Please also be prepared for Plan B: After the capital raise, reverse split, and relisting, commons will drop to the equivalent of 8 cents, your portfolio value will drop from $500,000 to $50,000, and the annual dividend will be $2,000, or $166 per month.
(This is not what I wish for, but what is most likely to happen.)
So this is what BRADFORD WAS TALKING ABOUT ?????? Because the GSEs are, in CBO’s view, effectively federal entities, the budgetary cost of the policy option would be the estimated market value of the increase in the government’s exposure to losses on the GSEs’ mortgage guarantees and investments. The Administration treats the GSEs differently—as private companies that are outside the government. Consequently, its deficit projections reflect the cash transactions between the Treasury and the GSEs, whereas CBO treats such transactions as governmental transfers that have no net impact on the deficit. Under the Administration’s budgetary treatment, the policy option would have a budgetary cost that was significantly larger than CBO’s estimate, roughly $85 billion over 10 years.
************************************************************************************************ bradford86 Re: LuLeVan post# 776022 Tuesday, November 28, 2023 5:19:58 AM Post# 776024 of 779165
That is my understanding. What is interesting is that the cbo report — they monetize the face value of the spspa, not the liquidation preference— in their recap and release scenario. So in theory continued retained earnings does not materially increase how much the government will be cashing in on the spspa becauwe they may use face value and not liquidation preference in recap and release vs receivership.
I am not sure how this works out but noticed this this past month reviewing all the numbers in anticipation of some sort of potential admin action. Diane Yentel was back in the white House yesterday. Affordable housing is an admin priority. There is a path here. I think we will see shortly if they will intend to use it. ************************************************************************************************************************************** https://www.cbo.gov/publication/52089 So the GSE’S are on the hook for $187 Billon. SO ON THAT $187 LOAN THEY PAID. As of the end of September 2016, the GSEs had paid about $250 billion in dividends to the Treasury. so they still need to pay Treasury another, Under current law, CBO projects, they would pay an additional $180 billion from 2017 through 2026. So your saying 2026 is the year they break even with the Loan Shark Government. BUT !! Still owe the $187 Billion ORIGANL loan! So on a loan of $187 Billion it’s going to cost them $187 + $250 + $180 = $617 Billion + the $100 Billion in warrants total = 717 Billion on a $187 Billion loan !!! DAM GREEDY GOVERNMENT, PEOPLE NEED TO GO TO JAIL FOR THIEF !! ………………………………………………………………………………………………………………………………………………………………………………………... Between November 2008 and March 2012, the Treasury purchased $187 billion of senior preferred stock from the two GSEs to cover their losses and ensure that they could continue to operate in the secondary market. The GSEs returned to profitability in 2012 as the economy and housing markets stabilized, and, consequently, they have not needed to draw on additional federal funds since then. As of September 30, 2016, $258 billion of Treasury assistance remains available under the agreements to purchase additional senior preferred stock. That undrawn amount serves as an effective capital cushion and ensures that, under most circumstances, the GSEs would be able to pay investors who held their debt and mortgage-backed securities. Without that backstop, the value of the GSEs’ equity and debt (including the government’s holdings of senior preferred stock) would be much lower. Under the current terms of the agreements, when Fannie Mae’s or Freddie Mac’s net worth exceeds a specified threshold (set to decline to zero in 2018), the GSE must pay dividends to the Treasury in the amount of that surplus. Essentially, the current agreements require the GSEs to pay all of their profits to the Treasury. As of the end of September 2016, the GSEs had paid about $250 billion in dividends to the Treasury. Under current law, CBO projects, they would pay an additional $180 billion from 2017 through 2026.
GREEDY CHEATING LYING BASTXXD’S GOVERNMENT STEELING THE LOT……………………………………………………………………………………….What Policy Option Did CBO Analyze? The policy option that CBO analyzed would not restructure the housing finance market; rather, it would allow the GSEs to retain some of their profits and thus increase their capital. Because several bills have been introduced in the Congress with different approaches to building the GSEs’ capital, CBO analyzed an illustrative option rather than a specific legislative proposal. Under the illustrative option, each GSE would be allowed to retain an average of $5 billion of its profits annually and would thus increase its capital by up to $50 billion over 10 years. The government’s commitment to purchase more senior preferred stock from Fannie Mae and Freddie Mac if necessary to ensure that they maintain a positive net worth would remain in place. In addition, the GSEs would invest the profits that they retained under the option in Treasury securities, and returns on those securities would raise the GSEs’ income. Through its holdings of senior preferred stock, the government would continue to have a claim to the GSEs’ net worth ahead of other stockholders.
So there retained earnings are for buying back the SPSA ?????? the GSEs would invest the profits that they retained under the option in Treasury securities, and returns on those securities would raise the GSEs’ income. THAT’S TRIPLE DIPPING !!!!!!!!
News 
Market Data 
Discover 
AI
