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"12 USC 4502(7) defines core capital; the only way FnF can raise their core capital amount is by retained earnings, issuing new common shares, and issuing non-cumulative preferred shares. Nothing else can count, not even contingent or convertible debt."
LOL, When was the last time FHFA followed any laws?
Or is it ever required for FHFA to follow any laws?
By definition core capital or equity capital is non-cumulative capital.
Then how is that cumulative SPS is counted as core capital or equity capital.
"Yep, over the years I have been changing my view on being long in almost anything. I'd rather day trade buy and sell the same day for hopefully a 5%-10% gain. Seems like the only way to win.
"
Yes, It is a game or gambling, one has to play it properly to win.
When foxes guard the hen house, the odds are stacked against small investors.
"Total corruption, IMO."
Yes, It is basically victimizing the long investors.
Short sellers rob long investors using their investment.
The broker companies and short sellers benefit at the cost of long investors and the listed companies.
The main problem is, wall traders are chosen to become regulators and they have no incentives to ban short selling.
"what do you mean without their permission?"
Can you please explain below questions?
Naked short selling is illegal.
Why would any long investor willingly lend his shares for short selling?
From where the short sellers borrow the shares for short selling?
"Plaintiffs are therefore
entitled to "relief" against FHFA !!"
Yes, Agree. SCOTUS should make it clear that such mob conduct by bureaucrats and conservators is not acceptable in this country.
All these mob conspiracies that wall street revolving door bureaucrats systematically planned and executed to destroy FnF was not at all for the benefit of taxpayers or US Gov.
What makes it even worse is, this was done for the benefit of wall street cronies and loan sharks. There should have been independent Gov investigations to find out how bureaucratic power was abused against people and country for the benefit of cronies.
The plaintiffs have never made any attempts to bring these points in their filings. Plaintiffs keep on complaining that all these lawless things were done for the benefit of taxpayers or US Gov. These arguments have only helped the bureaucrats and mob conservator.
"Also think the Corona virus is way over hyped and wall street is cashing in on it.
Why not a temporary ban on short selling ???? That should be the first offense in a fragile market.
"
As an emergency measure all short selling should be banned or it should be banned for ever. The short traders borrow other investors shares without their permission to sell.
Another way to keep a check on short selling is to make it open and transparent by publishing all the transaction level details of short selling.
"Exactly. But everything melts down with the simple concept that a Conservator is a fiduciary for both, the enterprises and the Equity holders. As judge Willett pointed out in the ruling of the 5th Circuit Court hearing en-banc in Collins case, fiduciary is the traditional view of a conservator."
Whatever previous administrations did with FnF was totally unconscionable, anti democratic and unpatriotic.
The worst part is, most lower court judges acted in even far worst manner by inventing new legal interpretations to allow bureaucratic fraudulent assault against FnF, nation and people to stand.
Hope SCOTUS will see through all the fraudulent schemes used by the bureaucrats and conservators against FnF, constitution, country and the people.
"Bottom line is we're actually experiencing an unprecedented panic-demic: All major events shut down, schools shutting down, travel bans implemented, stock market crashing, hoarding, price gouging, quarantines & emergency economic relief for something that probably isn't going to happen. "
Because of fear mania promoted by reckless and vested media, Gov is using blunt or populists methods to deal with this situation.
To be effective the effort should be more focused on identifying vulnerable population and the efforts should be focused on protecting and treating these.
"The SPSPA isn't a law and it can't contravene the law."
SPSPA is essentially a fraudulent and bad faith agreement between one Gov agency FHFA with another Gov agency UST for the benefit of US Gov. But this is just for show. The real beneficiaries are short sellers and loan sharks.
The real purpose of SPSPA was more devious, to burden FnF with usuary loans and warrants so as to make them non-viable and destroy them.
If SPSPA was between private parties instead of Gov agencies, then the same defense attorneys and judges would have shown all kinds outrage and defendants would have been serving long and hard time.
"Actually, Coronavirus is estimated to have a death rate 10 times higher than the flu based on only confirmed cases while the flu death rate is calculated on estimated cases because not everyone that gets the flu goes to the doctor. Guess what? They know there are many people with mild cases of Coronavirus that are not being counted and the death rate is lower. Some experts say it's possible that it's no higher than the flu. The truth is nobody knows right now. The actual thing to fear is "fear" itself."
The better measures are,
1. how many become seriously sick, and the rate of increase/decrease
2. out of these seriously sick, how many die and the percentage.
Only these measures have any significance.
"Mnuchin to Trump: Yes they will Mr. President but we just ignore them and have perfected our efforts since you took office. When you assume office for your second term, feel free to spend as you wish because funds will still be flowing for any of your humanitarian causes."
Wall street Pinocchios can suggest such stealing ideas to POTUS. But why would Trump agree for such ideas. Trump can lawfully get the money for Congress.
Trump has already issued RR mandate to US, HUD and FHFA. FnF are building their capital.
"Calabria has even more control than that."
FHFA is a caricature tiger or a puppet controlled by the Wall street Pinocchios in the administration. This is how FHFA was created and FHFA has been like this since its creation.
FHFA does not have any enforcement authority or resources. It is dependent on administration for simple decisions. Now with constitutionality of its structure being questioned, it is a agency that is better abolished.
"someone please explain this? what does the gov't gain"
Gov is not gaining anything by maintaining status quo of mob conservatorship.
WH has already decided on what to do with conservatorship. Why can not release FnF now and free the locked up shareholder money.
"TRUMP ADMNISTRATION NEES TO BREAK GLASS AND RELEASE FANNIE FREDDIE TO SAVE ECONOMY... THEY NEED $$$$ FOR BAILOUTS"
It is a low hanging fruit. It does not require much effort and results will be very good.
"Trump to give aid to industries. FREE FAN/FRED How about start with us...He's 3.5 YEARS TOO LATE!"
Excellent idea for Trump administration to implement.
Already WH has approved policy document for releasing FnF. Now is a very good time to release FnF and boost the economy.
"Quote from Mnuchin
" An explicit guarantee that the U.S. Treasury stands behind Fannie and Freddie is the single thing that can dispel completely fears of disruption in the housing finance market. As we noted in our earlier story on Fannie Mae, these two GSEs combined hold about one-third of the nation’s $16 trillion mortgage debt. Failure is not an option."
"
Can anyone trust these Pinocchios from wall street?
FnF worked very well as private companies without any Gov support for decades before forced conservatorship by Pinocchios from wall street.
What is needed, adherence to rule of law, openness, and transparency.
"https://www.livescience.com/why-italy-coronavirus-deaths-so-high.html"
A good article to read on why percentage of fatalities in COVID-19 seem to be on the higher side compared common flu.
Most of the time only patients with serious COVID-19 infections are tested. People with mild and or no symptoms go untested or do not care to go to Doctor. So the reported percentage of fatalities seem to be based on population that is already in serious condition.
Italy has the oldest population in Europe, many of Italy's deaths have been among people in their 80s, and 90s, a population known to be more susceptible to severe complications from COVID-19.
Gov needs to provide better analysis about this.
"
1.On September 6, 2008, with the consent of both Fannie Mae's and Freddie Mac's (the Enterprises) board of directors, FHFA used its authorities to place each Enterprise into conservatorship.
2. FHFA established two conservatorships in response to a substantial deterioration in the housing markets that suggested it severely damaged each Enterprise's financial condition and left both of them unable to fulfill their missions without government intervention.
3. This was misleading to the public and the risk was merely a temporary housing value issue much like a dip in the stock market."
Are NOT these false narratives of FHFA?
Did BOD voluntarily consent for conservatorship?
What is the need for using such narratives?
Shareholders should just focus on unlawful FHFA decisions and Hank/Obama UST decisions.
"All this stuff about HERA lacking a severability clause is irrelevant because the Supreme Court is under no obligation to strike down an entire statute when part of it is deemed unconstitutional, even when there is no ll this stuff about HERA lacking a severability clause is irrelevant because the Supreme Court is under no obligation to strike down an entire statute when part of it is deemed unconstitutional, even when there is no severability clause.."
Without severability clause, the law itself strikes itself out. It is either everything or none. SCOTUS only has to decide whether any of the clauses are legal or not.
"kthomp19 makes a tortuous interpretation of the law and cover-up of facts."
kthomp19 is simply supporting the lawless acts of FHFA/conservators, administrations, and Judiciary over last 11 years, because without the continuation of the same lawlessness it is not possible to support his theory of JPS to CS conversion.
The very fact that Gov bureaucrats over last 11 years are hiding the real facts related to conservatorship, proves that things were done in violation of laws or ignoring laws. Why would any bureaucrat resist judicial review or openness and transparency if things were done in compliance with laws.
"The first part is incorrect because FHFA suspended capital standards on FnF during conservatorship, thus no part of HERA prevented such dividend payments. HERA gives FHFA a ton of leeway over such determinations anyway; if the director at the time of each NWS payment decided that it was in the best interest of the agency to make such a payment then HERA allowed for it. The second part is irrelevant because the seniors were not a loan.
"
If FHFA or FHFA Director or FHFA conservator can do what ever it/he wants, that is, ignore any laws or violate any laws, then why even try to justify any thing based on laws. That is controversial lawlessness of 4617(f).
One can not selectively use laws to justify what ever FHFA conservator did and then say FHFA conservator can do whatever he wants when the actions/decisions ignore or violate the laws.
Here one has to look at intentions of FHFA Directors, UST Secretaries and administration over 11 years and see whether these intentions were in compliance with laws. Obviously the answer is clearly "NO".
If one ignores basic rules of logic or laws, then anything can be proved. If intentions are not important then any laws can be used to do anything.
The laws never authorized FHFA to relinquish control of conservatorship to UST in any way or form. The laws never authorized de facto nationalization of FnF. The laws never authorized administration to wind down FnF by bankrupting them. It is the corrupt judiciary that has allowed FHFA to do all these lawless things but it does not make legally correct.
NWS robbery is still going on. Now it is in the form of SPS Stock.
Pinocchio MC has done nothing so far other than loose talk interviews with Wall street mob media. However Pinocchio MC has made lot of disparaging comments about FnF and FnF shareholders. Pinocchio MC spoke and wrote moralistically about robbing FnF by Hank and Obama administration.
Pinocchio SM told 3 years back that ending conservatorship was top priority of Trump Administration. But Pinocchio SM has done nothing.
Trump takes so much pride in telling the nation that he honors his promises and claims that he is rule of law president. Now after 3 years Trump needs to tell us when he is going to honor his promises to end lawless Mob Conservatroship, that now SM and MC have proven to be a worthless Pinocchios.
"Regarding accounting where's the 3 quarters of retained earnings shouldn't some of that money be reflected in the market cap and bounce up the pps???"
NWS robbery is still going on. Now it is in the form of SPS Stock.
Pinocchio Calabria has done nothing so far other than his loose talk interviews.
"Question for this board.....does anyone know, or have information on how much the government has spent on defending all the current and past (those that were dismissed) court cases? If I had to guess-timate, I'd say 100 mill plus by now. Tax payers were peeved about the 40 mill Mueller investigation, so wondering how taxpayers would react to the expense of this? Goes back 2 administration's, plus this one. Thanks for any help!
"
UST/DOJ spend tax money even though Gov expropriated 100s of billions from FnF. FHFA mobster gets all of its funding from FnF.
In the end it is plaintiffs (private shareholders) who are paying for defending those who victimized them.
"Mortgage Industry Takes Measure as Fed Issues an Emergency
50 BP Rate Cut. A $3 Trillion Year ?
"
If FnF get listed on big board and released then it will boost the economy and put the money in the hands of investors. In addition there will be bit tax revenues.
Why can not SM and MC release FnF and help Trump administration?
"Seven deaths now, but your point stands."
Thanks, Every year tens of thousands of aged and immune system compromised people succumb to various types opportunistic infections.
It may be more appropriate to treat corona viruses as one of such opportunistic infections that cause serious illness. But it is not fatal in majority of the cases as per known statistics.
When media starts publicizing on such matters, businesses get scared because of liabilities involved and has all sorts of implications and disruptions across the world.
Think of mass quarantining the people because of fear of catching the virus. If one starts listing hazards of all opportunistic infections then the whole world will come to stand still.
Precautions and preventive measures along with right information is helpful.
"It’s all about politics. Democrats can’t beat Trump, so they say the Admin is not doing enough for this crisis(2 Americans have died). So Admin will over react and waste money. Don’t worry Treasury has 100b in stolen GSE money to give out those who didn’t earn it."
Yes, the media reporting is more on the side of fear mongering rather than being informative and helpful.
"How a deadly disease becomes political is mind numbing (not aimed at you but overall !!)"
One can see so many patterns of media campaigns for the benefit of vested interests. That makes it bad.
BTW corona virus infection is not fatal in majority of the cases.
I'm sort of just taking it as is but my MD friends are seriously concerned about the situation FYI.
Just like stock pricing isn't all about what happens today... it is also about anticipation of what the virus could potentially fully become."
BTW Corona class of viruses are well known for many years and exist everywhere. What is the point in repeatedly showing workers in hazamat suits spraying the open roads.
BTW there are many more dangerous viruses than Corona viruses and why not create awareness about all viruses rather than focus on just one type of viruses.
"It is not a hoax. Be informed.
https://www.nature.com/articles/nm.3985
Be sure and read Author info at the end."
It is a hoax because of exaggerations and trying to scare rather than try to inform.
Why media keeps on showing people in hazamat suits spraying on roads.
Makes no sense to spray on road.
"So, it's basically a bad flu that is highly contagious."
Yes this is a bad flu. In terms of contagious nature, it may not be any worse than other flu. Probably it depends on immunity of individuals.
There are not enough scientific studies because this still new.
"As of a few days ago, the CDC had only tested 450 or so cases for CV. If you don't test, there will not be any cases to report. Infected cases are being severely under-reported so as not to cause panic. Lack of Gov transparency should be of no surprise to FNMA shareholders as we've experienced it for 10+ years now.
"
When the cases are under reported it is much better news with only 1-2 fatalities.
There is no way to test every citizen. When people go to hospital then only testing is done.
"CORONAVIRUS IN THE US
91 cases in the US with 2 deaths since January 21, 2020.
Travel-related - 17 cases
Person-to-person spread - 26 cases
Repatriations from Wuhan, China - 3
Diamond Princess cruise ship - 45 cases"
Obi,
Thanks for detailed information.
Obviously the fatalities of 1-2 with these 100 known cases, does not seem make it deadly epidemic as promoted by the media.
"Think about this..The yearly flu KILLS ON AVERAGE 68,000 PEOPLE IN THE USA every year is accepted.. Why are they blowing this up???"
If you look at what WS establishment and media has been doing since the last election, it should not surprise anyone. The WS establishment and media is used to 7-8 year boom and bust cycle with the help of Fed and revolving door bureaucrats in admisnitration,
But now it is different. The economic expansion is going on for more 11 years and has accelerated under current administration. WS establishment and media have been trying every few months something new fear mongering hoax to bring down the markets.
The corona virus hoax will also pass just like previous other fear mongering hoaxes.
It is very difficult to know and understand all the details and effect of the corona virus in short period. But current infections and recovery show that the corona infection causes severe illness in few people and also few fatalities. May be Gov should publish authoritative comparative statistics to keep the public informed.
"Or it just makes the cramdown scenario of converting 215 billion bucks in SPS and warrant exercise the only way to quickly recap them. The 170 billion dollars from the 45 billion plus 125 billion would likely be enough to recap them.
Then simply sell the common shares thru a bunch of secondary offerings."
LOL, still LOL,
Gov can not convert SPS in to CS for simple reason that, any further new investments require congressional law.
Current laws only allows exercising or selling the warrants.
"Currently FHFA Conservator Calabria is making it almost impossible to raise new capital with his endless loose talk interviews."
Will this ultimately work in favor of CS shareholders?
If investors decide not to invest any fresh capital in FnF, for the reasons of uncertainty about FnF business model and lawless FHFA conservatorship risks, then UST warrants are not worth any more than the current price of CS. At best UST can get about $10B to $20B for warrants.
If FnF buy back UST warrants and opt for capitalization through retained capital and other ways, then there is no CS dilution. JPS will get par value when capitalisation is completed. Until then both JPS and CS mat not get any dividends.
"Obviously Squidmore's stalling to see how much the Courts gut the Gooberment for before releasing a capital rule. Regardless, dilution won't be more than 10 to 1 and it might be none. 10 to 1 is 90% dilution so if that isn't enough then enough will never exist. On the other hand, Squidmore's head may hit the floor before he even proposes the rule. Isn't this fun? big smile"
In 2007-2008, FnF did not need more capital because FnF were compliant with regulatory capital requirements. But anyway Hank and Ben team insisted on more capital. Then Mark and Ben team conspired to make it difficult for FnF to raise fresh capital from already stressed markets. Hank and Ben team made it a requirement to impose FHFA conservatorship to impose mafia investment. Then FHFA and Obama went on to rob all the capital with NWS and bankrupt FnF.
After 11 years of failed attempts to destroy FnF, same thing is repeating now.
In which world do they impose conservatorship because of lack of capital and plunder all the capital, and then insist on more capital to release from conservatporship. Only this can happen in mafia world.
FnF do not need to raise fresh capital from markets because FnF can build their capital in many other ways. Besides investors will not invest in FnF because of history of lawless conservatorship. Currently FHFA Conservator Calabria is making it almost impossible to raise new capital with his endless loose talk interviews.
FHFA conservatorship is one of the biggest sham in the human history.
"I want to hear what SCOTUS says
100% independent --- likely not
But - I thought many of those agencies or administrations - have a ruling council ?? independent of potus and congress - so they can act - but it is not ONE PERSON with no oversight"
If there is a need for independent agencies, then constitution needs to be changed according to prescribed process. SCOTUS and Congress can not just rewrite the constitution without due process.