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As a first step to an eventual financial recapitalization, I would recommend that the FHFA allow the GSEs to list their common and preferred stocks on the NYSE. Note that the justification for delisting was "[t]he determination to direct delisting is related to stock exchange requirements for maintaining price levels and curing deficiencies." That justification is no longer relevant.
http://seekingalpha.com/article/4027891-advice-treasury-secretary-nominee-stephen-t-mnuchin-fannie-and-freddie?li_source=LI&li_medium=liftigniter-widget
Tick tock, tick tock, tick tock goes the countdown clock.
I knew this would happen just hope it holds off a little longer to scoop up more shares before President Trump gives the lock and load signal to the GSE's
A President Trump is not going to stiff the shareholders and keep the GSE's in limbo land so release and recapitalize is a sure bet.
Clinton of course should she slither into the White House would continue the governments parasitic policy of net profit seizure.
Bid Ask Day's Range
2.11 2.12 0.001 - 2.15
Manipulation? We ain't got no stinking manipulation!
"[Fannie Mae] was adequately capitalized the day we put them into conservatorship," he said. It's net worth on that day was $41 billion. But apparently the day after conservatorship, Lockhart decided that Fannie would be adequately capitalized at zero
“Mad Hatter: “Why is a raven like a writing-desk?”
“Have you guessed the riddle yet?” the Hatter said, turning to Alice again.
“No, I give it up,” Alice replied: “What’s the answer?”
“I haven’t the slightest idea,” said the Hatter”?
Lewis Carroll, Alice in Wonderland
http://www.fidererongses.com/params/post/885629/oral-arguments-in-perry-capital-v-us-devolved-into-nonsense
In essence let Congress re-invent the wheel (they are so good at that) or use the ones (the FnF's) we got. What a dilemma for a legislative glory hungry but risk averse politician?
Sitting here waiting for the market to realize the FnF's are closer to release and recapitalize than they have ever been.
That's from 2007-2008 including bogus short/naked shorts sales. That could not roll over for years.
That's the final stage but not there yet. I figure one more good news day from the courts and this is 3.00 - 4.00 and going up.
10-9-8 Lawsuits Seeing Success 7-6-5 Big Banks In Support of Re-Capitalization 4-3-2-1 Lift Off, We Have Lift Off...
I'm thinking your right, this is starting to look like the catalyst we've been waiting for.
"Imagine a business worth $200B, for instance. If you are able to write down $200B of its assets while simultaneously having it issue you assets that you pay $200B for, then the business is now worth $0 and it owes you $200B."
http://seekingalpha.com/article/3977071-administration-takes-gse-profits-like-candy-baby
Ah yes the "protected designation form protected information that is subject to the motion of judicial notice" ploy. And the good news is us taxpayers are paying for all this clear as mud litigation!
Representatives Fincher and Mulvaney wrote: “In a post-Dodd-Frank world, Fannie and Freddie will be the only significant financial institutions not voluntarily or mandatorily raising their capital standards; instead, they are being told to lower their capital -- to zero. This does not make sense.” The letter requests a response on or before March 1, 2016.
Logic slowly begins to dawn over the murky confusion of Wash DC
The GSE's are corporations along the lines of utility companies.
Socialism, Cultural Marxism or whatever are lawless constructs that recognize only centralized government power.
The taking of the GSE's profits (pure socialist nationalization) is being fought at least on one level by the rule of law as it applies to corporate charters in Delaware and Virginia.
I prefer a loss in the GSE's if that were required to not have a US governed along the lines of Cuba or Venezuela.
But, the GSE's are a question of shareholders rights, corporate charters and deep investment pools hardly a good socialist like Bernie's, strong point.
Antiqued? The FnF's oversee a secondary market of deep pool capitol liquidity to promote the private acquisition of real estate as a stepping stone to middle-class wealth. Seems like a strong and smart underpinning for a consumer based market economy.
Fannie, Freddie give birth to new mortgage bond
Dec 29 2015, 06:32 ET | About: Fannie Mae (FNMA) | By: Yoel Minkoff, SA News Editor Contact this editor with comments or a news tip
The federal government is trying to get taxpayers off the hook for billions of dollars of potential losses if another mortgage crisis arrives - and in the process, it's quietly giving birth to a new asset class.Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC) next year plan to ramp up sales of new types of securities (called Connecticut Avenue Securities and Structured Agency Credit Risk) that in effect transfer potential losses in a housing downturn to private investors.The sales are especially notable because issuances of private-label MBSs, which also give private investors mortgage exposure, are still moribund.
All I see is the GSE's expanding market share and doing what they were chartered to do. This does not look like a business in decline.
Always fun to watch a puppet show even though its last week.
http://www.c-span.org/video/?c4531574/capuano-questions-jack-lew
March 15, 2015 is the ceiling limit. Obviously the dilemma is Congress/Obama can feed on FnF profits but draining most of the blood puts the whole system at risk. Decisions, decisions...
This is excellent commentary and is iron tight in its logic. So in a nut shell, Obama, Treasury, Henserling and all the "profit sweeps","wind down" and "replace' types are putting the whole economy at risk.
Figures...
Anythings possible but the chances of the GOP congress leaving an intact company for the shareholders is improving not going the other way.
If you have any other operational 60+ year old companies with a potential 500-1000% increase in the works, we're all ears.
Several Republican congressmen said that they were concerned about Fannie’s and Freddie’s low levels of capital, though an agreement between the companies and the U.S. Treasury Department in recent years has effectively prevented them from building a buffer. In the last couple months, a growing drumbeat of mostly liberal advocates has called for the recapitalization of the companies.
Boom, boom, boom, boom BOOM! boom, boom,boom...
About two thirds of the country are homeowners and recent census data shows there are 115.6 million households in this country. One more figure, only 29.3% of homeowners own their home mortgage free. If you extrapolate these numbers, taxpayers in this country are getting a great deal. The total of 54 million households owning homes with mortgages save approximately $4800 per year on mortgage interest because of Fannie and Freddie. This is $259 billion per year in total savings, according to Bill Gross's estimate, much higher than the stated cost of their bailout. Even if Gross's estimate is four times too high, the total savings for taxpayers is about $65 billion per year.
Wow, GSE's not going anywhere, hope to grab more shares before this becomes common knowledge...
Ahnd if they r not being most kareful, English channel will b in Russian fleet!
Procrastination assures release from conservatorship as that is the legislative path of least resistance.
Run Shorts Run!!
Johnson looked at Mel Watt, the director of the Federal Housing Finance Agency who was testifying before the committee, and told him to terminate U.S. control of the two companies. That would end a six-year political battle over dissolving the two mortgage giants, giving them another chance to prove they can carry the home loan system as private companies.
“If Congress cannot agree on a smooth, more certain path forward, I urge you, Director Watt, to engage the Treasury Department in talks to end the conservatorship,” said Johnson, who is set to retire in December.
http://www.bloomberg.com/news/2014-11-20/regulators-urged-to-set-fannie-freddie-free-from-u-s-.html
I wish I had more shares...
Sen. Shelby voted against the Johnson-Crapo legislation when it came before the Senate Banking Committee earlier this year. A Businessweek article reported this after the vote:
"On the right, Senator Richard Shelby, an Alabama Republican, calls the bill 'a complicated government-run framework that I believe overexposes the American taxpayer and creates more problems than it solves.'"
So it looks like we can count on his opposition to a Johnson-Crapo- like bill, which is good news because it did nothing to protect and preserve shareholder rights. A Housing Wire article from last week provides some great insightful into how a Chairman Shelby might handle the conservatorship:
"Shelby's rise may, however, be a boon for shareholders of Fannie Mae and Freddie Mac. He's a big advocate of privatization, and even if a PATH Act of sorts is blocked in the full Senate (or if it passes and gets a White House veto), shareholders have a friend in Shelby.
"If some sort of middle-ground, far short of full reform measure does arise in this new Republican Congress, it will favor shareholders."
Shorts may well get burned
Sic Semper Tyrannis
Is this like corrupt fed judges tossing aside million of votes to kow tow too the left?
The conservatorship is a “bankruptcy without rules.”
The Rule of Law has to be more than a quaint recollection....
The conservatorship is a "bankruptcy without rules." When Congress gave the Federal Housing Finance Agency the authority to enact and run the conservatorship, it did not envision a perpetual process in which profitable enterprises were nationalized without compensation to shareholders.
http://investorsunite.org/investors-unite-event-capitol-hill-highlights-need-reform-exit-conservatorship/
Well put...
Always a I nice chart, after 140 M+ shares traded it shows how big a kick this stock has.
The court rules that it agrees that Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC) are not in receivership. They are in conservatorship. The conservator has not breached its fiduciary duty as it has not paid back in excess of that which it has borrowed with interest. Therefore there is no grounds for a takings claim, yet. Now, that is obviously subject to change in the future in the event that they continue to not follow up with another amendment and the businesses do end up paying more than they borrowed.
As Richard Epstein points out eloquently and I find entirely agreeable:
By the end of September 2014, it is possible that the payments under the August 2012 Third Amendment to the PSPAs will be in excess of the 10 percent annual dividend currently payable under the original agreement on the senior preferred. In other words, the takings by the government will exceed the $188 billion previously advanced by U.S. taxpayers to Fannie and Freddie. Within in a short period of time thereafter, the total payments are likely to exceed the amount of the advances plus interest. What happens next?
The Fourth Amendment Will Come
This means that there will be a Fourth Amendment that will follow the third that will change the flow of profits once the government is paid back from the government to private shareholders. The government is doing its job. I've been wrong all along in my wild accusations because I interpreted the Third Amendment as the end all be all. There will be a Fourth Amendment. The Fourth Amendment will be the driving force behind ending the conservatorship as the GSEs are returned back to stockholders.
http://seekingalpha.com/article/2533645-fannie-mae-ruling-means-ackmans-valuation-is-now-100-250?uprof=45
Let the buying begin...
The dismissal says it is the sweep amendment stays in place.
It would have been nice to go the other way but that would be ordering re-capitalization of the GSE's still under government conservatorship.
The question of placing the GSE's under conservativship and then acting like their in receivership is still very much in play.
Plus will these entities really go away and be replaced by what? This is messed up but that seems to be the "new normal".
The reader should remember two things when thinking back over the arguments. First, for the Government to win the motion to dismiss, only one argument of three arguments has to succeed. Second, for Perry to win, only one argument of about seven has to succeed.
http://seekingalpha.com/article/2479095-the-case-for-fannie-mae-unpacking-the-motions-for-summary-judgment
Definitely LOOOOONG...
For over eighteen months now, I have analyzed and commented on these law suits as a consultant for several of the institutional investors who have stakes in the outcome of the litigation. My current judgment is that the government is on the losing end of this long-running tug-of-war for two reasons.
http://www.forbes.com/sites/richardepstein/2014/09/10/what-happens-if-the-government-loses-on-the-third-amendment-the-senior-preferred-stock-certificates-spell-nothing-but-trouble-for-the-government/
This does change nothing but that's how things work. DOA legislation, this shall not pass as Gandalf would say, but I would prefer to get pass the stock price doldrums
Wow...
Bottom ready to fall out from under along4zride.
Would that be anything like the federal government "losing money" again? Oh wait, they lose money every year except for 2 or 3 times in the past 50. Does this indicate a need for a federal "wind down"?