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David knows the 50BP fee is on Calabria not the companies.
Neither F nor F does anything of a business nature that Calabria doesn't initiate or approve. This all is on the Director.
Any suggestion otherwise is wrong.
(Read Tim Howard's blog today for a more comprehensive explanation.)
MC will do whatever he can--and it's a great deal--to screw up the GSEs operationally to the advantage of the big banks.
Corker (most prominent)--likely trying to take some heat from his own financial perfidies (possibly involving selling GSEs short)--Crapo and other supported; and can't forget Dem Mark Warner.
While D's didn't help, most Republicans bought into the big bank opposition because of the GSEs historic connection the federal government (ignoring the healthy federal subsidization of the banks and their supportive regulation from R's and D's) and ideological opposition to GSE's mission.
There is very little support for the GSEs in Washington.
It's called "the GSE Shitwall."
GSE investors around the nation collectively will faint!!!!
Joseph S--
Calabria doesn't give a flying screw about any group of GSE shareholders, nor does anyone in Washington.
jcromeenes--
Unfortunately, I agree!
IMO, No need for him to beg for anything, will have plenty of Big Bank offers or Rightwing think tanks seeking him.
If that comes from "Maloni's blog," the 600 employees refer to current FHFA staff numbers.
Maloni, New Blog Out 6-16-2020
malonigse.blogspot.com/
Why Calabria will fail?
Skeptic7--
You are assuming that one Senator on the Committee knows, understands, and can ask probing questions on the matter.
Ain't happening.
Do you mean a link to my 12-year-old GSE blog and possible questions for Calabria before he goes to the SBC next week?
What's upsetting or offensive about those things?
TY Golf
But they have a dozen ways to avoid direct answers, unless pinned and not let up.
A witness can eat up a Senator's five-minute limit with a lengthy or evasive answer and then the Senator will leave for another meeting, etc. etc..
Trunk--I never heard that comparison before, but I'll use it!!
Maloni, new blog out, 6-3-2020
malonigse.blogspot.com/
Mark Calabria: Do you realize what you are doing????
Rumple--
It depends on how bad (vulnerable) MC/the White House look for "bigly" jacking up mortgage rates in an election year since no reg will take effect until after November's election.
All the rest of that crap shows how much Calabria wants to keep the GSEs under his control, certainly not returned to the market generating competition for the big bank lenders.
Calabria hasn't had this much fun and gotten so much attention since his 7th grade picnic!!
Potty--you're right.
Over the years, a lot of the Wall Street crowd has made $billions trading the GSE stock and underwriting or and selling Fannie and Freddie securities.
That's a far more powerful voice than yours or mine, which is why I am hoping that the NYC guys will weigh in and quickly signal their apprehension.
Potty--
One never knows who in this Admin is in charge of GSE matters and what is motivating the players?
But, sometimes "a cigar is just a cigar" and all that's happened has supported Calabria, who made very clears his ideological GSE aspirations.
It remains to be seen if the pros in the mix can/will show him where he is wrong?
You can't have the GSEs at full throttle doing what they do best, while they're hamstrung by capital rules which diminish their investor- attraction.
Good news.
In DC, it's never over until the fat lady sings and even then there is time.
ARW--Keep telling your Congressman and Senators how this (ideological proposal) will drive up the costs of every loan the GSEs can finance...reminding them this is an election year.
Ask that MoC to get back to you on what action they've taken for you and your neighbors against Calabria's sophomoric and unwarranted proposal???
The GSEs are not banks.
Maloni, New Blog Out, 5-27-2020
malonigse.blogspot.com/
Big Spots which Never Change....But
Navy--
Think something is wrong here?? I sure do!
Golfbum22--
Classic spin move for anyone trying to squelch news is to put it out late Friday because the nation's interest seems to move toward weekend thinking (that includes the media, too).
Maloni, new blog out, 4-28-2020
malonigse.blogspot.com/
Make sure you read, hear the voice of others regarding FHFA and the POTUS.
Please avoid swallowing those Lysol tablets, the POTUS claims he never said or implied.
(Thank God for video tape.)
You can bet MC did nothing on his own.
He also didn't seek more latitude to speed the end of "Conservatorship," which would cost him clout with the GSEs and his ideological friends.
Joey--
I have heard this before and there is a school of thought (especially at one major Wall Street IB house) that there is a "contractual" US obligation that gives P investors some sort of guarantee.
But, I don't think that possibility survives the existing hostile GSE "Crap" Wall (I've used a more colorful name for it).
But--even before these COVID-19 perilous times with its huge deficit impact--I found it hard to believe that any court would force that obligation on Uncle Sugar.
Thanks Eddie--
But I still am looking for someone who can put a positive and rational face--complete with explanation--on MC's actions.
I believed I have public professed, many times, I am not a DJT fan.
I also think I am fairly well versed in my rationale for supporting the GSEs and what they have done and can do re fulfilling the nation's demand for safe secure mortgage finance liquidity.
Glen--you failed to mention that group represents people who recently blamed Mark Calabria for his FHFA management and delays.
I don't think any other common elements were noted in the blog.
Shhh. Come to think of it, years ago I think--because of your ownership candor--you were praised/discussed in the same blog!
Maloni, New Blog Out, 4-19-2020
malonigse.blogspot.com/
More challenges for Calabria, grief for POTUS on COVID-19
This board gets a shout out!
More Questions for Calabria
Last week, Maloni's blog had various questions posed to FHFA's Mark Calabria. In a blog comment over the weekend, "Anon 1" offered these additional ones.
My hope--since I suspect neither list will get answered--is to stimulate more discussion about all of these inherent GSE control issues, so the community doesn't relent in demanding some answers, either directly or through their elected representatives of the media.
Anonymous anon1 said...
Here are some more questions.
Q1. Does FHFA Director has any incentives to do anything useful or responsible when FHFA Director:
1. is unaccountable to any one in Gov or to any one stakeholder
2. has unlimited funding from conservatees without any oversight or approval
3. has no fiduciary duties to conservatees and company owners, investors and lenders
4. has no clear delegated duties and responsibilities from Congress but has very broad authorities to do whatever he wants as per his interpretations of HERA.
Q2. Why would Calabria as a private citizen severely criticize UST Sy and FHFA Director for violating laws and bankrupting FnF, and then continues to do the same after becoming FHFA director?
Is not Calabria another opportunistic revolving door crony bureaucrat?
Q3. What is preventing FHFA from implementing White House policy directives at the earliest?
Q4. Why Calabria never talks about correct insurance business model of FnF and the capital that is appropriate for insurance business model?
05. Is it appropriate for FHFA Director Calabria to criticize conservatees publicly and after that continue as conservator or even a regulator?
06. Why FHFA as a housing finance regulator and conservator considers its business as matter of national security and wants to hide from public scrutiny?
Is not FHFA trying to hide and protect violators of law and who abused the Gov power to benefit their cronies?
Q7. Will FHFA ever allow other private conservators to abuse the conservatees in the same way FHFA has been abusing for last 12 years?
Q8. Why FHFA Director is not updating all stakeholders on regular basis through FHFA website?
Q9. Why FHFA Director is benefiting only few paid subscribers by allowing "subscription pay walled" private media and publications to interview him on public/official matters?
Maloni, new blog out, 4-11-2020
malonigse.blogspot.com/
Questions for Mark Calabria
Things I'd love to know!
But, have you sent him any money or just proselytized?
You have every right to ignore me, obviously, as I do you.
But, from a scientific/medical perspective/public health perspective, why do you think his vitamin-rich ideas make any sense?
Or does it appeal to you that the CDC or FDB, the surgeon general, and others don't buy what he's pitching?
Fence--I can't believe that someone would promote charlatans like "Dr. Shiva" whose cockamamie ideas come with requests for cash.
Did you get his brochures on Florida land and that bridge in Brooklyn he's trying to sell???
Don't let MC in on that; he'll try and clomp, drag it!
Maloni, New Blog out, 4-1-2020
malonigse.blogspot.com/
A humorous but then serious suggestion for FHFA and Calabria.
I had to talk about the POTUS and COVID-19 matters, but not extensively.
Admin prediction: "100,00 deaths and possibly more"; will DJT continue to hide from his duties??
More widely invoke the DPA.
Maloni: New Blog Out, 3-22-2020
malonigse.blogspot.com/
Stones thrown at Calabria and Trump's COVID-19 responses
Of course, the SCOTUS knows the relationship between Selia and Collins.
And you have conflict ting philosophies working on the court, too.
So look for the Court to try and minimize governmental disruption (and save Treasury money).
Now it's on you lawyers to figure out what that translates to for Collins.
(There is a reason why MC seems confident of no major shareholder benefit. He and the nine judges know the Trump Admin also is drowning in red ink.)
FireMechanic--
But he wants to be a "Washington playah" and leverage his time in office to secure when his service ends one fo those huge paying banking industry positions.
Let's see, how many different dates has he suggested for publication of the capital rules (currently 10 plus years in the waiting); how many ideas about curtailing GSEs products or procedures and suggesting bank-like capital rules; how much F&F revenue has he wasted with hires who can't perform the simple actions needed by a regulatory agency, yet still ask Congress for greater power?
He now is bringing in consultants to help create the capital rules and a legal team to support him.
By the time he decides he's finished, only termites* will have done more damage to housing than Mark Calabria.
(*Not original and I can't take exclusive credit for it; heard on the Hill from the guy who wrote the line for a member of the House Banking Committee, railing at some federal financial office.)
I think what we all saw with MC's statement about major shareholder values, reflect how he will manipulate events and executive oversight to throw cold water all over GSE shares.
IMO, the only thing stopping that scenario is if the courts deal plaintiffs a major win or if Mnuchin strenuously objects, since there is nobody else in DC advocating for the GSEs.
Calabria will insist on greater capital than necessary and nobody who counts will want to challenge that contentions, especially since it adheres to what the big banks say/want.
Joey--I agree.
I believe MC is a poser and a *&^%$#@ liar.
His goal is to hold onto the GSEs for as long as he can duck the courts, torture the GSEs through various executive actions slow-walking their release, as he mines for more safety and soundness requirements conditions that satisfy HIM.
Small potatoes, but in the RFP this week for a law firm to complement the IB firm he just hired to work on Conservatorship, the contract is for one year, but with authority for three additional one-year extensions, suggesting those lawyers can stay on for four years doing his bidding.
Simple, he's a *^&%$#@ LIAR and regularly adds a new line or condition (while messing with them behind the scenes) to HIS conditions to end Conservatorship.
His goal is to hold onto them as long as he can add forced changes which will make them less able to compete with the big banks.
His nose has grown three inches since he took the job.