If the private banks invest in Fannie and Freddie, there won't be two sides. Having them in conservatorship and looting their equity is a socialist business model.
It's obvious that the consortium of investors led by Mnuchin wanted to invest in FnF,
Mnuchin would never invest in Fannie and Freddie
primarily because that's what the Separate Account and the government theft story attached, is for. The Charter-unauthorized CRTs, etc. Deprive FnF of capital for good deals to the hedge fund managers lying in wait. Mnuchin and Trump are the masterminds of the 3rd phase of the Separate Account, with the SPS LP increased for free, another capital distribution restricted. He simply looked up the definition of capital distribution in the law and chose it, making sure that the dividends came to an end at the same time to meet the definition number 1. It was initiated with a template with the $3B gifted SPS on the December 31, 2017 PA amendment signed with their ally Mel Watt, when they raised the Applicable Capital Reserve to $3B again (moving the limit like the Congress with the Federal Reserve's Capital Surplus. Notice that Mnuchin is also behind the slogan "FnF, liquidity providers", like the Fed. Evidence of a case of mistaken identity. Let alone the "taxpayers be adequately compensated" diatribe, when the Charter Act says otherwise), once they read a tweet from our negotiator on #Fanniegate, contending that the Charter requires the management to have always a minimum Net Worth and the 3rd amendment PA put a target of $0 minimum Net Worth (the rest swept to Treasury) or "Applicable Capital Reserve" as of December 2017. It's when began the Financial Statement fraud with the gifted SPS LP and its offset absent from the balance sheet. So, this was the template later used for the 5th and 6th PA amendments on September 2019 and January 14, 2021, when the dividend to Treasury came to an end. The Applicable Reserve was increased to $17B/$25B and then equal to the capital requirements, respectively. Hence the slogan "Capital Reserve End Date" written in the last amendment, which is the one in force nowadays. It paved the way for the regiment of social media paid shills headed by Bradford and navy cmdr, to spread the slogan that the capital requirements are met with the Capital Reserve, a FHEFSSA invalid capital metric and badly assessed (once the gifted SPS and their offset are posted on the balance sheet, the Capital Reserve is $0) This is why the Mnuchin Treasury recommended in its September 2019 Housing Reform Plan, sponsored by China (a Govt Explicit Guarantee on MBS, different to the 2011 Privatized Housing Finance System revamp chosen by the UST for the release from Conservatorship, a Govt Catastrophic-Loss Reinsurance on MBSs in the option 3. This is why FHFA made the mistake of assessing 50 bps on the Commingled securities unveiled on June 2022, as seen in the Freddie Mac Press Release, and just a few days later, the FHFA changed it for 9.375 bps. Basically switching the China's plan, back to the 2011 UST plan)
This is why FnF no longer post the column Capital Shortfall in their ERCF tables since last seen with the Earnings reports on June 30, 2023. They can peddle the idea that FnF are getting closer to meet the $208B capital requirement (Leverage ratio) with the latest $125B Capital Reserve. Others like navycmdr and his partner, the hedge fund manager Alec Mazo, claim that the capital requirements are met with the Net Worth, like the former FMCC CEO, Layton, so it's more layman-friendly.
It good news that the consortium of investors led by Mnuchin has found an OFF MARKET deal with New York Community Bancorp, although there is still pending authorization by the S.E.C., which might think that something is fishy always that it isn't done with a simple Rights Issue (addressed solely to the existing shareholders): There was no need to raise capital with pristine capital ratios in NYCB as of end of 2023. For instance, the Total Risk Based Capital ratio would rise from 11.8% to 13% (FT's estimation), when the FDIC and the Fed require a 10% ratio (The FHFA requires an 8% ratio in FnF). The S.E.C. might order the management to do it the right(s) way, and the mangement would halve the size, because a Rights Issue is dilutive in EPS, although not in percentage of ownership, which is what really matters. THE OWNERSHIP INTEREST IS SACRED and the S.E.C. must protect the shareholders. Say no to these OFF MARKET deals.
the GSEs, with their "socialist business model,"
This is why it was chosen in 2011 a Privatized Housing Finance System revamp for the release from conservatorship, at the request of the Dodd-Frank law, removing their privileges, beginning with their guarantee fees that led to capital standards, Basel framework. It's not that you've just come from other Planet. You commute every day and return home without having learnt anything, Bradford-LuLeVan.
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