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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I'm just speculating but I would say they have a "fund account" that is more than enough for operation. If the account gets too low in a given quarter it is replenished. All other funds 100% go to treasury. However this is just my best guess.
I believe they do retain enough to operate the business day to day.
You know he could be. I'm common only also. The main reason I posted his comments was to make some aware that simply stopping the NWS was not as easy as some think. The Perry ruling really thru a wrench into the process. It pushed things out some time wise. Some don't understand that Mnuchin will make a lot of enemies (Reps and Dems) if he tries to move too fast after that court ruling without a good reason to do so.
Here's another from this afternoon
Special Situation Observer
April 27, 2017 at 11:49 am
Thanks Tim, really enjoyed your post. Excellent insight as usual.
Do you believe that it is reasonable to deduce that in addition to Mnuchin potentially waiting for a favorable court decision involving the sweep before acting, there are other events that might force the action sooner rather than later? Two that come to mind are, 1) tax reform later this year that would cause another taxpayer bailout of the GSEs due to DTA write-downs and 2) GSEs balance sheet equity going to 0 on 1/1/18 which will leave taxpayers on the hook for any future bailouts caused by quarterly business fluctuations. It seems in either scenario, removing the NWS could be soundly justified against critics as it would be done in order to “protect” the taxpayers from having to bailout the GSEs and infuse more capital into them which both Mnuchin and Trump have said is very important to them (protecting taxpayers from future bailouts).
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Liked by 2 people
jtimothyhoward?
April 27, 2017 at 1:43 pm
Yes, I agree there could be other “forcing events” that allow Mnuchin to begin settlement talks with the plaintiffs in the lawsuits. The passage of tax reform (or a simple cut in the corporate tax rate, without reform) could be one such event. The draw from Treasury that this likely would trigger, at least for Fannie, would give Mnuchin an opening to begin a public dialogue about reforming the companies, which really can’t be done with the lawsuits hanging over them. (And remember, it’s not just the net worth sweep suit, it’s also the breach of contract suits remanded to Perry–to clarify the dividend rights of preferred shareholders and the liquidation rights of common shareholders) and the regulatory takings being contested in judge Sweeney’s Court of Federal Claims.)
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Comment this morning from jtimothyhoward
jtimothyhoward
April 27, 2017 at 10:30 am
I may not be correct, but I do have an analysis of what’s been going on with the March 31 net worth sweep payments. I believe, consistent with what Joe Light is reporting, that Watt WAS seriously considering allowing Fannie and Freddie to retain the earnings they reported for the fourth quarter of 2016, rather than paying them to Treasury. The evidence for that was the way the March payments were treated in the companies’ fourth quarter and full year 2016 earnings press releases and 10Ks—with Freddie suddenly referring to a “scheduled” sweep payment (it had never used that modifier before) and Fannie changing its table of “Treasury Draws and Dividend Payments” to no longer include the payment to be made in the coming quarter. Both of those changes were deliberate, and would not have been made without FHFA approval. I also think that at the time Fannie and Freddie’s earnings were announced Watt had the support of Mnuchin in allowing the companies’ sweep payments to be retained.
What changed that was the February 21 ruling from the DC District Court of Appeals that FHFA and Treasury were within their legal rights in imposing the net worth sweep. The (in my opinion) torturously reasoned majority decision upholding the sweep came as a surprise to almost everyone who was following the legal cases, and it changed the calculus behind what to do with the sweep payments. With the appellate court effectively saying that the $10 billion in combined first quarter sweep payments legally belonged to the government, neither Watt nor Mnuchin had a good public (or political) argument for allowing that money to stay with the companies as capital, so the sweep payments were made as scheduled.
I do not believe that Mnuchin has changed his view on what needs to be done to end the government’s control of Fannie and Freddie. As I said at the time of the appellate court ruling, however, that ruling complicated the process for getting to where I think Mnuchin wants to go. He can’t reform, release and recapitalize the companies without settling the lawsuits, but a settlement now would look like a giveaway to the plaintiffs, given the appellate court decision. In his statements since the February 21 ruling Mnuchin has pushed the timing of dealing with Fannie and Freddie into the second half of this year (and perhaps beyond) that. I believe that at least in part that is to see if developments in other court cases involving the sweep—Jacobs-Hindes in Delaware, Collins in Texas, or the appeals of the Saxton and Robinson lower court decisions—produce an outcome that better justifies initiating settlement talks with the plaintiffs.
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I've been wondering the same thing. If I remember correctly last years release to the public occurred about a week and a half or two weeks (estimation) after the plaintiff attorneys got them. If so we should be nearing that time frame now. Not saying it is the reason for the recent steady climb, although it is a possibility the plaintiff attorneys could be giving a wink and a nod to some of their friends....Either way I hope they come out soon. Hopefully with a bombshell... Goodluck
[quoteAm I correct in remembering that the release of the discovery docs to the P's started April 17 ... and does anyone know if/when any of those will be made public? Just curious if that partly explains pps move.
Obit?
Bueller? ... BUELLER?!? ... ][/quote]
The post was aimed at Fannie board member who needs to be fired. Josh Rosner is our friend. If he is trying to be a good person, he is succeeding.
See comment by Ron Begala Swanson...
What does @MBAMortgage plan create? Pro-cyclical system w more guarantors, full government guarantee behind securities & more @FDIC losses
— joshua rosner (@JoshRosner) April 24, 2017
And there is this Oversight hearing from 1 month ago...
Mr Fitton is with Judicial Watch. If they are working on this it's great...They get things done.
Me too, and the fact this came up shortly after introducing the bill to open FnF books. I would like to see this bill move forward just to see who would vote against it. I don't think anyone could justify voting against transparency.
There could be a lot of powerful people who would oppose the bill from coming to the floor that Jason Chaffetz R-Utah has sponsored. H.R.1694. It's got me thinking since he is considering leaving congress. I wonder what is going on with him. He seems to have the "deer in the headlights" look in his eyes. Is someone pressuring him? Who knows. Could be family problems. I hope he sticks around long enough to push it forward. I will be watching for H.R.1694....
115th CONGRESS
1st Session
H. R. 1694
To require additional entities to be subject to the requirements of section 552 of title 5, United States Code (commonly referred to as the Freedom of Information Act), and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
March 23, 2017
Mr. Chaffetz (for himself, Mr. DeSantis, Mr. Russell, Mr. Duncan of Tennessee, Mr. Massie, Mr. Farenthold, Mr. Comer, Mr. Blum, and Mr. Issa) introduced the following bill; which was referred to the Committee on Oversight and Government Reform
A BILL
To require additional entities to be subject to the requirements of section 552 of title 5, United States Code (commonly referred to as the Freedom of Information Act), and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. Short title.
This Act may be cited as the “Fannie and Freddie Open Records Act of 2017”.
SEC. 2. Applicability of FOIA.
(a) Amendment to definition of agency.—Section 552(f)(1) of title 5, United States Code (commonly referred to as the Freedom of Information Act), is amended by striking “or other establishment in the executive branch of the Government (including the Executive Office of the President), or any independent regulatory agency” and inserting the following: “any other establishment in the executive branch of the Government (including the Executive Office of the President), any independent regulatory agency, and the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation during any period such enterprise is under conservatorship or receivership pursuant to section 1367 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4617)”.
(b) Effective date; applicability.—The amendment made by subsection (a) shall be effective on the date of the enactment of this Act and shall apply with respect to any request filed under section 552(a)(3) of title 5, United States Code, on or after such effective date, relating to any record created before, on, or after the date of the enactment of this Act.
I no longer pay any attention to the MBA and David Stevens. They come out with new plans every 3 or 4 months and will quickly fade from the news cycle. With Trump in the Whitehouse they are about as far out of the loop as they have ever been and fading further as we speak...
You are exactly RIGHT!! :)
The Constitution says "No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law," Collyer noted, but the administration has continued to pay billions to insurers for their extra cost of providing health coverage.
"Paying [those] reimbursements without an appropriation thus violates the Constitution," she wrote. "Congress is the only source for such an appropriation, and no public money can be spent without one."
This guote came from U.S. District Court Judge Rosemary Collyer last year. This case is now in U.S. Court of Appeals. House of Representatives v. Burwell(now Price)
Question: Where are they getting the money?
http://www.latimes.com/nation/la-na-obamacare-court-ruling-20160512-snap-story.html
Here you go.... Peter Chapman writes, "The Class Plaintiffs want the three-judge panel in D.C. to modify its ruling in Perry v. Mnuchin to make it clear that "[t]he relevant expectations for the breach of implied covenant claims are the expectations of the shareholders who purchased preferred or common shares in the Enterprises when those shares were issued, not the subsequent expectations of shareholders who purchased shares in the secondary market." A copy of the Class Plaintiffs' rehearing petition is (linked above).
That fallacious attempt to discriminate among GSE shareholders based on the dates they purchased their shares is also buried in our government's supplemental motion to dismiss posted at http://gselinks.com/Court_Filings/Fairholme/13-465-0161.pdf delivered to Judge Sweeney on June 8, 2015. Briefing on that narrow topic was stayed in accordance with Judge Sweeney's order posted at http://gselinks.com/Court_Filings/Fairholme/13-465-0240.pdf entered on Sept. 9, 2015."
The filing they must respond to is here...
http://gselinks.com/Court_Filings/Perry/14-5243-1668958.pdf
Thanks Obi!!
That has changed. The motion from Judge Sweeney's court yesterday said the Government will start with the production on 4-14-17.
Big release of documents coming Friday!!! There could be some bombshells that help every active court case. I don't understand anyone selling who is aware of this...
I think so too NORC... We will get to see some documents very soon as they trickle out over the coming weeks. Could be a lot happening behind the scenes. It's a good time to be long FnF.
We anticipate making the first such production by April 14, 2017. The
additional time requested is needed to provide adequate time for review of the remaining
Case 1:13-cv-00465-MMS Document 369 Filed 04/11/17 Page 1 of 2
2
documents and to obtain the necessary internal and agency authorization concerning any
subsequent productions.
For these reasons, we request that the Court grant this unopposed motion for a 43-day
enlargement of time for the United States to file its status report indicating compliance with the
Court’s March 7, 2017 order.
April 11, 2017
Respectfully submitted,
CHAD A. READLER Acting Assistant Attorney General
s/ Robert E. Kirschman, Jr. ROBERT E. KIRSCHMAN, JR.
According to the way I read it, they're going to start rolling out the documents this Fri. And continue to do so over the next 45 days. Besides this was from both sides....not the judge.
Exactly. They lost all credibility quite some time ago.
Thanks Obi, Good information :)
I have read on the J Timothy Howard site comment section that a lot of people like our chances in that case. I sure hope we win it!!
Is this the case that DOJ supports part of the Plantiff argument that FHFA should answer to the President as their new claim in the PHH vs CFPB?
This Collins case is a little confusing to me with DOJ role.
You're welcome .....
This notice was also filed.
http://www.glenbradford.com/wp-content/uploads/2017/04/fairholme.pdf
Yes.... He has been given access to the protected documents
http://www.glenbradford.com/wp-content/uploads/2017/04/Individuals-With-Access-to-Protected-Information-in-Fairho%E2%80%A6-6.pdf
Karl Barth is a Forensics. Certified Fraud Examiner, Financial
Right giving Karl Barth access. He specializes in securities fraud. Forensics.Certified Fraud Examiner, Financial
Right giving Karl Barth access. He specializes in securities fraud. Certified Fraud Examiner, Financial Forensics. https://t.co/F2pF2goqHH
— MarketThesis$ (@visualtrama) April 6, 2017
Karl Barth is a Forensics. Certified Fraud Examiner, Financial
Right giving Karl Barth access. He specializes in securities fraud. Forensics.Certified Fraud Examiner, Financial
Right giving Karl Barth access. He specializes in securities fraud. Certified Fraud Examiner, Financial Forensics. https://t.co/F2pF2goqHH
— MarketThesis$ (@visualtrama) April 6, 2017
I couldn't agree more. We will win this on merits because what's right and the rule of law and justice will prevail. Be it judicial or administrative. Forget congressional we know they will do nothing.
This is Awesome!!! I'm joining Twitter tonight! I will be retweeting this. Looks good coming from a guy with a primetime show.
I believed the same way you did, that FnF were the bad guys. After all, that's what we and everyone else was told by the MSM. I bought a small amount in 2009 and actually joked that I felt bad about buying it because they were the cause. Lol I believe this is going to be the year of "Restoration". You got to admit some wild stuff has happened lately like Trump winning the Presidency and The Cubs won the World Series both defying expectations. Next up FnF... Not a recco
Tucker interviewed President Trump just a few weeks ago. He even got to hitch a ride on Air Force One. I agree with you that the interview tonight was no accident.
The only answer I have for you and it is just my opinion. Is that the only ones that really care that much about our story is "us". I'm just glad it is getting more air time now. I'm hopeful the 11,000 documents will have some damaging information that could cause a scandal. I believe there is some pretty bad stuff in those. The government has fought too hard for there not to be.
Thank you!! Tucker Carlson!! and Josh Rosner!! It's great anytime we can get the news out there. Time was short but Josh did a great job of getting to as many facts as he could. I believe we have another voice. Now Tucker and Maria Bartiromo of FOX.
It is also possible this last sweep went into a recap fund. The administration can't say too much right now. J Timothy Howard said after the Appeals Court decision that this will slow plans a little. Some of these 11,000 documents are going to come out and soon. May 1st we have a trial in Deleware... Jury trial I think??
Holding strong here Not a recco. GLTA Go FnF
Thanks.....I will add these. If we can get everyone on board with this we get our network built up. We could become quite a force.