Replies to post #833637 on Fannie Mae-No Politics (FNMA)

[jwood9207]

I totally agree with F2. In fact, I think the reason this administration has NOT released the GSEs is precisely because of what is happening on this board.

Numerous shareholders have expressed the "all or nothing" approach. Either we get it all, and government gets nothing, or we sue. Extensively. And the threat of lawsuits is freezing the government, because lawsuits will drag out this situation for years to come, far beyond the length of Trump's term. And, in the meantime, will freeze the GSEs assets so that neither the government nor shareholders get anything until the lawsuits are resolved.

If I am Trump, and it's either collect a few tens of billions of dollars every year, or try to release the GSEs and collect nothing, that's a bad deal. And Trump doesn't do bad deals.

Yes, the GSEs shareholders got screwed. Yes, the Supreme Court agreed the government could take over the GSEs and give shareholders nothing. Yes, conservatorship is costing shareholders billions of dollars.

Get over it.

As we have learned over the last few decades, wars are easy to start, and incredibly difficult to end. The wars in Iraq and Afghanistan drug on for decades. Ukraine and Russia's war will likely last as long. Ditto for Israel and Iran.

No one wants to admit anything other than total victory. Unconditional surrender of the enemy. But that is not how most wars end, and not how this one will end,

If we are not ready ... all of us, Brandon, Neo everyone ... to accept reasonable compromise that gives some benefit to all parties, we will be here in this stalemate for another 17 years. Government will collect billions and billions more, and we will get nothing,

[Guido2]

Anyone pimping the warrants and converting the SPS doesn't represent me. I doubt he/she represents any sane shareholder.

[NeoSunTzu]

@ F2 and JWood:

Thank you, F2, for your clarification of who you advocate for; however, whether intentionally, or unintentionally, the minute you slapped the “F2Truth” name on that letter, the content of that letter, and then sending it to Bessent at Treasury under the “F2Truth” name you ostensibly spoke in EVERYONE’s name who has been fighting against this theft for going on two decades now, which is why I so vehemently oppose(d) what you are advocating. Although, I DO understand that position, but again, it is the very capitulation that the ne'er-do-wells, in the name of government, have used throughout history to contiuously take more and more from rightful, lawful owners.

Again, here is the basis of my position, not necessarily aimed at you F2, but for all those who need the wider, non-capitulation picutre.

Fiderer and Rosner have stated all this as well as can be stated; it is financially ignorant to take the government’s narrative (more truthfully, the financial establishment’s narrative, i.e. for the politicians and others who are too lazy or equally corrupt) as a basis for capitulation in further theft. Anyone who is too impatient now because you want your quick returns on your speculation you should sell. This is a fight WHICH WILL END during the Trump administration, I am confident of that, but for the good of the future should follow the Constitution, takings law, conservatorship and shareholder law, as closely as possible or much worse WILL continue to happen. While NOT rewarding the obvious corruption.

Anyone who does not understand the original intention of the conservatorship, through its actual execution, as being an operation to close the GSEs down, take the assets, and remake the secondary mortgage market in the name of the hidden financial establishment powers behind the politicians is, again, either an uncritical thinker, politically or economically ignorant, corrupt, or working in the name of the corruptors.

The 8-0 jury decision finally exposed the self-dealing arrangement for its defacto non de jure operation, and has put us on sound legal footing to continue fighting the narrative and the theft; furthermore, the obvious financial health and strength of the companies speaks for the growing investment from funds and institutional investors which further strengthens our position, support base, and potential legal takings cases. And make no mistake about it – execute those warrants and you ripen a takings case – obvious, pure, and simple. The so-named “F2Truth” and capitulation is financially and economically undesirable, snubs its nose at shareholder and conservatorship practices and law, and should soon be legally indefensible.

Let’s recap: The original ostensible reason and function of the conservatorship was to shore up the GSEs and “return” them to their role in supporting the secondary mortgage market. But here’s what actually occurred:

• In fact, they were used as a pass through to assist the Fed and Treasury with bailing out the TBTF fail banks – their original capital was swiped, those continuing to make their home mortgages allowed the Treasury to act as if Treasury was making good on the agency MBS payments while GSE capital allowed Treasury to continue facilitating the $700 B they made available to the banking system – all of it was electronic entries but equivalent to massive “paper printing” which GSE cash flows from mortgages supported. TBTF MBS was the complete trash that needed support.
• The original agreement has gone through numerous amendments, each timed or designed to coincide with a new narrative to counteract either destroyed narratives or GSE profitability and viability – all in the name of keeping the GSEs in conservatorship until some event, political or economic, triggered a reason for receivership.
----------- The most egregious of which being the Net Worth Sweep and the paying of cash dividends – who in their honest, legal right mind forces cash dividends on companies in conservatorship – especially those who they narrate as being unviable?!
• $300 B taken from the GSEs represents almost $100 B more than a 10% return to the government on their line of credit – again electronic entry line of credit support – while the GSEs had to pay cash
• TBTF banks left the GSE’s with roughly $145 B in bad mortgage paper for which the government, under Obama, agreed to take much less in return for payments and support of “democratic” organizations and institutions … NONE of it was counted as repaying GSE line of credit, nor was it refunded to the GSEs
• The companies have retained $160 B in capital from NORMAL OPERATIONS of their businesses.

How does that reconcile with gifting the government 80% more?!!!

Finally, JWood, your entire post is complete nonsense, but I'll start with this:

I totally agree with F2. In fact, I think the reason this administration has NOT released the GSEs is precisely because of what is happening on this board.

Numerous shareholders have expressed the "all or nothing" approach. Either we get it all, and government gets nothing, or we sue. Extensively. And the threat of lawsuits is freezing the government, because lawsuits will drag out this situation for years to come, far beyond the length of Trump's term. And, in the meantime, will freeze the GSEs assets so that neither the government nor shareholders get anything until the lawsuits are resolved.

This borders on the numerical, financial, or analytical equivalent of functional illiteracy to state that anyone who fights against the government getting 80% more of companies with realistic market values in the hundreds of billions, if not over a trillion dollars, for less than $100k is taking an “all or nothing” approach. Your comment almost doesn’t deserve a reply other than to point out its ignorance of the facts and circumstances. The above recounting, which is not even a full comprehensive accounting, surely represents the actions of a less than honest and forthright actor that deserves no further exaction.

They should either sell the warrants back to the companies or void them – this will obviate any need for litigation – for those who see this a solution impediment. Then, given all that has transpired, again, recounted above, come clean with all the financial remunderations rightly due TO THE COMPANIES, and ONLY then find an elegant solution with the current senior preferred shares to possibly share in a much more shareholder and conservatorship responsible way the profitability of the companies which under our law mainly belongs with shareholders.