FNMA Discussion 08/14/2014 20:23:13 $FNMA
Investors Unite Press Conference Yesterday in Atlanta - Ending the Conservatorship
Fannie Mae and Freddie Mac Investors in Atlanta Implore Government to Follow The Rule of Law
- August 14, 2014
Individual investors in mortgage-giants Fannie Mae and Freddie Mac today implored Federal Housing Finance Agency Director Mel Watt to exercise his authority to end the illegal taking of investor dividends through a federal conservatorship that was slipped into law two years ago.
“As of today, the majority of my retirement savings are invested in Fannie and Freddie,” said investor Upendra Kulkarni, who owns a small IT consulting business in Alpharetta, GA. “Before and after the economic downtown in 2008, I decided to invest in the companies as they supported millions of Americans in fulfilling their American Dream of homeownership.”
At the same time, the government infused $187.5 billion into Fannie and Freddie to ensure that these important institutions did not fail. While this was an expensive action, the alternative – allowing Fannie and Freddie to fail and thereby ensuring that the mortgages they held would go into default – was unthinkable. Unlike the auto bailouts, the tax dollars were provided as a loan, and as of March 2014, both Fannie Mae and Freddie Mac have fully repaid that loan. “Even the notion that Fannie and Freddie were in trouble is being challenged. Of the $187.5 billion they were advanced, much of that money really wasn’t needed. And it was paid back in a very quick manner. As of March 2014, the loans were fully repaid and then some. In fact, Fannie and Freddie paid the government $40 billion over what they received. That money is currently being used to offset the deficit instead of going back and helping recapitalize the housing industry.” said Tim Pagliara, a former Fannie Mae executive and chairman of Investors Unite, a coalition of more than 800 Fannie Mae and Freddie Mac investors who are petitioning the government to end the conservatorship.
In August 2012, however, the U.S. Treasury enacted a Third Amendment “sweep” of Fannie Mae’s and Freddie Mac’s dividend profits, claiming all of the companies’ profits for the federal government. Since then, Fannie and Mae have paid more than $40 billion to the greater Treasury fund instead of investors earning the dividends they are contractually owed as a result of their investments.
“This marks a historic milestone in the government’s blatant disregard for the rule of law and disrespect for marketplace standards,” Mr. Pagliara said.
Mr. Pagliara’s and Mr. Kulkarni’s remarks came during a press briefing in advance of an event hosting by Director Watt to address affordable housing options for Atlanta-area residents. Mr. Watt so far has declined to meet with investors to discuss ending the conservatorship.
“I am pleased that Director Watt is taking to the road to discuss importance issues in housing finance reform and the Federal Housing Finance Agency,” Mr. Pagliara said. “It is essential that these issues are brought forth to those that these decisions will impact the most and that every stakeholder has a seat at the table to discuss why housing reform is important.”
While partisan gridlock in Washington, D.C., is often faulted for holding up important pieces of legislation that could help the American people, in this case, it is protecting current and future homeowners against misguided GSE reform legislation that fail to address the government’s overreach into the housing market. Reforms must focus on the fundamentals of transparency and fairness if they are to ensure a robust housing market that benefits bot underserved populations and millennials looking to jumpstart their own American Dream.
Mr. Pagliara and other investors expressed hope that they would be able to meet with Mr. Watt while he was in Atlanta to address an end to the conservatorship. During his remarks, Mr. Pagliara referenced an opinion piece from a close colleague of Mr. Watt’s days it the U.S. House of Representatives. Mr. Watt and former Congresswoman Eva Clayton represented parts of North Carolina.
“A strong housing market requires private capital, and private capital follows the rule of law,” Mr. Pagliara quoted from Ms. Clayton’s op-ed in the Charlotte Observer.
While some have argued that investors should be cut out of the loop entirely, Mr. Kulkarni, who spoke for hundreds of his fellow investors, made clear what is at stake if the government continues its illegal actions of taking all of Fannie Mae’s and Freddie Mac’s dividend profits.
“The government’s conservatorship and Third Amendment Sweep leave me holding nothing,” Mr. Kulkarni said. “This behavior sets a bad precedent, sending the message that the government can takeover shares of a company without any explanation or compensation plan for shareholders. Individual investors are hanging in the balance, wondering if we will ever recover the money we invested in the U.S. housing system for our retirement, for our children’s education, and for general savings. It is time that we are heard and those in charge pay attention. We are not hedge funds or big banks, we are Americans demanding the government does what is right and follows the rule of law.”
Cool, thank you for reporting on this, go Fannie
Nice position. Dont know how far she goes. I am gonna keep my eye on the usual during a run; resistances, RSI, MFI. Hope we break that 6. It would be awesome. Chart is completely primed for takeoff. GL.
On Fox a few hours ago they interviewed Ed Pinto the ex vice president for Fannie Mae. Their discussion was about subprime mortgages, delinquent mortgages, sneaking back into the market and he said the government was jawboning lenders to offer more of them which he didn’t see as a good thing. He mentioned Barney Frank pushing them before the crisis and how he should have been dealt with but wasn’t
Then he was asked about the winding down of Fannie and Freddie and what he thought the government might try next. He then said that there was no chance that he saw of anything along the line of winding them down occurring until 2017 and if not then, not at all. He was asked a few more questions and rephrased that to nothing will happen until the next housing crises.
He does seem to be able to persuade hedge fund friends, so I'm still going to be ready for any action.
Lol wuuuuut
Still got my 3.91's and 4's fluff shares....hope they will be useful soon lol. Could this be the 5th wave...da one that takes us to the $7-8 range?
Ackmans new law suite is nice for us but I doubt it will make much difference on the stock price. Until judge sweeney rules this is just hyped up enthusiasm. I doubt you will see the stock price go much higher than $4.
Amen to your post! Patience is Required! Days like today make it easier to wait it out imo!! : ) $ FNMA
Thanks! I joined the suit at Investors Unite web site, just signed up as a Fnma shareholder with email address! Everyone should do this if they can!! FNMA $$$$$
great Pershing Square news!!!
WONG again!!!!
Pershing Square sues US over Fannie Mae, Freddie Mac
34 Mins Ago Reuters
Jin Lee | Bloomberg | Getty Images
William 'Bill' Ackman, founder and chief executive officer of Pershing Square Capital Management LP, speaks during an event in New York, U.S.
Pershing Square Capital Management LP, the hedge fund firm run by William Ackman, on Thursday sued the U.S. government, claiming that its stripping of profits from Fannie Mae and Freddie Mac unconstitutionally short changes investors in the companies' common stock.
In a complaint filed with the U.S. Court of Federal Claims in Washington, D.C., Pershing said the practice since 2012 of sweeping profits from government-controlled Fannie and Freddie into the U.S. Treasury as dividends creates a "windfall" for the government at the expense of shareholders.
It said the practice violates the Fifth Amendment of the U.S. Constitution by taking private property for public use without just compensation. The lawsuit seeks damages and other remedies.
The Treasury Department and the Federal Housing Finance Agency, which oversees Fannie and Freddie, were not immediately available for comment.
Thanks commander iv'e got some reading to do. $$FNMA$$
Its a good thing that you are young
so you will have plenty of time to re coup your loss but remember
you are only allowed to write off 3 k per year stock loss. First year
you can write off the 3 grand and the rest the 2nd year. Let me give
you a quick refresher course in Fannie Mae.
1 Conservatorship status. Shares actually have no value
2.Total profit sweep. USG takes all profits shareholders get zero.
3. Stock trades on High risk Pink sheets
4. Frivolous lawsuits will take years. 10 years plus possible to
resolve and USG will win in the end.
Link to Lawsuit filed today by ACKMAN against the U.S.
http://www.scribd.com/doc/236850558/Verified-...ing-Square
Pershing Files Lawsuit Over Fannie Mae, Freddie Mac
by VW StaffAugust 14, 2014, 6:10 pm
COMMON SHAREHOLDERS OF FANNIE, FREDDIE FILE SUIT AGAINST UNITED STATES GOVERNMENT Complaint, Filed by Three Individuals and Pershing Square, Challenges the Government’s Ongoing Confiscation of All the Companies’ Profits
Dan Freed of TheStreet reported earlier today that Bill Ackman’s Pershing Square would be filing a lawsuit over the Government’s treatment of Fannie Mae and Freddie Mac shareholders. Pershing Square has just officially filed suit. Below readers can see the press release as well as the full court document.
Also see Pershing Square Q2 Letter: IPO, Herbalife, Reflections
Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) lawsuit
New York, N.Y, August 14, 2014 //- Today, common shareholders of the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”) filed suit in the U.S. Court of Federal Claims seeking to remedy the federal government’s unlawful taking of shareholders’ rights and property in Fannie and Freddie and other violations of law. The shareholder plaintiffs are three individuals and Pershing Square Capital Management, L.P. (“Pershing Square”). The defendant is the United States government, including the U.S. Department of the Treasury and the Federal Housing Finance Agency (“FHFA”).
The complaint challenges the government’s ongoing confiscation of all profits of Fannie Mae and Freddie Mac (the “Companies”). According to the filing, the government is expropriating the Companies’ profits through a 2012 arrangement (the “Net Worth Sweep Agreements”) by which FHFA, purportedly acting as the conservator of the Companies, and Treasury agreed to strip all earnings from both Companies and sweep them to Treasury in cash, every quarter, in perpetuity. These Net Worth Sweeps implement what internal Treasury documents had earlier described as the Administration’s “commitment” to “ensure existing common equity holders will not have access to any positive earnings from the [Companies] in the future.”
The three individual common shareholders who have brought this suit are a retired nurse who holds common shares of Fannie Mae first purchased over 25 years ago and a retired scientist and retired psychiatric social worker who have held Fannie Mae common shares for approximately 15 years. They are joined by Pershing Square, which is the Companies’ largest common shareholder, with an approximate 10% stake in the outstanding common stock of each Company. Today’s complaint follows other lawsuits, brought primarily by institutional shareholders of the Companies’ preferred stock, which also challenge the Net Worth Sweep Agreements. The common shareholders bringing today’s suit seek to challenge the government’s illegal actions and vindicate and protect their rights as common shareholders of the privately owned, for-profit Companies as chartered by Congress.
Applicable law requires FHFA as conservator to “preserve and conserve” the Companies’ “assets and property” and to “put [them] in a sound and solvent condition.” Instead, through the Net Worth Sweeps the government has taken the Companies’ profits for itself without any compensation to the Companies’ shareholders. The Net Worth Sweeps treat the Plaintiffs—and all of the other common shareholders—as “shareholders” in name only, rather than as the owners of the Company with relevant property rights as conferred by law. Today’s complaint charges that the government’s action violates the Takings Clause of the Fifth Amendment to the United States Constitution as well as FHFA’s implied contractual duties.
The government’s confiscation of the entire earnings of the Companies also violates federal statutes and the government’s fiduciary duties to the Companies’ shareholders, and the plaintiffs in this case intend to pursue their legal rights on those claims separately in an appropriate forum.
ABOUT PERSHING SQUARE
Pershing Square, based in New York City, is an SEC-registered investment advisor to private investment funds. Funds managed by Pershing Square own securities of Fannie Mae and Freddie Mac. Pershing Square may increase, decrease, dispose of, or change the form of its
investment in Fannie Mae and Freddie Mac for any or no reason, at any time. Pershing Square disclaims any obligation to notify the market of any such changes.
The full court document regarding the Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) lawsuit is embedded below in scribd
Verified Complaint (1) Fannie Mae Freddie Mac Pershing Square
Sign Up For Our Free Newsletter to never miss an article.
There was nothing in your post commander sir. $$FNMA$$
Agree. Definitely a funny sunny guy. Very welcome here in my opinion.
Unlike our alongz4thesuuck.
Investors Unite Press Conference Yesterday in Atlanta - Ending the Conservatorship
Fannie Mae and Freddie Mac Investors in Atlanta Implore Government to Follow The Rule of Law
- August 14, 2014
Individual investors in mortgage-giants Fannie Mae and Freddie Mac today implored Federal Housing Finance Agency Director Mel Watt to exercise his authority to end the illegal taking of investor dividends through a federal conservatorship that was slipped into law two years ago.
“As of today, the majority of my retirement savings are invested in Fannie and Freddie,” said investor Upendra Kulkarni, who owns a small IT consulting business in Alpharetta, GA. “Before and after the economic downtown in 2008, I decided to invest in the companies as they supported millions of Americans in fulfilling their American Dream of homeownership.”
At the same time, the government infused $187.5 billion into Fannie and Freddie to ensure that these important institutions did not fail. While this was an expensive action, the alternative – allowing Fannie and Freddie to fail and thereby ensuring that the mortgages they held would go into default – was unthinkable. Unlike the auto bailouts, the tax dollars were provided as a loan, and as of March 2014, both Fannie Mae and Freddie Mac have fully repaid that loan. “Even the notion that Fannie and Freddie were in trouble is being challenged. Of the $187.5 billion they were advanced, much of that money really wasn’t needed. And it was paid back in a very quick manner. As of March 2014, the loans were fully repaid and then some. In fact, Fannie and Freddie paid the government $40 billion over what they received. That money is currently being used to offset the deficit instead of going back and helping recapitalize the housing industry.” said Tim Pagliara, a former Fannie Mae executive and chairman of Investors Unite, a coalition of more than 800 Fannie Mae and Freddie Mac investors who are petitioning the government to end the conservatorship.
In August 2012, however, the U.S. Treasury enacted a Third Amendment “sweep” of Fannie Mae’s and Freddie Mac’s dividend profits, claiming all of the companies’ profits for the federal government. Since then, Fannie and Mae have paid more than $40 billion to the greater Treasury fund instead of investors earning the dividends they are contractually owed as a result of their investments.
“This marks a historic milestone in the government’s blatant disregard for the rule of law and disrespect for marketplace standards,” Mr. Pagliara said.
Mr. Pagliara’s and Mr. Kulkarni’s remarks came during a press briefing in advance of an event hosting by Director Watt to address affordable housing options for Atlanta-area residents. Mr. Watt so far has declined to meet with investors to discuss ending the conservatorship.
“I am pleased that Director Watt is taking to the road to discuss importance issues in housing finance reform and the Federal Housing Finance Agency,” Mr. Pagliara said. “It is essential that these issues are brought forth to those that these decisions will impact the most and that every stakeholder has a seat at the table to discuss why housing reform is important.”
While partisan gridlock in Washington, D.C., is often faulted for holding up important pieces of legislation that could help the American people, in this case, it is protecting current and future homeowners against misguided GSE reform legislation that fail to address the government’s overreach into the housing market. Reforms must focus on the fundamentals of transparency and fairness if they are to ensure a robust housing market that benefits bot underserved populations and millennials looking to jumpstart their own American Dream.
Mr. Pagliara and other investors expressed hope that they would be able to meet with Mr. Watt while he was in Atlanta to address an end to the conservatorship. During his remarks, Mr. Pagliara referenced an opinion piece from a close colleague of Mr. Watt’s days it the U.S. House of Representatives. Mr. Watt and former Congresswoman Eva Clayton represented parts of North Carolina.
“A strong housing market requires private capital, and private capital follows the rule of law,” Mr. Pagliara quoted from Ms. Clayton’s op-ed in the Charlotte Observer.
While some have argued that investors should be cut out of the loop entirely, Mr. Kulkarni, who spoke for hundreds of his fellow investors, made clear what is at stake if the government continues its illegal actions of taking all of Fannie Mae’s and Freddie Mac’s dividend profits.
“The government’s conservatorship and Third Amendment Sweep leave me holding nothing,” Mr. Kulkarni said. “This behavior sets a bad precedent, sending the message that the government can takeover shares of a company without any explanation or compensation plan for shareholders. Individual investors are hanging in the balance, wondering if we will ever recover the money we invested in the U.S. housing system for our retirement, for our children’s education, and for general savings. It is time that we are heard and those in charge pay attention. We are not hedge funds or big banks, we are Americans demanding the government does what is right and follows the rule of law.”
Cool, thank you for reporting on this, go Fannie
Nice position. Dont know how far she goes. I am gonna keep my eye on the usual during a run; resistances, RSI, MFI. Hope we break that 6. It would be awesome. Chart is completely primed for takeoff. GL.
On Fox a few hours ago they interviewed Ed Pinto the ex vice president for Fannie Mae. Their discussion was about subprime mortgages, delinquent mortgages, sneaking back into the market and he said the government was jawboning lenders to offer more of them which he didn’t see as a good thing. He mentioned Barney Frank pushing them before the crisis and how he should have been dealt with but wasn’t
Then he was asked about the winding down of Fannie and Freddie and what he thought the government might try next. He then said that there was no chance that he saw of anything along the line of winding them down occurring until 2017 and if not then, not at all. He was asked a few more questions and rephrased that to nothing will happen until the next housing crises.
He does seem to be able to persuade hedge fund friends, so I'm still going to be ready for any action.
Lol wuuuuut
Still got my 3.91's and 4's fluff shares....hope they will be useful soon lol. Could this be the 5th wave...da one that takes us to the $7-8 range?
Ackmans new law suite is nice for us but I doubt it will make much difference on the stock price. Until judge sweeney rules this is just hyped up enthusiasm. I doubt you will see the stock price go much higher than $4.
Amen to your post! Patience is Required! Days like today make it easier to wait it out imo!! : ) $ FNMA
Thanks! I joined the suit at Investors Unite web site, just signed up as a Fnma shareholder with email address! Everyone should do this if they can!! FNMA $$$$$
great Pershing Square news!!!
WONG again!!!!
Pershing Square sues US over Fannie Mae, Freddie Mac
34 Mins Ago Reuters
Jin Lee | Bloomberg | Getty Images
William 'Bill' Ackman, founder and chief executive officer of Pershing Square Capital Management LP, speaks during an event in New York, U.S.
Pershing Square Capital Management LP, the hedge fund firm run by William Ackman, on Thursday sued the U.S. government, claiming that its stripping of profits from Fannie Mae and Freddie Mac unconstitutionally short changes investors in the companies' common stock.
In a complaint filed with the U.S. Court of Federal Claims in Washington, D.C., Pershing said the practice since 2012 of sweeping profits from government-controlled Fannie and Freddie into the U.S. Treasury as dividends creates a "windfall" for the government at the expense of shareholders.
It said the practice violates the Fifth Amendment of the U.S. Constitution by taking private property for public use without just compensation. The lawsuit seeks damages and other remedies.
The Treasury Department and the Federal Housing Finance Agency, which oversees Fannie and Freddie, were not immediately available for comment.
Thanks commander iv'e got some reading to do. $$FNMA$$
Its a good thing that you are young
so you will have plenty of time to re coup your loss but remember
you are only allowed to write off 3 k per year stock loss. First year
you can write off the 3 grand and the rest the 2nd year. Let me give
you a quick refresher course in Fannie Mae.
1 Conservatorship status. Shares actually have no value
2.Total profit sweep. USG takes all profits shareholders get zero.
3. Stock trades on High risk Pink sheets
4. Frivolous lawsuits will take years. 10 years plus possible to
resolve and USG will win in the end.
Link to Lawsuit filed today by ACKMAN against the U.S.
http://www.scribd.com/doc/236850558/Verified-...ing-Square
Pershing Files Lawsuit Over Fannie Mae, Freddie Mac
by VW StaffAugust 14, 2014, 6:10 pm
COMMON SHAREHOLDERS OF FANNIE, FREDDIE FILE SUIT AGAINST UNITED STATES GOVERNMENT Complaint, Filed by Three Individuals and Pershing Square, Challenges the Government’s Ongoing Confiscation of All the Companies’ Profits
Dan Freed of TheStreet reported earlier today that Bill Ackman’s Pershing Square would be filing a lawsuit over the Government’s treatment of Fannie Mae and Freddie Mac shareholders. Pershing Square has just officially filed suit. Below readers can see the press release as well as the full court document.
Also see Pershing Square Q2 Letter: IPO, Herbalife, Reflections
Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) lawsuit
New York, N.Y, August 14, 2014 //- Today, common shareholders of the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”) filed suit in the U.S. Court of Federal Claims seeking to remedy the federal government’s unlawful taking of shareholders’ rights and property in Fannie and Freddie and other violations of law. The shareholder plaintiffs are three individuals and Pershing Square Capital Management, L.P. (“Pershing Square”). The defendant is the United States government, including the U.S. Department of the Treasury and the Federal Housing Finance Agency (“FHFA”).
The complaint challenges the government’s ongoing confiscation of all profits of Fannie Mae and Freddie Mac (the “Companies”). According to the filing, the government is expropriating the Companies’ profits through a 2012 arrangement (the “Net Worth Sweep Agreements”) by which FHFA, purportedly acting as the conservator of the Companies, and Treasury agreed to strip all earnings from both Companies and sweep them to Treasury in cash, every quarter, in perpetuity. These Net Worth Sweeps implement what internal Treasury documents had earlier described as the Administration’s “commitment” to “ensure existing common equity holders will not have access to any positive earnings from the [Companies] in the future.”
The three individual common shareholders who have brought this suit are a retired nurse who holds common shares of Fannie Mae first purchased over 25 years ago and a retired scientist and retired psychiatric social worker who have held Fannie Mae common shares for approximately 15 years. They are joined by Pershing Square, which is the Companies’ largest common shareholder, with an approximate 10% stake in the outstanding common stock of each Company. Today’s complaint follows other lawsuits, brought primarily by institutional shareholders of the Companies’ preferred stock, which also challenge the Net Worth Sweep Agreements. The common shareholders bringing today’s suit seek to challenge the government’s illegal actions and vindicate and protect their rights as common shareholders of the privately owned, for-profit Companies as chartered by Congress.
Applicable law requires FHFA as conservator to “preserve and conserve” the Companies’ “assets and property” and to “put [them] in a sound and solvent condition.” Instead, through the Net Worth Sweeps the government has taken the Companies’ profits for itself without any compensation to the Companies’ shareholders. The Net Worth Sweeps treat the Plaintiffs—and all of the other common shareholders—as “shareholders” in name only, rather than as the owners of the Company with relevant property rights as conferred by law. Today’s complaint charges that the government’s action violates the Takings Clause of the Fifth Amendment to the United States Constitution as well as FHFA’s implied contractual duties.
The government’s confiscation of the entire earnings of the Companies also violates federal statutes and the government’s fiduciary duties to the Companies’ shareholders, and the plaintiffs in this case intend to pursue their legal rights on those claims separately in an appropriate forum.
ABOUT PERSHING SQUARE
Pershing Square, based in New York City, is an SEC-registered investment advisor to private investment funds. Funds managed by Pershing Square own securities of Fannie Mae and Freddie Mac. Pershing Square may increase, decrease, dispose of, or change the form of its
investment in Fannie Mae and Freddie Mac for any or no reason, at any time. Pershing Square disclaims any obligation to notify the market of any such changes.
The full court document regarding the Fannie Mae / Federal National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) lawsuit is embedded below in scribd
Verified Complaint (1) Fannie Mae Freddie Mac Pershing Square
Sign Up For Our Free Newsletter to never miss an article.
There was nothing in your post commander sir. $$FNMA$$
Agree. Definitely a funny sunny guy. Very welcome here in my opinion.
Unlike our alongz4thesuuck.
