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lijianch,
When you talk about receivership, what will happen to $5T FnF MBS after receivership?
As of now US Gov has commitment of only max of $400B investment/credit thru SPSPA and there are no US Gov guarantees of any sort.
FHFA/Tsy can not selectively bailout MBS, or preferreds or commons without congressional Act.
After receivership what would be the plans to recapitalize new entity.
Why would congress ever allow new similar entity if it did not like FnF model in the first place? Current opposition is to FnF model and not to common shareholders.
Very wishful thinking without any facts.
capitalismforever is speaking misleading half truth.
As of now there are many different ways FnF conservatorship may take.
Since Nov 4th, overall things are working very positively for preferred as well common shareholders. There may be delays, the returns may vary but expect no disappointments.
Tim Howard has great financial expertise and analytical capabilities.
However FnF conservatorship scam needs abilities to think think out of the box and also expertise in financial forensic analysis.
When previous administration hid more than 11K of documents, it is not because previous administration was proud of what it did with FHFA conservatorship or of robbing FnF with SPSPA/NWS.
Any Administration needs congressional approval even to spend or borrow a single penny. It is well fact that congress did not approve spending on OCA subsidy and even went to courts to prevent unlawful spending on OCA subsidy.
Even when money is fungible, financial accounts are not fungible. That is why there many different accounts to keep track of income and expenses. If congress did not approve spending for OCA subsidy, then where did the money come from? To prove the point consider that Congress did not approve robbing FnF and also did not approve spending for OCA subsidy.
Any financial forensic analyst will be able to easily trace the source for OCA subsidy. BTW Mnuchin implicitly confirmed this and did not deny it in any way.
That is just procedural.
After that usually members ask for manual count if they want.
FHFA conservator has to decide on these things in consultation with all the stakeholders that also includes shareholders of FnF..
Since 2008, FHFA conservator has chosen to act as a proxy for Gov, financial establishment and anti-FnF detractors. Bureaucrats at FHFA have totally abused independent agency status of FHFA.
It would be better for all, if FHFA's independent status is removed and it becomes regular agency of Gov with all the checks and balances.
These crooks are using false narratives and propaganda to rob private property. This is how dictators grab the power. For these people rule of law and democracy mean nothing. Why can not these fake media say the same thing about billionaires and mega corporations?
Who is deranded FHFA or who have agreed with FHFA's "have it anyway FHFA likes it"?
On thing for sure is, it definitely proves that FHFA conservatorship is fake.
Read any FHFA response to plaintiffs or any court ruling against plaintiffs on gselink.
dueces,
The simple reason being Rich and Big corporations control Gov at every level. People elected DJT after getting disgusted with previous Wallstreet Presidencies.
Did not FHFA/Tsy officially tell (in 2008) that shareholders retain economic value in FnF? Does fake media think that this was a fake or joke?
These fake media journalists are hypocrites or moles implanted by the traders?
If you want to apply 5% interest from the beginning of SPSPA, then calculate interest based on the principal amount of around $132B ($55B was the dividend paid).
There is bill in the house to change the interest to 5%.
"Infowars.com has obtained a copy of a compliance “Adherence Letter” authored by Pointer Management, LLC, dated September 30, 2008, making it clear Pointer was taking a short position on Fannie Mae and Freddie Mac by buying derivatives, specifically credit default swaps, that would generate for Pointer a handsome profit, provided the share prices of the two GSEs went down."
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Credit Default Swaps seem to be the reason why FnF pps gets driven down after good news. One needs to look at total CDS issued on FnF stocks to understand pps movement.
During 2007-2008 The financial environment had deteriorated and needed to be fixed. Hank&Co tried to use the situation to settle the scores and benefit their favored ones. They allowed major rivals to fail and also tried to eliminate FnF putting using conservatorship. The financial markets lost trust in the system and financial meltdown ensued.
They started the fire thinking that they can control it but it went out of control totally.
This is how all knowing, Monday morning quarter backs tell others.
Do you aware of any valid reasons why you do not want others to own this stock other than FnF conservator is continuing to steal it?
Will you advise on not to buy some thing valuable or not fall in love with some thing because thieves will steal it?
Div payments to Tsy 2017 Q1.
https://www.fhfa.gov/DataTools/Downloads/Documents/Market-Data/Table_2.pdf
2017 Q1 4.476 3/31/2017 105.923 5.471 3/31/2017 159.846
I agree.
Simple remedy is to remove 10K limit for filing cases in US District courts rather do anything about USCFC.
The real news would be whether Tsy has explicitly communicated to FHFA or
not.
In absence of any communication from Tsy, by default FnF have to remit the dividend by specified date.
What about malfeasance on the part of FHFA Director and conservator?
As per Constitution and appeals court contractual rights remain valid.
Article 1 :‘No State shall…pass any…Law impairing the Obligation of Contracts…’
The principles of vertical separation of power applies both ways.
Federal Gov is supposed to have limited jurisdiction as listed in the US Constitution and everything else belongs to States. US and States have to limit their jurisdiction accordingly.
Did congress appropriate funds for ACA?
If not, then where did they get funds for ACA?
In NWS there are many complicit as opportunistic vultures.
NWS served the vested interests of many, so they allowed Bo administration to impound $465B of private company equity.
Did congress allow NWS in appropriation bills and also how to account for it?
Obiterdictum,
Thanks for detailed answer. Probably this will become problem that will confound all. FHFA and Conservatorship are working behind the veil of secrecy and protection of anti-injunction provisions. If the veil of secrecy is lifted and also if anti-injunction provisions go away it would be interesting to see how the questionable acts will be unwound.
Question for obiterdictum.
If HERA/FHFA is found to be unconstitutional in a court of law then how it may affect all the judgments that have been made against shareholders dating all the way back to 2008?
Congress did not appropriate funds for Obamacare.
So probably general funds were used for Obamacare without approval from congress.
Which insurance company will volunteer to provide health care under ACA when administration wants to shut it down?
Now most insurance companies will gladly exit market place and there will be no companies to insure.
Probably Judge Ginsberg may recuse from panel, considering his prior close association with anti-FnF think tanks and individuals.
Goes back to 3 panel judge.
This is panel rehearing not en bank hearing.
Mel Watt in his testimony to Congress confirmed that
"Inter agency agreements have trumped the laws"
Why in the world, Plaintiffs do not bring out this in their complaints to the courts?
It appears that some of the important decisions made by 3 judge panel are circulated to all the judges of the Appeals Court before publishing. There are many rules for this review process and this review forms the basis for en banc review.
In Perry’s appeal case, It was ordered, on the court’s own motion, that the Clerk withhold issuance of the mandate herein until seven days after disposition of any timely petition for rehearing or petition for rehearing en banc.
Does any one have more information on how many of all judges dissented ?
Kate Kelly joins NYT from CNBC and WSJ, so what do you expect from Kate?
New York Times business editor Dean Murphy sent out the following announcement on Thursday:
You may know her for coverage of hedge funds on CNBC. Or for having won multiple awards for hard-hitting finance reporting at The Wall Street Journal. Or for being the best-selling author of a book on the final days of Bear Stearns.
http://talkingbiznews.com/1/kate-kelly-to-join-ny-times-biz-desk/
Read it carefully.
"Mr. Mnuchin and Mr. Donovan will tackle not only changes to the corporate and individual tax codes but also the potential restructuring of the government-sponsored mortgage guarantors Fannie Mae and Freddie Mac."
The author does not say who said this. If this is author's opinion then it has no meaning. As an expert why would Mnuchin need GS's help?
These time lines are based WSJ survey.
It is not based any official statements.
BTW how much any one can trust what WSJ and CNBC say about FnF?
Both WSJ and CNBC have done enough anti FnF talk shows.
It is more than $132B return on net investment of $132B.
Page 9: https://www.fhfaoig.gov/Content/Files/WPR-2013-002_2.pdf
Summary of Funds Transferred (as of December 31, 2012)
“Net” Funds Received from Treasury $84.7B + $47.5B = $132.2B
HERA is a bad law created by Hank to specifically destroy FnF and give their business to banks.
Is FHFA director “heads of departments” as in Artcle 2 Appointments Clause?
FHFA Director appoints FHFA (FHFA Director) as Conservator, a inferior officer to exercise considerable power and discretion in carrying out the duties.
Will this appointment be consistent with Artcle 2 Appointments Clause.
Even if FHFA director as “heads of departments” can appoint inferior officers, can he appoint himself as inferior officer a manifest conflict of interest?
FHFA Director can be declared as unconstitutional authority in Collins TX summary judgement motion and HERA itself can be voided completely (there is no severability clause in HERA).
Appeals court ruled that FHFA Conservator has unchecked broad powers with bar on judicial review, making it official that FHFA Conservator is an unconstitutional authority. This it self should have been sufficient to void all the decisions (SPAPA, Warrants, NWS) made by the FHFA conservator.
Eventually FHFA conservator will be declared as unconstitutional authority and all decisions will be voided.
Besides FHFA Director can be declared as unconstitutional authority in Collins TX summary judgement motion and HERA itself can be voided completely (there is no severability clause in HERA).
The filing needs to change from derivative claims to direct claims.