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The Obama administration projected in its most recent budget that if the enterprises remain intact for another decade, the government will turn a $51 billion profit from that bailout. Freddie reported a record $11 billion profit in 2012, after suffering billions of dollars in losses in previous years.
that's both fannie and freddie. what kind of clown math is that. think about it.
Read more: http://thehill.com/blogs/on-the-money/1091-housing/315919-freddie-mac-to-pay-out-44-billion-in-profits-to-treasury#ixzz2bIV8lDCu
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'FMCC Jr. Preferreds getting pounded on low volume'
t-fud index is down 1%[202 to 200]. that's not much of a pounding for something boss dog said he is going to kill.
seems noone still pays attention to the commander in chief.
the 3 big issues which i do not separately chart are down a total of 2 cents. which is under 0.1%
i interesting the obama announcement has done much more harm to the general stock index than fnf!!!
' I am thinking the media is again misinterpreting recent news.'
not necessarioy so. the news media are printing what they are told.
i think this is the biggest effort at disinformation since the invasion of europe.
the administration is making a tremendous effort to contain losses, which will exceed 41B if they loose the gamble.
i do not understand constitutional law well enough to figure out when judicial can rule that legislative has produced an unconstitutional set of regulations(if in fact they are). i do know a number of major dc law firms think they are going to get a favorable ruling. if you sign up for one of them, they want no money up front!!!
although some of the suits are just injunctions, which turn things back to 2007, some of them are 5th amendment, and demand full payment of pfds.
i don't guess prices, and i don't guess outcomes, but this sure looks like a split the difference, and offer the injunction.
when is drop dead day for quarterlies? 15th?
'Why are Pinto and his AEI cohorts so vitriolic'
pinto who is completely unemployable, and wallison, who would find a tough time getting a job are probably paid 400k/year to say what they say.
if one goes to wiki, one can see who funds aei. P&W have to kiss up to those fellers.
it is a group of extremely conservative organizations footing the bill.
in the bunch of law suits, at least one is an injunction to suspend paulson 08 and all the rest, as i recall. however, once that is ruled, the kids will appeal it, and it will start to crawl up the appeal ladder. a temp injunction would be too much turmoil, so i do not think anything will change until final decree of injunction.
when congress will move? if and when the courts throw out paulson and all 3 decrees, you will see lightning moves. i have said earlier holders could not go to court on ad 1 and 2. A3 has set all off. although i think the funds think they could destroy 1&2 with the constitution(an engineer discussing const law). A3 is so outrageous, both sides of the court are going to throw it out. the only question are whether they include A1&2, and how long it takes. these suits are quite different. anybody who has taken law 101 pipe up and guess how long the injunction(i assume that shortest time) will take?
i am of the opinion that demarco pushed A3 to put the issue in court and put fnf back on firm grounds. he smart, that demarco guy.
in the world of the blind, the one eyed man is king.
'Fairholme necessarily bought liquid/big floats '
i think BB could arrange to buy from the MM when a big chunk came available. i just looked at fmckp. on april 4, 2.6 mil transfered. that is close to half the shares issued. fnman has a pair of 250k trades. that's not a bunch of beaners on the board loading up, that' s real money. i think those arranged trades. i think bb may have pulled a lot of the three large issues, but i think he got a ton of the low issue items like above.
'The Fund was able to purchase the preferred stocks of Fannie and Freddie near one-fifth of liquidation values '
on only 2 friday closes has the t-fud index exceed 20, which would be 20% of rv(face)(liquidation).
This is the message the GSE should be pumping out.
someplace in the paulson effort to kill all things fnf, they are not allowed to lobby. i presume any message is considered lobbying.
'I would not recommend Fidelity.'
june 2012 i took advantage of an extremely stupid offer from fidelity. if i placed $100k in securities into a fidelity account for 6 months, i would get 50K "points" on a chase credit card that would convert to 50Kmiles on LH or UA. i did 2 of them. one for me and one for wife. 100K miles on UA is enough for one rt biz class ticket frum usa to europe. had an extremely difficult time transferring the securities from etrade to fidelity, as had to deal with fidelity tranees. trannees that are learning how to breathe and poop, i think. got the miles, and flew iad-bcn on ua on the front of the plane. had no trouble getting the securities back 6 months later, becaues with 200+K in their company, we were assigned to advanced trainees. is time to do another round of the same stupod offer. fact was, the transfer back was very quick, and seemless.
New suit from bs&f
http://blogs.reuters.com/alison-frankel/files/2013/07/cacciapellevus-complaint.pdf
this is a federal, and fifth amendment
there is a second suit in district court. same music, slightly different words. i cannot find it on the web.
skip to last 3 pages. rest is boilerplate.
Anyone have any info on this bill the dems passed?
this is an execllent exercise for the student. it is easy to find the info, and you should learn how to do it yourself. go to the senate banking/finance committee, get the bill number and do a google search. also search under the bill sponsors.
Anyone have any info on this bill the dems passed?
the bill was cleared by committee, and sent to the senate floor. it will be debated for a year or so, then house will vote it down. costs too much.
this bill is actually very important, since on occasion, there have been rumbles and cheers(until the went broke(real bad) that fnf should be structured pretty much like fha. {{uitliity,14 companies, insurance like fha]]
now fha is about a billion bucks in the hole. these loses are from the past two years and very little money. remember, they were the smart ones. what happens if dumb asses like the fha 'ers are put in charge of fnf 5 trillion. think about that lizzy warren.
after august is not a date. it is a vauge.........fareva and fareva. old tfud does not spark on all 10 billion neurons, but i remember an after feb, ....after the. midterms...after the 2012 election.... after timmy goes..... the only common word is after........with a bunch of dots behind it.
Senate Majority Leader Harry Reid said the U.S. Senate won’t vote on the nomination of Representative Mel Watt to oversee mortgage giants Fannie Mae (FNMA) and Freddie Mac before Congress adjourns this week for its summer break.
i have forgotten if this is hung out to dry, or blowin' in the wind. in either case, the stench of this nomination will not dissappear. just gives demarco 3 more months to get stuff aligned before the boy toy comes in to play house, and sit in the big office on the top floor.
this probably means reid cannot get the 6 votes. he's hoping one of those old farts dies, and a dem appointment.
Some Senate Republicans worry that Reid will use an implicit threat of once again seeking the “nuclear option”—changing Senate rules to require a mere majority to approve presidential nominees—to get Watt confirmed.
“Reid really wants it done,” a Democratic source told Politico of the Watt nomination on Tuesday.
i would hope reid to be more responsible than nuke for watt. the CBC has a lot more power than i thought. just appoint shelia jackson to tsa and call it a day. she counts double. she's also a she. not only that, she knows something about the job and can probably do the job
perry spelled out by the lawyer
https://groups.google.com/forum/#!topic/freddienfannie/kvOXMILI3kE
Attempts to fix mistakes made in the depths of the financial crisis are going to be harder now that the courts and Congress are not as scared of challenging the executive branch as they were back then. This is normal cycle of these crises. The executive branch gets more latitude during the time, but afterward there is a demand for accountability.
In other words, now that the government has saved the markets, the markets want them gone. And in the background looms a hard look at the decisions made during those dark days five years ago.
A recent Moody's report (see table below) notes that investors suffered a huge 20.3% loss on private-label mortgage securities totaling $449.4 billion on the $2.2 trillion in principal outstanding at year-end 2007, the veritable eve of destruction for U.S. housing. This was on the toxic paper unleashed by Wall Street backed by the subprime, Alt-A, option ARMs, and jumbo mortgages that proliferated in the years leading up to the crisis.
compare this to fnf's losses, whatever they were.now agreed to be much less than the 187B initally claimed.
also, the morgtage securities are still loosing, as the court cases continue.
http://www.mondaq.com/unitedstates/x/254586/Financial+Services/Treasury+Seizing+Profits+From+Fannie+Mae+And+Freddie+Mac+In+Violation+Of+The+Law
Here's a good story: A business runs into a serious crisis-a fire, or flood, whatever, the detail is less important than the magnitude of the problem, which is an existential threat to the continuation of the business. Along come some guys with lots of cash willing to become "silent partners" in the business. They offer all the cash the business needs to get back on its feet in the form of both a loan and stock purchase, but in return they want a guaranteed 10% "interest" plus a pro rata share of the profits of the business. The company already has both common and preferred classes of stock and agrees with the "money-guys" that their 10% guaranteed return will be treated as "special preferred" stock. The balance of their investment will be common stock equal to 80% of that entire class of shares.
With this new capital, the business repairs the damage done by the disaster, purchases new equipment, improves its operations, and not only continues in business, but actually turns the corner and starts to make a profit. It pays the 10% premium due on the "special preferred" stock and tells the CFO to calculate the dividend payments due to the holders of preferred and common stock.
http://www.bankinglawconnection.com/2013/07/26/treasury-seizing-profits-from-fannie-mae-and-freddie-mac-in-violation-of-the-law/
Treasury Seizing Profits from Fannie Mae and Freddie Mac in Violation of the Law?
By Woody Woodruff on July 26, 2013 Posted in Bank Litigation, Commentary, Legislation, Regulatory
Here’s a good story: A business runs into a serious crisis-a fire, or flood, whatever, the detail is less important than the magnitude of the problem, which is an existential threat to the continuation of the business. Along come some guys with lots of cash willing to become “silent partners” in the business. They offer all the cash the business needs to get back on its feet in the form of both a loan and stock purchase, but in return they want a guaranteed 10% “interest” plus a pro rata share of the profits of the business. The company already has both common and preferred classes of stock and agrees with the “money-guys” that their 10% guaranteed return will be treated as “special preferred” stock. The balance of their investment will be common stock equal to 80% of that entire class of shares.
I have 1 friend who buys what and when I tell her to. She's very patient and will wait it out. I got her into cmg in the low 100's a few years back so since then she listens.
i have no friends, however, i will be your friend if you will tell me what to buy, and how to get rich.
regards
warren b.
we know that's the one
Fannie Mae (FNMA), Freddie Mac (FMCC) Stock to Be Worthless - Barron's
however reading it requires a subscription. i refuse to subscribe, as does ever other decent patritoc american. subscription implys approval of murdoch and the gop that gave him all that media for propagandizing.
if you can get the whole article publish it here:
do any of you think this will go to supreme court? lew mentions something about settling in his last interview. ???
presume one or two of the 5?(6-7-10?) cases get decided in favor of the plantif(don't forget this is 41 billion poor taxpayer dollars!!!), it goes up to the next level. at least 4 of the firms are pretty much committed to go the distance. at least 4 think they have the case to win against roberts. they think scalia will decide for them.
i wounder if all 4 win a 41 bil trophy. the fed goes bust. fire up the printers again.
beantowy,you imply you talk to a senator. you imply you from massassacusses. they got two senators. one is a new kid, the other is lizzy warren. which one you training? comments welcome.
won't let me in without subscription. hate to miss it. but will not give money or subscription count to wsj.
"deju vuea' all over again...lawerence berra
barrons just published an article(which i cannot read) stating that fnf are dead again. usually they wait for the paulson bazooka anniversary to come out with this. then people wonder why i don't spend money for the joke. i forget what it is called when one publishes what one publishes what one wisshes to hear, instead of anything remotely resembling reality.
Freddie Mac is truly a diverse workplace: with almost 50 percent of our population female and 44 percent minority, we embrace a multitude of cultures. Last year, minorities made up 44 percent of the total new hires and 42 percent of all promotions. Also, 48 percent of our officer promotions in 2009 were female and 26 percent were minority.
i revised it a bit. i am an engineer. far from a decent writer.:
i have attemted to tidy up a bit of the writing
to:
letters@washpost.com
in reply to charles lane editorial:
my wife and i put our retirement funds in fannie and freddie pfd stocks in 2007 and 2008 with soundness assurances from many federal authorities(paulson, frank, et al) and rating agencies(AAA from S&P). our retirement funds are now gone, taken not by the market, but by the federal government and much to the delight of almost all editorial writers; gone to help struggling taxpayers. how do i go about recovering my retirement? how do i sue the federal government for my retirement funds that were taken due to knowing dishonest representations from the highest authorities in the government. we probably number in the millions, and have had billions of dollars taken from us. how do we unite, other than to hide under the shelter of a "hedge" fund, and join them in their attack against the federal government?
also, why are all the financial writers so excited about the takings of these moneys from retired people who attempted to make an honest investment into securities which had the assurances of so many federal authorities?
my note to lane went out an hour ago. now what?
i can drive to see my congressperson(edwards), who shows no interest in issues such as these. she is a jobs and minority person.
http://www.washingtonpost.com/opinions/charles-lane-showdown-over-freddie-and-fannie-profits/2013/07/25/ecd0e46a-f537-11e2-aa2e-4088616498b4_story.html
this is the standard attack upon evil hedge funds, and the poor taxpayers.
i want to respond as follows:
my wife and i put our retirement funds in fannie and freddie pfd stocks in 2007 and 2008 with assurances from many federal authorities(paulson, frank, et al) and rating agencies(AAA from S&P). our retirement funds are now gone, and much to the delight of almost all editorial writers, gone to help struggling taxpayers. how do i go about recovering my retirement? how do i sue the federal government for my retirement funds that were taken with dishonest representations, with the highest degree of responsibilities to protect me as an individual investor? we probably number in the millions, and have had billions of dollars taken from us. how do we unite, other than to hide under the shelter of a "hedge" fund, and join them in their attack against the federal government? also, why are you so excited about taking my money?
i need editorial assisstance, and recommendations as to where to present the message.
money when you want it
http://news.yahoo.com/banks-shiver-ubs-swallows-885-103545498.html
Estimates on the overall sums involve vary widely.
Analysts at Credit Suisse (NYSE: CS - news) earlier this year said European banks could take an $11 billion hit from a raft of mortgage-related litigation costs in the United States.
They estimated RBS alone could face an FHFA litigation loss of $1.6 billion, Barclays a $1.1 billion loss and HSBC (LSE: HSBA.L - news) could take a $900 million loss.
But another London-based analyst, Joseph Dickerson at investment bank Jefferies, said he expected RBS's losses to be "sub-$1 billion". "I would say that $4.2 billion seems to be a complete non-sequitur".
Other banks have acknowledged they could incur losses from the suits but few have said how much it could cost.
Barclays said in its last annual report if it lost the cases against the FHFA and other civil actions it could incur a loss of up to the outstanding amount of the RMBS at the time of judgment and some additional interest and costs, less the market value of the RMBS.
It said the outstanding amount was $2.7 billion at the end of 2012, and estimated the market value was $1.6 billion.
Deutsche Bank (Xetra: 514000 - news) has set aside 2.4 billion euros for litigation costs after topping that up in March by an additional 600 million euros, mainly related to lawsuits over its role in selling bonds backed by U.S. sub-prime mortgages.
zandi speaks:
"The vision in the PATH of the private mortgage finance system is not viable,” said Mark Zandi, chief economist for Moody’s Analytics following the introduction of the bill.
{wonder if jeb is ever going to get his head out of the chicken coop.}
I’m ready to talk about my meeting with atty now. This is first cut. I can elaborate as long as brain is engaged.
This suit (bb) and the pomerentz(according to bb atty) are 5th amendment suits. Both claim that the 3rd fnf amendment took value from the pfds. I would think this pretty easy to show, and probably not that hard to win. Calculating damages are a real problem. According to the atty, in normal 5th awards, the award is the damage from just before to just after the occurrence. The t-fud index (the total current traded value of one of each share of pfd, divided by the total face value of each share[[$1300]] expressed in percent) is a good starting point for award value, and may be the final device used for award calculation.
This creates a tremendous problem for fnf holders. The t-fud index on aug 10 was 7.26% . the average value of a $25 share was $1.815. after the announcement of the 3rd. the value dropped to $0.57. current value is 16%. of face, so extensive damages from the 3rd will be difficult to establish. I do not see much damage. Certainly not enough to go through the war of suing the government.
If “we” win the suit, the value of loss with that formulation would generate about $100k for me, before expenses. Not chump change, but not much in the overall world of my fnf holdings.
There is a possibility of collecting damages for full value of the pfds, but I do not think that will be easy.
The other 3 suits as I understand it, are going to attempt to negate everything to before paulson’s bazooka. Those suits include berkowitz, perry, and the Seattle team. If someone has a way of naming these things, have at it.
Sitting on the sidelines is not such a bad idea. After the war is fought, and the dust settles, a group of us could combine, and hire a firm to represent us. Using prior findings, we would seek damages. That would be pretty cheap, and pretty easy, compared to the initial war.
If you wish to contact me directly drop a request, I’ll find you.
PATH not the train, but still from new jersey.
The House Financial Services Committee on Wednesday passed the Protecting American Taxpayers and Homeowners Act by a vote of 30-27.
. Two exceptions were Rep. Gary Miller (R-Calif.), who is vice chairman of the committee, and Rep. Mike Fitzgerald (R-Pa.), who both voted against the bill.
Reps. John Campbell (R-Calif.), Carolyn McCarthy (D-N.Y.), John Delaney (D-Md.) and Mel Watt (D-N.C.) did not vote.[[this thing came close to not making it out of committee]]
“The passage of this legislation today is a critical step in reforming our nation’s housing finance system and ensuring the American taxpayers no longer have to fund $200 billion bailouts,” said Rep. Scott Garrett (R-N.J.), lead sponsor of the bill and chairman of the Capital Markets and Government Sponsored Enterprises subcommittee.
The bill now faces a full House vote. Although the legislation passed the Republican-majority committee, it faces longer odds on the House floor because a provision that would reduce the conforming loan limit could be opposed by congressmen who represent districts where home values are higher than the national average.
{{guess who lives in those 500K+++ houses]]
http://www.housingwire.com/rewired/2013/07/24/president-obama-personally-promises-help-fix-fannie-and-freddie
The political will to produce housing reform in regards to Fannie Mae and Freddie Mac just came straight from the top.
In a speech to students at Knox College in Galesburg, Illinois, President Barack Obama said, "I’m also acting on my own to cut red tape for responsible families who want to get a mortgage, but the bank says no."
"And we’ll work with both parties to turn the page on Fannie Mae and Freddie Mac, and build a housing finance system that’s rock-solid for future generations," he added.
Theodore B. Olson: Treasury's Fannie Mae Heist
The government asked investors to shore up the two mortgage giants. Now those investors are being stiffed.
in todays wsj. i will not give them money, so i cannot see the article.
where this come from?
http://www.themorningsun.com/article/20130723/OPINION01/130729870/what-s-next-for-fannie-mae-and-freddie-mac
There’s one problem: Taxpayers weren’t the only investors. As previously private companies, Fannie and Freddie have private shareholders who have seen the value of their equity destroyed by the government’s unilateral action. The government simply changed by fiat the terms of a relationship that had existed since 2008.
We support winding down Fannie and Freddie, but not in this lawless fashion. The investors should be made whole, the government should remove itself from the mortgage business, and the free market should be allowed to take care of the rest.
demarco said it was a stupid program
http://www.localnews8.com/lifestyle/money/watchdog-borrowers-in-obama-housing-program-redefaulting/-/461672/21137896/-/y77kcz/-/index.html
Nearly 1.2 million mortgage modifications have been completed since the Home Affordable Modification Program (HAMP) was first launched four years ago. Yet more than 306,000 borrowers have re-defaulted on their loans and more than 88,000 are at risk of following suit, the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) found in its quarterly report to Congress.
In addition, the watchdog found that the longer a homeowner stays in the HAMP modification program, the more likely they are to default. Those who have been in the program since 2009, are re-defaulting at a rate of 46%, the inspector general found.
we'll have a good idea of what the gop will do. don't bet on it, cause they don't have the slightest idea what they are doing.