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WAS a congress thing...
Not is..
Baney the filth is out... thankfully.
After nearly 6 years...
Most of the "players" at Fannie and Freddie have long since been replaced but government goons.
With new senators coming in and the evolution of the house every 2 years... many of them today are greenhorns.
So, long lasting animosities are with who? Who today were around 10-14 years ago when the angst was build up?
Barney and his boy pal are long gone. So, give it a rest and lets get them to do the right thing.
I have a general distrust of congress (for personal motivations - un benownst to us regular folk) and of courts (they are out of touch with reality).
That i am concerned that the so called smart people will figure it out and do the right thing.
To me and I am not phd or road scholar or maytag repair man, etc. but fannie and freddie aren't broken ... never were... all that is needed is some management and oversight. That prevents self interests and self dealing.
I am at a loss to understand how the governement has gotten away with doing what its done.. like criminals seeking their lowest level... of activity. they go t away with it because they confused everyone. scattered the pieces, and made such a mess that they hoped no one was looking.
I have been involved in litigation and stuff ... I can tell you some sleuthing here will pick them apart.
But no ... i don't trust congress, courts and certainly not the administration.
Thank heavens...
US attorney's aren't financial guys... cause they know nothing and will argue anything...
U.S. attorneys have argued shareholders' claims are flawed because there was no way for the government to know whether the companies would return to profitability, much less how quickly.
What a bunch of blooming dunderheads... Everyone saw that the base book of business was always profitable. That it was the one time items that - reserves ... for past lending that caused the problems and that they were being managed away with the housing recovery and the fact that not all the loans were "bad".
Finally, these were the same bunch of US attorneys' suing all the banks...looking for Billions... right?
How stupid are the?
Really?
Thanks KA...
Hope you boys are
ROCKING this HOUSE!
Get the message across ... its not that complicated.
Thanks beav... that is my sentiment... I take care of my girl and you all take care of my Fannie... and then my Fannie will take care of my girl!
She is better - out of hospital and at home...
So has anyone asked the question of Watt or someother flunky ...
Why have Fannie and Freddie not been released from conservatorship?
I mean... after 6 years you'd think they'd have righted the ship or they have the wrong management? Hint?
What is stopping the "release"...
Seriously, what?
Have a great and safe trip.
Wish like the dickens I could have gone. But my daughter was in hospital and I couldn't leave her.
Go Fannie and Freddie
Well ... she makes a point ...
No doubt...
But also the original excess reserves were so far over the top that they jumped right off the page.
Once this settles back down...
Recurring Net income of $20B appears sustainable...
That's around $18 a share.... DO that math.
And even if Fannie shrinks some ... due to competition, etc....
Net of $10B is still $9 a share.
$9 times 12 or so... gives you at least $110 a share .... MINIMUM...
Not true.
In 2008 the government stole warrants to purchased near 80% of two private companies at about 1/600000th of their then market determined fair value.
Further as a result of taking control and virtual ownership of these two company's it ventured to stuff them with over priced debt at the rates near 10x their (the government's) effective borrowing costs.
So, I'd say no.
Releasing FandF by watt would not resolve lawsuits.
Rembember watt only works for treasruy but doesnt' speak for them Its treasry that controls watt and speaks for him.
We'd still have to get recognition of the repayment of the $$ to trasury and payoff of the preferreds taht were taken.
I'd love to see it. But watt won't do this.
He has no authority to resolve the swipe agreement and that is one big part of the controversy.
You know eventually,
All these "competing" bills will migrate back to what we have today.
It'll be en evolution... but it will happen.
There is a reason FAnnie and Freddie operated the way they have all these years...
Absent the political BS... they are the best options.
Its just a matter of time.
DT...
Still holding... looking to maybe add a few or flip some that I add.
Still just want Fair Value..
I like bove just fine... But for the life of me i can't understand why he thinks the government is entitled to the warrants they took or that its in the best interest of the taxpayers that they excercise them? Its theft. He is wanting the federal govenrment to commit theft against america in stealing the warrants. Exercicing them will make it harder to raise capital to hydrate these two.
This case may be in that venue - but aren't some of the other cases in Federal Courts - somewhere. Civil like?
If you thought the coverup and stall tactics to create smoke... and poof its gone explanations of any of the other scandals were well orchestrated... like fast furious, benghazi, irs scandal, etc.
This Fanniegate will be a monster.
But, this time the rules are changed... its in civil court not court of public opinion.
There is in excess of 500-900 Billion dollars at stake... no way the spin machine sits this one out.
Watch it.
This is being done to keep him from being made available for depositions, and such. Since he'll no longer in the employ of the Treasury he'll not be "required" to be presented.
Let one of the Attorney's on here indicate or elaborate ... but its part of gamesmanship.
Looks like the crapoop bill is just another big socialism experiement and a transfer of wealth from those able to afford their home to those who need subsidized housing.
Lending mandate 1: define an eligible single-family mortgage loan to include very risky loans (Section 2 (27). Unfortunately, the bill uses as its template FHA’s minimum loan standards—standards that have led to 3.25 million or one in eight families suffering a foreclosure over the last 37 years. For example, a 3.5 percent down loan with a 580 credit score, and a 43 percent or greater debt-to-income ratio (DTI) is eligible. Freddie Mac experienced a 43 percent default rate under economic stress for this type loan, 18 times riskier than for an 80 percent LTV loan with a 35 percent DTI, and a 725 credit score.
Lending mandate 2: require the FMIC to make sure high risk eligible loans continue to be made at all times no matter what (Sections 201 (b) and 210).
Lending mandate 3: make sure entities benefiting from FMIC’s insurance have the capacity to offer high risk eligible loans (Sections 311, 312, and 313).
Winning ONE
Would start a domino effect... and
Be easier on successive judges to see it our way..
Also would be fun to watch.
Nope.
Not the case.
See my prior response.
It is what it is... just that "a proposed" order by the plaintiffs attached to a motion for the judge to consider and if he concurs he'd endorse it. At this point - just because it has been metered by the court and entered into the docket is; meaningless.
Don't read more into it than it is.
Sorry.
Sorry Chess..
I've worked with enough court situations to know that until the judge "signs" it ... its just paper / a proposal.
Its typical to file motions with "proposed" orders... the proposed orders are suggestions as to how that party would like to see it if the judge rules their way. In contested situations its almost never a slam dunk.
in other situations like "fee appllications" and such the motion or fee app is often accompanied with an "executable "order"".
Its a proposed order filed by the plaintiffs... with their motion.
Its not real... unfortunately... until the judge agrees with it and signs it.
Until then... sadly no.
But wait... there's more.
Why not a trifecta... or a parlay.
Honestly (like i'd lie); I see the federal government as the largest "family" in the history of all time history. They are the MOB on steroids.
They will collectively do as they please when and how and to whom. And since they will exist long after you or I are extinct the price or sacrifice you can pay - they will never face.
They are them and they make the rules.
We can only hope to be allowed to show good cause why Fannie and Freddie deserve to exist.
The government being this great being will write a law that "mandates" investors invest in this new scheme or be taxed accordingly.
Effectively, it won't be a penalty per say for not investing in this new beast but a tax deduction or income tax free income you'll be able to receive, a subsidy for playing along. Although like i mentioned not a mandate, or a penalty but a tax supplement.
o the tangled web they weave.
Prob Reckso ... or some other JD will provide,
but in my limited experience with opposing motions, etc. There will probably be a "hearing" in a few days / weeks to entertain the motions, whereupon the judge will make a ruling. I would not expect "discovery" to start in April. Probably Mid May and go to around August / September. With an extension or so... the weather outside will turn cold again before this part is done.
So there is a 5 - 7 Trillion Mortgage market at risk and some one is gonna complain over 1 little million?
$7,000,000,000,000
v-
$1,000,000
or...
$70,000 to $.01
So like if you had $70,000 bucks and wanted to argue over a penny?
Is this about right?
If I am right... who looks Silly?
More of the same dribble by the defendants... more of the you can't handle the truth type "few good men" Jack Nicolson type things... and rant...
its not going to play well.
Also i don't buy that the FHFA isn't part of government when "acting" as conservator... either they are or are not "government' but picking and choosing is ... silly...
Like saying my daughter isn't my daughter when she isn't my daughter... or when wearing red. ...
That's just stupid speak.
Ending the conservatorship will not - end all the lawsuits.
There are other issues being pursued.
Its amazing to me how ...
Stubborn congress and senate are being regarding fannie and freddie. Its like... dude's wake up! Sort of like children playing nani nani boo boo games...
WAKE up ...
Great Gosh... I've been writing this for months.
Its like the Movie Saving Mr. Banks... everyone thinks Mary Poppins is there to save the Children.. but really she was there to save Mr. Banks.
In this case Fannie and Freddie were there to save the mortgage mess not because they created it... but because they rescued it.
It would be like shooting a fireman or policeman after they saved your life. What thanks is that....
So, beyond silly .
If the Gov... owns near 80 percent of these two (thru the warrants... that aren't excercised)... which is "effective" control. Why was it charging itself 10% and borrowing at 1%?
Seems "inappropriate"
Rek..
Sep 8, 2008 1.91 2.05 0.65 0.73 585,901,400 0.73
Sep 5, 2008 6.19 7.18 6.05 7.04 83,613,900 7.04
The price the day before the invasion was $7.04
The warrants should have been priced no lower than this. And in many cases the warrants, in other transactions are often priced higher to allow for some "value" to accrue to the benefit of the entity and shareholders for the underlying transaction.
Say $20 a share.
Hey,
I asked the question.
My feeling is you just can't act in that fashion when you have a duty to others.
We the shareholders - never agreed to allow the - Board or FHFA to come in and give away our company. I realize that this Hera thing purports to allow this... but I can't swallow it. Especially since its counter to rational thinking.
I also think there was some undue influence and self dealing.
From my perspective, just my average joe thoughts, this was like a "power of attorney" and the "conservattor" sold my assets for pennies. Except I never agreed to the power of attorney. How dare they!
Rekcu...
What about the lawsuit asserting undue influence and or extortion to making the bod taking the "deal" of conservatorship and giving away our company - without a vote.
I mean normally, if you are going to "effectively" sell the company you have a shareholder vote. Realisticly, we all went from owning 100$ of the company to owning 20% or selling 80% for about $50,000 or an i o u.
Could never imagine this to be lawful. Especially how it was carried out....
He is at a subsidary ... not the same thing.
Its like if i worked at a coke bottling plant... you could say me and Mutar were buds.. that would not be true.
Cut the guy some slack. You folks are going to cause him some problems with all this noise. This is his personal views and opinions and has nothing to do with the Oracle.
Cut the guy some slack. Or you are going to cut the hand that feeds...
Sorry...
You don't know me... I've been writing for years the bad faith of the government in its dealings with fannie and freddie... only on another "site".
I firmly believe the government should be punished for what they've done. If it were not the government - doing this - they'd be on the other end of an SEC enforcement investigation along with DOJ.. Seeking Civil and Criminal penalties.
There would be discussions of collusion, profiteering, Rico Statutes, the whole enchilada.
So, whether bove wrote it or affirmed it. I believe there should be massive penalties.
And the best one would be to tear up the warrant and return F and F to private hands. There are also a few other things I advocate.
But a lesson should be taught.
Interestingly, even if the government loses... because of "taxes" it will win. It always does. (Death tax)
Ya know...
I read this.. stuff that says..
“Why do we do this? It’s almost a historical thing – everyone knows these policies make no sense,” says Brannon.
Fannie Mae, Freddie Mac: Federal government will still be on the hook
And I realize .... that in the event of a National Disaster... Hurricane Katrina, Andrew, Sandy, obama, floods, FDIC, or any massive bad thing to occur... Social Security, Uninsured Medicaid / medicare etc.
That... in this country... the Federal Government is ALWAYS ... on the hook...
Thing... extended benefits for the unemployed....
So... whats the difference? I mean... if Fannie and Freddie were returned to the shareholders and not raped by the federal government... and management were to put in place efforts to raise capital - over time.. thru retained earnings. In just 3 years each could have 50-60 Billion. Add in a small raise at (Fair value) of 25 Million shares and you could easily add another $50 Billion in "cushions"
Yes Zargis...
I know...
I was using a smidgen of satire.
You should hit the link again...
Look at resume'
He works at BHMEDIA - which is a subsidiary ... not the same.
Don't read too much into this ... also... back off some or maybe he gets "stopped" from writing insightful articles ... by his bosses...
Manager - Financial Reporting & Analysis
Berkshire Hathaway
Public Company; 10,001+ employees; BRK.A; Insurance industry
November 2013 – Present (5 months) Richmond, Virginia Area
BHMedia is a division of Berkshire Hathaway, and owner of multiple media properties in the United States.