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I think the daily volume peak was 30M to 50M, could be similar post Collins, whenever they decide to issue an opinion and the news hits all the main stream outlets.
Could be "yuge", as the SCOTUS has the power to end the NET WORTH SWIPE ONCE AND FOR ALL!
It's all about the remedy, Skeptic, all bout da remedy! Pretty sure 5th Circuit already ruled that a conservator can't give away its wards profits! Bought a wee bit more yesterday and today, just for fun! But we both will be "winners" if the SCOTUS rules favorably for the Collins plaintiffs! How low will the SP go in the event SCOTUS rules that only FHFA can sue itself and the shareholders are SOL?
Bought a wee bit more yesterday and today, just for fun, though with the lofty administrative law issues in Collins, we may not get a decision for awhile! Interesting MC appointed 2 new BOD members and renewed the term of a 3rd, the day before he gets canned by SCOTUS?
I think that's right, maybe you should change your name to DO UNDERSTAND!
At least he gets it and understands that the tbtf banks had most of the culpability for the GFC, with their race to the bottom in Subprime MBS issuances! They both sound like politically connected and sharp guys!
Simon Johnson editorial in W. Post, October 2nd, 2015: "Fannie Mae and Freddie Mac haunt our financial system and threaten our economy. Or do they?
Bethany McLean has written an insightful guide to one of the fascinating true-financial-crime cases of our time. Writing with the easy, incisive style that has brought her great success ("The Smartest Guys in the Room" and "All the Devils are Here"), McLean dispassionately explodes three myths.
The first myth is that these government-sponsored enterprises caused the financial crisis of 2008. You can see to whom this narrative would appeal -- if Fannie Mae and Freddie Mac made them do it, powerful people in the private sector are essentially blameless. Repeal the Dodd-Frank financial reform legislation, lift the restrictions imposed on big banks, and you can have the boom back, according to members of the House Financial Services Committee.
But as McLean shows, Fannie and Freddie did not lead the push into subprime mortgages. They were not the innovators of reckless derivatives. And it was not their losses that threatened to bring down the financial system.
The second myth is that Fannie Mae and Freddie Mac have been forces only for good. Fannie Mae was founded in the 1930s to support the U.S. housing market by guaranteeing home loans, and this form of government intervention is a major reason we have 30-year fixed-rate mortgages that we can prepay whenever we want (for example, when interest rates fall). But Fannie Mae became a major force in Washington, hiring politicians, congressional staffers and anyone else who mattered -- Democrats and Republicans alike. It never lost a political fight.
And, as profit-seeking and publicly held companies, what Fannie and Freddie wanted from the 1970s was what everyone else in big finance wanted: permission to take on big risks, backed by very little loss-absorbing equity capital. The executives were very highly paid, and creditors received a great deal of protection. The gains for homeowners and for society are debatable. And the taxpayer ended up on the hook.
The third myth is that government guarantees are free or easy. Henry M. Paulson Jr., then treasury secretary, famously told Congress on July 15, 2008, "If you've got a bazooka, and people know it, you may not have to take it out." He was arguing that giving the government greater ability to fully back Fannie and Freddie could make such action unnecessary. Unfortunately, Paulson was proved wrong when, in early September 2008, he placed Fannie and Freddie into conservatorship, preventing the firms from defaulting on their obligations.
McLean is right on all counts. Unwinding Paulson's bazooka effect is a huge, unresolved public policy question, without easy answers. Disrupting the housing market is never wise. Yet muddling along with the current arrangement is asking for trouble; refloating the existing conservatorship structures would be foolish; and letting "too big to fail" banks take over the business and further increase their implicit government guarantee would be insane.
"It was created by our Democratic colleagues through the Dodd-Frank Act as arguably the most unaccountable agency in the history of the federal government," said Ranking Member Pat Toomey of Pennsylvania during opening remarks. "It's an agency with a single director who until recently even the president of the United States Could not remove."
That changed after the Supreme Court found it unconstitutional in a 5-4 decision in 2020. Toomey argued it is still not accountable to Congress through the appropriations process.
Meanwhile, Democrats took issue with the leadership of the agency over the past four years under the Trump administration. Senator Elizabeth Warren accused appointees of acting like they worked for big banks and gutting enforcement powers.
Chopra indicated there would be increased enforcement under the new administration.
https://www.cbsnews.com/amp/news/cfpb-nominee-rohit-chopra-sees-looming-problems-for-homeowners/
"or (3) the date on which his successor is elected at an annual meeting of stockholders in accordance with the Bylaws."
I think MC is doing more kowtowing for JB, these appointments would likely get a positive response from his new boss...
https://chrisbrummer.medium.com/sec-keynote-address-february-17-2021-12d8a56a7009
https://www.theatlantic.com/magazine/archive/2009/05/the-quiet-coup/307364/
Interesting, "Mr. Brummer served as a member of the Biden-Harris Presidential Transition Team from October 2020 to January 2021, a member of the Financial Innovation Standing Committee of the European Securities and Markets Authority (ESMA) Consultative Working Group from February 2019 to December 2020, a member of Nasdaq delisting panels from 2010 to 2016, a senior fellow for the Milken Institute's Center for Financial Markets from 2011 to 2017, and a member of FINRA's National Adjudicatory Council from 2013 to 2015."
I hate to tell you this but the 5th Circuit EnBanc ruling held that ONLY PROSPECTIVE RELIEF WAS THE ONLY AVAILABLE REMEDY FOR AN UNCONSTITUTIONALLY INSULATED FEDERAL AGENCY HEAD! COMPRENDE?
Could they have taken Seila Law and Collins to strengthen the Unitary Executive Principle and allow Plaintiffs like Seila Law and Collins a meaningful retrospective remedy? Interested to hear MORE THAN A ONE OR TWO liner....
Okay, try to elaborate on your answers, so we can get some insight into your legal theories and intelligently talk about it.
Love his raspy voice though, "We need to do EVERYTHING WE CAN TO MAKE POOR PEOPLE MORE DEPENDENT ON THE GOVERNMENT SO I CAN GET REELECTED!"
I hear you! And it COULD be a long slog from here, BUT the Collins Plaintiffs, Bryndon, and so many other lawsuits are working their way through the courts and the SCOTUS knows they can dynamite the log jam throughout the Federal Courts by either ruling favorably or unfavorably in Collins (no more appeals from here for EITHER party!). Let's assume they rule unfavorably for Collins, then the gses will continue retaining earnings and building capital and the Congress and/or Administration will have to decide what if anything to do with the gses. There does seem to be a general consensus from NAR, MBA, NHBA, and many, many other important constituents that getting them out of the 12.5 year "Conservatorship" is the right thing to do and it is the very thing that HERA legislated and tasked the Executive branch to do!
So don't get your panties in a twist as: (1) there really is no viable alternative to the gses and (2) more and more people are realizing leveraging $6.7T in MBS with PRIVATE CAPITAL IN A 1ST LOSS POSITION IS A GOOD THING!
Sherrod is a big Beatles fan, has he heard this song: "Let me tell you how it will be
There's one for you, nineteen for me
'Cause I'm the taxman
Yeah, I'm the taxman
Should five per cent appear too small?
Be thankful I don't take it all
'Cause I'm the taxman
Yeah, I'm the taxman
I'll tax the street
(If you try to sit, sit)
I'll tax your seat
(If you get too cold, cold)
I'll tax the heat
(If you take a walk, walk)
I'll tax your feet
Taxman!
'Cause I'm the taxman
Yeah, I'm the taxman
Don't ask me what I want it for
(Ha, ha, Mr. Wilson)
If you don't want to pay some more
(Ha, ha, Mr. Heath)
'Cause I'm the taxman
Yeah, I'm the taxman
Now my advice for those who die
(Taxman!)
Declare the pennies on your eyes
(Taxman!)
'Cause I'm the taxman
Yeah, I'm the taxman (yeah, I'm the taxman)
And you're working for no one but me (taxman!)
50/50 that's better than the 98% and NADA you quoted the other day, what gives, are getting more optimistic and why?
Not sure Sherrod can get too much done with gses as they need to be rehabilitated (as HERA originally envisioned) plus his party only has a razor thin majority. With the pandemic and historical dearth of low to moderate income housing, renters behind on their rent by $75B, and other economic dislocations, I think the immediate focus in the SBC will be Appropriations for back rent/mortgage assistance and perhaps both parties could agree on more Appropriations for LIHTC'S and perhaps a push for inclusionary zoning incentives/penalities. Since the gses performed admirably in March 2020 (this is EXACTLY WHY the gses were created in 1938) they probably won't be on the SBC'S radar and UST will likely call the shots on any changes to the PSPA and Yellen has her hands full with many other issues.
Sure the US Congress can pass any legislation they want, it's been that way since they were created. Doesn't seem like an immediate threat given they've had 12.5 years to legislate the "fix" for the last remaining unresolved business from the great financial crisis (although the SCOTUS may fix this as soon as Thursday morning at 10am). And yes, FHFA can set rules like an over burdening unpopular capital rule, which doesn't seem to be wildly popular with the NAR, MBA, and NHLBA.
But while the SCOTUS and the courts don't have their own army to enforce their rulings on individuals, federal, and state actors, they can issue contempt of court hearings, bench warrants, etc. to make sure their rulings are followed through. And while judicial decisions are rarely NOT carried out, almost all of them are. So when someone says that since the SCOTUS doesn't have its own army to enforce its decisions and rulings and therefore in Collins their ruling won't be followed, just seems a little far fetched to me!
But follow your gut, just don't be surprised if very few people believe it!
Heard our "good friend", Sherod Brown yesterday, talk about the next topic that the SBC will work on, "Housing". Don't know what he has in mind, but I think it's pretty clear that the $308B shake down of the gses profits into the UST coffers, leaves nothing left for them to take! If he's smart he will try to increase funding for LIHTC, the $75B in back rent owed, and other initiatives. No matter WHO is the head of FHFA, they will not want to do things to mess with Americans housing needs, especially when inventory is at historical lows.
Did a little birdie tell you that or is that your "gut instinct"? I'm sure you could research it and find out if a federal agency head has ever disobeyed a court order, but I think you are trying to say, that somehow the SCOTUS will deny us a meaningful remedy, is that what you mean? Then how do you envision that happening, or your just not sure, but since we have been denied by the courts for all these years, that is your gut instinct?
Look at California, they have all these left leaning ideas, but when it comes to "inclusionary zoning", they say, NOT IN MY BACKYARD! Would that be the very definition of a hypocrite?
Maybe they should pass a law in California saying inclusionary zoning MUST be done 1st at property ADJACENT to the people that voted for it AND MUST include no fewer than 5 story structures for the homeless! That would be interesting.
Okay, so you are maintaining that a federal agency head will be able to ignore a court order! Can you sight examples of that occuring in the past and "Show Me", just what the hell you are talking about?
You will have my votes as well! Thank you for your "David" role in this David v Goliath matchup! In many ways your battle against this Nationalization of two private corporations is epic!
HeeHee! The JPS and other perpetual pessimists are running low on bizarre theories! 85 days since oral arguments is this Thursday for Collins, pull the trigger on a little more dry powder or wait?
Are you postulating that the head of either the FHFA or UST will simply refuse to impose the will of the independent Judicial Branch, one of the tripods of power under our democracy or do you maintain that the 3rd branch of gubmint is simply part of a bigger conspiracy, that recognizes, "Who butters its bread!" and therefore will never rule adversely against their paymasters?
Pretty sure the $1B to the Capital Magnate Fund and the other affordable housing money was already set in stone under HERA, so MC will just say, "I'm following the law!". Be careful which lever you push when you vote!
BULLDOZER! BULLDOZER! BULLDOZER!
I don't know, didn't the 5th Circuit EnBanc court ruling confirm that a "CONSERVATOR" is not allowed to perpetually take its wards assets, or is your perpetually dim view of da gubmint, given years and years of litigation going nowhere, clouding your judgement?
Given da gubmints abuse of the shareholders for the last 12.5 years, wouldn't be surprised if private capital refuses to rush in...
MC kowtowing to his new boss: "FHFA Authorizes More than $1 Billion for Affordable Housing Funds
Washington, D.C. – FHFA Director Mark Calabria announced today that he has authorized the disbursement of $1.09 billion for Fannie Mae and Freddie Mac's (the Enterprises) affordable housing allocations for 2020. This is the largest amount ever disbursed and more than double what was provided last year. Of the Enterprises' provided funds, $711 million will go to the U.S. Department of Housing and Urban Development (HUD) for the Housing Trust Fund, an increase from the $326.4 million disbursed for 2019. The sum of $383 million will go to the Department of the Treasury (Treasury) for the Capital Magnet Fund, an increase from the $175.8 million disbursed for 2019.
“The more than $1 billion disbursed today will help produce and preserve affordable housing throughout the country. The record increase in house prices last year exacerbated the affordable housing shortage. To help increase the supply of affordable housing in our communities, FHFA remains steadfast in support of the Housing Trust Fund and Capital Magnet Fund," said Director Mark Calabria.
The Housing Trust Fund, overseen by HUD, allocates money annually to states and state-designated entities for the production or preservation of affordable housing through the acquisition, new construction, reconstruction, and/or rehabilitation of non-luxury housing.
The Capital Magnet Fund, overseen by Treasury, competitively awards money to finance affordable housing activities, as well as related economic development activities and community service facilities."
The NAR, MBA, and NHBA have at least come to the realization that the current status quo (i.e., perpetual conservatorship) is unsustainable and that having private capital in a 1st Loss Position should be the new status quo.
Will Zillows new business idea take off? https://www.zillow.com/offers/
Great post, thanks Guido! But for Bryndon and the other litigants shinning a bright light on the Feds reprehensible behavior during the 12.5 year "conservatorship", the Feds would have noone to stop them!
The Google v Oracle case is apparently a "yuge" case for software developers and oral arguments were heard 60 days prior to Collins.
https://www.supremecourt.gov/search.aspx?filename=/docket/docketfiles/html/public/18-956.html
Fulton v philadelphia, a case involving adoption and the intersection of religious and gay rights, was heard about 30 days prior to Collins.
https://www.supremecourt.gov/search.aspx?filename=/docket/docketfiles/html/public/19-123.html
The ACA case and Collins BOTH deal with the Severability Doctrine (sure it's the Judicial Branchs job to REWRITE acts of Congress, right!) and may come out around the same time, so good luck to all!
Thursday is now an opinion day for the Supreme Court. Affordable Care Act, Philadelphia foster care, Fannie-Freddie and Google-Oracle cases all outstanding. pic.twitter.com/OW2eBjYynT
— Greg Stohr (@GregStohr) February 26, 2021