Americans on America # laliasia.finance
let's be fair- THERE was nothing way back on the brink of bankruptcy.Where were these so called stakeholders?Would they have given their last penny to save FNMA. Now what and what is this talk about justice??
lali asia finance# how ever we do not agree private property being robbed by the godfather.Not found even in RUSSIA
lali asia finance# how ever we do not agree private property being robbed by the godfather.Not found even in RUSSIA
response to above------------------------------------------------------------------------------------
Thats because they were never on the brink of bankruptcy. Its been proven time and time again that their capital reserves were sufficient to weather out the entire crisis. Gov forced the conservatorship on FnF based on false pretenses (their own fear not insolvency), and then the conservator changed their accounting methods to create a huge writedown in DTAs. Had this not occured FnF wouldve never needed a single cent from Treasury.
Over 20 billion in new preferred securities for FnF were issue in 2007-8, so they did give a lot of pennies when these companies needed capital.
How else to fund Obamacare? Steal from American shareholders..........
FNMA SAGA SOCIALISM AT IT PEAK- DICTATORIAL IN WORDS,HYPOCRISY IN ACTIONS THIS IS AMERICA TELLING OTHERS WHAT TO DO-it is like yelling backs are smelly without smelling self back
SO THE USA PREACHER OF laissez faire HAS BULLDOZED TO TAKE OVER PRIVATE PROPERTY AGAIN YELLING OTHERS FREEDOM
TRUMP COMMENTS-He said the economy is in a “big, fat, ugly bubble” right now.
INTEREST RATES would naturally rise if the Federal Reserve DID NOT EXIST.
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Palenque
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Woof Woof ...waving tail...
27 Feb 2017, 09:50 AM Report AbuseReply8Like
HaloHat2
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You can't screw common shareholders and say justice has been served.
27 Feb 2017, 09:57 AM Report AbuseReply14Like
Ned smithson
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Anything could happen either way, if he doesn't stop the NWS this March I am going to be highly suspicious as to his motives being beneficial to common shares and may have to reduce my position. Mnuchin is too shady a character for much faith in him, and 45 is still a wild card. Mnuchin will do whatever 45 says, and we all know 45 has no regard for the law or ethics.
27 Feb 2017, 10:17 AM Report AbuseReply5Like
Scratch72
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Agreed. I think pretty good chance Trump sees the dollars and let's the NWS continue.
27 Feb 2017, 10:32 AM Report AbuseReply3Like
taskassistant
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I think the biggest factor here is that the President and Mr Mnuchin are businessman not politicians. Perhaps why so many are in uproar. Going forward we need to look at their records if business transactions in order to see what they will do in this scenario. The Indy Mac turn around was very clever and profitable. Trump didn't get to be a billionaire with bad business moves. The wild card is that as businessman doing the deal we have only experience of politicians dirty deals.........now what??
27 Feb 2017, 10:33 AM Report AbuseReply7Like
Ned smithson
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Trump a good businessman??? Hahhahahaha... OMG, stop. My sides ache from laughing at that. He is a joke amongst real businesspeople for a reason...like the ones that don't repeatedly declare bankruptcy and pay people for their work. Dang, that was a good one. Can't stop chuckling at that.
27 Feb 2017, 10:57 AM Report AbuseReply7Like
taskassistant
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I see you think that businessman that do not take advantage of tax benefits are not good businessman? Perhaps you need to look further at businesses you respect. Bankruptcy, non-payment, tax write-off are all legitimate business resources. This isn't 1958 business practice anymore
27 Feb 2017, 11:03 AM Report AbuseReply6Like
Ned smithson
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That has nothing to do with what makes 45 a joke, as you are correct, those you listed are legit resources. Bankruptcy happens sure, but 6 times is an abuse and incompetence, not utilizing tools. When it happens due to gross overages in spending for personal use and puts thousands of jobs at risk, and he just doesn't care and thinks he is so clever for doing what he wants and not having to pay, that is criminal and unconscionable... and still doesn't begin to cover what makes him a joke.
27 Feb 2017, 11:32 AM Report AbuseReply5Like
Poor Dude
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" Bankruptcy, non-payment, tax write-off are all legitimate business resources."
Not in a legitimate society, they aren't. We need to bring back personal and business integrity and responsibility, if our system is going to last. Maybe we need debtor prisons again.
Defrauding investors and creditors isn't just another tool in the corporate toolbox. And when those running our corporations start thinking it is, our system is destined to fail!
27 Feb 2017, 01:46 PM Report AbuseReply8Like
cletuschukwu
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Exactly.... and this is why the NWS will continue... With all the spending that he is proposing, where do you think the funds will come from? Being a businessman does not mean that Trumps action should benefit you. Don't be surprised that his friend's that already made millions on these securities have quietly sold them when it got in the 4's and 5's. Bottom line is that FNMA and FMCC will continue to be the FEDs ATM machine for a long time. Question is how long are the longs gonna wait?
27 Feb 2017, 01:54 PM Report AbuseReply2Like
taskassistant
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Poor Dude. Government rules.......you can't complain when business follows the rules whether moral or not. You can create a movement to change those rules?
27 Feb 2017, 02:11 PM Report AbuseReply4Like
taskassistant
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Invest in a bankruptcy stock. You think this is corrupt. BK hearing, court room drama, lies, deceit.....flagrant...... opening. Now there is where reform is really needed.
27 Feb 2017, 02:14 PM Report AbuseReply5Like
ChechitoEV
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well, he´s a billionaire, probably not that incompetent. Bankruptcy is legitimate business resources whether you use it once or as many times as you want, it doesn´t matter. Reducing or eliminating the tax bill is clever and, at least he has created thousands of jobs (as u said), unlike Barry, who has created none, although he´s rich, a rich politician who doubled US natl debt. Barry is a joke. HRC? she´s not even president.
27 Feb 2017, 03:26 PM Report AbuseReply3Like
Ned smithson
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Well, you have your values and I have mine. I happen to not be impressed by someone who purposely runs a business into the ground and COSTS people jobs so he can have another jet with his name on it so he can feel important.
27 Feb 2017, 04:35 PM Report AbuseReply3Like
ChechitoEV
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He is the President of the United States, whether we are impressed or not. Let's try to do our best investing and get reasonable results for a reasonable retirement. At least that's what I'm trying to do. Happy investing.
27 Feb 2017, 04:55 PM Report AbuseReply3Like
gwojtaszek
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Feel important? He IS important, before the election and certainly after.
Who the he# are you and why should we listen to you?
This is about Fannie and Freddie - everything else is noise.
Get over yourself... you ain't caca.
27 Feb 2017, 08:48 PM Report AbuseReply2Like
0Like
smilin
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Yeah bankruptcy and non-payment! whatever
28 Feb 2017, 09:16 AM Report AbuseReply0Like
taskassistant
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You have a really bad attitude. Your a demeaning bully
28 Feb 2017, 09:22 AM Report AbuseReply0Like
Darcangelo
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According to Adam Spittler on Twitter:
Collins vs FHFA - Total new wild card to the GSE litigation, and extremely strong argument.
27 Feb 2017, 10:35 AM Report AbuseReply9Like
E3rd--coerced appraisal values
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The FNMA FMCC model is essential to produce adequate capital to serve the demand for housing in our free market system. However, the collateral behind the bills of credit must be adequate to support presentment. State, federal, and AICPA oversight to prevent coerced appraisal values and fraudulent credit reports will be essential to prevent another crisis. (Reversing the Eleventh Amendment might help since the States emitting the worthless mortgage paper could then be sued. That will require Congressional action: democracy. )
My point is that the business model will not change. Taking from the current shareholders that model and giving it to another along with the assets that have generated in excess of $100 billion more than the original loan balance plus dividends would be unjust!
27 Feb 2017, 10:38 AM Report AbuseReply8Like
taskassistant
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? When Obama and Geitner made this message I don't think they thought the economy would bounce back. I don't think they had a real plan to release FnF because they had no experience or hope of a turn around. I think they were winging it and doing the best to hide the skeletons. Neither man had faith in the American people. Fortunately it did turn around, but no thanks to Geitner and Obama.
27 Feb 2017, 10:44 AM Report AbuseReply7Like
E3rd
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Von Mises in "Human Action" provided the appropriate response of a government to a "depression event". The Executives, the Treasury secretaries, and the Federal Reserve Chairman followed his solution. Congress went to their offices and behaved themselves until the recovery gained some strength. (They are back to their old form.) Only the masses had no faith in our Constitutional form of government to clean up the mess. They bailed when they should have been investing. That is the sad part.
Releasing back to the private market remains. Just like all the other bailouts that are now back on their own to prosper or fail.
27 Feb 2017, 11:35 AM Report AbuseReply3Like
taskassistant
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By masses with no faith, I assume you mean those with employment and funds to invest? I for one started investing again 2008. I thought if all failed then my dollars would be worthless too. I am happy with the results of those investments. Why do we continue as Americans to allow such a financially bloated poor usage members of Congress? Do you really think they are capable to make the right decisions?
27 Feb 2017, 11:49 AM Report AbuseReply2Like
derrick96815
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Based on what Mnuchin said, the government will not refund the Networth Sweep money "how we look at housing reform going forward." Key words "going forward." That means what's done is done, we are going forward from now on. He also said we cannot keep Frannie under government control and that 30 year mortgage must have liquidity. That means release from Conservatory so that Frannie can build up this liquidity under a free market corporation.
27 Feb 2017, 10:38 AM Report AbuseReply7Like
taskassistant
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I agree. I don't see this administration digging up those skeletons in order to give NWS funds back, which would create a bigger financial hole for USA.
27 Feb 2017, 10:47 AM Report AbuseReply6Like
mag1205 leaning
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Orange Peel Investments:
Thanks for re-assuring us with your fine take on Mnuchin from his interviews on various networks.
My only fear is that so far courts are leaning much more towards treasury rather than FF shareholders.
The problem with the recent appeal was that these three judges DID NOT have all the FACTS in front of them such as Judge Sweeney's court where she is privy to 11,000 documents.
"The decision that came down last week could very well be appealed and taken to the Supreme Court". This could drag on for another year or more.
My question to you: Would Supreme Court have access to NEW DOCUMENTS which were produced in Judge Sweeney's court? Just wondering!!!
27 Feb 2017, 10:54 AM Report AbuseReply6Like
taskassistant
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Of course they will lean toward Treasury.........no matter what a few pissed off hedge funds does not equal 100 billion more US debt.
27 Feb 2017, 11:06 AM Report AbuseReply1Like
kinkedo2003 serving two masters is tough
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On Monday morning, Berkshire Hathaway Inc. (NYSE: BRK-A)(NYSE: BRK-B) CEO Warren Buffett told CNBC he believes government-backed mortgages are important to the U.S. economy, but Fannie and Freddie are not.
“I think the problem comes when you try to mix up the private sector with the government because serving two masters is tough,” Buffett said of Fannie and Freddie.
“You add Congress telling them what to do and you had Wall Street telling them what to do. I think that’s a bad model."
Buffett emphasized the need for a government program to back 30-year mortgages, but emphasized that Fannie and Freddie aren't needed.
“I don’t think you need Fannie and Freddie at all to do it. I think you need a program that is government-sponsored, and you may want to have private insurers have to take 2 percent of everything they do or something of the sort just as a check on pricing and all that sort of thing. But basically it’s got to be the government,” he concluded.
Shares of Fannie and Freddie are down between 4 and 5 percent in early Monday trading.
27 Feb 2017, 11:23 AM Report AbuseReply1Like
taskassistant
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Buffet is getting old. He bought one home and has lived in it all his adult life. I'm sure his investing prowess is good but I don't believe he knows too much of Housing FnF.
27 Feb 2017, 11:58 AM Report AbuseReply4Like
mag1205
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But his words are swaying the markets because he has become prudent investor with Billions.
27 Feb 2017, 12:02 PM Report AbuseReply2Like
taskassistant peas in a pod
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I guess for those who don't do their homework. Average Americans really don't know much of FnF. Neither does Buffet........peas in a pod. Reminds me of saying" a little knowledge is a dangerous thing".
27 Feb 2017, 12:05 PM Report AbuseReply3Like
azbroker
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In the past Warren has been the single biggest owner of the GSEs. He even agreed with Tim Howard to provide basically the same senior preferred that the govt imposed in conservatorship 5 years earlier. Guess what? OFHEO (FHFA) would not allow it. He knows all there is to know.
27 Feb 2017, 01:03 PM Report AbuseReply5Like
taskassistant
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So then why the flip remark? Do you think he is intentionally driving the share price down?
27 Feb 2017, 01:06 PM Report AbuseReply3Like
mag1205
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If Warren knows all about GSE's then why is he making conflicting statements? Seems like we (FF longs) are getting the short end of these bad news & GSE's are dropping like crazy on such news.
27 Feb 2017, 01:51 PM Report AbuseReply2Like
mag1205
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It seems like a flip remark. Who knows, he may be picking up lot of shares at these dips.
27 Feb 2017, 01:52 PM Report AbuseReply4Like
azbroker
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No, he is not "intentionally driving share price down". He cares for his reputation more than making a a few bucks on a market move. He was critical of FHFA for releasing the "adequately capitalized" language and less than 3 weeks later imposing the conservatorship. Said govt had some "explaining to do". Currently this is a very politically charged situation, and WB was just acknowledging that. Once there is clarity on the outcome I wouldn't be surprised at all if he were to wade in with a huge position, but not until there is an agreed upon political outcome.
27 Feb 2017, 03:37 PM Report AbuseReply3Like
taskassistant
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Ty for the information.
27 Feb 2017, 03:56 PM Report AbuseReply1Like
mag1205
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azbroker:
Thanks for being more rational with your comment about Warren Buffet. I was kind of pissed off after the appeal court ruling & taking a big hit on my Fannie & then within a week another hit by WB's statement. I guess he was telling the truth that FF was solvent & in good financial health just before it was put under conservatorship.
Let's hope some thing good comes out of Sweeney's court who has access to 11,000 new documents from treasury/FHFA.
28 Feb 2017, 01:44 AM Report AbuseReply3Like
DrDrew26
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Mnuchin should release the GSEs from conservatorship. These companies should be allowed to flourish with investors encouraged to invest in the companies. Also, a portion of the net sweep should be used to provide capital to strengthen the companies. Another portion should be held in escrow should the companies need tax payer draw in the future.
27 Feb 2017, 11:24 AM Report AbuseReply8Like
Mark Gottlieb, Contributor
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My solution to the Fannie Freddie situation which should work out well for Fannie Freddie shareholders and could put up to $192 Billion in the pocket of the U.S. Treasury to spend as they see fit. If you like it or have other advice for Steven Mnuchin, email him at steven.mnuchin@treasur... and Tweet him at @stevenmnuchin1 http://tinyurl.com/hhr...
27 Feb 2017, 11:32 AM Report AbuseReply2Like
Titan Rox
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@Mark My solution is for the NWS to be stopped. The government doesn't use the warrants except as leverage to get FnF recapitalized. The government pays back the extra money they have received and it goes to the recapitalization. Then the government uses the dividends that would go towards the 79.9% warrants and puts that money towards recap. When there is enough capitalization for these 2 entities to be set free the warrants are shredded. FNMA/FMCC shares are finally allowed to get back to their normal $60-75.00 range for commons while preferred shares are given their due (nothing before the NWS is stopped since that gets settled in court). This would be a do-over and Trump can take credit or flail Obama for the previous theft of these businesses. My thought is that if ALL shares of FnF do not go back near their original share prices then we will have 5th Amendment takings cases till Hell freezes over.
27 Feb 2017, 07:50 PM Report AbuseReply4Like
mag1205
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Titan Rox:
Great comment.
Makes perfect sense.
But would it really right the wrongs Obama Treasury & FHFA has done since enacting NWS?
28 Feb 2017, 01:48 AM Report AbuseReply1Like
Titan Rox
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No but it is a start. After FnF are back in business the people wronged during this debacle can lay claims in court and hope for the best. As far as I know you most likely will not be able to address grievances against a corrupt government. A non corrupt one either.
28 Feb 2017, 07:21 PM Report AbuseReply0Like
Mark Gottlieb, Contributor
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I need to write out Steven Mnuchin's email below.
My solution to the Fannie Freddie situation which should work out well for Fannie Freddie shareholders and could put up to $192 Billion in the pocket of the U.S. Treasury to spend as they see fit. If you like it or have other advice for Steven Mnuchin, email him at steven dot mnuchin at treasury dot gov and Tweet him at @stevenmnuchin1 http://tinyurl.com/hhr...
27 Feb 2017, 11:55 AM Report AbuseReply2Like
HorriblyConfused
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I don't pretend to fully understand the capital markets, but I just don't see any administration rolling the dice on *actually* dismantling FnF. Chances of market disruption are too high which means political risk is too high. Ie re-election
27 Feb 2017, 12:02 PM Report AbuseReply8Like
jumpoffus
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Mnuchin is shaking the FNF market like hurricane, ebola, tornado etc. So he can choose the strong survivor. His buddies already survived. I mean Ack, Bru, Joh, Car etc.
27 Feb 2017, 02:30 PM Report AbuseReply3Like
legaleagle786
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Who are these people?
27 Feb 2017, 05:51 PM Report AbuseReply0Like
azbroker
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Best Guess...Bill Ackman, Bruce Berkowitz, John Paulson, Carl Icahn...all of whom stand to make in the Billions on a recap release plan.
28 Feb 2017, 05:33 PM Report AbuseReply2Like
birdyhoof
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Conspiracy theories and tea leaf reading getting funny on here.
27 Feb 2017, 03:29 PM Report AbuseReply2Like
mrsbuffet
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The longer this drags out, the more chance Trump realizes he needs the sweep to pay for his ACA repeal, tax cuts, increased defense spending.. infra structure bill etc. I will certainly keep an eye on these and trade short rallies after any court rulings, and every time Munchin speaks!! . but the longer this drags out, the more ugly this is likely to be.
27 Feb 2017, 06:28 PM Report AbuseReply1Like
Valuemonster
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Very decent article. Appreciate you tackling the timeline issue. It fits with the 'you tinker with it, or do nothing and in 12 months no matter the outcome, you own it'........
What is becoming clearer by the day is that Trump needs the cash and I am beginning to believe that a pure legal outcome where the equity goes to $150-200+ is a pipe dream. Hope the preferreds get par plus some past &/or current interest, but even any interest is in question.
I think one should be buying. Anything $5-6 for preferreds ($25 face) or $10-12 for $50 face, and anything $2 and under for the commons seems to be the 'market' and presents a favorable risk/reward IMHO. I bought going up, but marginally. My penchant for not paying 'top dollar' served me well once again. However I am in the greed stage, which is too bad. I already have plenty of preferreds and commons to make a meaningful difference in my life and my family's well being.
My biggest concern is some type of economic shock (higher interest rates, terrorism, housing crash, et al) that might be put to the front burner.
I just may email Mnuchin, since I can't wait forever (or gosh forbid get creamed with what I have), and he needs to know there are speculators/investors out that have put hard $$$ on the line and expect a TIMELY fair and honest resolution. Many of us may not need the money in 5-20 years, but 'now' (i.e. 1-4 years). Homes, $$$ for out-of-sight tuition, dependable (not Bentley) cars, trips delayed, medical procedures avoided out of self-sacrifice, even donations....all of these outcomes depend on a TIMELY fair and just resolution. All JMHO.
Great luck to all....VM
27 Feb 2017, 06:53 PM Report AbuseReply7Like
Valuemonster
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My earlier thoughts gave me a whole new appreciation to the many nameless, 'faceless', silent investors who suffered because of government malfeasance. Just top and think for a moment about the amount of pain and suffering so many have experienced, and continue to experience today....
Great luck to all.......VM
27 Feb 2017, 07:01 PM Report AbuseReply3Like
NotFair
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Interesting article on how Obama stole from Freddie and Fannie to pay for Obamacare. Maybe this is the reason all those documents are being so hard fought to keep secret http://tinyurl.com/hng...
27 Feb 2017, 08:28 PM Report AbuseReply2Like
Swing4Fence
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yawn. trump is going to pay for stuff by cutting spending elsewhere... pay for the wall by adding a 50% tax on all money wired to mexico. increase tax revenue by lowering taxes and 10% cash repatriation tax.
choo choo!
you bed wetters just cinch down your pink hats tight over your tin foil hats and egrss to your safe spaces and let the problem solvers do our work.
27 Feb 2017, 09:19 PM Report AbuseReply4Like
King Rat
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So NWS are connected to the ACA? Well then:
"If you like your NWS, you can keep your NWS".
27 Feb 2017, 10:04 PM Report AbuseReply0Like
Thomas Barnard, Contributor
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I just read an article about the budget deficit. Trump plans big Defense increases, and tax cuts. I don't see how the government gives up a source of revenue like this. If the government were running a surplus, absolutely, FNMA goes private. As it is, I doubt it. I wouldn't touch FNMA with a ten foot pole.
27 Feb 2017, 10:56 PM Report AbuseReply0Like
gdacostap
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Thomas - and yet, here you are.
28 Feb 2017, 06:26 PM Report AbuseReply0Like
Titan Rox
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@Thomas What about all of the allegations of theft that the Obama administration perpetrated against FnF? Trump came in pledging to MAGA and that includes ending the left leaning corruption in DC. It's going to take a while but when he gets that rolling FnF will rise from the ashes.
28 Feb 2017, 07:25 PM Report AbuseReply0Like
Leslie Luk, Contributor
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The positives are as follows:
1. He could have said, we are going to "wind down" Fannie and Freddie. The fact is that he did not.
2. The favourable legal rulings towards Treasury, make it easier for them to exercise the warrants and profit from them, since, according to the courts, they haven't done anything wrong so far (or very minor things wrong). They are free to profit from them.
27 Feb 2017, 11:23 PM Report AbuseReply2Like
taskassistant
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I don't see how the warrants are legal. The NWS takes all $$ . The warrants would of been legal under a 10% dividend, but the NWS with the warrants is double dipping with the death spiral. Not legal transactions per loans terms unless Treasury is allowed to Loan Shark
28 Feb 2017, 09:27 AM Report AbuseReply2Like
Leslie Luk, Contributor
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Well so far they have been ruled as such, which means there shouldn't be a problem exercising them from a legal stand point.
28 Feb 2017, 11:29 AM Report AbuseReply0Like
mag1205
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So many questions & so few answers coming from Mnuchin/Trump/Jeff Sessions.
Trump can reap more than hundreds of Billions if he cashes in 79% of the commons & starts selling those shares gradually to private/overseas investors. Just a thought spinning in my head knowing fully well that 79% commons shares belongs to FF shareholders. What a curve ball court of appeal has thrown agreeing with the likes of judge Lamberth & three other judges.
28 Feb 2017, 01:58 AM Report AbuseReply1Like
stevethemacguy
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I listened to Mnuchin's comments over and over and I had the same takeaway as the author. It seems clear that Mnuchin wants to cancel the NWS and raise capital for the GSEs (whether he gets his way or not is another story). The thing that scares me as a common shareholder are the details on how that capital is raised.
Also, has anyone read Melvin Watt's (FHFA Director) Feb 18 comments on the GSE? He definitely sounds opposed to Mnuchin.
http://tinyurl.com/hg7...
A quick excerpt from Watt's comments:
"During the first four years of conservatorship, the Enterprises drew a total of $187.5 billion from Treasury...
Fannie Mae has approximately $118 billion of its PSPA commitment remaining, and Freddie Mac has approximately $141 billion remaining.
Since the beginning of conservatorship through the end of 2015, the Enterprises paid approximately $241 billion in dividends to the Treasury Department. Under the provisions of the PSPAs the Enterprises’ dividend payments do not offset the amounts drawn from the Treasury Department"
In other words, the stolen dividends from the GSEs are similar to interest payments on a mortgage; they do nothing to pay off the principle owed!
I own FNMA and FMCC (and recently added), so I'm praying that Mnuchin will get it done, but anyone claiming that the government has been "repaid" by the GSEs may want to read Watt's comments. We'll never see a dime of the NWS returned to shareholders, so the sooner it's ended the better.
28 Feb 2017, 04:15 AM Report AbuseReply0Like
Swing4Fence
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there it goes again... this time from the greatest conservator ever: Under the provisions of the PSPAs, dividend payments do not offset the draw.
So... does anybody know how GSEs actually pay into the principle under the PSPA?
Greatest
Conservatorship
Ever
wonder if Watt giggles everytime someone mentions "conservatorship"... and winks to let everybody know it's really a receivership.
I suppose mnuchin can retroactively check the "apply to principle" box for FnF. And make the excess payments the recap money.
28 Feb 2017, 08:53 AM Report AbuseReply2Like
Sotiri
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Watt's comments are indicative that he supports recapitalization of FnF, which is obviously a good think for investors. He was quite clear on that in the letter you referenced. This further supports the idea that he wants/wanted the organizations to survive when he wrote this one year ago. This is very important, because the Obama administration that he served under explicitly advocated a wind-down, so Watt was going against his superiors by writing this letter, which took guts. For a politician this is a gutsy letter.
Read these excerpts from the letter:
a) RE: Recap:
"The most serious risk and the one that has the most potential for escalating in the future is the Enterprises’ lack of capital. FHFA suspended statutory capital classifications when the Enterprises were placed in conservatorship, and Fannie Mae and Freddie Mac are currently unable to build capital under the provisions of the PSPAs.
And b) he obviously does not see an immenent wind-down:
"I decided that to be responsible we needed to have the Enterprises engage in operations-focused strategic planning over a three-to-five year horizon."
A letter written in 2016 with a 3-5 year "strategic planning" horizon puts us into 2019-2021.
These statements do not sound like they are made by someone who wants to wind these companies down at all.
His description of the payments made to Treasury as "dividends" is simply the way the confiscatory law (PSPAs and third amendment) was written; so he is reflecting the confiscatory law, not his own views. Resolving the bullshoes, along with all the political enemies -include Saint Buffet- is part of the challenge that Mnuchin, Watt, et al. face going forward. I am still betting on Mnuchin/Trump/Watt to get this done. And again, we have the economics on our side as well; it's the best solution for a strong economy, a strong America, a strong housing market, a thriving middle class, etc. etc. Stay strong, and long FnF.
28 Feb 2017, 12:14 PM Report AbuseReply3Like
NotFair
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Fannie and Freddie funds were used to fund Obamacare. Make sense why 11,000 documents are sealed.
28 Feb 2017, 09:00 AM Report AbuseReply1Like
Darcangelo
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http://tinyurl.com/hnq...
28 Feb 2017, 10:14 AM Report AbuseReply1Like
NewGuy32
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If in fact the NWS was to fund the affordable care act, then there would have had to have been bipartisan acceptance of this? Perhaps the problem the new administration is running into is the more they open the cupboards, the more roaches they find. And some of the roaches have "R's" on their backs and not just all "D's". This would make an amicable solution which doesn't "indict" anyone that is on the same team harder to do. Wasn't it Bob Corker (R) who said on CNBC some years back that F&F are dead and investors should short the stock?
28 Feb 2017, 11:39 AM Report AbuseReply3Like
moneyguy11
Comments (52) |+ Follow |Send Message
I see that many on this board are not over the fact that the President looked 16 lawyer/politicians, the media, the establishment Republicans and Democrats, Hollywood, Obama and The Clintons, in the eye and took them ALL out. Incompetent? Yeah. That's it. Go to your safe space.
28 Feb 2017, 12:15 PM Report AbuseReply5Like
Mark Gottlieb, Contributor
Comments (480) |+ Follow |Send Message
Good piece on Bloomberg today re Fannie and Freddie http://tinyurl.com/zql...
28 Feb 2017, 12:20 PM Report AbuseReply1Like
Westcoaster
Comments (920) |+ Follow |Send Message
This world gets weirder every second.
Now FNMA lends a billion to the richest funds in the world so they can rent 23,000 homes to American's that they picked up for 50 cents on the dollar.
An institution that the Clinton's sold to us through adds telling us raising Home Ownership Levels would save the day.
Why in the world should wall street need fixed 3.5% money to rent to Americans is beyond me?
Why the world investors can tag along with these guarantees is beyond me.
Good luck with this wonderful money train, but if President Trump is an actual leader he will privatize this mess. Not sure if that means the longs make money but in the long term I think the GSE's lose the G.
28 Feb 2017, 01:54 PM Report AbuseReply1Like
irish boy
Comments (10) |+ Follow |Send Message
bla bla bla, I'm listening to all of the same old sob stories since 2012. nothing has changed. munchy does not care about us, only his pocket and he will do what suits himself. other countries have 30 year mortgages with no FNMA
28 Feb 2017, 02:22 PM Report AbuseReply0Like
tryingtomakea$
Comments (6) |+ Follow |Send Message
Regardless of what you think about Mnuchin, it's your opinion and you are entitled to it, you are 100% wrong on the 30 year fixed mortgage. Only France offers a 30 year fixed and they require 40% down to get it. It's called Google. You should try it. The fact is (not opinion), the 30 yr fixed mortgage dies without FnF.
28 Feb 2017, 03:20 PM Report AbuseReply1Like
Darcangelo
Comments (967) |+ Follow |Send Message
Other countries do not have 30 year mortgages like the US. There is no secondary market and rates are higher relative to governments. Don't be ignorant
28 Feb 2017, 04:41 PM Report AbuseReply0Like
sp042322
Comments (20) |+ Follow |Send Message
Interesting:
http://tinyurl.com/hds...
28 Feb 2017, 04:02 PM Report AbuseReply0Like
irish boy
Comments (10) |+ Follow |Send Message
you should use google then to see what other country's banks offer it and only 15% down. not all of us are on here are from USA.
fbonilla5
Comments (18) |+ Follow |Send Message
Great.... Continue stealing from the shareholders...
22 Mar 2017, 01:58 PM Report AbuseReply10Like
BCofer
Comments (174) |+ Follow |Send Message
Welp, this comment section should prove entertaining.
*grabs popcorn*
22 Mar 2017, 01:58 PM Report AbuseReply14Like
steven haffner
Comments (629) |+ Follow |Send Message
Most on the money post of the day. And I predict no one's topping it.
22 Mar 2017, 02:28 PM Report AbuseReply3Like
King Rat
Comments (2262) |+ Follow |Send Message
Lots fun things top popcorn. For example; butter, cheese, salt, and almost anything else that tastes good.
22 Mar 2017, 08:00 PM Report AbuseReply2Like
grkmke8
Comments (48) |+ Follow |Send Message
Don't underestimate Trump speed... in the mean time I'll load up on my lottery tickets
22 Mar 2017, 01:58 PM Report AbuseReply12Like
InvestSavvy
Comments (173) |+ Follow |Send Message
Still holding! This means nothing!
22 Mar 2017, 02:08 PM Report AbuseReply11Like
buckx
Comments (261) |+ Follow |Send Message
no one will ever see 1 red cent.
22 Mar 2017, 02:13 PM Report AbuseReply5Like
wolverines
Comments (112) |+ Follow |Send Message
You are a funny guy. I have seen many red cents.
22 Mar 2017, 02:18 PM Report AbuseReply9Like
jumpoffus
Comments (73) |+ Follow |Send Message
Bug ! Stop it
22 Mar 2017, 02:24 PM Report AbuseReply4Like
steven haffner
Comments (629) |+ Follow |Send Message
And that outcome will make you happy buckx?
22 Mar 2017, 02:25 PM Report AbuseReply5Like
philipmax
Comments (541) |+ Follow |Send Message
buckx, I'm long F&F and pray that you are mistaken. However, reality is that you are closer to the truth than my belief in "Truth, Justice, and the American DREAM". How sad!
22 Mar 2017, 03:04 PM Report AbuseReply2Like
musingsofmine
Comments (37) |+ Follow |Send Message
Willful ignorance on the part of shareholders
22 Mar 2017, 02:16 PM Report AbuseReply4Like
mobreezy
Comments (359) |+ Follow |Send Message
Willful ignorance on the part of our citizens to allow this charade to occur in the first place. All citizens shall be concerned about this outcome whether shareholders or not, homeowners, renters, job seekers, this transcends our entire economy and only the naive think it's about taxpayer vs shareholder. Wake up people!!!!
22 Mar 2017, 02:31 PM Report AbuseReply7Like
taskassistant
Comments (455) |+ Follow |Send Message
Mob, funny how people ignore the impact on their lives because they think the wealthy stock owner or property owner is the only one effected. Renters are sure to notice rents going up? I tell them exactly why it's going up....taxes, water bill, market rate of apartments in area increasing due to fewer homeowners and more corporations owning rental property driving up rents. Its not just my problem, it's theirs too. Especially if they ever plan to buy a home
22 Mar 2017, 04:47 PM Report AbuseReply2Like
wolverines
Comments (112) |+ Follow |Send Message
I have been the nice guy. Haven't raised rents in years. I hear you. It's a coming. My water, taxes and insurance have increased substantially.
22 Mar 2017, 05:51 PM Report AbuseReply1Like
taskassistant
Comments (455) |+ Follow |Send Message
My neighborhood was noticed by Realtors who promoted the hell out of it to absentee landlords. Many properties are "managed" (meaning run into ground) by companies for nonseeing owners. Rents have doubled in less than five years. If I am to maintain a nice property then I have to charge close to what they charge. I have been a little lenient to my long term renters, but as soon as vacant It goes up. Some others have gone up $200 in a month
22 Mar 2017, 07:03 PM Report AbuseReply1Like
wolverines
Comments (112) |+ Follow |Send Message
I would like to up the rent. I just don't think it's fair to my tenants. They haven't received a raise in pay so I can't justify the increase even though all the other landlords are running the rents up. As long as I am cashflowing it's ok.
22 Mar 2017, 08:24 PM Report AbuseReply1Like
taskassistant
Comments (455) |+ Follow |Send Message
That is very considerate of you. I really hope they appreciate your kindness. I would seek to make sure they are not putting you on knowing you are kind-hearted. Being a rental property owner is no different than any other successful business in that you have to do your homework. I really do wish you well.
22 Mar 2017, 08:43 PM Report AbuseReply1Like
Anthony Natole
Comments (49) |+ Follow |Send Message
Agreed. Many stakeholders besides stock owners.
22 Mar 2017, 09:39 PM Report AbuseReply0Like
peace 2 u
Comments (911) |+ Follow |Send Message
This is a very limited viewpoint. It only considers what Congress will/can do.
Mnuchin may do something without Congress passing a law.
A Court decision may force someone to respond more quickly.
Just a thought or two.
22 Mar 2017, 02:19 PM Report AbuseReply16Like
jumpoffus
Comments (73) |+ Follow |Send Message
Feel like I gonna have a good summer vacation (Bora Bora islands drinking sex on the beach)
22 Mar 2017, 02:28 PM Report AbuseReply6Like
memer_dreamer
Comments (2) |+ Follow |Send Message
Well they addressed that somewhat in the article: “Mnuchin has been out there talking about a bipartisan agreement,” Heights Securities analyst Edwin Groshans told Reuters. “That process will have to play out until it in essence fails. When that process fails, that would open the opportunity for Mnuchin and Watts to act.”
I think they're right. Mnuchin will most likely wait until Congress has at least *tried* to do something. Not sure on the timing of the court decisions but I'm more hopeful about the Mnuchin play anyway.
22 Mar 2017, 03:43 PM Report AbuseReply2Like
InTheTube
Comments (319) |+ Follow |Send Message
jumpoflus, sounds like a plan. I intend to spend the summer vacation (as this was explained to me by a very healthy young African American woman on the NYC subway some time ago) 'Gettin' paid to drink lemonade in the shade'. Please note that this summer vacation will last until Fall 2050. Happy Holidays.
22 Mar 2017, 06:37 PM Report AbuseReply1Like
taskassistant
Comments (455) |+ Follow |Send Message
haha is that your life expectancy? 33 years?
22 Mar 2017, 07:07 PM Report AbuseReply0Like
wolverines
Comments (112) |+ Follow |Send Message
@ jumpoffus
I will be happy to buy everyone a round when the time comes.
22 Mar 2017, 08:20 PM Report AbuseReply2Like
NotFair
Comments (96) |+ Follow |Send Message
Nope. They see a cash cow and they will keep it all. Guess it legal to take others property
22 Mar 2017, 02:19 PM Report AbuseReply3Like
steven haffner
Comments (629) |+ Follow |Send Message
I'd respond with the facetious, "I'll alert the media", but Reuters is media. Seriously, did anyone expect Treasury to just give up 30-40 billion a year? Especially, after the cops (D.C. Cir. majority) were called, but after investigating the scene, just left the premises advising Treasury to continue cleaning out the warehouse?
22 Mar 2017, 02:24 PM Report AbuseReply2Like
Titan Rox
Comments (42) |+ Follow |Send Message
Reuters is sort of like, you know, Fake News. I don't trust their stories much. They tend to give the globalist spin on things. I take this as a "don't look here, no story". It's what they do. Justice is our hope and rallying cry.
22 Mar 2017, 07:39 PM Report AbuseReply3Like
JustNumbersOnaScreen
Comments (134) |+ Follow |Send Message
Everything is unlikely this year.
22 Mar 2017, 02:28 PM Report AbuseReply1Like
mobreezy
Comments (359) |+ Follow |Send Message
Everything is likely this year. They are out of time and if you don't realize that then you are misinformed.
22 Mar 2017, 02:33 PM Report AbuseReply10Like
JustNumbersOnaScreen
Comments (134) |+ Follow |Send Message
That's true, this time is different!
22 Mar 2017, 02:34 PM Report AbuseReply5Like
mobreezy
Comments (359) |+ Follow |Send Message
They are out of capital, what part of that doesn't make sense to you.
22 Mar 2017, 02:36 PM Report AbuseReply8Like
JustNumbersOnaScreen
Comments (134) |+ Follow |Send Message
the government part.
22 Mar 2017, 02:41 PM Report AbuseReply3Like
jumpoffus
Comments (73) |+ Follow |Send Message
No capital = No Frannie = No monies= No Hopes = No Trump=No America =Banana Republic
22 Mar 2017, 02:45 PM Report AbuseReply13Like
mobreezy
Comments (359) |+ Follow |Send Message
Right. Ok. Yes there will be nothing on this from a bipartisan standpoint but administratively they will as they are OUT OF TIME AND OUT OF CAPITAL!!
22 Mar 2017, 02:47 PM Report AbuseReply5Like
mobreezy
Comments (359) |+ Follow |Send Message
Sec Mnuchin doesn't want to oversee another draw from the Treasury.
22 Mar 2017, 02:50 PM Report AbuseReply8Like
mobreezy
Comments (359) |+ Follow |Send Message
Typical reflexive government. Had 8 years to work on this and now without capital and pending crisis of confidence in our secondary mortgage market and a new administration they say they will now begin to work on it. Too funny.
22 Mar 2017, 02:35 PM Report AbuseReply13Like
Leslie Luk, Contributor
Comments (297) |+ Follow |Send Message
I think they don't realise Fannie and Freddie only have $600 million residual net worth each.
It goes to ZERO at the end of the year.
Something MUST happen this year!
22 Mar 2017, 03:01 PM Report AbuseReply10Like
Leslie Luk, Contributor
Comments (297) |+ Follow |Send Message
I think they don't realise Fannie and Freddie only have $600 million residual net worth each.
It goes to ZERO at the end of the year.
Something MUST happen this year!
22 Mar 2017, 03:01 PM Report AbuseReply3Like
tsk888
Comments (33) |+ Follow |Send Message
the writer not insider unless he is
22 Mar 2017, 03:07 PM Report AbuseReply2Like
IDK Much
Comments (934) |+ Follow |Send Message
i own a boatload already, would buy more if i could but im at my limit here
doesnt even matter, let the bandwagon folks exit and sell to stronger hands
22 Mar 2017, 03:12 PM Report AbuseReply6Like
wolverines
Comments (112) |+ Follow |Send Message
I don't know much. Seems like you know plenty.
22 Mar 2017, 03:29 PM Report AbuseReply2Like
ssebold
Comments (1) |+ Follow |Send Message
I'm pretty sure that was an opinion headline. I do with they would put "Op-ed" in the title next time.
22 Mar 2017, 03:34 PM Report AbuseReply3Like
rafaelecharridiaz
Comments (2) |+ Follow |Send Message
it's all going to be okay
22 Mar 2017, 03:36 PM Report AbuseReply4Like
tryingtomakea$
Comments (8) |+ Follow |Send Message
This seems like a precursor to allowing FnF to retain earnings without seeming like the administration is benefiting those "greedy" hedge funds. Alert the uninformed public that there is no way they can possibly get reform done in this political environment and since they are set to run out of cash, we need to protect the taxpayers from another draw so we are "forced" to let them retain earnings. I was doubtful that would happen before 3/31 but with this press release, I'm a little more hopeful. Next, when the 11K docs are turned over and more info can be "leaked" to the public showing what a thief Obama was, they can spin a settlement as the only option to again protect the taxpayer from a possible major loss in the courts. It's called politics. I see this as nothing but positive.
22 Mar 2017, 03:43 PM Report AbuseReply8Like
wolverines
Comments (112) |+ Follow |Send Message
Exactly.
22 Mar 2017, 05:54 PM Report AbuseReply2Like
Res_Ipsa_Loquitur
Comments (1) |+ Follow |Send Message
GSE Wars: Attack of the Shorters
22 Mar 2017, 03:43 PM Report AbuseReply5Like
wolverines
Comments (112) |+ Follow |Send Message
Unfortunately the shorters. Day traders that is are soon going to lose their cash cow. Us longs are soon to benefit.
22 Mar 2017, 05:55 PM Report AbuseReply4Like
Anthony Natole
Comments (49) |+ Follow |Send Message
You can't short them.
22 Mar 2017, 09:45 PM Report AbuseReply0Like
richdawn629@gmail.com
Comments (3) |+ Follow |Send Message
Typical wait to the late minute to fix it that wasn't broken. Then we have no ideal what to do. That's our Great Government Power. We'll just keep draining them until all hell breaks loose.
22 Mar 2017, 03:44 PM Report AbuseReply4Like
mirth
Comments (48) |+ Follow |Send Message
Trump won't accomplish anything, total gridlock
22 Mar 2017, 03:45 PM Report AbuseReply0Like
LUV2INVEST
Comments (114) |+ Follow |Send Message
richdawn dont worry the government always does the right thing, after it has exhausted every other option. lol
22 Mar 2017, 04:07 PM Report AbuseReply2Like
ozzy
Comments (158) |+ Follow |Send Message
We've had gridlock for years. Should be used to it, after all bush Obama started this
22 Mar 2017, 04:15 PM Report AbuseReply1Like
wolverines
Comments (112) |+ Follow |Send Message
I personally am not scared at all. I have been... We have been through this for many many years now. Doesn't bother me at all.
22 Mar 2017, 05:57 PM Report AbuseReply3Like
kmcmanus15
Comments (6) |+ Follow |Send Message
if 3/31 draw is retained as growth capital then this is the beginning of the end we waited for, but if the 10 bil goes elsewhere God help us
22 Mar 2017, 04:55 PM Report AbuseReply2Like
gwojtaszek
Comments (125) |+ Follow |Send Message
The 3/31 "dividend" WILL be dispersed to treasury - there's no legal nor political push for it not to happen. Plus, the DJT admin need the money.
The DJT admin can simply say that the courts have ruled, it closes the books on '16 and he can blame all the illegal takings on the Obama admin....
THEN, he Mnuchin et al can lay out a plan between now and 4/17 (Sweeney's day) and going forward. Still good overall - choppy in the near term. Yeah, I'm scurred.
Have no faith in the courts (with the exception of Brown and Sweeney) nor gubment.
Long a boatload of FNMA, FMCC and FNMAS.
22 Mar 2017, 05:20 PM Report AbuseReply2Like
TommyD303
Comments (41) |+ Follow |Send Message
Bingo! 👍
Sucks because I want them to move faster but I think you're right.
22 Mar 2017, 07:40 PM Report AbuseReply0Like
kmcmanus15
Comments (6) |+ Follow |Send Message
agreed in very deep fmcc common and 10k fannie common
22 Mar 2017, 06:22 PM Report AbuseReply3Like
gdacostap
Comments (215) |+ Follow |Send Message
Carl Icahn. John Paulson. Steve Mnuchin. Not selling my commons.
22 Mar 2017, 07:33 PM Report AbuseReply4Like
wolverines
Comments (112) |+ Follow |Send Message
Exactly.
22 Mar 2017, 08:15 PM Report AbuseReply1Like
TommyD303
Comments (41) |+ Follow |Send Message
Not a problem.
And if the NWS continues one more time not a problem.
It doesn't matter what's right or wrong anymore. Just know that Trump will not let his friends down who are invested in F&F.
Plus all the problems F&F people on the administration now. The day to day news really doesn't matter. It's obvious something going to happen. Maybe not as fast as we like but it will happen.
22 Mar 2017, 07:36 PM Report AbuseReply3Like
GVInvestments
Comments (320) |+ Follow |Send Message
If the nws goes through it will be the last one. F and F will be freed this year.
22 Mar 2017, 08:03 PM Report AbuseReply3Like
GVInvestments
Comments (320) |+ Follow |Send Message
We need to all Write and call our republican congressmen and senators and get them to release F and F. I bet once they look into it and they buy some shares they will really push to release F and F.
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