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I like this:
"subsequent actions by FHFA or the U.S. Department of the
Treasury (Treasury), the magnitude of funds remitted to Treasury by the Enterprises relative to cumulative draws"
Translation:
People were bitching that we stole dividends for the last 9 years. We all had a good laugh about that while sipping champagne bought with stolen funds.
Agree. The govt has no choice but to keep them in frankestein zombie limbo.
Taking them over outright would put 7 trillion on the deficit.
Releasing them means they cannot steal the profits. GSEs arent retaining earnings because of the equal LP increase. I bet amount is deducted from the annual deficit but dont know how to prove that.
So here we sit with Brittany Spears held in thrall by someone with their own best interests at heart.
Isnt she Ricks new girlfriend? They have so much in common.
So SCOTUS upholds states voting integrity laws and first amendments rights. But shareholders rights-nahh not so much......
Thanks for that tidbit from Gorsuch. Confirms my decision to move on.
I previously took some risk with Healthsouth and American Airlines when they were in big trouble and bankrupt. Those ended up as pretty decent investments. I thought this one would be similar, but I realize now that in the other cases there was someone at the top working to get them in the clear and thru their troubles. In this case the powers that be are working against the commons and pref.
You cant fight city hall is an adage for a reason.
Well its been fun and not profitable, but after yesterday I am done with this debacle now. I bought in almost 10 years ago and now in my early 60s I cant afford these funds to be sidelined anymore. I am selling 90% of shares, will hold a few as a hobby to keep interested in what happens.
The supremes hosed shareholders and I have no faith that what was remanded will yield anything positive. SCOTUS gave a 9-0 heads up that FHFA cant do anything illegal. I expect FHFA to start sending all earnings to treasury this quarter.
This is my take, I wont bash anyone here who still has hope that some court will right the wrongs like some posters have done for a while. I may pick up a few more shares if lower courts seem positive, but I got head faked with all that nationalization talk so what they say and what they do are not consistent.
The Roberts court will go down in history the opposite of what he thinks. They are indecisive and subservient to congress.
Good luck everyone, hope yesterday was the worst you see. Got any tips for a quick 100% gain?
See ya Calabria.
In a way, this ruling reminds me of the emminent domain issue in Kelo. In that case SCOTUS ruled that the local govt could take lakeside property to sell to a developer to increase the taxable value. Turned the meaning from public use to public benefit.
We have just been abused by the same thought process. The 'agency' is the public so its ok if they swipe assets for public benefit.
Sting had it right-"Every single meeting with his so called superior is a humiliating kick in the crotch".
Or maybe we are the old guy in the 'bring out your dead' sketch in the Holy Grail.
Either way, this wording on the says that congress can put an anti-injunction clause into any and all govt agencies and no one can win a case against them. SCOTUS bows to the superior legislative branch and the agency can do what they want. I dont know why congress wouldnt do that immediately.
Instead, we conclude only that under the terms of the Recovery Act, the FHFA did not exceed its authority as a conservator, and therefore the anti-injunction clause bars the shareholders' statutory claim.
Agree that Calabria was a huge disappointment, a turncoat from his earlier writings and opinions.
But save some hate, because whoever sniffy Joe replaces him with is going to be worse. The twins will be used for total social engineering of suburbs. Loan terms will be dependent on melanin levels.
Slow Friday so I will pick some nits. You are way more versed than I am in legal issues, but the judicial overruling the legislative is what happens in a republic. Not sure exactly what that would look like in a true democracy.
I said that to make this point-SCOTUS sidestepping the ACA again due to 'standing' issues is disturbing to me because it appears they fear stepping on the toes of the legislative side of govt. Why take that case if this ruling is the result?
Given that reluctance to rule on that issue, I fear that they may do the same thing on Collins. Enough of the lower courts did exactly that by sidestepping on standing & following the 'law' supporting FHFA/Treasury. I think that fear is why the market is holding SP where it is.
I HOPE that is not the outcome, but it wouldnt shock me either.
So companies that made $12 Billion and $7.3 Billion in a terrible financial year 'could have been at imminent risk of failure'???
What idiot made that statement and what idiot put it in this article? This defies logic, but it supports the govt view that the gses should remain wards of the state. That along with every other moving or stationary object inside and outside the borders.
"The losses weren’t as grave as initially predicted. Fannie Mae’s net income in 2020 was $11.8 billion, down from $14 billion in 2019. Freddie Mac’s net income at the end of 2020 was $7.3 billion, a 2% increase from 2019.
“Had their positions been any weaker, they could have been at imminent risk of failure.”"
My loser bracket guess-June 28.
Some opinions here are direct reports from fantasy land.
I dont recall any discussion at the SCOTUS hearing about splitting the baby along common vs preferred lines. Fixing the 'nationalizaion' of the gses returns stolen goods, which benefits both investments.
I say again--BULLDOZER!
The fact that Collins opinion is being held to the end of the scotus term leads me to believe that its release is going to have a YUGE impact. The later it goes the better the ruling will be for plaintiffs.
All IMO of course.
Its started.
I got 215 participants. All ihubbers i imagine.
No one is talking yet.
I agree that retroactive taxes are unconstitutional. I guess somebody needs to take it to court to prove that viewpoint.
But it is not unprecedented because Clinton did it in 93. I remember because I had to pay more.
https://www.investopedia.com/terms/t/tax-reform-act-of-1993.asp
They did blame covid for delaying some decisions last year. Last one I see is July 9.
https://www.scotusblog.com/case-files/terms/ot2019/
Thanks Guido.
That scenario is the only reason why Lambeth would have scheduled something prior to the SCOTUS ruling.
Posters on this board are pretty good about limiting crude remarks, even ones who do the pushback. I will take that cue and stay above the beltline in future posts.
Great post. Who knows what the SP end up at with all the scenarios.
If this isnt a substanstantial SCOTUS beat down of FHFA I have to sell out and go elsewhere. Too many other missed opportunties in the last 9 years. I cant wait another 9 for this to be back to 'normal.
Both commons and preferreds have been quagmire trades. Need a quagmire bulldozer event to clear the swamp.
Apparently some on this board don't think its for speculation, but I will speculate anyway.
Judge Lambeth is using the conference to show the defense attorneys he has their nads in a vice, and he is about to give it a turn or two.
The twitter calendar was June 2020. Not sure why someone would put that out there.
Looks like one of the rats is leaving the conservator ship.
As legal counsel, he had to sign off on the conservatorship and 3rd amendment. He is leaving before that gets squashed by SCOTUS and makes him look foolish. I sure would in his position, he should have been fired long ago.
And that statement that they are private companies in conservatorship is total rear end covering.
Good post, totally agree.
If SCOTUS lets that 'no judicial review' language stand, whats to stop congress from adding that to the language of every bill passed?
It would put the judicial branch of govt out of business.
I will add my 7 cents.
I pick the June 7 only because my previous guess of the 8th isnt an option.
That is my hope, but I expect it wont come out until the final week of June because thats how things roll with the GSE court cases. Delay delay delay.
I dont think it goes to July. Its very unusual for SCOTUS to put out rulings that late. Doing Seila law release in July last year was blamed on covid.
Nice guess.
My plans if fannie rises to:
10-new pickup
20-new boat
50-buy lake house
261-is epstien island up for sale?
508-i dunno, did somebody here mention calf implants a while back?
You crack me up. Wasnt this your prediction yesterday?
Some day you will be right, maybe today!
Two recent articles listing remaining SCOTUS 'punchbowl' rulings but neither mentions Collins for some reason. Case is off the radar of news orgs??
Biggest cases other than Collins(IMO):
California v. Texas: ACA individual mandate
Fulton v. Philadelphia: LGBT vs religious liberty
Brnovich v. Arizona Democratic National Committee: voting rights
Thomas More Law Center and Americans for Prosperity Foundation v. Rodriguez: Free speech and free association
https://news.trust.org/item/20210601085129-r2jzo
https://www.foxnews.com/politics/supreme-court-hot-button-rulings-amid-retirement-talk
I take the 'under' on that guess.
My crystal ball is a palantir, and it gave me my previously stated guess of June 8 for the SCOTUS ruling. Good luck!
Excellent post, thanks!
So they were afraid of bumping up the deficit?
That makes me wonder if the increase in LP that done when the GSEs retain earnings is allowing Treasury to count that amount against the deficit.
It makes sense that is why it is happening. Can anyone confirm that?
Its going up today in anticipation of SCOTUS release next Tuesday.
Remember, its ajctex subsidized costco dogs if it comes out next week.
Word has gotten out and is driving the price action today.
Close prediction - 2.1335
Since the case was heard at SCOTUS in December I have thought the ruling would be one of the later ones. My target has been June 8, mainly because its my kids birthday. Thats as good a reason as any. If its before that I buy everyone here TWO Costco dogs with extra relish.
This is one of those 'turd in the punchbowl' cases that will probably drop at the end of the session before the judges all rush out of town for the July recess.
Oh, if that could go from your keyboard to SCOTUS' eyes.
New CEO at Freddie, great. So he was at Wells Fargo when they were ripping off customers by fraudulently adding multiple checking accounts. That was one of at least 2 scandals at that place.
navy-Really appreciate your determination.
I find it interesting that Gasparino doesnt want the 'greedy hedge funders' on ihub making bank off the GSEs, but has NO PROBLEM with Treasury enriching itself for 9 years off their profits. I have never seen him make0 any statements about 'greedy Treasury' or 'greedy govt droids'. I guess he thinks the govt represents all that is good and right in the country.
SCOTUS decision has to be out by end of June, or before July 4 weekend. After that they are on recess for 3 months. Same schedule every year and rulings are not exactly related to hearing dates.
Last year the Seila Ruling came out on July 1 or 2 if memory serves.
Train to Yuma got derailed.
Never fear, she's getting back on the tracks.
Squid to English translation:
We stole all of fannies capital since 2008.
Fannie now needs more capital to be recapitalized.
What should we do? Im stumped.
And apparently Im overpaid and overpromoted.
Coming soon to a GSE near you. Ihub Crimson Permanent Assurance crew taking on the swamp.
Just for a little weekend fun!