Joshua 1:9 Have I not commanded you? Be strong and courageous. Do not be afraid; do not be discouraged, for the LORD your God will be with you whereve
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RuleofLawGuy has an article up on Seeking Alpha.
https://seekingalpha.com/article/4252309-will-fannie-freddie-investors-finally-get-relief-potus-memo-collins-en-banc-smart-way
I'm not worried at all. I don't believe there is a rift in the WH. Someone is just playing Gasbag.
The statements Otting made in Jan are 100% true. Everyone who has the power to do anything are on the same page.
The problem began when some Obama holdover troll at the FHFA secretly recorded what Otting said in their meeting. Then passed it on to the press.
That got Crapo to respond on behalf of the banksters. Then those two left wing groups "Public Citizen and the Revolving Door Project" sent letters to the IG.
The administration just had to change their tactics a bit, and let Calabria handle this.
Nope, Not going on the back burner.
It will happen in 2019
Think of the date it will begin, as a "combination lock".
__-__- 19
We already have the last number of the combination. It is 19.
Signed,
Safe Cracker
You like this
Poor Dude
Comments(2804) | + Follow
In my view, the Collins judgment can largely dictate future direction here - but it depends on how they rule. If they find the NWS was illegal and order it vacated ab initio, then the resultant accounting changes will eliminate the SPS and that will have a DRASTIC effect on share prices and, consequently, the effects of any necessary capital raises. It would also require the government to return a large chunk of its 'excess' dividends, which will in turn provide a nice base of capital from which to start the recapitalization process.
It is also likely that Sweeney will rule before anything substantial comes from the administrative actions. While her ruling at this point will simply be what claims advance to trial, that should have a significant impact on how any administrative or legislative processes advance (at least, insofar as how the common shareholders get treated in them).
This is all my humble opinion only, of course. But I think we will all have a better idea of where this is ultimately going by the end of this year - with lots of published opinions and hearsay released in the interim to affect trading in the companies' securities (of course).
29 Mar 2019, 09:03 PM Reply 8 Like
I'm ready friend...
FNMA and FMCC have had outstanding 1st qtr.'s of 2019 with one week remaining. The is the latest trend.
We deal in the here and now.
This ain't history class
2019 YTD performance
FNMA- +148.11%
FMCC- +133.02%
FNMAS- +23.02%
FNMAT- +18.36%
FMCKJ- +20.57%
I expect an even better 2nd qtr.
https://money.cnn.com/quote/shareholders/shareholders.html?symb=Fnma&subView=institutional
Tomorrow will be day 55 since the hearing. I'd bet they know how they're going to rule, right now.
I had jury duty one time, and we took a vote and reached the verdict within 15 min. We waited for about an hour before we announced that we had reached the verdict.
Thanks
Next catalyst = Otting
Do you mean explodes like... Go BOOM? I with you!!!
I know the feeling. I was right until Tuesday morning. Sucks don't it.
That speaks volumes. The undeniable trend of the 1st Qtr. of 2019.
The numbers don't lie....
The proof is in the pudding.
Wow you sure know how to pick your hero's. He's just a regular guy who can't even spell.
You should try to move up a notch.
Try the skateboard rider. Lol
In my opinion the stoppage of the NWS is not priced in. The market will respond to action.
ACK SHOOOOONNNNN
They're moving up his confirmation up!!!!
He's not going in there to water the plants...
I think we'll go up tomorrow. I think we could break $3.00 and stay there by the end of the week.
If they're actually able to move Calabria's conformation up, we'll see gains everyday before and after his conformation.
If he gets in and stops the NWS.....
BOOM!!!!
Good report. IMO
Breaking very bad wind. We're talking clear out the whole room.Lol
Yes sorry. I meant prior to eom NWS.
I still think there is a good chance Otting will take action of some kind before the draw.... 60/40
ruleoflawguy
March 7, 2019 at 9:49 am
Tim
do you have a view on the new FSOC interpretive guidance re GSEs? quick explainer: https://www.thinkadvisor.com/2019/03/07/fsoc-proposes-changes-to-nonbank-sifi-designation/?slreturn=20190207094706
rolg
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jtimothyhoward?
March 7, 2019 at 11:29 am
I think this guidance from the FSOC will be helpful in bringing more rationality to the discussion of the appropriate capitalization of Fannie and Freddie.
Several prominent critics and opponents of the companies have in the past argued that because Fannie and Freddie are systemically important financial institutions (“SIFIs”), they should have to hold the same levels of capital as large SIFI banks. This argument, in my view, was never about safety and soundness; it was about having a politically respectable rationale for overcapitalizing them relative to the risks of their business, to make them less efficient and diminish their market influence vis-a-vis large primary market lenders.
The FSOC has now removed the mask of respectability from this prescription by adopting the correct (and obvious) stance that in the future it would apply the SIFI designation to a large non-bank financial institution (like Fannie or Freddie) only after doing an analysis of that institution’s likelihood of failure. A true risk-based capital standard for the companies addresses this issue directly, by linking their required capital to the actual risks they take in their business, to a standard of safety set by the government. If this approach to capitalization is properly designed and implemented by FHFA (and its June proposal erred in the direction of unnecessarily OVERcapitalizing the companies), there never would be a justification for giving Fannie or Freddie the SIFI designation, which in any event has been a blunt and counterproductive tool when applied to other large nonbank financials.
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Great post!! It's good to remind everyone of our very real possibility of a win in this case.
I guess we're about a month and a half into their deliberation.
So that's approx. 43 days. Someone said earlier that about 60 days is the normal time for a verdict.
So I guess in about 17 more days they will announce. Lol jk
Lol Yep, Watt kept the status quo on the NWS and played the field in his spare time.
Not an admission reflecting on this administration. That was part of the problem "Watt" along with Jumpstart were from the Obama administration.
We've getting ready to get "Our Guy" to FHFA now.
I don't know the timetable, but something is going to happen in the coming weeks.
Good or bad.
Nope
Jumpstart prevented any action until Jan 2018
After 2018, Congress led by former Sen Bob Corker were supposedly going to get it done. The administration had to allow them the opportunity. (What were they going to do? Say no?)
That failed
Loan now fully repaid with 16.2 Billion dollars surplus
Now have a new FHFA director and things are getting ready to happen. Otting has even talked a little bit about it.
I'm a Trump supporter too. He is getting ready to make Fannie and Freddie Great again!!
Ammunition. When they come out with the old nonsense of making the greedy hedge funds rich. Hit them with a barrage of this tweet. https://twitter.com/Fanniegate101/status/1092821524883664896
This picture is American as apple pie.
I agree.
Exactly right Chess. I agree 100%. Some argue otherwise, but there's not too many other places they could have gotten the billions of dollars needed, that would have been outside of congressional purse strings.
It was the NWS...Net Worth Steal.
No offence taken. I share your frustration. I've been invested in this stock since 2009 and have never sold a single share.
It is ok vent from time to time.
In fact, I recommend it.
This is unbelievable. I saw this posted yesterday on Facebook. This guy should never be allowed to work any job that deals with the public in anyway.
As for Gasbag, I can't believe anyone could justify this. I guess it pretty much confirms what a lowlife he is.
When this administration took over in 2017 the Jumpstart 1.0 was still in effect.
Their hands were completely tied until it expired in Jan 2018
After that, the new congress in Jan 2018 was taking the lead and Trump and Mnuchin had to give them that chance
Something is going to happen in the next few months. IMHO
Lol. Now that's a hard question. But since he did ask I will answer.
The NWS will be stopped by Calabria on Mar 29th 2019
A win at the 5th circuit on April 15th 2019
Release us will happen on June 3rd 2019
I am a time traveler and remote viewer.
I'm going to see if I can sign up for some reading courses or find an interpreter. I'm trying to stay informed on FNMA, but those big words you use, I donotunderstand and could be missing some vital information.
I'm an avid reader. I just finished "The Cat in the Hat" and am currently reading "Green Eggs and Ham".
So please Dr.Rick try to keep it in layman's terms.
Some comments from Tim Howard and ROLG on the Pepperdine panel discussion:
ruleoflawguy
February 20, 2019 at 10:19 am
Tim
recording of recent GSE reform discussion at Pepperdine: https://livestream.com/accounts/1028220/events/8561696/videos/187617124
starts at 24:00
rolg
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ruleoflawguy
February 20, 2019 at 11:15 am
@ around 1:15:00. vartaninan: “I talked to one of them [mnuchin, otting, Phillips, calabria] who said if we dont do it [act on GSE reform] no one will do it”
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jtimothyhoward
February 20, 2019 at 2:28 pm
It was refreshing to hear a panel on mortgage reform hosted by the School of Public Policy of a university 2600 miles from Washington (Pepperdine), with participants who have practical knowledge about and experience with the subject matter they were discussing. Even though this session is long (about 80 minutes, and doesn’t start until around minute 24), readers of this blog will benefit from listening to it, and I encourage them to do so.
What’s unique about this conference (in contrast to ones sponsored by advocacy groups) is that it addresses in detail why 10 years of legislative reform proposals have failed, and identifies the elements that have to be included, integrated and balanced in a successful reform package. As the panelists agree, there are four: a level of capital sufficient to address safety and soundness concerns but not so high as to cripple Fannie and Freddie’s abilities to use cross-subsidization effectively to support affordable housing (which is the second essential element in reform); a regulatory structure that defines the role of the secondary market in relation to the primary market, and a transition that treats existing shareholders fairly (essential in order to get new shareholders to buy the amount of new equity necessary for recapitalization).
I have talked at length in this blog about most of these, although not so much about the regulatory component. On this, I thought a statement made by Mike Calhoun of the Center for Responsible Lending was insightful: whatever reformed regulatory structure Treasury, FHFA and the other interested parties (including Congress) agree upon, it has to have “political stability.” Investors won’t invest in companies whose roles in the market or permitted methods of operation can change based on which political party is in power. To prevent that, reformers have to address and somehow “lock down” the roles of government-sponsored credit guarantors in the secondary market and lenders in the primary market. That’s not easy, but I’m glad the group that’s working on administrative reform is aware of the issue and is working on it.
As I listened to the session, the phrase that kept recurring to me was “TINA (there is no alternative) and the Warrants.” There really IS no realistic alternative to the Fannie and Freddie business model–as ten-plus years of failed legislative proposals have shown–so reformers have to build on what has proven to work. And the warrants are what give the administration the incentive not only to preserve the existing (and proven) system, but also to do so in a way that allows it to function efficiently and effectively for all stakeholders, including the affordable housing community, since that will maximize the value of the shares Treasury will own and be able to sell once it converts the warrants.
Balancing all of the elements of successful reform won’t be easy, but we have a motivated group of principals now in place who are focused on their task and have the experience and credentials to pull it off. Let’s hope they can.
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ruleoflawguy
February 20, 2019 at 2:48 pm
Tim
this was a panel of practical experts, not policy experts, in the sense that they understood the practical deficiencies of reform alternatives proposed in the past by GSE antagonists, and the practical challenges of recapitalizing the GSEs. which was why the program was so informative.
I also was struck by the “political stability” requirement, and was thinking about it in the context of what the moelis blueprint chose as the foundational example for its analysis, the AIG restructuring. while AIG also suffered rough treatment at the hands of Treasury, there was never a policy-swamp chorus seeking to eliminate AIG as a “failed business model”. recapitalizing GSEs will be hard to execute just as a matter of a conventional large-scale financial mandate; creating safeguards for new investors that the carpet won’t be pulled out from under them is a whole additional layer of execution risk and challenge.
which leads me to wonder how the administration will create these buffers to reduce political risk to the recapitalization. one additional comment from this panel was interesting: in effect, you would end the conservatorship at the beginning rather than the end of the recapitalization. normally, one would think the GSEs should be recapitalized before conservatorship is exited; however, since the conservator has been found by courts to have almost unlimited power and discretion, including for evil as future investors may fear, putting a silver dagger through the conservator heart at the beginning of the process may be a practical necessity to allay the legitimate new investor fear of political risk.
rolg
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Bill Maloni
February 21, 2019 at 11:18 am
As always JT, cogent, coherent, and to the point.
Are you listening Capitol Hill and even those in Treasury???
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Great find!!! I just stickied this for you Ricky. I had to pay $9.00 to get it to the top.
Don't worry it wasn't real money. This could make the stock price go up, so it could still be considered an investment with fake money.
Great Job!!
The 60 day quick peek ended in Jan 2018. The outcome of the challenges our plaintiffs may or may not have put forth are still unknown. There is a list of our plaintiff lawyers who have access to the documents, I will try to dig that up for you. One of the lawyers on the list is our most recent acting Attorney General Matthew Whittaker. See this post from my history that has the links for the orders at the bottom:
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Release us Wednesday, 01/10/18 09:47:05 PM
Re: mankind72 post# 445274 0
Post # of 506702
The 60 day "quick peek" should have ended yesterday give or take. The date of this order was Nov 9th.
Thursday November 9th 2017
New filing in the Fairholme case, click here to view.
Peter Chapman writes, "The parties presented Judge Sweeney with a proposed order establishing a quick peek protocol that, within the next 60 days, will bring jurisdictional discovery to an end or result in Fairholme filing a third motion to compel."
6. Further Court Involvement
If the parties are unable to resolve their differences regarding any of the remaining documents being withheld by defendant on privilege grounds, plaintiffs may file a motion to compel production any of the remaining documents that plaintiffs choose within 7 days of completion of the informal consultation discussed in paragraph 5.
7. Further Challenges by Plaintiffs
Plaintiffs shall not make any further challenges to documents or parts of documents, other than those addressed in the provisions of paragraphs 5 or 6 above, until the Court has resolved defendant’s motion to dismiss.
IT IS SO ORDERED.
s/ Margaret M. Sweeney MARGARET M. SWEENEY
http://gselinks.com/Court_Filings/Fairholme/13-465-0394.pdf
http://gselinks.com/Court_Filings/Fairholme/13-465-0393.pdf
Wrong. Fake news
Judge Sweeney allowed the plaintiffs an in camera review of all the documents in the fall of 2017 at the DOJ.
Try to keep up.
I think it was her. I looked for the post couldn't find it.
You should date her. She is pretty
I hope she does get a job with fox business. At least she don't call us clowns.
Gabriella has posted on this board. It was within the last week or so.
Trust me I usually read every post.
Gabby, If you are here, could you give your price estimate for common. Best and worst case?