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The Hunt for Red October
Current as of Apr. 14, 2016
Bailout Recipients
Fannie Mae
RECEIVED FROM TAXPAYERS - $116,149,000,000.00 BILLION DOLLARS
TOTAL REPAID TO DATE - $147,571,000.00 BILLION DOLLARS
Profit to the Taxpayer - 27.0532 % - $31,422,000,000 BILLION DOLLARS
Fannie Mae has paid $19,807,100,000 BILLION dollars OVER the 10% dividend to date.
*************
Freddie Mac
RECEIVED FROM TAXPAYERS - $71,336,000,000.00 BILLION DOLLARS
TOTAL REPAID TO DATE - $98,165,000,000.00 BILLION DOLLARS 26,829,000,000
Profit to the Taxpayer - 37.61 % - $26,829,000,000 BILLION DOLLARS
Freddie Mac has paid $19,695,400.00 BILLION dollars OVER the 10% dividend to date
This equates to a total paid back to date of $245,736,000,000 BILLION dollars.
Initial bailout total for both GSE's - $187,485,000,000.00 BILLION dollars.
Amount repaid to date for both GSE's - $245,736,000,000 BILLION dollars.
Profit to the "taxpayer" from the GSE's - $58,251,000,000.00 BILLION dollars
Total paid over the initial 10% bailout dividend - $39,502,500,000.00 BILLION dollars
This equates to a total paid to date of 31.07 % profit to the "taxpayers"
**************
AIG
RECEIVED FROM TAXPAYERS - $67,835,000,000.00 BILLION DOLLARS
TOTAL REPAID TO DATE - $72,860,967,492.00 BILLION DOLLARS
Profit to Taxpayer - 07.40911 % - 5.025 BILLION DOLLARS
*************
GM
RECEIVED FROM TAXPAYERS - $50,744,648,329.00 BILLION DOLLARS
TOTAL REPAID TO DATE - $39,334,175,747.00 BILLION DOLLARS
GM Still OWES the Taxpayers $11.41 BILLION DOLLARS.
Fannie, Freddie Investors Fight to Undo U.S. `Net Worth Sweep'
Bloomberg By Andrew M Harris
The U.S. government’s 2012 decision to take all the profits from Fannie Mae and Freddie Mac, the mortgage companies bailed out by taxpayers in the financial crisis, will get a federal appellate review Friday when investors argue the appropriation was illegal.
Shares in both firms, which back about two-thirds of the $6.46 trillion U.S. residential mortgage market, climbed more than 40 percent this week on speculation that a three-judge panel in Washington might force the government to share the profits with the companies’ retail stockholders.
Since it started capturing those profits in a so-called “net worth sweep” that began in January 2013, the government has been sued by individual and institutional investors challenging the lawfulness of its action, including the Fairholme Funds and Perry Capital LLC. Some say it was unconstitutional, while others contend it amounted to a breach of contract, of good faith and of fair dealing.
In 2014, U.S. District Court Judge Royce Lamberth rejected all of those arguments. Shareholders’ lawyers on Friday will ask a U.S. Court of Appeals in Washington to at least reverse that ruling if not the sweep itself.
“It’s one of the most egregious appropriations of private economic rights in history,” Hamish Hume, who will argue on behalf of a class representing all who held preferred and common stock in the companies at the sweep’s inception, said in a statement Wednesday. He is a partner in New York-based Boies Schiller Flexner LLP.
Bailout Recouped
By mid-2012, the Treasury Department had provided $187.5 billion in taxpayer money to the two government-sponsored entities, taking back $189 billion in preferred stock, according to court papers filed by Hume’s firm. With the sweep in place, the government had recouped more than $230 billion by early last year.
Fannie Mae and Freddie Mac provide liquidity to the housing market by packaging mortgages into securities on which they guarantee payments of principal and interest. Outside of that core business, they each also have investment portfolios and finance commercial real estate.
Freddie Mac in February reported its fourth consecutive year of profitability, with $6.4 billion in net income last year. A day later, Fannie Mae reported net income of $11 billion for 2015, down from the $14.2 billion reported for the prior year but extending its streak to four straight years in the black.
Former U.S. Solicitor General Theodore Olson will argue for Perry before the three-judge panel. Bill Ackman’s Pershing Square Capital Management filed a friend of the court brief, backing Perry and Fairholme, and has a parallel case pending in a different D.C. court.
Fairholme too filed suit in that court, the U.S. Court of Federal Claims, where -- taking advantage of its rules -- its lawyers were able to question under oath former Fannie Mae Chief Financial Officer Susan McFarland.
‘Sustainable Profits’
In transcript excerpts made public by the court this week, McFarland testified that the impetus for the appropriation of profits may have been her telling Treasury officials that Fannie Mae and Freddie Mac had weathered the economic storm.
“I had expressed a view that I believed we were now in a sustainable profitability, that we would be able to deliver sustainable profits over time,” she said. “So when the amendment went into place, part of my reaction was they did that in response to my communication of our forecasts and the implication of those forecasts, that it was probably a desire not to allow capital to build up within the enterprises and not allow the enterprises to recapitalize themselves.”
U.S. Court of Claims Judge Margaret M. Sweeney said she was unsealing parts of McFarland’s testimony and other evidence at the request of Fairholme and Perry lawyers so they could refer to it openly in their appellate arguments. Her ruling spurred Fannie Mae shares to climb 35 percent to $1.79 April 12, and to rise further rise, to $1.95, the next day. Freddie Mac gained 29 percent to $1.65 on April 12 and increased to $1.80 a day later.
The Treasury Department’s defense rests largely upon HERA, the Housing and Economic Recovery Act of 2008, which created a new federal agency, empowered it to act as a conservator or a receiver for the two mortgage companies and provided only limited avenues for legal challenges. At that time, the Federal National Mortgage Association, also known as Fannie Mae, and the Federal Home Loan Mortgage Corp., or Freddie Mac, owned or guaranteed more than $5 trillion in residential mortgages, about half the U.S. market, according to a government court filing.
In exchange for its commitment of capital to prop up the teetering government sponsored enterprises, or GSEs, the U.S. took a controlling interest in each and assured itself a senior position in the event one or both companies was liquidated. It also allocated to itself, at least initially, quarterly dividends equal to 10 percent of its liquidation stake value.
Open-Ended Commitment
For a time, the government’s commitment was open-ended, enabling Fannie and Freddie to ultimately draw $187 billion to prevent their insolvency while paying the government its guaranteed dividend.
That situation changed with the amendment announced in August of 2012, which replaced the fixed dividend obligation “with a requirement that the enterprises pay, as a dividend, the amount, if any, by which their net worth exceeds a capital buffer,” lawyers for the U.S. said in court papers. That buffer is slated for elimination in 2018.
Lamberth, who threw out the investor suits in 2014, found most of their claims barred by the Congressionally-created HERA. Their right to dividends, he added, were “wholly dependent” on the discretion of the GSEs’ directors and their regulator, the Federal Housing Finance Agency.
“The plaintiffs’ grievance is really with Congress,” the judge said. “It was Congress, after all, that parted the legal seas so that FHFA and Treasury could effectively do whatever they thought was needed to stabilize and, if necessary, liquidate the GSEs.”
David Min, a professor of law at the University of California at Irvine, said by phone that Lambert’s ruling and rationale gives an edge to the government on appeal, but not an insurmountable one.
“Sometimes ‘Hail Marys’ are completed,” Min said, comparing the investors’ claims to a desperation pass in a football game.
While HERA endowed the FHFA -- whose mandate is to conserve and preserve Fannie and Freddie -- with a measure of immunity from most of the asserted claims, shareholders can argue the agency is violating its reason for being.
“I think you can make a strong argument that maybe FHFA has not been acting with that goal in mind,” Min said.
The case is Perry Capital LLC v. Lew, 14-5243, 14-5254, 14.5260 and 14-5262, U.S. Court of Appeals, District of Columbia Circuit (Washington).
good news...good bump in pps
Anyone see any news to cause the jump in pps today?
Wells Fargo finalizes record $1.2B settlement over FHA lending program
Apr 11, 2016, 8:43am EDT
http://www.bizjournals.com/philadelphia/morning_roundup/2016/04/wells-fargo-1-2b-settlement-over-fha-lending.html
Jeff Blumenthal Reporter Philadelphia Business Journal
Wells Fargo & Co. admitted to deceiving the U.S. government into insuring thousands of risky mortgages as it formally agreed to a $1.2 billion settlement to resolve civil claims related to its Federal Housing Administration (FHA) lending program.
The settlement with San Francisco-based Wells Fargo (NYSE: WFC), the largest U.S. mortgage lender and the Philadelphia region’s largest deposit taker, also resolves claims against Kurt Lofrano, a former Wells Fargo vice president.
Wells Fargo & Co. admitted to deceiving the U.S. government into insuring thousands of risky mortgages as it formally agreed to a $1.2 billion settlement to resolve civil claims related to its Federal Housing Administration (FHA) lending program.
Approved Friday by U.S. District Judge Jesse M. Furman for the Southern District of New York, the settlement ( which can be viewed here), was originally reached by the two sides in February.
The Justice Department said that Wells Fargo “admitted, acknowledged and accepted responsibility for, among other things, certifying to the Department of Housing and Urban Development (HUD), during the period from May 2001 through December 2008, that certain residential home mortgage loans were eligible for FHA insurance when in fact they were not.”
The DOJ said that resulted in the government having to pay FHA insurance claims when some of those loans defaulted.
When the civil suit was originally filed in 2012, Wells Fargo denied the allegations, claiming it acted in good faith and within FHA and HUD rules.
Several lenders, including rivals Bank of America Corp, Citigroup, Deutsche Bank and JPMorgan Chase & Co, previously settled similar federal lawsuits.
But Wells Fargo held out, and its payment is the largest in FHA history over loan origination violations.
Preet Bharara, U.S. Attorney for the Southern District of New York, said in a statement that the settlement holds Wells Fargo responsible “for years of reckless underwriting, while relying on government insurance to deal with the damage"
“Driven to maximize profits, Wells Fargo employed shoddy underwriting practices to drive up loan volume, at the expense of loan quality,” Bharara said. “Even though Wells Fargo identified through internal quality assurance reviews thousands of problematic loans, the bank decided not to report them to HUD.
As a result, while Wells Fargo enjoyed huge profits from its FHA loan business, the government was left holding the bag when the bad loans went bust.”
Franklin Codel, president of Wells Fargo Home Lending, in a statement said the settlement “allows us to put the legal process behind us, and to focus our resources and energy on what we do best — serving the needs of the nation’s homeowners.”
The agreement resolves the DOJ’s civil claims in its lawsuit as well as an investigation conducted by the U.S. Attorney’s Office for the Southern District of New York regarding Wells Fargo’s FHA origination and underwriting practices subsequent to the claims in its lawsuit and an investigation conducted by the U.S. Attorney’s Office for the Northern District of California into whether American Mortgage Network (AMNET), a mortgage lender acquired by Wells Fargo in 2009, falsely certified and submitted ineligible residential mortgage loans for FHA insurance.
As a result of the settlement, Wells Fargo said in Febuary that it has added to its legal expense for 2015, which it reported results for on Jan. 15. That has reduced its profit for 2015 by $134 million, or 3 cents a share, to $22.9 billion, or $4.12 per common share.
ARMOUR Residential REIT, Inc. Announces April 2016 Dividend Rate Per Common Share and Confirms Q2 2016 Monthly Dividend Rates Per Preferred Share
Company Release - 04/04/2016 05:55
VERO BEACH, Florida, April 04, 2016 (GLOBE NEWSWIRE) -- ARMOUR Residential REIT, Inc. (NYSE: ARR, ARR PrA and ARR PrB) (“ARMOUR” or the “Company”) today announced the April 2016 cash dividend rate of $0.27 per share for the Company’s Common Stock. The reduction from the previous $0.33 per share monthly dividend rate is consistent with management’s comments on the Company’s February 19, 2016, earnings conference call. A replay of the earnings conference call is available on ARMOUR’s website at http://www.armourreit.com for one year from the date of the earnings conference call. The Company also confirmed the Q2 2016 monthly cash dividend rates for the Company’s Series A and Series B Preferred Stock.
here is a link to their paper.
https://www.economy.com/getlocal?q=0bc8b72b-aade-4c6c-b12b-813463145f39&app=eccafile
you are correct
Fannie and Freddie Stakes Not Likely to Improve for Ackman Anytime Soon
By Carleton English
Mar 21, 2016 | 4:26 PM EDT
http://realmoney.thestreet.com/articles/03/21/2016/fannie-and-freddie-stakes-not-likely-improve-ackman-anytime-soon
While Bill Ackman was able to gain another seat on Valeant's (VRX) board, his battle with one of his other troubled positions shows little sign of being soon resolved.
In 2013, Ackman's Pershing Square announced stakes in Fannie Mae (FNMA) and Freddie Mac (FMCC). Ackman stated his case for the government-sponsored enterprises in a 110-slide presentation at the 2014 Sohn Investment Conference in New York.
To date, the investments have not performed well. Since the Sohn conference, shares of Fannie and Freddie are both down more than 60% -- and trading for approximately $1.50 each. During CNBC's Delivering Alpha conference in July, Ackman called the investments the "most interesting" in his portfolio, as it offered both the most upside and the most downside. Not surprisingly, Ackman said the downside outcome was "very unlikely."
As a refresher, the U.S. government put Fannie and Freddie into conservatorship in the wake of the financial crisis of 2008. Specifically, the government received warrants to acquire nearly 80% of the companies' common stock and also aquired senior preferred shares, which paid a 10% dividend. In August 2012 -- just as the companies were returning to profitability -- the government changed the terms of the agreement: Instead of paying a 10% dividend, Fannie and Freddie were required to pay nearly all of their profits to the U.S. Treasury, in what has been called the "net worth sweep."
In August 2014, Ackman filed suit against the government in Washington D.C.'s U.S. Court of Federal Claims, saying that the net worth sweeps represented "self-dealing," and that the sweeps violate the fifth amendment of the United States Constitution.
"I just think this cannot become a precedent where the U.S. government can step in and unilaterally take 100% of the profits of a U.S. corporation forever," Ackman said last July.
Although Ackman's points may be shared by others, the battle he wages is a big one, and one that has been unsuccessfully fought already: Other investors that have sued on similar grounds include Fairholme Funds and Perry Capital.
Ackman reiterated his stance on Fannie and Freddie during a panel conversation at Columbia University in September 2015.
The existence of Fannie and Freddie allowed the development of the 30-year prepayable fixed-rate mortgage, something Ackman called a "uniquely American financial product." With rental rates increasing rapidly, Ackman believes the existence of a long-term fixed-rate mortgage product is crucial to the American middle-class. Additionally, of the conservatorship, Ackman said the government has done a "very good job" of rehabilitating the companies.
Unfortunately, when and how the companies' profits could be returned to common shareholders remains to be seen.
In the July conference, Ackman said he tends to stay away from investments in technology because they have an "extrinsic factor" he is unable to control.
So far, it appears the same could be said about basic homeownership.
Correction: This piece was updated on March 22, 2016 at 9:30am EST to clarify that government received warrants to acquire nearly 80% of FNMA common stock. The previous version stated that the government had acquired nearly 80% of FNMA common stock.
Warren Resources Announces 4th Quarter and Year-end 2015 Financial and Operating Results
Warren Resources, Inc.
March 17, 2016 7:48 PM
DENVER, March 17, 2016 (GLOBE NEWSWIRE) --
Warren Resources, Inc. (WRES) (“Warren”) today reported its 4th quarter and full year 2015 financial and operating results.
Lower commodity prices in 2015 versus 2014 were the primary driver for all results recorded in 2015. The average sales price for oil in 2015 was $41.14 per barrel versus $86.02 per barrel in 2014, a 52% reduction. The average sales price for gas in 2015 was $1.55 per thousand cubic feet versus $3.06 in 2014, a 49% reduction. Oil production for 2015 was 980.3 MBbl versus 1,118.3 MBbl in 2014 or a 12% decline. Gas production in 2015 was 28.0 Bcf versus 16.1 Bcf in 2014. This 74% increase was primarily the result of a full year of Marcellus production in 2015 versus only approximately 5 months of Marcellus production in 2014.
Oil, gas and transportation revenues were $88.4 million in 2015 versus $150.7 million in 2014 reflecting costs and volumes detailed above.
Lease Operating Expenses were $49.6 million in 2015 versus $48.4 million in 2014. DD&A was $66.2 million in 2015 versus $56.5 million in 2014. Impairment expense was $578.3 million in 2015 as compared to no impairment in 2014. This impairment was related to a ceiling test write down of oil and gas properties and other long lived assets primarily associated with the decline in commodity prices in 2015. G&A expenses were $17.7 million in 2015 versus $15.3 in 2014. The primary increase was related to severance costs for closing the New York and Roswell, New Mexico offices and resultant personnel reductions. Non cash stock based compensation included in the above G&A expenses were $2.2 million in 2015 and $1.6 million in 2014. Interest expense in 2014 was $30.4 million versus $9.6 million reflecting the increased debt level in 2015 for the Marcellus acquisition in the third quarter of 2014. Derivative gains of $20.1 million were recorded in 2015 versus $7.4 million in 2014 reflecting the effectiveness of our hedging program. Realized gain in 2015 was $13 million.
Net loss for the year was $619.9 million or $7.55 per share, driven in large part by the $578.3 million impairment expense. Net gain for 2014 was $24.0 million or $0.31 per share.
James A. Watt, President and Chief Executive Officer of the Company stated, “Last year was a very difficult year for Warren and the majority of the oil and gas industry. Our current focus is on restructuring our balance sheet. We are currently in negotiations with all our debt holders in this effort. We will attempt to accomplish this restructuring out of court, however, there can be no guarantee that we can accomplish the necessary restructuring without the benefit of the protection of the courts.”
On March 17, 2016 Warren filed its annual report on Form 10-K (the “Form 10-K”) with the Securities and Exchange Commission. Warren makes available free of charge through its website, www.warrenresources.com, the Form 10-K and all amendments to the Form 10-K as soon as reasonably practicable after such material is electronically filed with or furnished to the SEC at www.sec.gov. Warren will furnish a hard copy of the Form 10-K to stockholders free of charge upon request made to Warren’s principal office at 1331 17th Street, Suite 720, Denver, Colorado 80202.
2:13 am Warren Resources will continue NASDAQ listing; provides update on debt restructuring; may need bankruptcy protection (WRES)
Co announced it received a decision letter from the Nasdaq Hearings Panel indicating that Warren's common stock is permitted to continue to trade on the Nasdaq Global Market through June 20, 2016.
Debt Restructuring
Warren continues to engage in discussions with its creditors regarding a restructuring of its debt obligations.
As of December 31, 2015, Warren's first lien creditors held debt of $235 million in principal amount, second lien creditors held debt of $51 million in principal amount, and investors held $167 million principal amount of Warren's unsecured senior notes.
Warren had $26.8 million in cash at year end 2015.
Although Warren is continuing to seek a workable agreement regarding a consensual, out-of-court restructuring of its indebtedness, a failure to achieve such an agreement will likely necessitate seeking protection from its creditors through a bankruptcy proceeding, in order to preserve and maximize value for its stakeholders. Furthermore, Warren and its lenders are continuing to evaluate whether a consensual restructuring should be effected outside or through a bankruptcy proceeding.
you are correct...my bad. so used to flipping cheap otc stocks.
otc doesn't trade "after hours"...but the "t" trade cleanup has moved it up to 44 cents. Here are the ending trades for "after hours" "t" cleanup.
Time & Sales
Price Size Mkt Time
t $0.44 1,000 NDD 19:58:29
t $0.42 2,500 ARCA 19:57:27
t $0.42 2,500 NSD 19:57:27
t $0.42 2,500 NSD 19:57:27
t $0.42 300 NSD 19:56:57
t $0.42 2,200 NSD 19:56:52
t $0.439 200 NSD 19:54:03
t $0.439 1,000 NDD 19:52:30
t $0.439 1,000 NDD 19:51:56
t $0.439 496 NSD 19:51:39
t $0.439 500 NSD 19:51:39
i $0.439 4 NSD 19:51:39
t $0.439 100 NSD 19:49:53
t $0.44 400 ARCA 19:49:53
t $0.42 2,000 EDGX 19:46:53
t $0.439 191 NSD 19:37:55
t $0.439 205 NSD 19:31:27
t $0.439 1,100 NDD 19:28:21
t $0.439 7,300 ARCA 19:28:21
t $0.439 500 ARCA 19:28:21
t $0.439 2,500 ARCA 19:28:21
t $0.439 500 ARCA 19:28:21
sweeeeeeet....HOD so far is .4598....flippers and day traders taking their cut now...maybe it will move back up and break 4 bits in the next few days.
Here is the article...pay date will be March 31 with an ex div date of March 15.
NEW YORK--(BUSINESS WIRE)--Chimera Investment Corporation (NYSE:CIM) today announced that the Board of Directors declared a special common stock dividend of $0.50 per share. The special dividend is payable on March 31, 2016 to stockholders of record on March 17, 2016. The ex-dividend date is March 15, 2016.
“With the conclusion of our Board’s investigation and the recovery of these amounts, we can now put these issues behind us, which is in the best interest of our stockholders.”
Tweet this
As disclosed in our most recent Annual Report on Form 10-K, the Audit Committee pursued remedies against other parties regarding the facts and circumstances relating to our accounting for Non-Agency RMBS and the restatement of our financial statements. The Audit Committee and our Board of Directors determined that it was in the best interest of our stockholders to resolve these matters for $95 million, which will be characterized as taxable income in 2016 and is the basis for this special dividend. Matthew Lambiase, our CEO and President, noted that “With the conclusion of our Board’s investigation and the recovery of these amounts, we can now put these issues behind us, which is in the best interest of our stockholders.”
I's quite possible if they negotiated a favorable debt restructure, and oil continues to increase in price, this could quickly move back towards a buck.
must be some good news floating around out there...I haven't found it yet
Most likely it is market makers cleaning up to get their books in order. Total trades over the past 3 months
Time & Sales
Price Size Mkt Time
_____________________________________________________
$0.0001 180,000 OTO 03/02
$0.0001 175,000 OTO 02/23
$0.00 12,500 OTO 02/22
$0.001 28,750 OTO 02/12
$0.0001 500,000 OTO 01/21
$0.0001 50,000 OTO 01/21
$0.0001 50,000 OTO 01/21
$0.0001 10,000 OTO 01/21
$0.0001 10,000 OTO 01/21
$0.0001 10,000 OTO 01/21
$0.0001 58,333 OTO 01/21
$0.0001 900,000 OTO 01/21
$0.0001 293,750 OTO 01/21
$0.0001 10,000 OTO 01/21
$0.0001 10,000 OTO 01/20
$0.0001 10,000 OTO 01/20
$0.0001 10,000 OTO 01/20
$0.0001 10,000 OTO 01/20
$0.0001 10,000 OTO 01/20
$0.0001 10,000 OTO 01/19
$0.0001 10,000 OTO 01/19
$0.0001 10,000 OTO 01/19
$0.0001 10,000 OTO 01/19
$0.0001 341,667 OTO 12/15
$0.0002 56,540 OTO 11/05
$0.0001 50,000 OTO 11/03
$0.0001 250,000 OTO 11/03
$0.0001 10,000 OTO 11/03
$0.00 912,500 OTO 11/03
$0.00 5,000 OTO 10/28
check this out...I know it's a few years old, but it lends to the credibility of the management team.
https://docs.justia.com/cases/federal/district-courts/texas/txedce/4:2014cv00434/153428/27
Just a Dream
A speech by housing finance’s top regulator has given rise to a misguided hope that the mortgage giants could be freed from government control
By John Carney
http://www.wsj.com/articles/fannie-and-freddie-recap-and-release-is-still-just-a-dream-1456428558
Updated Feb. 25, 2016 2:32 p.m. ET
Despite fervent hopes of some investors, Fannie Mae’s and Freddie Mac’s regulator isn’t going to end their conservatorships.
Even if Federal Housing Finance Agency Director Mel Watt favored releasing the mortgage giants from government control, he can’t do so without authorization from the U.S. Treasury. And Treasury has made it clear that isn't in the cards. In a speech at the Bipartisan Policy Center last week (http://www.wsj.com/articles/freddie-mac-to-send-1-7-billion- payment-to-treasury-1455800584), Mr. Watt said keeping Fannie and Freddie in conservatorship indefinitely was creating " substantial challenges and risks." The most serious risk, he said, is the companies' declining capital positions.
Under bailout agreements with Treasury, the companies' capital buffers are required to shrink annually until reaching zero by Jan. 1, 2018. At that point, any quarterly losses would trigger new draws from their bailout facility.
Mr. Watt doesn't think this prudent. In his speech he called on Congress to "engage in the work of thoughtful housing reform."
Some investors have read Mr. Watt's speech as foreshadowing a policy change. A report from Bank of America Merrill Lynch analyst Ralph Axel (http://www.reuters.com/article/us-mortgages-fhfa-bank-of-america-idUSKCN0VX2PB) on Wednesday said the speech "opens the door to FHFA pursuing a recapitalization plan, eventually leading to the end of the conservatorships."
But the companies and the FHFA have a contractual obligation not to pursue an end to the conservatorships without Treasury's prior written consent. And it was only four months ago that the Treasury emphatically rejected the notion of "recap and release." (http://www.wsj.com/articles/freddie-mac-to-send-1-7-billion-payment-to-treasury-1455800584) Any move in that direction would be a "return to a model that failed," Treasury counselor Antonio Weiss wrote.
In an email, a Treasury spokesman said the speech didn't mark a new policy direction (http://www.marketwatch.com/ story/fannie-mae-reports-247-billion-profit-in-fourth-quarter-2016-02-19): "Director Watt's remarks underscore the Administration's consistent position regarding the GSEs' conservatorship: the best long-term solution is comprehensive housing finance reform."
In other words, the door to recapitalization and release isn't just closed; it is locked shut.
It still amazes me that the WSJ lets this guy write this stuff and they pay him for it.
Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standa
Item 3.01 Notice of Delisting or Failure to Satisfy a
Continued Listing Rule or Standard; Transfer of Listing.
On February 18, 2016, Warren Resources, Inc. (the "Company") received a deficiency letter from the Listing Qualifications Department of The NASDAQ Stock Market (the "Staff") notifying the Company that for the last 30 consecutive business days the market value of the Company's publicly held shares has been below the minimum $15 million market value of publicly held shares requirement for continued listing on The NASDAQ Capital Market ("NASDAQ") as set forth in NASDAQ Listing Rule 5450(b)(3)(C) (the "Rule"). In accordance with the NASDAQ Listing Rules, the Company has been provided a grace period of 180 calendar days, through August 16, 2016, to evidence compliance with the Rule. In order to satisfy the Rule, the Company must evidence a market value of publicly held shares of at least $15 million for a minimum of 10 consecutive business days. The notice has no effect on the listing or trading of the Company's common stock on NASDAQ during the 180 day grace period.
As disclosed on December 24, 2015, the Company was previously notified by the Staff that, based upon its continued non-compliance with the minimum bid price requirement, the Company's securities would be subject to delisting from NASDAQ unless the Company timely requested a hearing before the NASDAQ Hearings Panel. The Company has requested and been granted a hearing date relating to the bid price deficiency, at which hearing the Company will discuss its plans to evidence compliance with the minimum bid price requirement.
Fannie Mae at risk of needing a bailout
Barney Jopson in Washington
http://www.cnbc.com/2016/02/20/fannie-mae-at-risk-of-needing-a-bailout.html
Fannie Mae, the state-sponsored U.S. mortgage backer, is at risk of needing a government bailout that could shake confidence in the housing finance market, senior officials have warned.
Fannie Mae's chief executive and its regulator are sounding the alarm on a decline in the institution's capital cushion, which is on course to vanish in 2018, when it would have to ask the US Treasury for emergency funds.
Their warnings highlight Washington's inaction on housing policy and its failure to reform the institution, which guarantees nearly $3 trillion of securities and enables 30-year fixed rate loans, following the last financial crisis.
Since 2008 Fannie Mae has been in the post-crisis limbo of state-sponsored "conservatorship," neither fully nationalized nor private, following several unsuccessful attempts by Congress to overhaul it.
Because the government does not let Fannie Mae retain profits, Tim Mayopoulos, its chief executive, told the Financial Times on Friday that its capital buffer, which has dwindled from $30 billion before the crisis to $1.2 billion today, was on track to disappear by January 2018.
At that point it would be unable to weather quarterly losses and would need to draw on Treasury funds to avoid being placed into receivership.
So far investors who own Fannie Mae's mortgage-backed securities have not been spooked, Mr. Mayopoulos said, but he added: "We are a major source of liquidity to the mortgage markets and it would be better to avoid testing the market as to what the breaking point is well in advance of us getting to that point."
His comments came the day after Mel Watt, Fannie Mae's top regulator, thrust the issue into the spotlight.
Addressing both Fannie Mae and its counterpart Freddie Mac, Mr Watt, director of the Federal Housing Finance Agency, said: "The most serious risk and the one that has the most potential for escalating in the future is the enterprises' lack of capital."
"If investor confidence in enterprise securities went down and liquidity declined as a result, this could have real ramifications on the availability and cost of credit for borrowers," he said in a speech.
Fannie Mae's inability to retain profits, which must instead be swept into government coffers, also makes it almost impossible for the institution to exit federal control.
Mr. Mayopoulos said a range of options for solving the capital problem were available, such as allowing Fannie Mae to retain earnings, changing the terms on what gets Treasury support via preferred stock purchases, and taking it out of conservatorship so it could be recapitalized in another way.
A home mortgage sign on a Wells Fargo branch in Brooklyn, New York.
Refinancing pushes mortgage applications 8.2% higher
Terry Haines, managing director at Evercore ISI, an investment research house, said Mr. Watt's speech "may hint at a frustration with administration inaction on housing finance reform".
Despite an improving labor market, Mr. Haines said the housing market was being held back by the absence of a new regime for housing finance, a "free-for-all" of mortgage litigation, and regulatory constraints on credit supply.
A Treasury spokesman said: "Taxpayers injected $188 billion into [Fannie Mae and Freddie Mac] to stabilize the housing market and lay the groundwork for our economic recovery. Director Watt's remarks underscore the administration's consistent position regarding [their] conservatorship: the best long-term solution is comprehensive housing finance reform. Until then, Fannie Mae and Freddie Mac will continue to rely on the $258 billion of taxpayer provided support to sustain market confidence."
Tennessee Becomes 5th State to Pass Resolution Calling For Article V Convention
link: http://cnsnews.com/news/article/barbara-hollingsworth/tennessee-becomes-5th-state-pass-resolution-calling-article-v
By Barbara Hollingsworth | February 10, 2016 | 2:02 PM EST
Tennessee state capitol building in Nashville. (Photo: AP/WKRN)
(CNSNews.com) – Tennessee has become the fifth state in the nation – and the first in 2016 - to pass a resolution calling for an Article V Convention of the States to propose amendments to the U.S. Constitution.
On February 4, the Tennessee House of Representatives voted 59-31 to approve Senate Joint Resolution 0067 calling for an Article V convention that would be “limited to proposing amendments to the United States Constitution that impose fiscal restraints on the federal government, limit the power and jurisdiction of the federal government, and limit the terms of office for its officials and for members of Congress.”
NOT GOOD...
Warren Resources may file for bankruptcy if debt talks fail
Reuters
Feb 9 (Reuters) - Oil and gas producer Warren Resources Inc warned it would have to seek bankruptcy protection if talks to reach a debt restructuring agreement fails.
Warren, which on Tuesday also cut its 2016 revenue and production forecasts, had deferred a $7.5 million semi-annual interest payment that was due on Feb. 1 to reach a deal with its creditors.
The company has a 30-day grace period for negotiations with noteholders, since deferring interest payment on Feb. 1.
Several oil producers, whose cash flows have been squeezed by a 70 percent fall in oil prices since June 2014, are in talks with creditors to defer payments and improve liquidity.
"These are very difficult times for Warren and its industry peers," Chief Executive James Watt said in a statement, adding that the company needed further concessions from debt holders and vendors to survive a prolonged downturn in oil prices.
Warren, which has tapped Jefferies LLC to help with a potential restructuring, forecast total revenue to fall 31.7 percent to $61.1 million in 2016, from a year earlier.
The company said it expects oil production to fall about 18 percent and natural gas production to decline about 20 percent this year.
Warren's first lien creditors held $235 million in principal, second lien creditors $51 million and investors $167 million in unsecured senior notes, as of Dec. 31.
The company had $26.8 million in cash at the end of 2015, Warren said on Tuesday.
May be some trouble brewing
6:31 am Warren Resources elects not to make the ~$7.5 mln semi-annual interest payment due February 1 on its outstanding $167.3 mln aggregate principal amount of 9.00% Senior Notes due 2022 (WRES) :
Failure to pay this interest amount on February 1 is not immediately an event of default under the indenture governing the Notes, but would become an event of default if the payment is not made within 30 days of such date. Upon an event of default under the indenture governing the Notes, the trustee or holders of not less than 25% in aggregate principal amount of the Notes then outstanding may declare the principal amount of the Notes plus accrued and unpaid interest to be due and payable. A failure to pay interest on the Notes within the 30-day grace period would also result in events of default under Warren's first lien credit facility and second lien credit facility, which would entitle the administrative agents and lead lenders thereunder to declare all obligations thereunder to be immediately due and payable.
Warren has engaged Jefferies LLC as financial adviser in connection with a potential restructuring of its balance sheet, and has initiated restructuring discussions with representatives of the creditors under its first and second lien credit facilities.
Keep in mind that Executive Privilege is just that...a "PRIVILEGE"...there is no law, nor is it the Constitution that a sitting President can claim Executive Privilege. Also, a judge presiding over a case has the power to DENY Executive Privilege.
The Fifth Amendment says that “No person. . . shall be compelled in
any criminal case to be a witness against himself.”
“A party is privileged from producing the evidence, but not from
its production.” Justice Holmes, Johnson v. United States, 228 U.S. 457 (1913).
The right against self-incrimination is a "personal" privilege that does not extend to a corporation or its records. Bellis v. United States, 417 U.S. 85, 89-91 (1974)
open the books...compare the notes...see who sings first to keep out of jail.
He is making the big bucks now
PERFORMANCE PAY
:
Inmates assigned to institutional jobs will receive performance pay based on the job description, pay grade, individual performance, and amount of hours worked. The supervisor for each detail will determine the amount of pay you will receive. Your pay will also be affected by lack of participation in the Financial Responsibility Program, Drug Education or the GED program.
Inmate Performance Pay Scale
Grade 1
$0.40 per hour
Grade 2
$0.29 per hour
Grade 3
$0.17 per hour
Grade 4
$0.12 per hour
Maintenance
pay
$5.25 per month
http://www.bop.gov/locations/institutions/okl/OKL_cadre_aohandbook.pdf
what in the world happened to this stock...it's gone right down to the basement of the outhouse
Current as of January 18, 2016
Bailout Recipients
Fannie Mae
RECEIVED FROM TAXPAYERS - $116,149,000,000.00 BILLION DOLLARS
TOTAL REPAID TO DATE - $144,712,000,000.00 BILLION DOLLARS
Profit to the Taxpayer - 24.5916 % - $28,563,000,000 BILLION DOLLARS
Fannie Mae has paid $16,948,100,000 BILLION dollars OVER the 10% dividend to date.
*************
Freddie Mac $25,129,000,000
RECEIVED FROM TAXPAYERS - $71,336,000,000.00 BILLION DOLLARS
TOTAL REPAID TO DATE - $96,465,000,000.00 BILLION DOLLARS
Profit to the Taxpayer - 35.2263 % - $25,129,000,000 BILLION DOLLARS
Freddie Mac has paid $17,995,400,000 BILLION dollars OVER the 10% dividend to date
This equates to a total paid back to date of $241,177,000,000 BILLION dollars.
Initial bailout total for both GSE's - $187,485,000,000.00 BILLION dollars.
Amount repaid to date for both GSE's - $241,177,000,000 BILLION dollars.
Profit to the "taxpayer" from the GSE's - $53,692,000,000.00 BILLION dollars
Total paid over the initial 10% bailout dividend - $34,943,500,000.00 BILLION dollars
This equates to a total paid to date of 28.6380 % profit to the "taxpayers"
**************
AIG
RECEIVED FROM TAXPAYERS - $67,835,000,000.00 BILLION DOLLARS
TOTAL REPAID TO DATE - $72,860,967,492.00 BILLION DOLLARS
Profit to Taxpayer - 07.40911 % - 5.025 BILLION DOLLARS
*************
GM
RECEIVED FROM TAXPAYERS - $50,744,648,329.00 BILLION DOLLARS
TOTAL REPAID TO DATE - $39,334,175,747.00 BILLION DOLLARS
GM Still OWES the Taxpayers $11.41 BILLION DOLLARS.
I will certainly check it out...maybe it would be a nice addition to my holdings when oil rebounds.
I think they will move back up......I picked up a nice chunk at .12...I will get more if it hangs in this area over the next week or so.
nice close...higher than I expected.
I sure hope so...I do see the possibility of day traders and flippers in this right now banking a quick profit...I suspect it will stabilize around 20 cents for a bit and hopefully move towards that 60 cents in the next month or so. I've been in and out of this for almost 10 years now...made some really good money back a few years ago, and hoping history will repeat as I picked up a good chunk at .14 last week.
Lookin good...hopefully we are on the way back above two bits and higher. Lets hope this levels off and maintains a new base of at least 20 cents for a while.
Check form 4's....there are many sites that will provide this info. I don't remember what the filing time is...possibly within 10 days of purchase. I typically check quotemedia.com as it's free and easy.
http://quotemedia.com/finance/quote/?qm_symbol=WRES
I find nothing about a div drop...link please
Big banks may have Fannie, Freddie in their sights, report says
Published: Dec 7, 2015 11:03 a.m. ET
http://www.marketwatch.com/story/big-banks-may-have-fannie-freddie-in-their-sights-report-says-2015-12-07?siteid=yhoof2&ref=yfp
Too-big-to-fail banks are leading a charge to replace the mortgage giants
By
Andrea
Riquier
Bloomberg
WASHINGTON (MarketWatch) — It’s a housing industry chestnut: Fannie Mae and Freddie Mac will languish forever in “conservatorship,” the nebulous state they entered as the housing bubble burst in 2008, because no one in Washington has the gumption to make hard policy decisions to change the mortgage giants.
Not so fast, argues a recent investigation by the New York Times.
Big banks are trying to replace Fannie FNMA, +0.43% and Freddie FMCC, -0.24% with entities that look similar, but are made up by the same too-big-to-fail banks that helped contribute to the financial crisis.
That’s problematic for several reasons: it could limit credit availability and drive up the cost of home loans, especially if smaller lenders can’t compete. It would take away the market smoothing function that government-sponsored entities offer if private capital markets get spooked in a downturn. And it could also mean taxpayers are once again on the hook for bailing out big banks in another downturn.
The Times documents what it calls a “revolving door between Washington and Wall Street,” centered on several influential industry specialists who’ve moved between industry groups, banks, and government.
It’s worth noting that it’s not just big banks that want to get Fannie and Freddie out of limbo. Affordable-housing advocates have also pressed for action to ensure the GSEs will have a permanent, healthier role in the market.
Still, there’s a lot of inertia blocking any substantial changes to Fannie and Freddie. Community banks have a loud voice on Capitol Hill, and some lawmakers want to be sure low-income borrowers have options that are best offered by government-sponsored entities.
Quite possible...I watched an interview with Boone Pickens a few days ago...he says he expects oil to move back up close to the $60 - $70 range within the next 6 months...hope he is right. I would think if that happens, this stock should move back towards the .60 - .70 cent range.....if they don't go belly up first...lol