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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 Court generally assumes that the allegations in the complaint are true.
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.
You all are fooled on a daily basis. A law firm can't be hired to end the conservatorship, because that's the role of the Conservator. Its power is "put FnF in a sound and solvent condition" which means recapitalization. The FHFA was empowered in 2008. The law doesn't say: "hire a law firm to put FnF in a sound and solvent condition".
The 10% and NWS dividend contravene that mandate and HERA's Restriction On Capital Distributions.
Just saying...
That scenario assumes that FnF pay a 10% dividend all along. That's not the correct assumption. 10% in Congressionally chartered companies with a Public Mission?
The U.S.Treasury backstop is the Authorization Of Treasury To Purchase Obligations And Securities, set forth in their Charter when HERA was enacted.
The SPSPA simply outlines the amount of the Treasury's funding commitment, because Congress forgot to include it in the law.
This backstop already existed prior HERA, in the Authorization Of Treasury To Purchase REDEEMABLE Obligations (limited to $2.25 billon 40 years ago), as they are SPS as well.
Thus, the UST backstop has always existed in exchange for their Public Mission in the Charter.
That's what the Charter is all about.
We don't need Moelis because FnF isn't a restructuring case, no matter that Mnuchin said it is. FnF isn't in a state of isolvency right now, but 12 years ago. Backward restructuring doesn't exist.
Everything surrounding FnF is laid out in the laws and regulations, not in the SPSPA or some restructuring advisory firm's wishful thinking.
The U.S. Treasury owes FnF $157 billion, according to law.
BOMBSHELL! Proof of motive in the crime of Securities Fraud, found. The issuance of SPS is Securities Fraud because they are obligations and you can't increase the debenture (Liquidation Preference) on an existing obligation, but you have to issue new obligations. FnF are increasing the LP but the SPS remain the same since day one: 1,000 stocks. Why? PROOF OF MOTIVE IN THE CRIME. This way, the U.S. Treasury evades the restriction on the "Temporary authority of UST to purchase obligations or securities of FnF" established on December 2009, as the effective purchase of SPS never occurs.
This will prompt an imminent resolution of Fanniegate. More info in the famous Twitter hashtag #Fanniegate.
The bill doesn't amend the charter. It's an error in the bill.
MORTGAGE SERVICERS WILL FORCE THE SUSPENSION OF COVID-19 BILL.
The bill stipulates that FnF's mortgages are "federally backed mortgage loans". That's false. Their Charter explicitly states that the U.S. Govt doesn't guarantee their securities and thus, their underlying mortgages.
This bill will make the mortgage servicers continue to fund the MBS obligations despite suspending the mortgage payments of borrowers (forbearance), prompting a liquidity problem.
The odds are that they will challenge the COVID-19 bill, increasing the suffering of the population.
A happy man nowadays:
IT MAKES ME HAPPY
— Conservatives against Trump (@CarlosVignote) March 26, 2020
Exactly HERA's Restriction On Capital Distributions for undercapitalized FnF and its exception: to repay the obligations SPS(fully repaid 2013/2014)
2011:@FHFA added exception(1)for Recapitalization.
Both biz judgement too.The Secret Plan.#Fanniegate @WhiteHouse https://t.co/wafqtxA48z pic.twitter.com/1jKNzlZQrA
Very funny, Joshua Rosner. Go away!
Very sad today. I dumped all my shares of FNMA. I got in at $1.20 back in January, 2019, and sold today at $1.37
Knowing that a JPS is a non convertible Capital Note, it's easy to know its fate.
***CALABRIA CONFIRMS HE'S CARRYING OUT THE SECRET PLAN***
Yesterday he said to Politico's Katty O'Donnell that he will be "getting them to a safe and sound position", pertaining to their recapitalization.
Which is almost identical to his Power as conservator set forth in HERA:"Put FnF in a sound and solvent condition." Safe condition and solvent condition are synonimous. Also creditworthy, etc.
He mixed it up with his duty as regulator with regard to FnF's operations: "ensure that FnF operate in a safe and sound manner."
So, everybody knows that his power as conservator is recapitalize FnF.
The thing is that he was empowered in 2008, not today, and the only way to comply with HERA is announcing that the FHFA-C has been carrying out The Secret Plan, authorized in HERA and CFR1237.12, although it contravenes its fiduciary duty with the Equity holders under HERA's succession provision and the traditional view of a conservator, because it had to have been made public. That's why we'll get a compensation for damages jointly with the damage due to the Warrant (Takings claim as it's deemed Beneficial Ownership under S.E.C. rules). More detail in #Fanniegate.
You are obsessed with converting your security into a different security. It's illegal, as the JPS are non-convertible and it doesn't make sense because the JPS are already Core Capital valued at their par-value regardless of their stock price.
Besides the JPS can't be redeemed and issue new JPS with a low coupon (refinancing) because the Govt's illegal actions have inflicted a stigma on FnF's securities. Thus, the Conservator should use its Incidental Power (take any action in the best interests of the enterprises) and HERA's succession provision (powers and rights transferred to the conservator momentarily), to force a refinancing on all series of Preferred Stocks.
Instead of repeating the conversion slogan to assault the ownership of FnF, why don't you just do it yourself?
SPSPA is essentially a fraudulent and bad faith agreement between one Gov agency FHFA with another Gov agency UST for the benefit of US Gov.
Preferred Stocks are bonds. Who wants to hold bonds? The common stocks reflect the value of the enterprises.
The JPS are non-convertible stocks. The conservator will force a refinancing.
The SPS were redeemed on 2013 and 2014 under the exception to the restriction on Capital Distributions in HERA. Something like this happened with the FHLBanks when they were paying an amount towards their bailout REFCorp and the FHFA suddenly announced in 2011 that their obligations with REFCorp had been fully satisfied.
You seem to forget that FnF are statutory corporations and everything is dictated by law. The SPSPA isn't a law and it can't contravene the law.
In the end, the Govt can announce whatever it wants about its past actions on the #Fanniegate resolution day. What is commonly known as The Secret Plan.
The only certain are their crimes, beginning with the violation of FHFA-C is a fiduciary.
The FHFA-Conservator will force a refinancing on the JPSs, because it's a business judgement that FnF would make in the absence of this phony Conservatorship, by redeeming the JPS at par-value and issue new JPSs at lower rates to new investors in order to reflect the current market rates. But they can't. The Government's actions have inflicted a stigma on all FnF's Equity stocks that will be difficult to erase in the future.
Thanks to the Conservator's Incidental Power and HERA's succession provision, the FHFA-C can agree on a refinancing of all series of JPS (TIER 1 Capital).
Knowing that their coupon payment is non deductible on the Income Statement to lower the Corporate Tax, like similar obligations, FnF shouldn't pay more than 3.5%.
CASE CLOSED. In #Fanniegate it's been unveiled:
-The crimes:
SPSPA covenant 5.3: They agreed to violate the Law & don't recapitalize FnF (Conservator's Power: "put FnF in a sound and solvent condition")
Coverup of the Restriction On Capital Distributions
-Crime weapon: the dividend to UST.
-Alibi: The Secret Plan that will be announced once they are caught.
-Motive: fund the White House and benefit the h-funds and Community Banks that currently hold JPSs and/or in future stock offerings at PER 5 times.
-Accomplices: all the plaintiffs, attorneys, judges and the internet message board users that repeat the flawed narrative of the Govt heist: Pagliara, Rosner, T.Howard, etc. We know them all.
This will force the UST to return $157 billion to FnF and SPS canceled (redeemed on 2013 and 2014 under the exception to the restriction on capital distributions)
Adding up that FnF's CECL accounting standard was a figure of just $0.2 billion and $1.1 billion, respectively, they have Capital Surplus.
THE STOCK MARKETS RISE ON STIMULUS HOPES. The world's eyes shift towards Fannie Mae and Freddie Mac as the Government's tools to announce a $3 Trillion QE stimulus program by releasing them from Conservatorship and announcement of a buyback of all the second-lien mortgages granted by the banks during Conservatorship using FnF's collateral (business stolen), either in cash-out refinancings or at origination for the down payment.
The charter allows FnF to grant equity loans and also buy mortgages 100% LTV. This will free up Capital in the banks that will start lending out massively to the private sector. It will occur at the same time a new wave of refinancings approaches thanks to the market rates collapse. Only the Common Stocks reflect the value of the enterprises. The JPS are simple obligations, like a bond. Get ready!
The ***RUMOR*** of March 6th contemplated that the Justices' Conference is held on March 4th, one day after the Oral Arguments. It turns out that the Conference was held on March 6th and thus, Monday was the first working day. So, let's give Justice Kavanaugh more time than a few hours to write the majority opinion, shall we?
Unblocked during a trial period.
ACCOUNTING FRAUD EXPOSED. Our Windfall ticket. This is how the shareholders negotiate.
ACCOUNTING FRAUD 3Q & 4Q2019: CORRUPTION AT #TrumpAdministration
— Conservatives against Trump (@CarlosVignote) March 9, 2020
SPS handed out to UST for free,reduce the Net Income. It can't appear on the Income Statement as it isn't an expense for the shareholder(non-cash),like occurred on 3Q2008/4Q2017.We want names.#Fanniegate @WhiteHouse https://t.co/rqR5ONyrdR pic.twitter.com/bf5uCo5Wqv
Neither intelligent nor knowledgeable. Read this thread, where I accuse HoldenWalker99 of spreading fears and misleading the shareholders.
I bet that gselinks.com isn't updated by YanksGhost to make us read his Twitter feed. He talks on behalf of "a team", he said here. What team? A team that you also belong to.
Mulvaney's abrupt departure, when it's obvious that there's a table of negotiation with Fairholme's attorney, David Thompson, and the controversial hedge-fund manager, Tim Pagliara, is a good sign.
Notice that Mulvaney introduced a bill in 2016 that called for the Govt to exercise its Warrant and the recent WH's Budget proposal unveiled on February 10th has the signature of Mulvaney and it contemplates that FnF will continue to pay dividends to the Treasury the next 10 years, and a TCCA fee hike for new loan acquisitions through 2025, with the amount remitted to the UST during the lifetime of the loan. Today, this obligation to remit TCCA fees to UST ends on October 1st, 2021.
So, clearly Mulvaney was a negotiator and we wanted to exercise the Warrant today in a negotiation with the hedge-funds. A devastated man knowing that he wrecked the U.S. economy under more than $1 Trillion annual budget deficits.