other assets.
Thank you for your trust and steadfastness. Our forthcoming Annual Report will assay all portfolio securities.
Wishing you and yours many happy returns in the New Year,
Bruce Berkowitz
At 11/30, Seritage Growth Properties comprised 1.6%, 4.8%, and 11.9% of the Fairholme Fund, Fairholme Focused Income Fund, and Fairholme Allocation Fund portfolios, respectively.
At 11/30, Sears Holdings Corp. securities comprised 10.5%, 14.7%, and 16.5% of the Fairholme Fund, Fairholme Focused Income Fund, and Fairholme Allocation Fund portfolios, respectively.
Mutual fund investing involves risk including the possible losss of principal. Past performance is not a guarantee of future results.
The Funds' investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other important information about the Funds, and it may be obtained by calling Shareholder Services at 1-866-202-2263 or visiting our website www.fairholmefunds.com. Read it carefully before investing.
Fairholme Distributors, LLC (12/15)
Fairholme Funds, Inc.
4400 Biscayne Blvd.
9th Floor
Miami, FL 33137
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On November 25, 2015, the Equity in Government Compensation Act of 2015 was enacted. This law directs the Director of the Federal Housing Finance Agency (“FHFA”) to suspend the current compensation packages of Fannie Mae’s and Freddie Mac’s chief executive officers and, in lieu of such packages, to establish the compensation and benefits that were in effect for such officers as of January 1, 2015. The law also provides that these officers’ compensation and benefits may not thereafter be increased and these restrictions on chief executive officer compensation are applicable as long as Fannie Mae and Freddie Mac are in conservatorship or receivership.
In accordance with this law, on December 1, 2015, the Director of FHFA directed Fannie Mae to decrease the total target annual direct compensation of our Chief Executive Officer, Timothy J. Mayopoulos, to $600,000, effective November 25, 2015. This $600,000 in annual direct compensation consists solely of base salary, and was the level of direct compensation in effect for Mr. Mayopoulos between January 1, 2015 and June 30, 2015. Mr. Mayopoulos’s total annual direct compensation target had been subject to an increased rate beginning July 1, 2015. This reduction in and limit on the compensation of our Chief Executive Officer may negatively affect our ability to retain our Chief Executive Officer and will adversely affect our ability to engage in effective succession planning for this critical role. For more information on our executive compensation program, see “Item 11. Executive Compensation” in our 2014 Form 10-K. For more information on the risks to our business if we are unable to retain and recruit well-qualified employees, see “Risk Factors” in our quarterly report on Form 10-Q for the quarter ended September 30, 2015, filed with the SEC on November 5, 2015.
On Thursday, December 17, the Financial Stability Oversight Council (Council) will convene for a meeting via telephone. The preliminary agenda includes a discussion of the annual re-evaluation of the designation of a nonbank financial company.*
The Dodd-Frank Wall Street Reform and Consumer Protection Act requires the Council to convene no less than quarterly, but the Council has historically convened on a more frequent basis. The meetings bring Council members together to discuss and analyze emerging market developments and financial regulatory issues. The Council is committed to conducting its business as openly and transparently as practicable, given the confidential supervisory and sensitive information at the center of its work. Consistent with the Council's transparency policy, the Council opens its meetings to the public whenever possible.
Open session Council meetings are made available to the public via live webcast and also can be viewed after they occur here. Upcoming Council meeting dates and times are posted following the official notification to Council members of an upcoming meeting.
Meeting minutes for the most recent Council meeting are generally approved at the next Council meeting and posted online soon afterwards. Meeting minutes for past Council meetings are available here. Readouts for past Council meetings are available here.
* In accordance with the Council’s Transparency Policy, which is available at www.fsoc.gov, this meeting will be held in a closed session to prevent the potential disclosure of information contained in or related to investigation, examination, operating, or condition reports prepared by, on behalf of, or for the use of, an agency responsible for the regulation or supervision of financial markets or financial institutions; information which would lead to significant financial speculation, significantly endanger the stability of any financial market or financial institution, or significantly frustrate implementation of a proposed agency action; information exempted from disclosure by statute or by regulation, or authorized under criteria established by an Executive Order to be kept secret; trade secrets and commercial or financial information obtained from a person and privileged or confidential; and inter-agency or intra-agency memoranda or letters which would not otherwise be available by law.
Thanks H!
Then why did the administration raise the ceiling Dec 24th 2009?
It depends on who sits on the council and to whom they are accountable, if anyone.
Present day we're talking about FSOC. Lew is chairman of FSOC.
There may be a bigger reason why all voting members of the FSOC except the chairman were invited to this last hearing.
Lew is at the international table FSB, chairman of FSOC and US Secretary of The Treasury.
So Lew emailed Prudential notification of their SIFI status before even their hearing, and you're not worried?
FSOC, with Lew as chairman has too much power.
For example MetLife has been designated SIFI, but even they don't know the full impact yet, because the Fed says they have not finished writing the rules.
In the interim they are still regulated by the Fed.
When Fannie, Freddie finally get out of conservatorship, will Lew at some point send an email to Fannie, Freddie saying they have been designated SIFI?
That's the problem. They've been making it up as they go along. Way to much power, unchecked.
SIFI
17. What happens to nonbank financial companies after they are designated by the FSOC?
Following a final designation, the company is subject to consolidated supervision by the Federal Reserve and enhanced prudential standards, which the Federal Reserve has stated that it intends to tailor, as appropriate, based on the specific business structures, activities, and other factors that may distinguish the designated companies from bank holding companies and foreign banking organizations.
955, there seems to be a common theme of not getting answers from the Treasury. It seems there are multiple reasons they had everyone but Lew at this hearing and that Yellen also declined the invitation.
US Rep Sean Duffy speaks
1:29:20 into hearing
http://www.c-span.org/video/?401650-1/hearing-financial-stability-oversight-council-operations
Boston, just while listening to the last FSOC hearing, you can hear US Reps say they are frustrated, because they don't think the president is either properly briefed or properly addressing African American issues.
US Rep David Scott speaking at
1:54:23 into the hearing
http://www.c-span.org/video/?401650-1/hearing-financial-stability-oversight-council-operations
Bostonsesco, Gselinks.com has all the court info.
Thank you for the transcript, 955! I agree, it is a must read, and watch the clip also if possible.
go to 2:37:20 into the hearing
http://www.c-span.org/video/?401650-1/hearing-financial-stability-oversight-council-operations