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"Look at all the effort and obstacles thrown in the paths of Fannie and Freddie to keep them from ever recovering. Capital reserves are just safety nets for unforeseen events. As mentioned, both Fannie and Freddie have operated efficiently since 2013 with minimal capital so there is no life or death rush as many would have you believe. Think of the so-called requirement for enormous amounts of capital before release as just another ploy and/or obstacle and you might be getting down to the brass tacks here.
And oh, about the "plan"? Bet there ain't no damn plan! "
jog49,
You are 100% correct. If FnF are relased immediately it will vastly improve and help the recap process without blood sucking vampires (conservator and wall-street bureaucrats). There is no life or death rush as many wall-street bankers and lobbyists are trying falsely mislead the decision makers.
"I second that. "
Guido2, Thanks.
"100% agree, Release and Recap is better. And, they will need to declare that bailout had been fully repaid already. Better yet to return the excessive NWS repayment. "
HappyAlways,
Thanks for your validation. Yes, WH/FHFA need declare that SPS obligations have fully satisfied and SPS liquidation value is zero. In addition Gov needs to return all the excess dividends that have been. NWS need to stop immediately. Warrants needs to be written off at current UST valuation.
FnF are Gov's own public policy institutions, fully regulated and controlled by Gov. Gov can not treat FnF as profiteering wall street rogue companies. FnF are the essence of US economy and housing economy. Without FnF there will be no vibrant housing economy and most people can not afford homes.
Hope WH and FHFA realizes this soon and ends 10 years of lawless conservatorship.
"Price manipulation continues by distorting Calabria's words. This is done by reporters who are lackeys for TBTF banks and to a lesser extent (though they do try) the Moelis Quartet. "
Guido2,
Thanks for additional ways in which PPS is manipulated.
No one can explain why fake financial media always insert standard fake narratives even when factual evidence proves otherwise.
"I have concerns about this hearing becoming a stalking horse for blocking FHFA from an administrative reform to await Congressional action which could well be led by TBTF bank agendas and the long-desired repeal of Dodd-Frank. "
YanksGhost,
HERA is a complete law for FnF regulations with dedicated FHFA regulator. No other agency has any regulatory authority over FnF. BTW this congressinal effort is to create enabling law.
Congress can amend HERA to make FnF SIFI under specific criteria. But Crapo hearing is a "Dog and pony show" to depress FnF pps. More than 80% of the experts will be from lobbyists thinks tanks repeating the same BS populist slogans like,
1. FnF should have Bank like capital (even though FnF are monoline insurance companies).
2. There should be level playing field with competition (even though no one will start a new competition without Gov explicit guarantees. Banks have more flexibility to start any type of financial business including PLMBS).
3. FnF have implicit Guarantees (even though banks have explicit FDIC guarantees and Fed deep Discount loans, Banks engage in fraudulent and risky business).
4. FnF caused 2008 crisis (even though Gov's own commission clears FnF. Banks have paid hundreds of billions in fines and penalties in civil and criminal prosecutions).
"Legally Voided Prefs Never Get Any Conversion, where Prefs Conversions are generally not guaranteed, but at Worthless Prefs Simply Impossible, Just Gradually Go To ZERO where they belong.
"
Doc.007,
Let NOT CS holders engage in the same ugly propaganda some JPS Holders have been doing.
If Whitehouse and FHFA follow fair rule of law then both CS and JPS should get fair return on their investments based on their share contracts.
Only crooks or fools can think of implementing Recap under conservatorship because there is no way private investors will invest 100s of billions in companies under conservatorship.
Recap under conservatorship is another of Stickup robberies. Recap under conservatorship will be another Concrete Life jackets in addition to consevatorship, SPSPA, Warrants and NWS. The purpose Recap under conservatorship is to destroy FnF, because crooks know very well that FnF can never be recaped under conservatorship.
Only way out of conservatorship is Release and Recap.