Wise Man
1 hour ago
Bill Ackman is exposed. The thread below explains the factors that determine the current stock valuation, and for the different share classes.
Remember that Ackman is in the epicenter of the Fanniegate conspiracy, when he refers to the current NWS 2.0 as "FnF continue to build capital through Retained Earnings", a big lie based on the Financial Statement fraud in FnF. Adjusted for the gifted SPS LP and its offset, absent from the Balance Sheets, the RE just built (CET1), is wiped out or, I should say, held in escrow (image shown in one of the tweets below) in order to comply with the "Recap FnF" in the exceptions 1, 2, 3, 4 to the Restriction on Capital Distributions (SPS LP increased for free as compensation to UST in the absence of dividends, appears as #1 in the statutory definition of capital distribution), seen in the CFR 1237.12, the "(c) the supplemental" of the one by statute U.S. Code 4614(e).
Something repeated by Sandra Thompson in her recent testimony to the Senate.
ST changed it in the FHFA 2023 Report to Congress released a few days ago, for "FnF continue to build Net Worth through Retained Earnings", because she thought that "capital", that refers to "Capital Reserve", can't be said if it's an invalid Capital metric in FnF (ERCF). Still a lie. FnF build NW, but it's SPS, not Retained Earnings account which is the only item necessary for the "Rehabilitate FnF" required by Justice Alito and one of the boxes in the Fed's Jerome Powell's 3-box checklist that he pointed out for the pending proposed Capital Rule for the banks:
1- Capital ratios.
2- Enough liquidity.
3- A plan to take the losses that you are going to take in the future. That would be Retained Earnings account (Balance Sheet = Picture of a company at a determined date) that absorbs the future losses that will come from the Income Statement -Net Income during a period-, currently adjusted $-216B in FnF, but $252B under the Separate Account plan (after the Treasury Stock -stock buybacks- is retired).
He also implied that the Supreme Court said that FHFA has absolute discretion in its actions. The hedge funds' playground. Another lie. More if he is interpreting an Incidental Power to come to that conclusion.
Here is shown a thread comprised of 4 tweets, debunking another gaffe in his GSE slides: "The common stocks of FnF are permanent options". Later he portrays himself as an options trader expert on Twitter. He is capable of paying for a SA article to push his flawed stance.
No one in his right mind says that a security converts to a different security.
The underlying security in a Preferred is a fixed-income security(an obligation to be more precise).
But the specifications of the same fixed-income security have changed. Now 0-coupon (div suspended) pic.twitter.com/yiTpUiq4Kd— Conservatives against Trump (@CarlosVignote) June 30, 2024
On the other hand, the driver for JPS,is:
-The $402B Core Capital shortfall mentioned before,plus 25% of Prescribed C.Buffer marks the day of div resumption👇and par value valuation.
Hence,17yrs more, at 6% discount rate= $9 in $FNMAS.
Every yr,17yrs(Sweep)→$4.5@TheJusticeDept pic.twitter.com/bDFVns9whh— Conservatives against Trump (@CarlosVignote) June 30, 2024
I'm not surprised to see that one of the recruiters for the Bitcoin scam (an unbacked token trading on Stock Exchanges), was also chosen for the Fanniegate scandal.
NeoSunTzu
14 hours ago
It is a complete smoke screen that the government worries about taking political heat for releasing the GSEs back to shareholders. It's nothing more than a cover story for not doing the bidding of Wall Street and the financial establishment - that is where the real "political heat" would come from if Wall Street does not get their cut either through an offering of new shares, a large ownership slice, or some other slice of the market that the GSEs would do more effectively. In other words, when they talk about political heat they are really referring to Wall Street and the financial establishment. After all, did they worry about the polictical heat for bailing out Wall Street, the banking system, or for any of the bonuses they paid out, or for not demanding jail time for the financial criminals after the 2008 crisis? Washington politics is nothing more than a smoke screen - taking from the massess for the benefit of the financial elite.
stockanalyze
16 hours ago
correct.
“There are no guarantees that Trump will successfully end the conservatorship, having not done so in his last term. “
i agree and have said this before.
history speaks. paulson, corker, demarco, mnuchin, calabria. may be in for a disappointment.
the solution comes from somewhere else and not from either party.
i think the market is going to drop big , very frothy. may be even time for a rate increase than a decrease. michelle bowman of fed is right on. inflation is going to go up with all these freebies of 10k, 25k in buying a house by those who cannot afford, offering a 9% freddie home equity loan by undercapitalized freddie mac that is in 16 year conservatorship. disaster in making. stock up your groceries.