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Thanks for responding! There are only 3 branches of government (a 4th if you include FHFA) that can get us out of this wrongful government "conservatorship". MC (and SM) said they want to get us out but so far their actions speak louder than words. The legislature could resolve the "conservatorship", but many legislators want to keep the "conservatorship" going.
The courts will likely have to fix this, but emailing your federal House member and two Senators to let them know that the 12+ year "conservatorship", coupled with the net worth sweep has wiped out you and your families investment and that you are concerned about the nationalization of these previously private corporations by the US Government.
Last December, when the Washington Post ran an editorial with the age old "evil hedge fund guys" getting rich narrative, I added my comments where I could and some of the others here posted as well, as I had asked them to. I just checked and it says 0 comments now! Maybe Jeff Bezos can fix them now that he will have some more time on his hands!
One of the problems with the major news outlets is that their reporters don't have the time to do the deep dive into the story of the gses that is necessary to explain the governments bad acts here.
So,:
(1) Email your federal level reps in Congress and ask them where they stand on the issue of the nationalization of your privately owned shares.
(2) Explain in the comments sections of major news outlets whenever they run a "hit piece"
(3) Be active on Social media
(4) I think the Pacific Legal Fund wrote an Amicus Brief in Collins and these types of foundations and nonprofit advocacy groups may be able to apply some political pressure.
Don't forget, the wheels of Justice (i.e., the Judicial branch) turn slowly sometimes but they usually get it right in the end! Let's hope so here! (BEFORE YOUR HUBBY SAYS, "IT'S ME OR FREDDY, YOUR CHOICE!")
I understand, it's just maddening that these two financial juggernauts (and our investments in them!) have been hamstrung under the governments pretenses that they are doing a "bailout" when in fact they are NATIONALIZING TWO PRIVATE CORPORATIONS! To date, the courts have given us ZERO relief, SM has effectively punted the ball, and the SCOTUS can rule however they want!
12+ years of a government imposed "conservatorship" and 8+ years of the net worth sweep has brought most investors to their wits ends!
Given this backdrop, I can understand how many of us long term stockholdes feel frustrated and perhaps defensive when others suggest that the relief that we all seek in the form of Justice and the Rule of Law and Remedies is only a 1.5% to 50% chance of occurring!
But then again, IF the SCOTUS rights the wrong here AND provides MEANINGFUL RELIEF, having an ownership stake in these two financial corporations for a buck or two a share could be epic!
Your actions speak louder than words, don't they? Unlike a lottery ticket, you can liquidate it in the next 5 minutes and invest those funds in something that you are more optimistic about, right? WHY DON'T YOU SHOW ME THAT YOUR ACTIONS ARE LOUDER THAN WORDS?
I knew of a guy, I won't tell you his name, STEVEN T. MNUCHIN, who SAID that he was going to "get them out of government control", and 4 years later all he did was delay receipt of the Net Worth Swipe by increasing something called a "Liquidation Preference"!
I'm a little skeptical of those who tell me one thing and do the opposite!
You understand don't you?
Latest from TH: "Jack: To your question of “is there enough” evidence in favor of the plaintiffs in the APA case, if you haven’t already I suggest you read the amicus curiae brief I submitted to the Court (linked in the current post). I believe you will see that the net worth sweep was the culminating step of a series of actions initiated by Treasury to bring Fannie and Freddie under government control for policy (and ideological) purposes, while it was publicly claiming to be rescuing them to protect the taxpayer from the consequences of their failure. As I’ve often said elsewhere, the events and activities I detail in the amicus are inexplicable if this had been a true rescue of the companies, but make perfect sense in the context of a pre-planned takeover. The net worth sweep occurred because Treasury never thought Fannie and Freddie would survive long enough–because Congress was expected to replace them with an alternative more to the liking of the banks and their allies– for all of the estimated and artificial losses put on the companies’ books by FHFA to come sloshing back onto their income statements, as they began to do in 2012. Treasury and FHFA concocted the sweep to prevent Fannie and Freddie from retaining these earnings as capital, and calling into question whether their booked losses had been real in the first place. And if this evidence weren’t enough, we have the documents produced in discovery in the Fairholme case in the Court of Federal Claims that show Treasury officials admitting to themselves and others exactly what they were doing, which was the opposite of what they claimed publicly.
Were SCOTUS to remand this case to the District Court for the Southern District of Texas, it will not “play either way”–the government will lose, and it knows it."
http://www.supremecourt.gov/DocketPDF/19/19-422/154595/20200922104336414_Amicus%20Brief%20of%20Timothy%20Howard%20for%20Filing.pdf
All those refis and lower American family monthly housing expenditures coupled with increases in their wealth due to higher housing and equity prices should bode well for the US Economy. Unless I see a nasty tax increase around the corner......
"I want it to be in a spot where, for instance, if you’re a young lawyer coming out of law school and you have an offer from the Fed or the OCC, that you may be willing to entertain an offer to come work at FHFA,” Calabria told HousingWire at the time. “I think it’s critical that we have a deep research function and are viewed as cutting-edge thinkers.”
https://www.housingwire.com/articles/fhfa-appoints-general-counsel-to-create-world-class-regulator/
In FY 2009, FHFA’s operating budget was $120.8
million. For FY 2020 and 2019, Gross Program Costs $ 296.6 million $ 277.9 million, respectively!
Thanks, his experience as a Fannie Mae VP and working on the House FSC seems as if he is well qualified. Plus MC and CJ can share jokes about the idiosyncrasies of the people on the SBC and HSFC ALL WHILE BEING PAID BY THE GSES!
That's the problem with creating a new federal agency (here, FHFA), THEY HAVE A LIFE OF THEIR OWN AND PERPETUATE THEIR VERY EXISTENCE SO THEY CAN VEST THEIR OWN RETIREMENT AND OTHER BENEFITS! The 4th Branch of government always looks out for the best interests of the agency FIRST and the regulated entities last. Didn't MC JUST INCREASE THE HEAD COUNT OF FTE'S (Full Time Equivalent) by 33% YEAR OVER YEAR!
THIS IS EXACTLY WHY THE SCOTUS NEEDS TO WARM UP THE BULLDOZER!
Not really sure what is going on behind the scenes on that one, care to offer your take...
Hereeeeee's FREDDY! http://www.freddiemac.com/media-room/
Thanks Guido!
Or they could choose this person to spearhead the "Housing is a Natural Right Campaign!"
https://www.hcn.org/issues/53.2/indigenous-affairs-economy-is-it-time-to-decolonize-the-housing-market
Okay, I can't recall an after hours print of an off-market transaction or reconciliation of 20+ million shares of Fnma and 11+ million of fmcc ever (but I don't check everday!). Seems unusual doesn't it?
Do you think it's somehow related to the unusual activity today in stocks like gme, nokia, and amc?
It's a lot of volume for after hours, what do you think it is?
Why are the trade amounts NOT rounded to the nearest 100's or 1,000's of shares, it's 20,211,102. Totally a guess, but maybe one or more brokerages had "loaned out" some shares they had and suddenly realized what happened to GME could happen to any stock and out of an abundance of caution brought them back?
I think Justice Breyer explained the ultra vires act of the "conservator" here, in his question to Hashim Moopar, the government attorney who recently left his post:
"JUSTICE BREYER: Thank you.
I think, in reading this, you could,
with trying to simplify as much as possible,
view the shareholders' claim as saying we bought
into this corporation, it was supposed to be
private as well as having a public side, and
then the government nationalized it. That's
what they did. If you look at their giving the
net worth to Treasury, it's nationalizing the
company.
Now whatever conservators do and
receivers do, they don't nationalize companies.
And when they nationalized this company,
naturally, they paid us nothing and our shares
became worthless. And so what do you say?"
I think the only reason to "have faith" is because you believe in the long run that the nws will go away, that they will not be in perpetual conservatorship, and these financial juggernauts will be returned to their rightful legal owners!
P.S. When I meant "this guy" in my initial post, I meant the guy on the radio NOT SM.
That's right! You know people tend to hang out with their same socio economic group! Is your hubby still giving you a hard time about this, " loser investment"? Why don't you tell him that you will wait until the SCOTUS decision to make a decision? Over the last 12+ years we have all been disappointed by the governments bad acts as "CONSERVATOR". Can you think of ANY companies that have been in a 12+ year "Conservatorship", who make $20B to $30B a year in earnings? I can't!
That's right never underestimate the benefits of "marrying well"! I heard on the radio the other day that when this guy was heading off to college, his grandmother's final advice, "You can love a rich girl as easily as you can love a poor girl!". But I don't think he took her advice!
Is SM scooping up some cheap shares now?
4Q20 earnings will likely be memorable! February 11th?
Delaying the nws until they are fully capitalized while increasing the liquidation preference dollar for dollar, lets the SCOTUS know that the nationalization is still in effect, should they choose not to act! But are you sure SM is not on his way to Venezuela to show Nicolas Maduro how we nationalize private corporations in the USA?
It's so obvious to us (and apparently the SCOTUS and majority of the 5th Circuit Enbanc court) that the nws is an ultra vires act of a conservator but disturbing that lawmakers, politicians, and SM faied to act.
Thanks for the legal update today!
Would You Give Up $20B to $30B per year in "variable dividends", where the borrower NEVER GETS TO PAY DOWN HIS PRINCIPAL?
I'm sure that's legal right? With bailouts like that, DON'T BE SURPRISED IF PRIVATE CORPORATIONS REFUSE TO TAKE LIQUIDATION VERSUS A "GOVERNMENT BAILOUT" during the next inevitable crisis, they likely will do better!