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***THE SHAREHOLDERS OUTLINE A $3 TRILLION INFRASTRUCTURE PLAN PROPOSAL*** Under a Severely Adverse Scenario, the stress test conducted by the FHFA, shows that FnF would post $15 billion of Net Income in 2 years, despite including a whopping $42 billion provision for future credit losses. Under this scenario, FnF would have a Loan Loss Reserve at the end of the "nine-quarter planning horizon" (1Q2023) of $31 billion, after the $20 billion credit losses during the period. It means that the Capital requirement should be $0 and their current $235 billion of Core Capital under the Secret Plan, is spun off into a new company for infrastructure projects. In the end, FnF are ruled by the Charter that includes a UST cheap backstop when their Net Worth is negative. So, there is no need of massive Capital in FnF. So, the proposal gets rid of the Capital requirements and Capital classifications, declaring the FHEFSSA, null.
The criminal behavior of the FHFA will be punished. The FHFA would be dissolved and FnF return to be overseen by the FHA like before. No Federal programs are allowed in a Charter related to secondary market operations. The JPS resume the dividend payments regardless of the Capital of FnF, that will keep on building Capital until they accumulate a minimum of $50 billion of Retained Earnings. Beat that, Yellen!
***BOOM*** THE FHFA'S STRESS TEST SHOWS FnF WOULD POST $15 BILLION OF NET INCOME UNDER A SEVERELY ADVERSE SCENARIO. $11 billion of Comprehensive Income (Net Worth increase or Equity). Despite the fact that FnF set aside a whopping $42 billion provision for loan losses, to absorb future credit losses, like the $20 billion credit loss expected in the 2-year period of the stress test. So, the FHFA is expecting more credit losses after the end of the stress test period, 1Q2023. Evidence that it should have increased the Income Statement projection to, at least 5 years, if it expects credit losses beyond the 1Q2023, which translates into more profits, as the losses have already been fully reserved with the $42b mentioned before. This is why the FHFA convenientely has cut the Income Statement projection to only 2 years. Theoretically, the Capital requirement should be zero dollars, because the Capital is meant to cover losses under a severely adverse scenario, and the FHFA has said it expects profits. But, my estimation of Capital requirement under the recent Capital rule is $325 billion with buffers. How crazy is that!
***BREAKING***THE SCOTUS OPINION IS IN VIOLATION OF THE LAW.
HERA established the FHFA as "an independent Agency of the Federal Govt". Not anymore with the Scotus opinion that struck down the removal restriction "for cause". Now, the FHFA Director can be fired whenever POTUS deems it appropriate for no reason, which strips out its independent status. Remember that the Scotus also failed in the statutory question presented, when it didn't differentiate FHFA-C from FHFA-R in the FHFA-C's Incidental Power. The Secret Plan is the only possible resolution of the Fanniegate scandal.
The crooked plaintiffs skipped the warrant because they use it to negotiate with the Govt in exchange for favorable terms for the JPS.
The plaintiffs act under the orders of the career conman, Tim Pagliara, who has already written in tweets that the Govt owns 79.9% of the companies and that the JPS ought to be swapped for commons with a haircut.
He set up a phony Association of Shareholders to deceive us, and he also has a regiment of retirees working full time on internet message boards to deceive us, praising the conspirators T.Howard, plaintiff Bryndon Fisher, etc.
They act as a criminal enterprise and the FBI is investigating it.
The plaintiff Bryndon Fisher is hammered down today on #Fanniegate. The "special" guy that is allowed to file Amicus briefs because he cried like a baby in front of Sweeney requesting to go to the Appellate court like Fairholme. No one reads his Amicus briefs, only the true briefs that were authorized by the judge.
Look how his footmen praise him all the time. Lol
The SCOTUS said, the SCOTUS said,...The SCOTUS was wrong. Anyone repeating their wrong opinion is only evidence of a conspiracy.
It's coming, like any other proposal. Huh?
You are promoting the cause of the conspirators: Pagliara, Howard and the plaintiffs, specially Bryndon Fisher, that want to rip off the shareholders, leaving FnF with huge Capital needs and subsequent stock offerings to Wall Street at rigged prices.
Not exactly because I request a $26.8b refund of the TCCA fees as of June 30, 2021.
As always, wrong. The 10bp g-fee is charged during the life of the mortgage and it won't be a new fee but a continuation of the 10bp TCCA that expires at the end of this year. It has nothing to do with the one-time 50bp fee on refinancings that has been cancelled.
Both fees are illegal in the Fee Limitation clause in the Charter, regardless that the TCCA fee was approved in a law. It's still illegal.
***BREAKING*** The shareholders request that all the plaintiffs be indicted for the crime of Making False Statements, for the coverup of many statutory provisions (Restriction on Capital Distributions, the conservator's powers, etc.) or outright lies, like having a right to get dividends while in conservatorship, that a Common Law conservatorship is about Fiduciary Duties to the shareholders or even misrepresenting the option (G) LOSSES that is the one chosen to impose a conservatorship, because WaFd claimed that it's related to past losses, when it's future losses that deplete capital, like the losses prompted by the 10% dividend to UST. More detail on #Fanniegate. This crime carries a prison sentence of 5 years.
Are you new here? The exceptions to the restriction on capital distribution, is the reduction of SPS in the law.
Then, in July 2011, the FHFA approved the CFR1237.12(1) to add another exception: for the recapitalization.
It's called the Secret Plan. The restriction in the law has an exception B: to reduce the obligations with respect to shares or ownership interest (SPS)
So, FnF were repaying the obligations SPS under the guise of dividend payments to UST.
The corrupt plaintiffs are hammered once again on #Fanniegate today. They claimed in the Appellate Court for the Federal Circuit that their right to get a dividend after the 10% dividend to UST, was transferred to UST with the NWS.
Firstly, it was transferred to the conservator.
Secondly, the law restricts Capital distributions (like dividends) to everybody when they are undercapitalized.
Thirdly, the Capital rule, effective February 16th, 2021, also restricts the payouts (Table 8) until FnF meet 25% of the Capital buffers and it was posted yesterday that as of June 30th, 2021, FnF have a $429 billion deficit of Total Capital over this threshold.
Lastly, the conservator's power is about a recapitalization: put FnF in a sound condition.
THE SHAREHOLDERS CALL FOR THE ARREST OF THE FHFA's ACTING DIRECTOR ALONG WITH THE BOD AND MANAGEMENT OF FnF.
Fact. If FnF recorded the SPS increased every quarter for free (which they aren't now), equal to the Comprehensive Income increased the prior quarter, don't you see that FnF would be recording twice the Net Worth increased in the quarter, accounted for in two quarters?
One with the Comprehensive Income. The second, the next quarter, with the increase in the SPS. Two times the same Net Worth.
This is evidence that when FnF record the SPS for free, it needs to be recorded also an offset that reduces the Net Worth.
This offset in the form of reduction of Retained Earnings (Core Capital) wipes out the first increase of the Comprehensive Income (Core Capital) in the prior quarter.
Therefore, FnF are not building Capital. They only build Net Worth in the form of SPS. That is, another NWS.
CALL FOR THE IMMEDIATE ARREST OF THE @FHFA's ACTING DTR AND HER CRIMINAL GANG AT THE BOD/MNGMT OF FnF
— Conservatives against Trump (@CarlosVignote) August 4, 2021
The lies have short legs.We see that if FnF record on the bce sheet the true SPS increased in the quarter,the NW increase is recorded twice w/ 1 quarter of delay.#Fanniegate @FBI https://t.co/3gWVZwXPpL
FANNIE MAE'S NET REVENUES +72% YOY IN THE 2Q.
The new CFO effect.
Thanks mainly to a decline of 22% in the interest expenses.
This is why the Net Interest Yield soared to 81bp vs 64bp a year earlier.
Freddie Mac increased 41% the Net Revenues yoy in the same quarter.
***FANNIE MAE AND_FREDDIE MAC ARE THE INFRASTRUCTURE PLAN*** CONGRESSIONAL FINDING. The Federal Agency FHFA has overstated the Capital requirements that are effective since February 16th, 2021. The Capital rule was published in the Federal Register on December 2020. The Government-sponsored private corporations have a backstop from the UST in their Charters that renders such enormous Capital requirements pointless. This is why the United States Congress urges the Acting Director of the Agency to revisit the Capital rule with a more technical approach and with the excess Capital it is ordered that the corporations will spin off a new joint private company that will operate as Government-sponsored private corporation as well. The existing shareholders will receive shares in this new company. For purposes of this section, the holders of Junior Preferred Stocks are not shareholders. They have a contract and thus, only a legal claim on the par value stated in the contract or prospectus.
The new corporation will be leveraged with an 8% Capital ratio, with the purpose to invest in infrastructure projects that will have a stream of revenues.
Bryndon_Fisher just wants to be on the spotlight. Scotus has just said that the NWS was authorized in the public interest, so his derivative claim is garbage and his request of SPS repaid, too.
All the money to the Treasury is lawful and all the SPS are outstanding, according to the Scotus opinion.
This is because his lawsuit covers up the statutory provisions that unwind this scandal. The corrupt plaintiffs cover up the Secret Plan. More info on #Fanniegate.
Stick this!
THE #FANNIEGATE CASE,HAS BEEN DECLARED "CLOSED" ON TWITTER
The thread explains that the FHFA-C had only 3 options once FnF post profits, using either its Powers or its Incidental Powers:
1-Redeem the SPS with cash.
2-A secret plan of SPS redemption under the guise of dividend payments to UST.
3-Keep the cash and reinvest it in securities.
The 3 options are also recapitalizing FnF with the profits (Core Capital)
The FHFA-C chose the option #2.
When I said "@FHFA chose SPS repaid 1st, instead of Recap 1st",I meant Secret Plan of SPS repaid 1st,but it doesn't affect the Recap,rolling since day 1.
— Conservatives against Trump (@CarlosVignote) July 27, 2021
BOOK ENTRY:Cash(Asset)🆚Profit(Equity;Core Capital)
FnF paid the SPS down with profits,instead of cash.#Fanniegate @Whitehouse pic.twitter.com/AiGBiqzI9z
Wow! Just what the law says! You have saved hundreds of hours analyzing the laws and thousands of hours learning finance.
It coincides with the Secret Plan.
You have to explain why you eliminate everything that has been done, otherwise don't bother to post it.
It's called having criteria.
After the payment of taxes on part of the refund, we can assure that FnF generated $404 billion of Net Income during Conservatorship through March, 2021.
It should have been recorded as Core Capital.
Notice that I have eliminated many expenses that shouldn't have existed, like the TCCA fees, Federal Programs, CRT expenses, etc
The Capital requirement is what it is. The dividend suspended was meant to recapitalize FnF as usual and it matches the 13 years in Conservatorship.
Later it will be reduced massively.
The solution known as the secret plan, the only plan that upholds all the laws, is very simple: $182 billion refund and SPS/Warrant canceled.
By the way, the Capital Surplus would be 15% of the buffer, not 17%.
SUMMARY OF 13 YEARS IN CONSERVATORSHIP
Data as of end of March, 2021. FnF combined.
*Core Capital -$194 billion
*Deficit of Core Capital over Risk-Based Capital requirement= $399 billion ($514 billion with the prescribed buffers)
*$416 billion of Core Capital generated by FnF during Conservatorship.
*$428 billion of Core Capital is recovered with the announcement of the Secret Plan.
*$182 billion is the expected UST refund to FnF.
*FnF would have to pay taxes on $55.5 billion out of the $182 billion refund, as they were deductible expenses at the time.
*$17 billion is the Capital Surplus over Risk-Based Capital requirement after the refund and all the adjustments (SPS and Warrant canceled). FnF declared Adequately Capitalized.
*$17 billion surplus is 17% of the prescribed buffers, thus, below the 25% buffer threshold ($29 billion) required in the Capital rule to resume the dividend payments.
*The JPSs' fair value still hasn't reached its par value and until they resume the dividend payments.
*Even with the 2Q results, FnF would still be approximately $2 billion short of the threshold to resume the dividend payments. But there is no doubt that it will be surpassed with the 3Q results. The FHFA could direct the enterprises to announce the first dividend payment on December 2021.
More detail on #Fanniegate.
It isn't a felony to have a confronting opinion with the Supreme Court because we are talking about interpretations of the law.
The Govt will reimburse the $182 billion due to FnF under the so called Secret Plan and it will say that Scotus is wrong in the interpretation of the law, with what I've mentioned.
You seem to suggest that if the Govt reimburses the amount due, it's violating a law.
What law are you thinking of?
With the Scotus opinion, it's the UST's money and it can do whatever it wants with it.
This is why I said that the ones that will have the last word are the WH and the conservator, because they will make the last decision. The resolution of the Fanniegate scandal.
How can the Scotus opinion ever be corrected?
The one that will make the decision of final resolution is the Administration jointly with the FHFA conservator, not a Court. So, you tell me.
We've only learned about the opinion from crazy attorneys for the plaintiffs and at the DOJ, and from judges. So, all judiciary diatribe whose interests are closer to the interests of the politicians and their Wall Street branch that funds their Municipalities, or the interests of the law firms' Wall Street clients.
The Scotus opinion and the WH opinion are confronting opinions.
It was the reason laid out by the Supreme Court, to authorize the NWS. So, it matters.
The Supreme Court opinion, isn't the resolution of the Fanniegate scandal, primarily because the Obama White House released a report long time ago, that rebuffs the Scotus opinion, when it made clear that the FHFA as conservator isn't operating as a Federal Agency and FnF aren't instrumentalities of the Government.
So, when the law says that the Agency as conservator can take any action in the best interests of the Agency, it's the Agency as conservator and not "the Govt, and by extension, the public it serves" as Scotus stated.
I'm not endorsing the fraud. I'm telling you the current situation.
With all the adjustments (SPS canceled, $182 billion refund, etc), FnF would have a Capital Surplus over Risk - based Capital requirement and they would meet the 25% buffer threshold to resume the dividend payments with the 3 quarter results.
Your answer was wrong. Capital isn't the difference between assets and liabilities.
That's the Net Worth.
I'm telling you that their current Core Capital is - $151 billion, published by FnF quarterly. Don't shoot the messenger.
You mistake Capital for Net Worth (Equity)
Capital is a formula for regulatory or statutory purposes. The NW is what is written on the balance sheet, difference between assets and liabilities.
For instance, the SPS are Equity but they are not recorded as Core Capital, unlike the JPS.
Their current Core Capital is (negative) - $151 billion together.
Their Net Worth is $49 billion but, with the adjustments when the SPS are increased for free(reduction of Retained Earnings) , which isn't being done by the companies, the NW is $49 billion worth of SPS, as FnF wouldn't have built up any Capital (Retained Earnings)
The Core Capital remains stuck at -$151 billion.
If you want to know the stock valuation, ask me.
$200ps on average FnF.
Bove is paid to give his opinion.
Who pays your lease?
The capital of FnF was taken away thanks to an authorization in the Law, otherwise it's reimbursed. So, you have to find out whether the authorization is permanent or temporary.
The authorization that the Supreme Court outlined, is set forth in the conservator's Incidental Power, so it's temporary, as a conservatorship is not likely to recur. Thus, it isn't a Taking case and the Supreme Court lied to us contending that we have a constitutional claim.
It just paved the way for the JPS holders' Implied In Fact Contract claim.
Timothy Howard was accused of stealing money from the shareholders when he was fnma cfo, in a 248-page report by OFHEO, the predecesor of the FHFA:https://t.co/C2fk7Ba9yQ?amp=1
As a summary, these were the main allegations :
-Creation of illusion in the EPS reports.
-Manipulating accounting to hit EPS target bonus.
-They promoted an image of FNMA as a "best in class" financial institution.
-Lack of controls
Howard gathered too much power without controls and surrounded by unprofessional staff.
FNMA had to restate 4 years of earnings reports and pay a $400mll penalty.
He is a career conman.
I'm not mixing up the cases, primarily because they were consolidated in the CFC and Fairholme is the lead plaintiff. Fisher shamelessly requested to go to the Appellate Court, when Sweeney only authorized Fairholme. Finally, he went as Amicus of Fairholme. This is because he shamelessly always wants to be on the spotlight and his frequent appearances on message boards proves it.
$124 billion must be the amount in excess of the 10% dividend that has not been updated since the time of his lawsuit. So, the SPS are still outstanding.
He hasn't updated his lawsuit to challenge the SPS increased for free, which is the same NWS as the 3rd amendment, since these SPS reduce the Core Capital, just like the dividend, and both the same amount (the Net Worth increase in the quarter)
Your lawsuit only recovers $29 billion and as a Tax Credit. Nothing about the $409 billion Core Capital missing on their balance sheet that would more than offset the current $399 billion deficit of core capital over Risk-Based Capital requirement.
You want our companies back, but badly damaged that paves the way for Stock Offerings for Wall Street.
So, your lawsuit was a rip-off, although better than the Scotus' opinion, which only benefits the JPS holders' implied covenant contract claim.
The plaintiffs will be held accountable too.
Notice that a temporary NWS can be deemed permanent for a Taking case purposes.
Remember that the Supreme Court already ruled that the temporary damage for flooding caused by Govt actions, can be deemed a Taking case, because what makes it permanent is that the Govt has the right to do it after the declaration of emergency.
But with FnF is different. The actions that Scotus mistakenly says they are authorized, are taken by the conservator only while in Conservatorship. So, it lacks the permanent feature required for a Taking case.
***THE FSOC IS SLATED TO DISCUSS PRESSING CHARGES AGAINST THE CORRUPT SUPREME COURT JUSTICES*** They meet on July 16th.
HERA mirrors the FDI Act, so the Scotus opinion affects the banks' conservatorships as well. The assertion that the conservator (FDIC in the case of the banks) can take actions in the public interest, like a NWS, that is, steal money from the conservatees, poses risk to the U.S. financial sector (run on banks, difficulties in raising capital or issuing debt in an economic slowdown, etc). The FSOC is the institution in charge of maintaining the financial stability, detecting risks and taking actions.
***BOOM*** The fact that the conservator is the Agency, not the director, is enough evidence to determine that every time that the law specifies Agency in the conservatorship section, it's referring to the conservator and not the Agency as regulator "and by extension, the public it serves"(Justice Alito). As simple as that.
The Supreme Court will revise its opinion in a matter of days. The FBI is treating this case as domestic terrorism and the head of the gang, the plaintiff Joshua Angel, is under surveillance.
You mistake a Taking for the money sent to UST during a conservatorship.
What Scotus authorized is the latter, not a Taking or Nationalization that is the seizure of the ownership interest in a property.
A Taking implies a permanent feature, which isn't the case if the actions are only during a conservatorship.
This is why we can't expect a recovery of the funds sent to UST.
The Supreme Court and the plaintiffs are deceiving us, maintaining expectations of a favorable resolution, when what can only be expected is that the JPS holders get an award for an Implied in Fact Contract claim.