Replies to post #772516 on Fannie Mae-No Politics (FNMA)

[LuLeVan]

Yes, Mnuchin stopped the NWS, but he did it because he was forced to by law (5th Circuit).

[Guido2]

Mnuchin didn't do it in 2017.
He didn't do it in 2018.
He didn't do it in early part of 2019.
He only did it after the Enbanc ruling that the NWS was illegal. Even then, he increased the SPS for every $ not sent to Treasury. In January 2021, he increased the liquidation preference for every $ retained. Till the end, he continued to fight for the NWS in court.

When he first became Secretary of Treasury, Watt attempted to have the corporations retain their capital. He was over ruled by Mnuchin.

You have been spreading a lot of fairy tales here. Stop rewriting history. Mnuchin is guilty of swindling our corporations of their equity.

[trunkmonk]

And now for the rest of the story, which is the only reason they did it, seems Ps always take facts out of context or always forget to include the most important ones.

http://www.ca5.uscourts.gov/opinions/pub/17/17-20364-CV2.pdf

[Wise Man]

No. Mnuchin didn't stop the NWS, in violation of the 5th Circuit's ruling, where judge Willett stated a few weeks before about the NWS dividend:

That kind of liquidation goes beyond the conservator's powers.

The NWS goes on with the Common Equity Sweep, which is what matters for the financial condition of FnF and the stock valuation of Cs and JPS.
Goldman Sachs' Mnuchin thought that they can fool everybody increasing the Net Worth handing out SPS for free to the UST, while claiming that FnF are in good financial shape, as required by judge Willett ("any action within the enumerated powers", which refers to "Put (restore) FnF in a sound and solvent condition")
Yet, you claim once again:

Fact check. False. Mnuchin did actually stop the cash sweep with calabria sept 2019

What's the point in praising Mnuchin for stopping the cash dividend equal to the Net Worth increase (Common Equity), that you call "cash NWS", if the Common Equity Sweep goes on with the SPS LP increased for free every quarter, in an amount equal to the Net Worth increase? Because these gifted SPS carry an offset in the form of reduction of Retained Earnings account (Common Equity). So, the same.
We don't see this effect because these gifted SPS ($111B) and their corresponding offset, are absent from the Balance Sheets. Financial Statement fraud for which they have to pay us punitive damages.
For instance, Freddie Mac posts every quarter the same SPS ($72,648 million) Source, instead of the actual $114,604 million worth of SPS outstanding as of end of June, 2023, including the $2,890 million SPS scheduled to be increased on September 30, 2023. So, $41,957 million worth of SPS are absent.
This is a visual explanation of this scandal and what we should have seen in its Net Worth. Retained Earnings (Comprehensive Income) is wiped out.

Fannie Mae: only $120,836 million SPS shows up, instead of $190,585 million SPS outstanding for real. That is, $69,044 million SPS are missing (Source)
Totalling $111B SPS absent from the Balance Sheet, equal to their current $111B Net Worth. Once they are recorded, the $111B NW corresponds to the SPS recently handed out for free and the Common Equity is escrowed, thanks to the FHFA-C's Incidental Power that allows it to mislead "in the best interests of FHFA", in the process of rehabilitation of FnF (Justice Alito in the SCOTUS and Judge Willet, 5th Cir., about the Collins case), that is, pending unwinding this scam (these gifted SPS are cancelled and the Retained Earnings is back up)

Just like occurred with the $1B SPS issued for free on day one of conservatorship, debited from the shareholders' pockets as well, in what is called "offset" (Additional Paid-In Capital account. Currently, it's debited from Retained Earnings because APIC was exhausted, as per S.E.C. rules) and it occurs in the event that a company issues any security for free (without getting the corresponding cash), for instance, stock dividends, Employee Stock Ownership Plans (ESOP), etc.

Because in this world, there is nothing for free. The money necessarily has to come from somewhere and in a company, this operation must be recorded on the Balance Sheet, regardless that the moment when these gifted are redeemed for cash is far away. The securities must be recorded when they are pledged.
These low-profile officials think that they have found the geese that laid the golden eggs with FnF, that increase the SPS LP for free every quarter and it doesn't affect the companies. Free money! But eventually, these obligations SPS will have to be paid down.
The attorney for Berkowitz, David Thompson, went to court to claim constitutional damages (Collins case), because the "for cause" removal restriction prevented this Wonderland scenario where the UST gets rich with SPS and, at the same time, FnF are recapitalized (Retained Earnings), from happening sooner, firing Watt before. This Wonderland is just a bunch of lies, peddled by the plotters' social media crew, Ackman ("FnF continue to build capital") and the FHFA.
BOTTOM LINE
This is why now it's called NWS 2.0. Only the Common Equity is swept to UST, but the overall Net Worth ($111B) keeps ticking up with the gifted SPS. FnF are building SPS, not regulatory capital (Retained Earnings), a breach of "the rehabilitation of FnF".
Then, with this Net Worth called Capital Reserve, equal to the Retained Earnings, they want to meet the capital requirements, with the "Capital Reserve End Date" in the January 2021 PA amendment:
1-This is because the offset (reduction of Retained Earnings) is missing. In truth, the $111B NW is comprised of the $111B SPS missing on the Balance Sheets.
2- The capital requirements in the ERCF table are met with the capital metrics, as stated in the definitions of each Capital Classification in the FHEFSSA. This is why the Mnuchin's Treasury recommended Congress in the 2019 Housing Reform plan, to repeal these definitons in the law. The scammers want to impose their own rules, not Basel framework, FHEFSSA,... The Rule of Plunder.