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Once again you state something untrue to make your point contending that the bailout of FnF and AIG are the same.
FnF aren't regulated neither by contracts nor by Treasury Plans, like the one unveiled on September 2019.
There's a Charter.
C-H-A-R-T-E-R.
B-A-N-A-N-A-S.
Dodd-Frank Act was enacted two years after the bailout of AIG. Then, it couldn't have been used for the bailout of AIG.
Then, please explain why you stated this:
You can't compare them for the reasons outlined. The relationship of FnF and the Treasury is regulated by laws,
THE AMICUS CURIAE BRIEF OPENS THE DOOR FOR A SETTLEMENT.
Judge Sweeney must be mad at the parties and the settlement I'm referring to will be the plaintiffs, the Treasury represented by the DOJ with judge Sweeney, because the brief shows that all of them have been abusing on the court process and her trust.
There are many famous quotes by the judge and you can feel that she is outraged and with jitters when talking about the Agreements FHFA-Treasury: Death grip. Hobson's choice. Like the mob. An impossible task to become solvent...all the profits taken away. Never allowed to repay...to be restored to happier days (more capital than pre-2008)...to stand on their own two feet.
The judge has welcomed the brief of Amicus Curiae because it brings relief for her. It resolves her anxiety as now every action by the FHFA-Treasury makes sense, and it's not a case of Govt theft. It's outlined the resolution, so the judge just has to write CASE CLOSED.
Full brief of Amicus Curiae submitted by a FMCC shareholder on April 20th.
Calabria will be barred from a public and private sector job. He will work only for interest groups or lobbyists, just like DeMarco.
He is to blame for HERA, a law that wasn't necessary if the Conservatorship was already regulated by 1992 FHEFSSA. Also, who is going to hire him in the private sector after his breach of his fiduciary duty with the shareholders and the enterprises as conservator? Besides, remember the "no windfall" remark.
I guess you are talking about Dick Bove, who said that.
That's not the outcome of the 5th amendment to the Purchase Agreement.
It isn't an agreement to pay the NWS dividend in cash at a later date, as Bove claimed in order to justify that currently there's a charge on the Income Statement with the amount of the NW increase. Kind of recording the "cumulative" feature of the SPS's dividend.
That's false. The NWS cash dividend was switched for the NWS "in kind" dividend, that is, SPS issued for free or increase in the Liquidation Preference of the SPS. Then, it's not a cash payment, an expense for the shareholders, neither now nor in the future, and it can't appear on the Income Statement (Accounting Fraud)
The "cumulative" feature was waived.
Nothing about "future cash payment" but issuance of SPS now. Bove claims that later FnF will redeem the SPS and that's the postponed cash dividend. The redemption of the SPS in the future has nothing to do with the current dividend. It's a different operation. He's a crook.
Those 65,000 documents have already been produced, but not by the Treasury as mentioned in your post, but by the defendant FHFA. The Treasury is not a party in this case.
Then, you made up this phrase:
Judge Sweeney is also to blame for the delay, by allowing the parties to rig the judicial proceedings stating
Judge Lamberth hasn't enforced his subpoena to the Treasury seeking documents with a first deadline August 2nd. On November 8th, he ordered that the documents must be produced "timely".
According to Fairholme last week, the Govt handed over 2,795 documents on April 3, 2020, "and a substantial volume of documents remains to be produced".
That's called delay induced by judge Lamberth.
Then, it's false what you claim:
Interesting analysis on #Fanniegate contending that Fannie Mae has posted a charge on the Income Statement in the line item: dividends on the Senior Preferred Stocks, notwithstanding that its Net Worth has decreased in the quarter.
The Treasury didn't receive, and isn't entitled to, anything, when the Net Worth decreases.
Freddie Mac set aside a $1.2 billion provision for future losses during the quarter to a total of $6.4 billion (Allowance for Loan Losses account). It's for future losses and not due to the forbearance. $1.2 billion isn't a large amount, so it's good news.
Embarrassing.
That's the movie that isn't believable. The true movie is about a person appointed conservator to fix their operations and recapitalize them. They added up the plot of being carried out secretly to put some action and drama, with investors scared of a NWS dividend, IPO, warrant exercised, etc. Otherwise it would have been a story of a boring civil servant doing his job.
A CONSERVATOR HAS FIDUCIARY DUTY WITH THE SHAREHOLDERS AND THE ENTERPRISES. It doesn't need to be written in a law. It's its definition and the traditional view of a conservator. That's why the rights and powers of both were momentarily transferred to the Conservator in HERA's succession provision.
The thought that a conservator can begin to spoil the companies after being appointed is crazy. It can't even be used as an script for a movie because nobody would believe it.
There's other side in the deal: The Secret Plan. Coming soon to theaters.
EARNINGS REPORTS. FOCUS ON THE LOAN LOSS RESERVE.
Comprised for the Allowance For Loan Losses and the Reserve for Guarantee Losses(CECL)
I expect a big increase of their Net Worth due to the release of most of the current Allowance for Loan Losses thanks to the new CECL accounting standard that went into effect on January 1st, plus their quarterly earnings.
The new reserve for Guarantee Losses or reserve for CECL is TIER2 Capital and Equity, so it won't affect negatively their Net Worth.
The lawsuit from the lunatic plaintiff Joshua Angel,DISMISSED.
Source: click here.
I already talked here about this 84-year-old lunatic that is insulting Carlos on several internet message boards and about his flawed lawsuit. Notice that it was a lawsuit already time-barred by judge Lamberth, but he amended it adding up the BOD to give it an appearance of a new lawsuit to continue in the Court of Appeals, with the objective to kick the can down the road and, this way, take part on time for a global settlement of all the lawsuits. That's his only investment case, make false statements in a lawsuit and call for a settlement.
AN ABSOLUT LUNATIC LAUGHING AT YOU DAILY!!!!
And, by the way, he is also the administrator of GSElinks.com that doesn't update the website since January in order to make people follow the Court news with other internet users, like HoldenWalker on Twitter, with daily flawed analysis by another lawyer pumping up the investment in JPSs.
YanksGhost, when someone writes literally a law, don't reply with:
False. HERA only directs the FHFA to come up with a new Risk-Based Capital requirement after it struck the section in the FHEFSSA with the previous formula.
The Capital Classifications, their definition and the mandatory actions of FnF in each one, are still in force in the FHEFSSA.
The funny thing is that the famous Restriction On Capital Distributions (dividends) when FnF are undercapitalized, is included inside the section CAPITAL CLASSIFICATIONS at the end -subsection (e)-, as an attempt to conceal it inside an unrelated item, because the same provision is set forth in the FDI Act as an independent section.
The FHFA's suspension of Capital Classifications aimed at doubling down on this attempt to make this subsection (e) go unnoticed.
IT FAILED. We all know ANY DIVIDEND is suspended during Conservatorship. THE SECRET PLAN.
FnF's operations aren't regulated by contracts, but by their Charter.
The SPSPA didn't come to offset the suspension of the Capital Classifications but to specify the wording of HERA's Temporary Authority Of Treasury To Purchase Obligations And Securities incorporated into their Charters, which is the so called Charter's Treasury backstop, because Congress forgot to establish the dividend yield on the obligations SPS and the amount of the funding commitment.
The Capital Classifications can't be suspended by the FHFA because it's statutory. Only Congress can suspend it.
Yes, but don't call it a loan because it's a security. The Preferred Stocks are "obligations with respect to Capital", according to the Treasury in the SPSPA. You can call them Capital Notes.
The specifications of the security is the key. It's what makes a simple obligation, Capital (the ability to suspend the dividend payments at the discretion of the BOD, which is justified only when they are undercapitalized) and Equity (the Liquidation Right). Without those items, the JPS would be called obligations, recorded as Debt and wouldn't be accounted for in the Core Capital.
In order to not be trapped again in any Restriction On Capital Distributions (dividends) like HERA, is why now in CARES Act the taxpayer assistance is a pure loan and the equity that the Treasury requires is a warrant, adding in the legislation that it's meant to participate in the upside, because with FnF the warrant was authorized "to protect the taxpayer" (from losses in its investment), meaning that when the SPS are repaid (redeemed), the warrant, as collateral, must be cancelled and not used to make money.
Also a Preferred Stock doesn't participate in the upside.
With FnF, the Treasury burned its fingers.
The SPS are not a loan. They are an investment in obligations, which are a compromise of repayment, so a loan.
Get it? It's called hybrid status. A debt instrument recorded as Equity.
The dividend is suspended for being Equity when FnF are undercapitalized and the obligation can be redeemed.
The risk of dividend suspension is why they get a higher coupon than other obligations (I'm talking about Preferred Stocks in general)
The brief of Amicus Curiae lays out a blueprint for the resolution:
• The excess of the SPS amount ($110 billion) must be reimbursed to the enterprises and the Treasury must set a low-rate yield on the SPS, payable once FnF are Adequately Capitalized. A rate that must be lowered due to the existence of the warrant, because that's what the collaterals do on any debenture.
• SPS cancelled (redeemed in 2013/2014)
• Warrant cancelled.
• Moral damages to the Equity holders, under a rule that considers the average gap to the fair value of each class of stock, had The Secret Plan and the Risk-Based Capital been made public.
All the lawsuits are fraudulent as they seek an agreement between corrupt plaintiffs and the Treasury to share the booty.
The resolution will be announced unilaterally by the Trump Administration.
Crazy plaintiff Joshua Angel is the one insulting Carlos like the lunatic we knew he was. Remember that surprisingly, the judge cancelled the Oral Arguments of his lawsuit scheduled for April 9th, after Carlos posted on #Fanniegate that the judicial proceedings were a fraud. He wrongly sued the BOD when their powers were transferred to the conservator. He claimed that nothing in HERA eliminated the dividend duties, when we have the Restriction on Capital Distributions. And also he pointed out that his dividend should have been stored, when the prospectus of the JPS states that the holders don't have any claim for dividends not paid, declared or stored.
Now he insults Carlos after his magnificent brief of Amicus Curiae contending that the lawsuits ought to be dismissed because they are meritless with The Secret Plan, according to Law.
I pity that this 84-year-old lunatic has to become a compulsive liar in order to fight for his food.
He spends all day laughing because he doesn't care being called out daily.
THE BRIEF OF AMICUS CURIAE IS IMPECCABLY WRITTEN, with factual analysis and continuously making references to the U.S. Code.
It blasts all the Govt theft phony story by the parties. The Govt can't profit from the GSEs. That's written in the Charter.
Judge Sweeney is accused of allowing the parties to rig the Judicial proceedings and it's corroborated with her phrase laid out in the important opinion dated December 6th:
THE FILING OF THE BRIEF OF AMICUS CURIAE IS A GAME CHANGER.
No wonder why the holders of JPS are mad at our leader Carlos and they respond insulting him. They are fighting a losing battle.
The brief makes clear what's the role of all the Equity stocks when FnF are undercapitalized: help in the recapitalization of the enterprises with the dividend suspended. This is a basic concept in finance.
The thing is that a Retained Earnings account is the common shareholders' money held in the balance-sheet. So, if you hold a JPS, you are helping to recapitalize the enterprises and your dividend is lost forever.
BOMBSHELL.A FMCC SHAREHOLDER FILES A BRIEF OF AMICUS CURIAE.
In the United States Court of Federal Claims. He saw the opportunity to submit it in the only two cases before judge Sweeney that are Class Actions (on behalf of the absent parties). Thus, the judge will have a hard time in an attempt to reject it.
The brief will appear attached to Washington Federal case and WAZEE OPPORTUNITIES case.
In the meantime, you can read it here.
It's the first time that the Courts will learn the version from a shareholder. Holders of JPS aren't FnF shareholders.
The holders of JPS, the Govt and the judge will be upset. Their conspiracy has been uncovered.
The game is over.
I've just learned that the WaFd's lawsuit is dated February 2017, just days after the Federal Reserve's rule that implemented the reduction of their dividend at the Fed, under FAST Act.
The negative Core Capital was caused by their accumulated losses, just the opposite to a Retained Earnings account. This has nothing to do with the Treasury draws. It has to do with the fact that the SPS aren't recorded as Core Capital due to their "cumulative" feature under the definition of Core Capital in the FHEFSSA, unlike the noncumulative JPS. Therefore, it's a question of bad faith of the conservator and the Treasury secretary in the 2008 Agreements.
This negative Core Capital will be fixed once the SPS are canceled, as FnF would report an accounting profit that would offset it. It's a kind of magic.
The Federal Reserve's rule to implement the provisions of FAST, took effect on January 1st, 2017. So, they had an extra year of 6% dividend.
Here Washington Federal is right, with FnF isn't, since the money will be returned voluntarily.
Plaintiff Joshua Angel is crazy and you know him quite well.
Correction. That was the real @Black.
That's plaintiff Joshua Angel faking Black's account. The real Black has a "thumb up" as avatar.
There aren't rumors in Yahoo unless it's stated: "RUMOR". If Black says that good news is coming in the U.S. Court Of Federal Claims today or tomorrow, it's a fact.
They are different @Black. Different avatar. ***STAY PUT***
That's not the message I was talking about.Patswil should explain why he posted that message.
YAHOO MESSAGE BOARD: "GOOD NEWS COMING". STAY TUNED.
The shareholders can't be wiped out. They can be diluted in the ownership of the enterprises (the EPS is lower, but the current stock price discounts a dilution of 99%. It can't be worse than that.) either with the warrant exercised and/or stock offerings, both ruled out since the warrant can't be exercised if it was authorized in HERA to protect the taxpayer, and the shareholders should have Preference Subscription Rights to avoid dilution in stock offerings, because that's inherent on a common stock.
Although the certificate of designations says that we don't have Preference Subscription Rights. It's arguable because it comes from FNMA's Charter prior its privatization in 1968, when the mortgage servicers were forced by law to buy common stocks as a percentage of business to FNMA.
It can be made the argument that the FDI Act for the banks' insolvency, explicitly contemplates that the shareholders must have the first opportunity to buy stocks in a stock offering, and that's what the Preference Subscription Right is about. HERA mirrors the FDI Act, but this theme was skipped conveniently.
Your last point. No, the JPS holders can't vote in the Annual Shareholders' Meetings because they aren't shareholders. The shareholders vote on the appointment of the members of the BOD, which have a supervisory duty over the management.
The best analysis, first on #Fanniegate.
Hiring of a Law Firm,part of Calabria's shitshow.
Until I see the official announcement of some action with regard to Capital, nothing has changed.
I'm still waiting for an unilateral resolution of Fanniegate by the Trump Administration. Refund & Release.
Calabria is a mobster that works for the hedge-funds.