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I like the way you think.
A conversion is akin to the poison pill; however, it not only harms the shareholders, it harms a taxpayer/shareholder entity.
It they went this route, I believe chaos to the housing would ensue. Best to buy back the outstanding shares at a fair market price and let Congress re-charter the the twins.
Bravo to you.
How many years wasted when courts rejected our requests (suits) by stating that Shareholders had no standing.
Big deceitful mistake: also, a big waste of taxpayers and shareholders money.
‘Unless you are willing to share your 100% accurate crystal ball with the rest of the class, you need to sit back down.
Nope, it doesn't work that way at all. Don't fall into the sophistry bullshit trap of thinking that since nobody can fully know the future, all attempts at prediction are equally useless. By that logic all of science is bunk because no theory can ever predict something with 100% certainty’
I see this just not a win, a major claim of deliberate manipulation of the conservatorship by an agency of the Govt.
…come thru A COURT ORDER - still working on 1st WIN in OVER A DECADE
Time, more lawsuits and Congress will be the decider.
They will want to try and settle claims with a buy back of all shares at fair market value. Then they can do a re-ipo.
We can only hope….others may be in the know again:
https://www.cnn.com/2023/08/15/investing/michael-burry-stock-market-crash/index.html
I found a good article on how the inflation during the 1980s was addressed.
https://www.huffpost.com/entry/inflation-the-reagan-myth_b_3418868
https://www.rocketmortgage.com/learn/historical-mortgage-rates-30-year-fixed
1980s
In both the 1970s and 1980s, the United States was pushed into a recession caused by an oil embargo against the country. The Organization of the Petroleum Exporting Countries (OPEC) instituted the embargo. One of the effects of this was hyperinflation, which meant that the price of goods and services rose extremely fast.
To counteract hyperinflation, the Federal Reserve raised short-term interest rates. This made money in savings accounts worth more. On the other hand, all interest rates rose, so the cost of borrowing money increased, too.
Interest rates reached their highest point in modern history in 1981 when the annual average was 16.63%, according to the Freddie Mac data. Fixed rates declined from there, but they finished the decade around 10%. The 1980s were an expensive time to borrow money.
A good article on how the inflation during the 1980s was addressed.
https://www.huffpost.com/entry/inflation-the-reagan-myth_b_3418868
It’s always a great debate, but it took just the right tools, just the right time to correct - a technique that seems to be having a issue this time around due to what, corruption?
This would be a good sticky
Who is to say. Remember, they all were running around conducting deals using non government phones. Remember Paulson was prior Goldman… but the real looting started with next admin.
Self dealing bureaucrats deserve to lose their jobs for stealing, lying and preventing shareholders from receiving what is rightfully due.
Heck, they don’t even acknowledge us.
Just not content with current set of all knowing, do nothing politicians.
That’s funny. I heard once that it would be up to Supreme Court to unscramble this egg.
I always had a feeling that the looting was deliberate and the NWS/Senior Prefer move was to provide cover. Unfortunately, I never factored how many friends would/could contribute to the 300 billion heist.
I still rememberTim G offering a back office conversation to a Senator (Housing & Finance Committee) who was asking questions that would better expose the heist.
It was the perfect plan and now we know why it’s taking so long for Fed Courts to respond and make it right. But will they?
Shouldn’t be much of a hardship for a Govt that spent a trillion just this year?
‘Next up is with the Government be forced to repay the billions it stole from the GSE?‘
Agree!
‘The Senior Preferred Stock Purchase Agreement is an illegal contract.’
Hasn’t wrong-doing been established with Jury decision? If so, conservatorship should be cancelled, control returned to Board of Directors and all monies returned to the companies.
Did it not say that in the original terms of conservatorship?
If only FHFA would set a date for ending c-ship, re-listing. With all the bright minds, surely this would be an easy task.
‘…Yes, because it allows for the eventual orderly exit from the Conservatorships by eliminating outstanding liability claims.’
Let know if I get this right. These two companies profited 300 billion in 15 plus would be under capitalized if they did a dividend payment.
If so, I would believe the people would want the FHFA dismantled and companies and previous profits returned to a Board of Directors and shareholders. With that, it would be an independent board that is not appointed by a President, but is regulated via GAO and Congress.
Wish I had read this before posting. Well said!
I believe the NWS was just a way to siphon monies that couldn’t have been gotten via Congressional appropriations by simply using a phone and a pen.
https://en.wikipedia.org/wiki/You_didn%27t_build_that
He authorized His Cabinet to create the narrative to paint a picture that this was for the taxpayers. It wasn’t, the monies went to a general TRSY fund that could never be audited.
It was His decision to allow the Net worth sweep.
It was never to be known how much involvement by his Administration there was on preventing Shareholders from seeing any rewards on their investments - yet they still sold stock as if c-ship was just temporary.
https://www.rollingstone.com/politics/politics-news/why-is-the-obama-administration-trying-to-keep-11000-documents-sealed-67555/
Really surprised that He was allowed the second court. Agree that his comments were not bar worthy
Since there was an indication that an individual or individuals colluded to suppress evidence of wrongdoings, can a speedier trial be scheduled? Many more questions, but the longer the defense takes to more apparent that they too are aware of what’s coming.
Would be great if Senate Committee on Banking, Housing has some questions for Sandra. Did She believe sweep was legit, or, that GSEs were simply trumped by the law? Is She willing to request from Congress a permission to ask for a sign off by TRSY for a FHFA admin decree for release?
No problem. Looked at that link I attached…was referring to the fact that FHFA/TRSY were complicit in pushing the GSEs to OTC. Why? Who to say that the stock couldn’t be manipulated further to wash out concerned parties. Why the Eaton meeting? To wash out concerned parties for control.
What a web deceit and lies this has been.
Goodnight and good luck tomorrow.
Brutal attack.
It was intended as a reference piece. Will be interesting to see if Maria draws Him back to his previous observations.
I’ve seen much worse postings - but I don’t throw rocks.
I know it’s dated, but a good reference. Wonder how He spend it this time.
It’s a good reference.
Another FHFA / Treasury move to delist?
https://www.bbc.com/news/10333496
He’s a previous interview with him and Maria
Maybe He can convince Sandra that it would be in everyone’s best interests to kickstart an end to conservatorship with an Administrative decree. It would be an interesting parlay between Congress, Treasury and FHFA.
Are you close to John Kennedy? He’s great to listen to and understands economics.
15 plus years has been enough. The FHFA & Treasury have had control over Shareholders seeking justice. The biggest was denying justice via standing.
Time to release the GSEs from c-ship.
Don’t forget Toomey, He could be a major contributor to pushing the release of the GSEs.
Interesting article found on JOINT CENTER FOR HOUSING STUDIES OF HARVARD UNIVERSITY
https://www.jchs.harvard.edu/blog/senator-toomey-process-exiting-gse-conservatorship-not-so-simple
Control - FHFA/TRSY can end the suits and mitigate losses, restart Govt controlled GSEs. Isn’t that their objective? Give them what they want and let them battle it out with Congress and eventually the homeless.
I asked that same question Monday and got a great response from Rodney5
Lite, you asked “fair market value.”
The below calculation is based on Barron’s win with the little tucker act in local federal district court. Either way, if the Treasury walks away with 79.9% of the common stock and a possible cram down with more diluted shares, it does not change the intrinsic value of the earnings power of the business. The question, how much value will each equity holder receive?
Freddie Mac
JPS are due $14.1 billion (par value) and the common shares own the company.
Common Shareholders $214.08 per share Intrinsic Value.
Freddie Mac
June 30, 2023
Freddie Mac Reports Net Income of $2.9 Billion for Second Quarter 2023
Earnings Power of the Business
A multiple of 12 is not unreasonable
EARNINGS POWER OF THE BUSINESS
Freddie Mac common stock outstanding 650,059,553
$2.9 billion net income for the second quarter of 2023.
Freddie Mac net earnings $2.9 billion per quarter, a projection of $11.6 billion net per year.
$11.6 billion net / 650,059,553 = $17.84 per share of earnings
Price to Earnings Ratio of 12 x $17.84 = $214.08 per share Intrinsic Value
Fannie Mae
JPS are due $19.1 billion (par value) and the common shares own the company.
Common Shareholders $207.24 per share Intrinsic Value.
Fannie Mae
June 30, 2023
Fannie Mae Reports Net Income of $5.0 Billion for Second Quarter 2023
Earnings Power of the Business
A multiple of 12 is not unreasonable
EARNINGS POWER OF THE BUSINESS
Fannie Mae’s common stock outstanding 1,158,087,567
$5.0 billion net income for the second quarter of 2023.
Fannie Mae’s net earnings $5.0 billion per quarter, a projection of $20 billion net per year.
$20 billion net / 1,158,087,567 = $17.27 per share of earnings
Price to Earnings Ratio of 12 x $17.27 = $207.24 per share Intrinsic Value
Barron Quote:
“I posit that the variable liquidation preference outlined in the SPSPA and all amendments are an illegal commitment fee/charge attached to the purchase of the senior preferred shares. Prohibited by the Charter Act. The warrants are also a fee in consideration for access to the commitment. Prohibited by the Charter Act.
I posit that the senior preferred shares with their variable liquidation preference as outlined in the SPSPA constitute a new product for the purpose of the secondary mortgage market outlined in the charter act at sec 1719.
I posit that under the safety and soundness act as modified by HERA, the sale of SPS with a variable liquidation preference to Treasury under authority of sec 1719(g) of the Charter Act required notice in the federal register, opportunity for public comment, and official rule making by the plain language of the safety and soundness act.
I posit that the above statutory violations necessarily violate the warranties on behalf of the FHFA-C contained in the SPSPA.
301 Billion to be returned to the corporation. LP and warrants canceled. Future of 191 billion of taxpayer debt illegally given to corps to be determined.” End of Quote
I agree, Govt should just buy back all stock at fair value.
Can this easily be accomplished via a consent decree and administratively ending the Conservatorship?
Can’t the Govt just cash in their warrants and transfer the SP funds back to build GSEs reserves?
Good observations - wish I had the answers. Ever since the decision, our legal scholars have been great in helping to wade thru the legal items - maybe the can help with tour question also.
Thanks. Just read, if you can believe it, Lambert is compelled to award, or that’ll be reason #25 while it’ll be appealed & he gets tossed.
Also read..In Delaware, prejudgment interest is awarded as a matter of right.
Excited to see this and looking forward to the next courtroom hearing on this.