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Our maestro.
The funds don't need to be physically deposited in an account all these years. If they've been spent, they will have to be replenished. That's the Federal Budget and it's not a problem of the shareholders and holders of JPS.
He proposed a NWS less $20 billion. That's a NWS and the stocks will continue to be penalized in the stock market.
Therefore, the Letter Agreement is another fraud. They must release the enterprises from Conservatorship without any condition and start trading at their fair value with the dividend suspended.
Yes, the warrant was a collateral for the repayment of the SPS and it should have been cancelled when the SPS were paid off in 2013 for FMCC and 2014 for FNMA.
The simple answer is due to the level of Capital that FnF have accumulated in a escrow account. Although for the same reason it could have been announced in 2013 when the SPS were paid off, as FnF could have been released from Conservatorship even Significantly Undercapitalized and carry out the same plan that they are doing since then of retaining capital, but openly.
This is why this case is stock price manipulation and looting (CRT, loan sale, REO sale for women-owned businesses, etc)
Yes. A dividend depletes Capital, so the companies instead of distributing it to the shareholders (Capital Distribution), they retain it in an account (Core Capital).
But investing in noncumulative Preferred Stocks is the worst investment when the companies are undercapitalized. Because the dividend is suspended and they don't get any benefit when FnF retain it. It only benefits the common stocks.
This is why the holders of JPS are the worker bees that feed the common shareholders.
I've been posting the same ideas since 2011.
The questions as to why a resolution now and why it didn't happen before, will never be answered.
They are looting the enterprises in the meantime and also they are playing dumb to keep the stolen money and do a repetition of the 1968 privatization of FNMA, when there was a NYSE listing and the banks that held a type of JPS ended up holding common stock, but there weren't other common shareholders at the time. It followed up with two stock offerings.
Today, there are common shareholders already, we are already trading and we have plenty of capital in a escrow account at the Treasury Dpt.
The Treasury is an Equity holder like you and me. Then all dividends are restricted.
There are exceptions in the law:
-to reduce the obligations in relation to shares or ownership interest: the SPS are obligations
-for recapitalization.
This is why The Secret Plan is based on the assumption that the excess of the SPS amount ($106.5 billion) will be reimbursed for their recapitalization.
The SPS are cumulative, but the dividend will be paid once adequately capitalized. And it will be less than 1%, as the govt took a warrant as collateral and that reduces drastically the rate on the obligations.
There are 2 exceptions in HERA and 4 exceptions in the CFR, that allow the dividend payments when they are undercapitalized.
That's The Secret Plan. Dividend to reduce the obligations and later, for recapitalization.
The same plan has been carried out for the FHLBanks approved by the FHFA, although not through dividend payments to a third party. Simply it was retained earnings approved in August 2011.
Yes. It's statutory. HERA says that the dividends (Capital distributions) are restricted if after making the payment, the enterprises are undercapitalized. Which bars all dividend payments while in Conservatorship.
Then, the dividend was impeccably suspended because it's up to a decision of the Board of Directors (or Conservator) whether the dividends are declared or not. It's written in the prospectus of the Junior Preferred Stocks. So, it's both a statutory & business decision.
The theme that the Treasury has never reimbursed the dividends received has no grounds for future actions.
THERE ARE NO SETTLEMENT TALKS. THE DIVIDEND WAS IMPECCABLY SUSPENDED.
The govt will reimburse the stolen money.
In any case, you wouldn't get a single dollar from settlement talks because you are not litigant and any new claim is time-barred.
Unless you challenge the NWS in the 4th amendment, December 2017.
The evidence of the recapitalization account is written in the laws and regulations.
In the 12 CFR 1237.12 it states very clear in the exception 1 that allows to pay dividends while in Conservatorship: "to meet their Risk-Based Capital requirements."
Even the hippies must uphold the law.
Calabria's plan is a continuation of the scam. What we want is the release from Conservatorship.
This is outright stock price manipulation.
But you seem to forget that the dividends are restricted for undercapitalized enterprises. And the exception that allows to pay dividends in HERA says that in the case that it reduces the obligations in relation with the shares or ownership interest. So, it talks about repayment of SPS.
So, in this case, the dividends to Treasury are being used to repay the SPS's stated value or par value, although the liquidation preference of the SPS (the figure that is only made public) remains the same.
So, there's double accounting with the SPS.
Yes, it's that. But when have you seen the security called obligation (either a bond, a MBS, a MTN, a Treasury security, etc) increasing the value by common agreement of the parties?
What any company does is to issue new obligations.
When the liquidation value is increased, but the par-value doesn't increase, something fishy is going on.
I have added one more tweet in the thread to explain it.
They try to eliminate the effect of reduction in the Core Capital, when FnF issue new SPS for free.
But even in that case, I don't think that they will achieve it. It's more debt without receiving cash, and there must be a write-down somewhere. In this case, a reduction in the Core Capital.
They fell in the trap of their own accounting tricks.
We're expecting the announcement of release from Conservatorship and reimbursement of the stolen money. The theme of the 5th amendment to the Purchase Agreement, now called Letter Agreement no one knows why, is only spread by the mobsters: the Jewish gang, the Italians, the hedge-funds, the lawmakers, etc
CONFIRMED: THE FHFA GOES UNDERGROUND.
This is what the FHFA requested to the 5th Circuit Court before the en-banc decision:
1-Uphold the constitutionality of HERA's for-cause removal provision
2-Dismiss all claims challenging the NWS.
The Court slammed the FHFA in both issues.
Now the FHFA ignores it and goes underground.
CONFIRMED: @FHFA CHOOSES TO GO UNDERGROUND
— Conservatives against Trump (@CarlosVignote) September 25, 2019
FHFA tells the 8th Ct that the 5th Ct en-banc's ruling declaring FHFA unconstitutional was flawed and instead,it should focus on the dissent opinion:https://t.co/rOJ0RKAMS5
Pelosi harassing @POTUS at the same time.#Fanniegate @WhiteHouse https://t.co/7SSjDTrLVy
It's true.There's no need of funding commitment once FnF are fully capitalized.
In other words, the US Treasury backstop only comes to offset the lack of Capital in FnF.
With the $151 billion owed by the Treasury, the Charter can be revoked.
The WSJ's article and Ackerman's tweet were very clear and both correct.
Buying "additional shares" of SPS increases the variable liquidation preference of the SPS.
The one that tries to mislead, as always is the weirdo Rosner, making a distinction between the Liquidation Preference and the SPS.
He can't be more toxic to the Shareholders and holders of JPS. Shame.
Don't be bemused.Always the envious that can't write an analysis attempt to discredit others' analysis or insult them. Like YanksGhost or Potty.
The theme of bombshells and other over-kill words, are a literary technic seen in some reporters to draw the attention and increase the impact of the comment on the readers.
I also remind that we are at war and the holders of JPS are enemies as well, as they want to harm the shareholders' interests. This is why I'm being attacked too. Too many holders of JPS in this board. LOSERS!
Why do you spend the day insulting our lighthouse,Carlos?
The only one in the world that posts daily in-depth financial analysis.
For instance, today's tweet is a bombshell that has exposed Calabria's and Mnuchin's intentions of simply stock price manipulation. It will derail their plans and prompt the release from Conservatorship.
Are you envious?
We're partying in Yahoo's with the rumor of RELEASE.
BOMBSHELL! FHFA's DIRECTOR CAUGHT IN PLAN TO MANIPULATE THE STOCK PRICE.
WSJ: Calabria said more SPS in exchange for retaining $20b of Capital. If FnF issue $17b SPS for free, it reduces the Core Capital in the same amount.
Then, the Capital amount would always be stuck at $3b like today. It proves that all FHFA's and Treasury's actions aim at preventing the stocks from trading at their fair value. GAME OVER. $240ps is the fair value. $258ps for FMCC.
STOCK PRICE MANIPULATION TO PREVENT $FNMA FROM TRADING AT FAIR VALUE
— Conservatives against Trump (@CarlosVignote) September 24, 2019
WSJ:Calabria said more SPS in exchange for retaining $20b of Capital. If FnF issue $17b SPS for free,it reduces the Core Capital in the same amount.
Capital always stuck at $3b like today.#Fanniegate @USTreasury pic.twitter.com/sUNmApAzGt
The shareholders and holders of JPS won't accept any new amendment to an illegal Purchase Agreement, but an ultimate resolution and the surrender of their weapons. This is a war.
FAKE WSJ's INTERVIEW WITH CALABRIA YESTERDAY
The important things:
-FnF retain $20b of Capital
-SPS increased due to dividend waived
were not written within quotation marks. Thus, the odds are that it won't happen and Calabria just let the WSJ write a phony interview that didn't exist and, at the same time, granting him protection against crippling liabilities if he says that something will occur and later, it doesn't happen.
Notice that the interview took place when Calabria was "touring a senior center financed in part by the FHLB of Indianapolis".
A regulator touring a senior center? Give me a break!
BOTTOM LINE
It will occur the opposite. A simple resolution of the Conservatorship and payment of punitive and moral damages to FnF and the Equity holders, respectively.
PLAINTIFFS IN WASHINGTON FEDERAL CASE ACCUSED OF MISREPRESENTING THE LAW.
I knew it! People that allow the Government to keep their prey and only ask for a compensation for the holders of stocks as of September 8th, 2008, can only be motivated because they are corrupt and the lawsuit is rigged in collusion with the Government and its terrorist financial arm (hedge-funds)
They challenge the imposition of the Conservatorship, but they ommited in the lawsuit that the reason to justify it more plausible (G) LOSSES, also included FUTURE LOSSES, which is obviously that the losses occurred during 2008-2009.
Losses based on flawed forecasts about future losses, no accounting fraud existed.
But we will pick the part of the lawsuit that challenges the Agreements, both the Purchase Agreement and the Warrant.
They are the useful idiots. Thank you!
PLAINTIFFS IN WASH.FEDERAL CASE ACCUSED OF MISREPRESENTING THE LAW
— Conservatives against Trump (@CarlosVignote) September 22, 2019
I signaled there's only 1 reason @FHFA can pick to justify the Conservatorship:(G)LOSSES:about FUTURE losses.
But Plaintiffs deliberately skipped this part.Then,legal although unethical.#Fanniegate @TheJusticeDept https://t.co/gpVIr7F8Sz
Actually it was the worst conversation ever. As rebuffed by me, Plaintiffs can't pick the remedy they want. If any, the Treasury must refund all the excess of dividend paid over the SPS, as dividends are restricted for undercapitalized enterprises.
$106.5 billion due.
The Conservatorship was never needed, but it was justified based on the companies' assessments about future losses. So, it was legal, although based on flawed forecasts.
If someone wonders, flawed forecasts about expected losses are legal, we can only blame them of being deadly wrong and manufactured losses. Unethical behaviour. Like the DTA valuation allowance in 2008.
The FHFA was declared unconstitutional, it wasn't declared unconstitutional only the for-cause removal provision and that's it, as the usual conspirators holders of JPS point out in this board.
If a provision that affects the organizational structure of an institution is declared unconstitutional, it makes the institution unconstitutional.
WANNA PLAY WITH THE WORDS?
By the way, the single-headed structure also makes the FHFA unconstitutional, although it wasn't mentioned in the en-banc flawed ruling. It's a theme challenged in the CFPB case, that has the same structure as FHFA. So, it will affect the FHFA as well.
ANALYSIS:1954-1968 precedent in the Treasury's purchases of SPS, the privatization of FNMA in 1968 and the current Conservatorship.
Someone wanted to replicate the privatization of FNMA in 1968, today. It's different because at the time FNMA was privately held (not listed in the NYSE) and it was a misunderstanding about the difference of a Preferred Stock and a Common Stock.
The Govt at the time, thought that a Preferred stock was a Common Stock with the stamp of "PREFERRED" because the holder is the Govt. It could have been stamped with "FIRST CLASS" label to delight more the Govt.
Remember that in other post I explained that back then, the SPS were Capital (unlike today) and carried a low rate (like the Charter today but the Govt ignored).
IT AUTOMATICALLY CLOSES FANNIEGATE CASE DOWN. THE WAR IS OVER.
Pre-1954 Capitalization:@USTreasury's $11mll wiped out after Korean war
— Conservatives against Trump (@CarlosVignote) September 21, 2019
1954-1975 Common Stock ownership requirement to sellers/servicers of mortgages
1954-1968 UST's purchases of SPS
Nonvoting stock
1968 PRIVATIZATION: voting right vested in the Common + SPS redeemed.#Fanniegate pic.twitter.com/ae4lwVAqWQ
Nothing makes sense, YanksGhost. A Plaintiff can't decide what's the amount of relief after the judge declares the NWS illegal.
You point out that it's only $30 billion what the Treasury will reimburse to the enterprises, when it owes $106.5 billion.
A 10% dividend is a shark loan. I posted the precedent in the purchases of SPS by the Treasury during 1954 and 1968 and it was a yield similar to Treasurys, which is the yield currently set forth in the charter but the Treasury and U.S. Congress ignored.
The Capital required for a DTA valuation allowance is one of several items that comprise the capital requirement. So, I don't know why you are happy with $30b complying the DTA item, when the total requirement was $180 billion under the FHFA's proposed rule.
Rumor:THE FHFA/TREASURY WILL SIGN AN AGREEMENT IN DUBAI.
The objective is to be outside the U.S. jurisdiction because the FHFA was declared unconstitutional by a Court on July 2018.
This way they are exempt from crippling liabilities. Then, the FHFA will go underground and it will no longer hold media briefings or appear on TV, since in the U.S. it's not considered a legal institution.
The FHFA will be headquartered in Dubai, Tel Aviv or Moscow, according to people with knowledge in the matter.
You omit that the FHFA is unconstitutional not only due to the for-cause removal, but also for the single-headed structure, which doesn't make it an independent agency (although omitted by the 5th Circuit Court) and thus, there's no reason for it to have executive power and instead, it must be returned to the executive branch, pursuing the non delegation doctrine and separation of powers.
An acting director can't be removed by the President at will, but it has to appoint a new director.
In the case of a new 5th amendment, it'll be illegal as well. Unless it's signed in Dubai and the FHFA goes underground. In the U.S. it's an outlaw institution.
Actually it's the best tweet ever posted about FnF.
The FHFA was declared unconstitutional on July 2018 by the 5th Circuit Court and it's stunning to see that it's still behaving business as usual.
THE LAW SAYS IT CAN'T BECAUSE IT'S AN OUTLAW INSTITUTION.
Then, a judge must take action prohibiting them to have official deeds, like interviews, media briefings, etc.
If Congress deems that continuing with an outlaw institution is just fine, then the FHFA must go underground or the Police will arrest them every time that they hold an official public act.
This is how the Rule of Law works.
The shareholders in the Washington Federal case,that also hold JPS, denounce both the imposition of the Conservatorship and the usurious Agreements terms (SPSPA and Warrant). Then, the ones that suffered economic injury were the enterprises and any punitive damages will be received by FnF. The Equity holders will get moral damages since the economic injury is redressed with the punitive damages mentioned and a reimbursement of the dividend received by the Treasury in excess of the SPS repayment, as the dividend payments are restricted for undercapitalized enterprises unless they aim at reducing the obligations SPS and recapitalization, according to law.
The only option for the Govt is announcing The Secret Plan, WHICH IS THE ONLY LAWFUL PLAN.
Ignoring the laws doesn't evade you from upholding them. But I've told you the laws in force and you keep playing dumb, but still you have to uphold the law.
The law says that THE DIVIDEND PAYMENTS ARE RESTRICTED FOR UNDERCAPITALIZED ENTERPRISES, unless they are meant for:
-Reduce the obligations SPS
-Recapitalization
Period. $106.5 billion due.
UNCONSTITUTIONAL INSTITUTIONS CAN'T BE NEITHER PLAINTIFFS NOR DEFENDANTS IN COURT
USDC SDNY signaled that an unconstitutional institution "lacks authority to bring cases", regarding the CFPB.
And on Tuesday, the petitioner of a Writ of Certiorari in SCOTUS suggested to the Court that it names an AMICUS CURIAE for the CFPB.
The FHFA has already been declared UNCONSTITUTIONAL by two Courts: the 5th Circuit Court and the en-banc.
Therefore, the FHFA is a zombie agency that can't make any decision whatsoever other than simply unwinding the phony Conservatorship, otherwise every decision will be challenged in Court, creating an odd situation.
Forget any possibility of seeing a fifth amendment to the SPSPA, now called with the fancy name of Letter Agreement, as if the original PA wasn't a letter agreement too.
An institution unconstitutional "lacks authority to bring cases", according to a Court with regard to the CFPB.
Today we'll learn whether Calabria is a civil servant or Moelis' footman.
Huge pressure on Calabria to announce that the FHFA will no longer defend the constitutinality of the Agency.
FHFA's PRESS RELEASE EXPECTED TODAY announcing that it will no longer defend the constitutionality of its structure as a single-headed independent agency, besides the removal for-cause clause. It would come one day after the Trump Administration urged the Supreme Court to hear CFPB case, which is replica to FHFA's case.
Notice that Judge Kavanaugh recently wrote a dissent opinion in favor of a multi-member structure.