Robert can't stop lying. Now about capital metrics. First, the available capital. You claim
Right now it's a 1.0-1.5% Capital Ratio
, when it stands deep in the red, as we can see in their ERCF tables pursuant to the Capital Rule effective on February 16, 2021. For instance, $-52 billion Core Capital in Fannie Mae; $-31 billion in Freddie Mac. Figures that have to be adjusted for the offset (reduction of Retained Earnings -Core Capital-) when the SPS LP is increased for free every quarter since 2019. We don't see this effect because these gifted SPS are absent from the Balance Sheet to avoid posting the offset, and the ERCF tables reflect the Balance Sheet (picture of the companies at a determined date) Then, about the capital requirement.
The controversial current Capital Ratio Rule is up to 4.5%.
Are you talking about capital as percentage of Total Assets (or Adjusted Total Assets) for the Leverage Capital requirement, or capital as percentage of the Risk-Weighted Assets (RWA) for the Risk-Based Capital requirement? Likely you are talking about the Levarage ratio if later you are comparing it with their prior figures. It's, with regard to both Core Capital and Tier 1 Capital, 2.5% of Adjusted Total Assets, not 4.5%. Not even if we add the Capital Buffers, which aren't capital requirements but I will make an exception just for this case: FMCC: 2.8% FNMA: 3% Robert reminds me the other cheater, Timothy Howard, who said recently:
4 percent-plus “bank-like” capital irrespective of the risks of the mortgages they guarantee
FnF's 2.5% rate, far lower than the 4% Tier 1 Capital in the U.S. banking system and 3% in the international standard Basel.
Then, you claim:
they probably need at a minimum 2.0-2.5%.
When it's already 2.5%. Finally,
As I recall, when I worked at Fannie Mae (88-93)
Of course! We believe you!
Beware of these cheaters that don't specify whether they are talking about: Is it CET1? As percentage of Total Assets or RWA? Tier 1 Capital?,... So typical: Is bitcoin a security or a commodity? The S.E.C. is tough on bitcoin,...
AI
