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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.
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!
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?
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.