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HLL7575 on July 15, 2014 at 10:04 am
on http://timhoward717.com/2014/07/15/new-order-fairholme-case/#comments
It looks like the discovery will drag a little bit further than originally scheduled. But for how much longer delay? it’s getting more likely (I hope) Perry’s injunction ruling might take place first before waiting for the Fairholme’s case.
I see one member hvpatel?? posted here earlier that he has a PACER acct.
NEW ORDER in Fairholme case out last night @ 9:21pm
1:13-cv-00465 FAIRHOLME FUNDS, INC. et al v. USA
Yesterday, July 14, 2014, ? 9:21:23 PM
Go to full article [Order] (70)
is this good news from JUDGE SWEENEY ???
Ron Luhmann on July 15, 2014 at 9:27 am
on http://timhoward717.com/2014/07/15/coup-update-714-1256-am/#comments
JohnM on July 15, 2014 at 5:26 am
on http://timhoward717.com/2014/07/15/coup-update-714-1256-am/#comments
Thank you Tim for your analysis, most of us shareholders would be in the dark left to wondering what has or will possibly transpire since the mainstream news media doesn’t thoughly cover this travesty. You should know that many people depend on your blog for the unique and important perspective you bless us with…..Thanks again for your thoughts!
Randal Hunt on July 15, 2014 at 1:53 am
on http://timhoward717.com/2014/07/15/coup-update-714-1256-am/#comments
Which is why I believe release is coming. Neither party can agree! Democrats what the FNF’s to stay even though want to continue to rob the bank literally. Republicans to want to get their greedy paws on this money maker to insure big banks stuff their coffers, but the only way out between now and 2016 is to delay as long as possible and eventually release. The Democrats will so this to be spiteful and to try and stay out of jail. Thanks Tim! Just my two cents reading largely from this blogs input! Keeping the faith!
Reply
Coup Update 7/14 12:56 am - TimHoward 717
http://timhoward717.com
My guess is Warren Buffett. Just IMO.
Anonymous on July 14, 2014 at 7:22 am
Tim,
Following this for years show me one clear thing! I am for sure independent & will have no strong party affiliation.
Both are screwed up totally with crooks! What scares me is how do we fix that when the richest crooks are the banks!
Interesting to see how long a democracy can last! Most non have made it past 200 years.
Thanks for your efforts this blog has many talented folks & those who have deep knowledge.
I think SWEENEY will be hard but work to get PLAINTIFF day in court & keep the dirt out of public eye!
We have one party in the US after this & it is a demrepub party now linked. Y billions in joint stolen money.
Yuk!
.
Dan W on July 13, 2014 at 8:13 pm
On
http://timhoward717.com/2014/07/13/p-o-analysis-and-rupert-murdoch-is-no-friend-of-ours/#comments
I’m libertarian. The republicans want to get rid of FnF because they contribute to big government in our lives. I agree with this stance. The democrats want to get rid of FnF so they can be replaced with something that the democrats can more easily use as a policy tool.
Both are at fault for ignoring property rights. They have different goals for the seized property. I hope that our government, specifically the legislative and executive branches, both republican and democrat, receive a thorough beat down from our judicial system. If they don’t, not only will I have lost a lot of money, but it will be obvious that it is time to leave the US for a country with greater economic freedom.
I don’t want to move.
P.O. analysis and Rupert Murdoch is no friend of ours. --TimHoward 717
http://timhoward717.com
huazer_lin on July 11, 2014 at 9:08 pm
http://timhoward717.com/2014/07/11/joint-status-report-regarding-proposed-protective-order-fairholme-lawsuit/#comments
Defense reasoning:
1) Deny Plaintiff motion cause discovery is too broad
2) Deny Plaintiff motion cause it could be a lot of work for Government and Court
3) Deny Plaintiff motion cause Plaintiff should know which files they want
Europe on July 11, 2014 at 3:56 am
on http://timhoward717.com/2014/07/10/motive/#comments
Let’s include fear. In 2008 it was the fear that like in a domino play GS and other banks could fail although they earned billions by shorting F&F stock (about $ 130 billion market value was lost for commons and preferreds since 2006). Today it’s the fear that too much details could be known in public about the biggest bank robbery in history.
The new proposed PMI eligibility requirements announced today are one more step preparing for the eventual release of Fannie and Freddie . I also believe Julian Castro rising star in the Democratic Party was put in place to take some of the credit for the tax payer bonanza that will result from Fannie and Freddie’s eventual release . I will elaborate more tomorrow.
Keep the faith!
http://timhoward717.com
Coup update. -- TimHoward 717
http://timhoward717.com
HLL7575 on July 10, 2014 at 2:59 pm
on
http://timhoward717.com/2014/07/08/looking-through-the-fog/#comments
I would like to add a totally different story, for some light moment. Today our agency had an all-hands meeting and provided a webcast link for staff who couldn’t attend in person. Well, the webcast link provided didn’t work and few even reported the problem (because most people thought the all-hands meeting was just another agency’s PR effort to promote govt. policies.). Regardless, after several attempts, we finally got a notice from IT that because of bandwidth constraints, people from HQ, regions, and via VPN could not watch the webcast. Guess what, that’s ALL the people out there. So, the Agency was doing an all-hands with nobody watching (or unable to watch).
By the way, I am a fed. This goes to tell you how our beloved govt. function nowadays. This was a true story, and happened just now. I didn’t make it up.
We are pleased to announce U.S. Treasury Secretary Jacob J. Lew is scheduled to be the opening keynote at 2014's Delivering Alpha. Since our inaugural year, the sitting Treasury Secretary has kicked off the conference, setting the stage for a day of groundbreaking interviews and breaking news.
http://www.deliveringalpha.com
Anonymous on July 8, 2014 at 10:41 pm on
http://timhoward717.com/2014/07/07/high-crimes/#comments
Soon a mortgage will be applied for through the government. Similar to a student loan where missed payments result in wage and or tax refund garnishment. The next 3 – 5 years will decide the fate of a home loan…I’m scared.
Reply
Jennifer Barber on July 9, 2014 at 2:56 am on
http://timhoward717.com/2014/07/08/looking-through-the-fog/#comments
I would love to read a column that, in very simple terms, provided the key events in this struggle: the government mandates that caused the collapse of Fannie and Freddie, the terms of the conservatorship that the shareholders’ interests would be protected, and then how once the government gains control, it breaks the terms of the conservatorship and steals all the shareholders interest they had just promised to protect.
I think this backdrop of key events is helpful in understanding the duplicity and corruption that is now taking place. To gain public support for shareholders, the public needs to understand that the government mantra that Fannie and Freddie’s collapse was their own fault–the greed of big business, needs to be corrected. They should recognize that it was the government mandates that Fannie and Freddy “make more risky loans”, and as a result “61 percent of Freddie’s loans purchased in those years were of mortgages to statistically uncreditworthy borrowers”. Arthur Brooks clarifies this in The Battle, but I have not seen this kind of clarity in a major news article.
Once it is understood that the government clearly created the problem, it is then incredibly duplicitous for the government to blame Fannie and Freddie for having managed the companies poorly, and then make government look the savior. Furthermore, to establish a conservatorship, and clearly outline the terms that it would protect shareholder’s rights, while at the same time plotting to keep all future profits once they gain government control, is bone chilling.
Before these series of events, I couldn’t imagine a business being forced to give credit to those that aren’t credit worthy, then go into default as a result, only to borrow money to regain solvency, pay all the money back, and yet be told that the government can keep all future profits because the company would not have survived without the governments help. It’s really quite incredible!
Thank you once again for all your diligence in keeping everyone informed!
spcwby on July 9, 2014 at 9:20 am. on
http://timhoward717.com/2014/07/08/looking-through-the-fog/#comments
Thank You Tim for your gracious & generous counsel: Re Mossad motto (Hebrew: ???? ??????? ???? ??, ?????? ???? ?????, Proverbs 11:14). Translated by NRSV as: “Where there is no guidance, a nation falls, but in an abundance of counselors there is safety.”
Looking through the fog. -- TimHoward 717
http://timhoward717.com/2014/07/08/looking-through-the-fog/
This board is very helpful and informative. Thanks to all Longs for your very insightful messages. Thanks.
HLL7575 on July 7, 2014 at 1:40 pm
on
http://timhoward717.com/2014/07/07/high-crimes/comment-page-1/#comment-837
The GSE’s case is unprecendented. Even Watergate had two Govt. branches against one. Now two branches are against not just one, but the whole citizens of this great country. To indict current and past officials, it would require DOJ actions, which is part of the two corrupted branches. History is being and will continue being made before the GSE’s saga ends.
No margin for me yet. I am in AmeriTrade. Thanks
High crimes. --TimHoward 717
http://timhoward717.com
jennifer barber on July 4, 2014 at 8:56 pm on
http://timhoward717.com/2014/07/03/progressing-at-warp-speed/#comments
Just want to extend a heartfelt thank you for all your hard work in creating this blog! I am a Los Angeles Unified middle school teacher that invested my retirement in fnma in 2011 because I had decided to use the equity in my home to purchase rental properties after the housing bubble burst. I invested in fnma because it became unbelievably difficult to acquire loans for rental properties even with perfect credit, solid jobs and 30% down payments. As a result, I realized that if all new loans were underwritten with the same strenuous guidelines, fnma was now holding excellent loans and it was only a matter of time before they were solvent again. I never figured systemic corruption into the equation to invest. Thank you for fighting this battle and keeping everyone informed!
Aren't they available when they up listed on big boards.
A Happy July 4th to All.
Progressing at warp speed!- TimHoward 717
http://timhoward717.com
Anonymous reader commented on July 3, 2014 at 4:23 am on
http://timhoward717.com/2014/07/02/bill-to-keep-fannie-and-freddie-alive/#comments
It’s not too difficult to understand (as both Parties do) that to outright control F&F allows Direct Appointees to head these Enterprises and to break the Law and not recognize Shareholder rights as the Govt. continues to pillage the housing market is a (IMO) higher crime.
A total count needs to be made (include all Party Reps) so we know who we are to support in the next ballot.
Please keep in mind that Congress let Raines walk with bonus money – should he have been allowed to walk at all? Don’t even want to talk about the CEO of Countywide – do you?
Also, the fines on the Banks that perpetrated the so call ‘House of Cards’ only had to give back how much in percentage value of what was taken?
We need to set this right — restructure F&F. Do away with Political appointees and let them be Shareholder driven companies that each gives (both F&F) 10% of profits to a backstop fund that Treasury can manage. Of that fund, 2% can be allocated to community housing – that’s 20% easy cash — everyone wins. What’s wrong with that?
One of the comments by a reader Piper Drew on
http://timhoward717.com/2014/07/02/bill-to-keep-fannie-and-freddie-alive/#comments
This bill is not news. The bill was first was announced over 6 months ago on January 16, 2014. Since then there has not been a draft made available beyond the original outline. It is old news and it is a failed bill proposal (not even a proposal of any substance) as is the others before it. It is hyped now since there is an activity and news vacuum in Congressional legislative news on housing reform. It was poorly received in January and is poorly received now.
http://himes.house.gov/press-release/delaney-carney-and-himes-announce-housing-finance-reform-proposal-plan-introduce
Delaney, Carney and Himes are not for shareholders and do not understand what has been and is going on or they imagine the public is stupid and/or ignorant and will believe any thing in print. Read what they wrote about GSE shareholders and their unwillingness to vacate the third amendment or to renegotiate the third amendment. They write as if the third amendment was an original deal made with US Government in exchange for some wild guarantee that is simply made up in their minds and has no basis in reality.
http://online.wsj.com/news/articles/SB10001424052702303369904579421143244960198
__________________________
David Skeel’s “Now Uncle Sam Is Ripping Off Fannie and Freddie” (op-ed, Feb. 28) argues for a renegotiated agreement between the government and the companies’ shareholders.
We have outlined a housing reform package that creates a new housing finance system including a path for Fannie Mae FNMA +2.04% and Freddie Mac FMCC +1.30% to be sold. But under no circumstances should the government modify its current deal with Fannie and Freddie until Congress passes comprehensive housing-reform legislation.
To do so would be turning the clock back on reform and an injustice to the American people. Fannie and Freddie failed in 2008, and the government stepped in and explicitly guaranteed $4 trillion of debt and obligations and injected $187 billion of equity. Taxpayers assumed a staggering obligation equal to 48 times all annual Social Security payments. In exchange for this unprecedented level of support, the government negotiated a deal that allowed it to ultimately take all of the profits of the companies. Given the extraordinary level of government support, this deal seems fair to us. Now that the companies are profitable and have paid significant sums back to the Treasury, Fannie and Freddie shareholders want to change the deal.
We believe Fannie and Freddie could have a future once we agree on comprehensive reform that creates a stable system and safeguards against abuse, mispricing of risk and financial calamity. But until that future is agreed to by Congress, or unless the Supreme Court were to rule otherwise, those of us in government should stand firmly with the American taxpayer rather than renegotiate the agreement.
Rep. John K. Delaney (D., Md.)
Rep. John Carney (D., Del.)
Rep. Jim Himes (D., Conn.)
Washington
_________________________
Caveat Emptor. Time to take a deeper look at what Delaney, Carney and Himes propose in their outline.
Where is there shown an understanding of the conservatorship, the current secondary mortgage market and housing finance?
Where is the private capital coming from? At least 500 billion is required.
They say:
“The Delaney-Carney-Himes housing finance proposal creates a structure that enables the government to significantly expand the availability of capital in the insurance market, while ensuring the mortgage market is open and efficient – with private capital participating in the market and pricing all of the risk.”
What is the structure they are talking about? Not present. Where is the private capital coming from? Who are these companies? The TBTF banks are the only ones with capital of this magnitude and at least 500 billion is required. The TBTF banks have not stepped for CW or JC. They certainly will not step up to these wild promises of the US Government/ taxpayer (Ginnie Mae) to take on 95% of the risk if these insurers back out or fail miserably as they did before.
They say:
“taxpayers will remain on the hook in the event of another downturn in the housing market.”
They will remain on the hook with this explicit 95% Ginnie Mae guarantee they propose. The private sector will game this proposal to death if given the chance to make profits and shift losses to the US Government if they goof up. And does Ginnie Mae have the secondary mortgage market expertise of Fannie and Freddie? No. This is same CW, JC giveaway to the big banks but instead of a FMIC they repurpose Ginnie Mae.
They believe a transition to a private market can happen in less than 5 years and that the disruption to the current housing market is greatly overstated. Are these Congresspersons clothed in their right minds?
The US Treasury guaranteed 200 billion for each GSE. It is ridiculous to state that the US Government explicitly guaranteed $4 trillion of debt and obligations. That is false.
Why is there no serious consideration of the $213 billion paid in dividends to the US Treasury? Over $25 billion more than invested by the US Treasury was taken in.
Delaney, Carney and Himes think the third amendment is a good deal, that is, “the government negotiated a deal that allowed it to ultimately take all of the profits of the companies.”
What sort of negotiation happened? Is this acceptable? Apparently, these three think taking others property is ok as long as it them and the Congress doing the taking. 18 lawsuits challenge that thinking.
They say:
“Now that the companies are profitable and have paid significant sums back to the Treasury, Fannie and Freddie shareholders want to change the deal.”
Change the deal? What deal? There was no deal. Laughable.
Delaney, Carney and Himes among themselves think Fannie and Freddie could have a future. When did three Congresspersons or the Congress as a whole gain the constitutional or statutory rights to confiscate and sell two publicly-traded and shareholder owned companies without due consent of the shareholders? There are no such rights. Who do Delaney, Carney and Himes think they are?
These three emperors have no clothes.
One of the comments by one of the readers,yaquino on
http://timhoward717.com/2014/07/02/bill-to-keep-fannie-and-freddie-alive/#comments
“Winding Down Fannie and Freddie”
“The Director of the FHFA will oversee the discontinuance of the Enterprises’ ability to issue, guarantee, or purchase any mortgage-backed securities.
After the Ginnie Mae platform is established, the Enterprises will operate as one of the several anticipated monoline insurers and one of the several anticipated private reinsurers for a five year period.
By the end of the five year period, the FHFA Director will ensure that the total market share of mortgage-backed securities insured by the Enterprises in either of these capacities will not exceed 30 percent of the total market share.”
The above statement was issued by Delaney et al on their proposed bill. It implies to wind down the share of GSE of 90 percent in the current MBS market but not not to wind down the GSE. It is explicit that they must retain 30 percent of the market market share which is their market share during the pre crisis. The bill implies they have to release FNF from conservatorship, because it is the only way they will be able to exist, raise capital and be able to return ownership to private investors. It is implied by this bill that if we,politicians will allow the court to decide on what to do on GSE based on the current lawsuit in judges sweeney and lambert, this will exposed both republicans(use of GSE to save Wall Street ) and democrats (2012 sweep amendment) abuses and disregard for economic and financial laws. This is what Tim was saying all along that republicans and democrats must change their heart, in bashing and winding down of GSE or else they will be washing their dirty linen in public through the court system.
Tim, thanks for leading our continuing vigilance to preserve the American justice system. Keep the faith!!
Anonymous poster on
http://timhoward717.com/2014/07/02/bill-to-keep-fannie-and-freddie-alive/#comments
If this was a poker game, it appears to me that we are holding a possible flush if not a straight flush. Our opponent is still raising but the raises are getting smaller and smaller. They are realizing that the cards, a pair, they hold are not as strong as they try to lead you to believe. All along they have been bluffing with reform threats and bill creation not to mention a bunch of other lies and promises. We continue to call each bet along the way. In my opinion, we all have seen at the recent round of betting which I refer to as the Protective Order hearing, a glimpse of their cards. We should have full transparency once Discovery really starts. It’s almost time to make a raise bet. For now, Happy 4th of July. Cheers.
TimHoward 717
http://timhoward717.com
Big news, a bill that would keep Fannie and Freddie alive, this is great news. The coup continues. I also am interested in their timing with an impending court decision. I am providing a link to the story on Mortgage orb. which Ron posted in our comments section. I will definitely provide more analysis on this, Keep the Faith
Bill to keep Fannie and Freddie alive !
- TimHoward 717
http://timhoward717.com
Sounds good Jackticker. Thanks.
Why Fannie Mae securities rallied with bonds about 1/4
http://marketrealist.com/2014/07/fannie-mae-securities-rallied-bonds-14/
See the "Reasons to waive the PCF" at the bottom of first page in the below link:
https://timhoward717.files.wordpress.com/2014/06/treasury-memo-smoking-gun-2.pdf
Fannie Mae, Freddie Mac, GNMA currently accounts for 95% of mortgage originations - the historic average is around 40%.
Blanka, agree with you.
I bought FRE( Old ticker for FMCC ) at $10.63 on July 24th 2008. Also bought the same on Sep 11th 2008 at 0.67 and also on Sep 17th 2008 at 0.25. Bought FNM(Old ticker for FNMA) on Nov 21st 2008 for 0.34. Each time I bought just about $100 because of lack of money . I hold for about two years and sold all of them (About 2k shares). . This time I accumulated more than last time and still adding now and then when ever I have some powder. This board has been very helpful with some of the longs and their views. Thanks. . Some times I feel bad for not having this kind of iHub back then.
One of the comments made by JD on
http://timhoward717.com/2014/07/01/in-their-own-words/#comments
Tim, In your discussion here you should venture back in time and “replay” what was said about the “purpose” of the warrants and the stated (verbally) plans for them.
I recall a conversation or a quote that essentially, said the warrants were for collateral and would never be exercised.
Also, I see no way the government can walk back on their words. And finally, the Dec 2010 memo – if not stated should be reminded – that it was not public until December 2013 or so and in the interim the FDIC sold a few billions of preferred stock it accumulated from “failed” banks.
I really don’t understand why the government isn’t working very hard at negotiating a settlement that caves on each and every issue. Its really that bad.