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I wish there was more FnF news. We could spend more time discussing relevant information and less time pushing each other's hot buttons. Seems to be lots of bored folks right now.
This is off topic but it is funny
Ex-Goldman director Gupta loses bid to stay out of prison
By Jonathan Stempel
Wed Jun 11, 2014 5:06pm EDT
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By Jonathan Stempel
(Reuters) - Former Goldman Sachs Group
Inc director Rajat Gupta has failed to persuade the U.S. Supreme Court to delay the June 17 start of his two-year prison term while he pursues an appeal of his insider trading conviction.
Gupta, also a former global managing director of the consulting firm McKinsey & Co, had asked the country's highest court for permission to stay free during his appeal, after the 2nd U.S. Circuit Court of Appeals in Manhattan on May 30 denied him the same request.
Justice Ruth Bader Ginsburg, who handles emergency applications from the 2nd Circuit, on Wednesday denied Gupta's request to stay out of prison.
The full 2nd Circuit has yet to decide whether to rehear Gupta's appeal of his conviction, which a three-judge panel of that court upheld on March 25.
Gary Naftalis, a partner at Kramer Levin Naftalis & Frankel who represented Gupta, declined to comment. Seth Waxman, a WilmerHale partner and former U.S. solicitor general, is also among Gupta's lawyers.
Gupta, 65, is the highest-ranking corporate official to be convicted in the government's multi-year probe of insider trading in the hedge fund industry.
A Manhattan federal jury in June 2012 convicted him of passing tips about Goldman, including news about its results and a $5 billion investment from Warren Buffett, to his friend Raj Rajaratnam, founder of the Galleon Group hedge fund firm.
In appealing his conviction, Gupta is challenging the use of wiretap evidence and the jury instructions.
Gupta's lawyers have said the appeal is likely to result in a reversal of the conviction and a new trial. The trial judge, Jed Rakoff, has agreed to recommend that Gupta be assigned to a medium-security prison in Otisville, New York, about 70 miles (113 km) northwest of New York City.
Rajaratnam is serving an 11-year prison term after his 2011 insider trading conviction, in a case also built with wiretap evidence. He is appealing his conviction to the Supreme Court.
http://mobile.reuters.com/article/idUSKBN0EM2E420140611?feedType=RSS&irpc=932
Fannie, Freddie Saved By Tax-Free Mortgage Savings Account?
by Michael IdeJune 11, 2014, 4:24 pm
Bestselling author Joshua Rosner thinks Fannie Mae and Freddie Mac can be saved while addressing everyone’s concerns
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Investors United, the group formed campaign on behalf of Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) shareholders, has been consistent opponent of the Crapo-Johnson proposal for Fannie Mae and Freddie Mac reform and the Corker-Warner bill that it was modeled after, but just because the Senate bill has lost momentum doesn’t mean they’ve met their goals. At a recent Investors United conference Joshua Rosner, the co-author of bestseller Reckless Endangerment, proposed a new way to help meet policy and social goals for the GSEs without having to create a new government agency: tax-free mortgage savings accounts.
Fannie Mae Freddie Mac FHFA Federal National Mortgage Assctn Fnni Me (FNMA) Bove
Fannie and Freddie failed because politics interfered with good policy
“Complexity is the enemy of functioning markets, and it’s the enemy of transparency,” said Rosner, explaining why he opposed the creation of a new platform like Crapo-Johnson’s Federal Mortgage Insurance Corp (FMIC).
Rosner argues that Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) worked for generations as public utilities that guaranteed liquidity in the secondary mortgage market and can work again with a few modifications. A combination of loosening of underwriting standards, lowering guarantee fees to capture market share, and other policies that conflicted with its role as a utility starting in the mid-90s set the stage for the housing crisis, but those policies can be (and mostly have been) reversed.
The problem is that underwriting standards can always be weakened again (watch the op-eds and the cries for sub-prime lending to increase home ownership have already started reappearing), so Rosner has a novel suggestion that he thinks can satisfy all concerned.
A plan to appeal to all sides
A tax-free savings program for first-time home buyers would give families a way to build capital until they are ready to make a down payment. We already have similar programs for retirement savings, another life event that requires long-term planning, so tax-free mortgage accounts aren’t much of a stretch policy-wise, and restricting it to first-time homeowners would limit its scope and keep the cost down. People who want to expand home ownership, protect taxpayers from another bailout, and re-privatize Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) all have something to be happy about.
Rosner also understands that the housing market isn’t just one more sector of the economy, it’s the most effective way for the middle class the create wealth. He mentions the possibility of parents who never own a home to use their tax-free mortgage accounts to assist their children in buying a home so that their savings can be used to build wealth in the next generation. He doesn’t go into details, but it’s rare to hear an idea that appeals to both the anti-tax right and the pro-social policy left, and it seems like it’s worth further examination.
http://www.marketnewscall.com/just-in-ciena-corporation-nysecien-federal-national-mortgage-assctn-fnni-me-otcbbfnma/1226792/
It would be nice if FnF could make a stand but they are controlled by the FHFA so Mel Watt certainly won't miss a payment.
Big Yank I don't like to hear negative information but I can appreciate it. Unfortunately you post negative opinions based off of no factual information.
" Something like 60% " This tells me that you have not fact checked your own statements. " foreclosures are rampant" subjective. " Bankruptcies are rampant" Irrelevant, you don't specify what sector and is also subjective.
" The housing market, housing sales and housing construction came to an abrupt halt". These are not even misleading statements. They are lies. You are a liar. I will apologize if you can point to one month with a link or some other facts that can verify your statement.
"Fannie and Freddie would have collapsed under the weight of a sub-prime default if Uncle hadn't stepped in and bailed them out". Completely misleading and irrelevant since The U.S. government created the mess along with banks and then the government was forced to do what it was supposed to do because that was their responsibility because they backed the paper that they forced FnF to insure.
" The s/p of FNMA and FMCC stock was sub-$1 when the housing bubble burst. You did not give a date that the housing bubble burst. The fact is that the burst did not happen suddenly it was not a burst at all. It is impossible to tack a share price to an event that took time.
The share price today is based on the fact that people have recognized after time that it was all slight of hand. I will not go into what the government did because I type slow and frequently must back space and retype. Plenty of intelligent people on this board have identified things that will restore these stocks to the share holders and those are the reasons for speculation. In a nut shell they all boil down to justice. Investors may be wrong in the long run but I hope not as you should also hope not because if investors are wrong and there is no justice in this high profile saga unfortunately this country in my opinion is doomed.
o.k so I am gambling. I accept that. I am winning. You are posting because you are gambling and losing.
Careful brother, if you don't add imo or some other qualifier you unintentionally can get lots of us doing the google dance to verify information because we all would love that to be true.
Risky chick, maybe you should be feisty chick. But if you are a dude it completely ruins the mental image for me.
Icahn just disclosed his purchase from Berkowitz. Didn't he make the purchase back in about March? If so he may own more shares that have not been disclosed yet. maybe more from Berkowitz or on the open market or Ackman or.... I don't have any idea what strategy that plays into. Just a thought.
Hey, I am convinced. It sounds great. I'm quitting my job today and grabbing one of Uncle Sam's teats ! Wait a minute I guess I have too much self respect, a sense of self worth and a tiny bit of ambition.
Yea, funny it closed today right where I bought more yesterday. It's all good brother. It's a cheap price for gold and my pot is getting pretty full.
That makes sense to me. If they do otherwise they will have already given up and release would follow shortly.
I think Bruce Berkowitz is the reason Ackman and the rest jumped on board the FnF train. He brought the lawsuit that gave this stock a chance. He had big brass ones before the others including me decided to ride his coat tails. Now many see the opportunity. That does not sound like somebody who has lost his mojo. I have said this before. There is a fine line between courage and stupidity. This applies to me too. Time will tell which longs are. Holding long. Thanks Bruce.... Just another perspective.
I like that analogy. I just wonder if there is anyone with the ability and the will to thump these greedy D.C.monkeys on the head with a club.
Just In: Ciena Corporation (NYSE:CIEN), Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA)
Joining the ranks of hedge fund managers Bruce Berkowitz and Bill Ackman, activist investor Carl Icahn has bought a $50 million stake in Federal National Mortgage Assctn Fnni Me(OTCBB:FNMA) and Freddie Mac (NASDAQOTCBB: FMCC ) .
While it’s definitely exciting to see what companies the “whales” are jumping into, it’s always important to take a closer look to see if it makes sense for you before considering it for your own portfolio. Why did Icahn jump in and what’s his goal here? And what can you learn from it?
In mid-May, it was announced that Berkowitz’s Fairholme Capital had cut its stake in Fannie and Freddie, and we just recently discovered that Icahn was the buyer. Fairholme sold 6.8 million shares of Fannie (exactly how many Icahn bought) and 2.2 million shares of Freddie in the first quarter, bringing its total stake down to 19.2 million shares of Fannie and 17.2 million of Freddie.
Berkowitz’s reasons for doing this are not too tough to figure out. First, by selling the shares, he’s locking in gains. The share price of both companies has more than doubled since Berkowitz bought in, and even though he seems reasonably confident in the future profitability of both investments, there’s nothing wrong with taking some profits on the table.
Icahn, on the other hand, is more than likely looking at this as a speculative investment and nothing more. A $50 million stake is small potatoes for Icahn, whose investments typically are in the billions, like his stakes in Apple and Herbalife. So, Icahn is probably looking at Fannie and Freddie as a potential home run, and is probably willing to throw his weight around a little to help the cause, but is not willing to risk too much of his money.
http://www.marketnewscall.com/just-in-ciena-corporation-nysecien-federal-national-mortgage-assctn-fnni-me-otcbbfnma/1226792/
As voices across the ideological spectrum have come to recognize the need for serious reform of our housing finance system with a greater role for private capital, the nation’s top housing regulator made an unfortunate revelation. A revelation which points to the difficult path for serious housing reform. Mel Watt, newly installed Federal Housing Finance Agency (FHFA) director and top regulator of mortgage giants Fannie Mae and Freddie Mac, says that reforming the unfair housing finance system and protecting property rights is not part of his job description. “My responsibility in the conservatorship is not to the shareholders, really. So I don’t lay awake at night worrying about what’s fair to the shareholders,” Mr. Watt said in a recent interview on C-SPAN’s “Newsmakers.”
Secretary Watt’s unfortunate, and somewhat shocking, statements betray an arrogance on the administration’s part that is not helpful in the effort to effectively – and equitably – reform Fannie Mae and Freddie Mac so the public can feel confident going forward. After the financial disaster our country experienced in 2008, Mr. Watt ought to lay awake every night concerned with shareholders, investors, taxpayers and all Americans who have a stake in ensuring such a collapse never happens again.
When the housing market collapsed and government bailed out Fannie and Freddie, the system needed private investors and many took a risk to put capital into the two entities, hoping they would see a profit. The investors were told they still entitled to their share of future profits. Once the companies became profitable again in 2012, the government changed the terms of the conservatorship to a “net worth sweep,” making Fannie and Freddie turn over all profits each quarter to the Treasury Department. The new agreement leaves shareholders out in the cold and gives all profits over to the government. These actions by the Treasury Department are a theft of private property, taking the gains of investors who risked their money with the stroke of a pen in order to pad the US Treasury.
By changing the rules in the middle of the game and taking away the property rights of shareholders in this way, the government is also discouraging private investment in the housing market, which is key to its success. How would we expect private capital to enter the housing market when there is obviously no protection of property rights and investor rights? Such a precedent will discourage investment in the sector and the lack of certainty and property protection may even reverberate into other industries. The 30 year mortgage and the stability and vibrancy of our housing finance system depend on private capital. That should keep Mr. Watt up at night.
In Congress, reform of Fannie and Freddie is faring no better. The Senate reform effort sponsored by Sens. Tim Johnson (D-S.D.) and Mike Crapo (R-Idaho) that recently passed the Banking Committee is not the solution to these problems. Across the political spectrum, people have come to realize that this bill is not a true reform as it does not protect property ri
ghts and it actually keeps in place the mechanisms that could lead to another financial collapse.
There is a bipartisan consensus on how to wind down Fannie Mae and Freddie Mac, while protecting property rights and shareholders and limiting the role of government in the housing marketplace. This bill is not that solution. Rather than rush through bad legislation, Congress needs to take a step back and take its time to address all the concerns that have been raised in order to achieve a real reform that helps homeowners, investors and the economy. We cannot afford to get this wrong.
Congress and officials like Chairman Watt need to take this issue seriously and decide if they are going to be part of the solution or part of the problem. The FHFA needs a leader who will step up and take responsibility to fix the flaws in our housing system, not one who is comfortable with its failures. We need legislators and regulators who understand the vital role that investors, shareholders, taxpayers and consumers all play in the health and vitality of our housing finance system. Fortunately there are Democrats and Republicans who take this effort more seriously, and bipartisan consensus for meaningful reform will hopefully carry the day in the long run. Then, we can all sleep better at night.
http://patriotpost.us/opinion/26350
The Obama Treasury stealing from FnF....see link
http://patriotpost.us/opinion/26350
I freed up some money and i bought another 1600 shares today also. then it dropped another 6 pennies. LOL
This bothers me. It does not read like official news. It also sounds like the article was written before the close of the meeting. As if it is speculation rather than news. Has anyone found more information on the outcome.
"It seems that the government has mostly agreed"
Carl Icahn finally reaches peak of Mount Activitism
https://research.tdwaterhouse.ca/research/public/Markets/NewsArticle/1314-L1N0OL0TN-1
Up 2 pennies on my latest fannie purchase
Oops I mean 4.58....cranial rectumitis
Haha I got another 1600 shares at 4.60
It's just cranial rectumitis. I suffer from severe recurring attacks
Yep, refusal to cooperate was stalling so the real documents could be shredded, hard drives wiped, palms greased, strong arming complete, more palms greased and new documents forged. Wow we have a hell of a good John Grisham novel in the making.
Some of us don't have serious jack yet but in a year we will.
Richard Hornsby knows if the documents are missing or forged. He was probably told to sign forged documents and he told Big Eddie Demarco to pound sand. Big Eddie then ruined Hornsby's career. A disgruntled whistle blower is born.
So far it is akin to winning at craps ! Let it ride baby !
That is Ms. Judge (Judy ) Sweeny to you sir.
Getty Images
By Amie Parnes - 06/04/14 06:00 AM EDT
President Obama’s second-term focus on legacy building is coming into direct conflict with the Democratic Party’s pursuit of victory in the midterm elections.
While Obama has been fundraising for his party at a steady clip, some Democrats fear the president is more concerned about the history books than in helping his party in 2014.
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“I think he’s always been concerned with his legacy,” said one Democratic strategist who has consulted with the White House.
“One of the big misconceptions is that the president is concerned about short-term politics. I think he’s focused on what it will look like to the next Robert Caro,” the strategist said, referring to President Lyndon B. Johnson’s biographer.
Democrats point to Obama’s announcement last week about removing troops from Afghanistan by the end of his presidency as an example of the White House’s focus on Obama’s legacy.
Others point to Monday’s announcement by the Environmental Protection Agency of sweeping new climate change rules aimed at cutting carbon emissions.
Green groups hailed the rules as a historic effort to tackle global warming, but it could hurt a number of coal-country Democrats running for election in the fall, including Alison Lundergan Grimes, the party’s prized candidate against Senate GOP Leader Mitch McConnell (Ky.).
“There is the sentiment that he’s doing whatever it takes to put points on the board for his second term, emphasis on his,” said one top Democratic House aide.
Another Democratic strategist said the latest moves haven’t been “particularly helpful right before the midterms.”
“It’s putting these candidates in a really bad spot,” the aide said.
Obama allies say his legacy and the push for 2014 are not mutually exclusive.
“He needs one for the other,” said one former senior administration official. “Believe me when I say he’s the last person who wants to see the Senate change hands. If that happened, he couldn’t even get a Supreme Court justice through.”
Another former senior administration official conceded that, while Obama tries to add a few notches to his belt and “reclaim his message” after a bruising year and a half, “his legacy and the needs of Democrats are hopefully the same.”
But privately, a number of Democrats are grumbling that the White House is clearly looking after its own interests without giving a second thought to how this might affect Senate races necessary to keep the upper chamber in their column.
And several Democrats made it clear they didn’t like the EPA’s new rules.
Grimes launched a massive ad campaign this week targeting the administration on the issue, declaring, “President Obama and Washington Don’t Get It.”
She has promised she would “fiercely oppose the president’s attack” on the state’s coal industry.
It wasn’t the first time Grimes attempted to distance herself from the White House on an issue. She has also sought to put significant daylight between herself and the healthcare law, another legacy item for Obama.
Obama himself has sought to telegraph he’s all in when it comes to helping Democrats win in 2014, attending two dozen fundraisers this year and more to come this month. With everything on the line, Obama has tried to rally Democrats at fundraisers, saying that they can’t stay home on Election Day.
“That cannot happen in this election because the stakes are too high,” the president told a group of donors last month in Chicago.
Still, political observers, including Democrats close to the White House, said Obama has always been known to play the long game and is famous for dismissing the narratives of 24-hour news cycles.
“Carbon emissions, winding down a war, healthcare, all of these things pay long-term dividends,” the first former official said. “That’s what he’s thinking about.”
While there’s a tendency for second-term presidents to play for the history books, Obama “may have an eye for history more than most,” said Katherine Jellison, a history professor at Ohio University, especially given his place as the first African-American president.
But Jellison said, while other presidents have been more mindful of practical politics, Obama “does not seem to be as attuned as some other presidents to their races and what might be helpful to them.”
However, she said the latest developments with the EPA in particular won’t be “costing the president any sleep.”
“It will play well, I think, in the history books to be on the side of the planet versus the coal industry,” Jellison said
. http://thehill.com/homenews/administration/208164-obamas-legacy-collides-with-democratic-midterm-hopes
It was Alfalfa.
Thanks I can only post the links from my phone. Smart phone-not so smart operator
Housing recovery can not continue without F&F
http://p.washingtontimes.com/news/2014/jun/3/sp-fannie-freddie-needed-sustain-housing-rebound/
Treasury stealing Fannie & Freddie
http://thehill.com/blogs/congress-blog/economy-budget/207937-treasury-stealing-from-fannie-and-freddie-shareholders
Haha this time I get it
I think that Judge (Judy ) Sweeny is attempting to keep proceedings on schedule. IMO she had the forsight to see the upcoming stalling by the govt. lawyers. Everyone shows up at the status meetings with all of the required paperwork and she can deal with both sides at once. That is pretty vague and generic. I hope that it is clear. Again just my opinion.
More cnbc. One analyst says too risky. The other says it's worth the risk. Short term $6.85 based on ascending triangle.
Icahn news
Send in the clowns catagory
Sorry, read the Olson reply (link) in the article in my last post