I didn't know that Howard now works for BTIG.
An investment bank owned by Goldman Sachs, by the way.
They repeat the same stance peddled by the controversial Howard:
-Howard has always repeated that the latest RFI on the recent LLPA changes, was about changes in the capital requirements and even he submitted a comment about it. Focus, it was LLPA changes.
-They don't know that Capital is meant to cover future unexpected losses, as the expected losses have already been fully reserved in the Allowance for Loan Losses (CECL Accounting standard since January 2020). The report requires a g-fee for the capital that covers expected losses.
-The guarantee fees aren't assessed based on a required ROE. Primarily, the ROE is distorted when there are JPS, as they have their return capped at their dividend rate (Fixed-income securities). Therefore, when you see that JPM has a ROE of 10%, it might be ROE of 20% (a normal ROE for a common stock) and the ROE of the JPS capped at a 7% dividend rate. You can't mix up apples with oranges, making JPS and Cs equivalent securities, which is what these people always attempt.
-Once again pointing out that the future earnings must be recorded as Capital. Clueless about basic concepts because all the exercise of Capital requirements is meant to know how a company can tackle future losses with the picture of the company TODAY (as seen on the Balance Sheet). Not in the future. Today. You can try a different theoretical exercise but then, it will be a second analysis because this one prevails. So, BTIG's Howard still doesn't understand what the capital requirements are for. The guy that repurchased FNMA common stock that reduces the core capital, to boost his EPS target bonus, as seen today ($7B Treasury Stock)
-The minimum Leverage capital requirement stands at $208B. Then, it's not $400B and later, $300B, as they point out. The capital buffers aren't a capital requirement. This threshold is met with Core Capital.
-The Core Capital as of September 30, 2023, stands at $-76B officially in their ERCF tables, and it drops to $-194B adjusted for the offset (reduction of Retained Earnings account) attached to the $118B SPS LP increased for free absent from the balance sheets. Yet, BTIG's Howard claims that their capital today is $100B+, which refers to the $118B Capital Reserve, notwithstanding that the Capital Reserve drops to $0 with the offset pointed out before. Above all, the Capital Reserve isn't a valid capital metric under the FHEFSSA. So, wrong capital metric and badly assessed. More evidence of con operation.
-Exercise the Warrant, without pointing out why this security was authorized in the law in the first place, as FnF are NOT ordinary businesses.
-Let alone that capital distributions are restricted (dividends and today's SPS LP increased for free)
These people aren't serious. Stock price manipulation.
