FNMA Opinions 08/22/2014 09:28:14 $FNMA
LEVEL II ... BID support
experienced TRADERS "buy" when stock is "on sale " !!!
What Others Are Saying
Byron Tau reporting in Politico says that the Financial Services Roundtable (FSR) has a problem with the Consumer Finance Protection Board’s (CFPB) plan to permit consumers to post financial services complaints on a government provided website.
FSR PUSHES BACK AGAINST ANONYMOUS CONSUMER REPORTING: The Financial Services Roundtable is launching a new multimedia campaign on Monday blasting a proposal from the Consumer Financial Protection Bureau that would allow consumers to post complaints about financial services companies on a government-run website. The association representing the financial services industry raises concerns that those complaints will be "unverified, anonymous and potentially inaccurate." 'The CFPB's plan will feature only one side of the story, and such one-sided accounts will not advance the CFPB's mission of better informing and helping consumers," said FSR President & CEO Tim Pawlenty in a statement. The new FSR campaign includes advertising in Washington metro stations, as well as a social media ad buy.
Hubris, Squared? Or Just Idiocy
Dick Kovacevich, former Wells Fargo chairman & CEO, explains why he thinks the massive $17 billion Bank of America settlement with the Justice Department is extortion. Companies don't commit crimes, people do, contends Kovacevich.
http://video.cnbc.com/gallery/?video=3000304055&play=1
Really Dick, nobody at Wells committed any crimes???
(Thanks DF for sending me this clip.)
http://malonigse.blogspot.com/
FNMA Stock Message Board http://investorshangout.com/Fannie-Mae-FNMA-61730/
Bill Maloni's GSE Blog
My initial entry, into the world of "blogging," is meant to be a personal periodic commentary—for friends and others--on business and political issues surrounding Fannie Mae and Freddie Mac, the two secondary mortgage market government sponsored enterprises (GSE).
Friday, August 22, 2014
It's Still Summer
Third Week Cats and Dogs
I am going out of town this weekend to see family and meet old friends in Pittsburgh for an unofficial reunion, so I wanted to get this week’s blog out before traveling.
Summer is the dead time in DC with the Congress gone and most of those who cover or relate also on their summer vacations, but stuff still goes on.
Earlier this week, John Bancroft from Inside Mortgage Finance reported following his gleanings of bank call reports that bank income from mortgage activity rose significantly in the second quarter of 2014 to almost $4.91 Billion, up 45% over the first three months of the year.
Those figures are down from 2012 and 2013 numbers, but still are healthy give the many ways banks can generate revenue.
I want to juxtapose those earnings with three items. The first is that overall bank earnings through the second quarter were up to almost all-time highs, meaning those levels were achieved with smaller mortgage profits.
The broader positive numbers haven’t stopped the bank Washington lobbyists from demanding additional support from the federal government to enhance their members’ bottom lines. (See last week’s discussion about the Financial Services Roundtable call on Treasury to help its members restore faith in private labels securities, PLS).
I hope someone in this Treasury Department responded to the FSR by channeling their best John F. Kennedy, saying, “Governor Pawlenty, Mr. Dalton, ask not what your country can……”
Most important to me, the increase in quarterly bank profits which IMF reported comes with Fannie and Freddie underpinning the national market supporting whatever mortgage activity the banks conduct, meaning working cooperatively with those banks that made so much cash.
Inside the Beltway rhetoric is one thing, but I believe there are many large banks, including at least one of the TBTF banks, which see F&F as a desirable market component and key to their mortgage. lending business activity.
It’s only logical, since securitizing through F&F takes the risk from the bank balance sheets and transfers it to the guarantors and obviously, the financial institutions still make money. And it is an easy and smooth operation, with which all banks and mortgage companies are familiar.
Yet, everyone assumes that the banks hate and want to destroy Fannie and Freddie. Maybe their trade groups do because some in Congress look to them for that very response. Someone should ask the banks top execs and then parse their answers carefully.
Here’s Bancroft’s IMF story.
http://www.insidemortgagefinance.com/imfnews/...610-1.html
Ferguson, Missouri and the GSEs???
In my wildest dreams, I never would conflate the chilling events in Ferguson with Fannie and Freddie, but that didn’t stop Rafferty Capital Market’s analyst Richard Bove from doing so earlier this week in a novel approach putting down the CorkerWarnerJohnsonCrapo Senate bill, which the Obama Administration supported.
Bove’s thesis is that Ferguson like many, many other hardcore urban communities could benefit from what F&F do best which is to finance homeownership and that some of the community angst, which exploded after the killing of an unarmed 18 year old man by a police officer, reflects a certain level of hopelessness and disinvestment that owning a home, having a greater stake in the community and the schools and representation could ameliorate.
Bove is worth reading, if for no other reason, than while temporarily quiet, the community could erupt again, once grand jury testimony and police reports start emerging.
I am not sure if anything Fannie or Freddie could do, going forward, can help Ferguson but they might help in other communities before they become the next Ferguson.
http://www.thestreet.mobi/story/12851727/1/fe...-bove.html
Carney Sees No F&F Help from Ackman
I wouldn’t cast the WSJ’s John Carney as a “Fannie-fan,” far from it.
Writing pessimistically in the Journal last week, Carney threw out several reason why he thought the new lawsuits by Pershing Square’s Bill Ackman, largest holder of Fannie and Freddie common stock, would not lead to anything, citing some of the bizarre Catch-22 provisions in the whole “conservatorship” gestalt and even why a plaintiff’s victory might not get them much. He also didn’t think the GSEs would be positive earners.
Here’s Carney’s story.
http://finance.yahoo.com/news/snatching-defea...00834.html
He could be spot on, but I doubt it.
In a message to Carney, I told him why his overreliance on the "conservatorship" deal parameters might be wrong, primarily because Obama Administration or a new one in 2017—if so motivated--simply could change the applicable conservatorship rules if it chose.
And, depending on when Judge Sweeney renders a decision, a Democrat President could want to use a plaintiff’s decision to recapitalize the two, while a conservative Republican chief exec might just agree with the investors and want to see them benefit financially.
ISIL/ISIS/IS (Whatever)
Yes, destructive US air assaults may anger the IS, but could they really be anymore pissed at us? They already threatened to see us “in New York.” It would seem if we offered the Syrian government and their Russian sponsors some heavy (and repeated) carpet bombing in eastern Syria--where the bad guys reportedly have 50,000 fighters—we could kill a lot of the troglodytes and make others think twice about joining. That could soften them up for the Syrian and other anti-Syrian forces battling them, not to mention the Iraqi Army and the Kurds waiting for them in northern Iraq.
IS likely will kill the other American they hold and be grisly about it, and then what will the President do, really get angry with IS?
Just a thought.
Bill Maloni's GSE Blog
My initial entry, into the world of "blogging," is meant to be a personal periodic commentary—for friends and others--on business and political issues surrounding Fannie Mae and Freddie Mac, the two secondary mortgage market government sponsored enterprises (GSE).
Friday, August 22, 2014
It's Still Summer
Third Week Cats and Dogs
I am going out of town this weekend to see family and meet old friends in Pittsburgh for an unofficial reunion, so I wanted to get this week’s blog out before traveling.
Summer is the dead time in DC with the Congress gone and most of those who cover or relate also on their summer vacations, but stuff still goes on.
Earlier this week, John Bancroft from Inside Mortgage Finance reported following his gleanings of bank call reports that bank income from mortgage activity rose significantly in the second quarter of 2014 to almost $4.91 Billion, up 45% over the first three months of the year.
Those figures are down from 2012 and 2013 numbers, but still are healthy give the many ways banks can generate revenue.
I want to juxtapose those earnings with three items. The first is that overall bank earnings through the second quarter were up to almost all-time highs, meaning those levels were achieved with smaller mortgage profits.
The broader positive numbers haven’t stopped the bank Washington lobbyists from demanding additional support from the federal government to enhance their members’ bottom lines. (See last week’s discussion about the Financial Services Roundtable call on Treasury to help its members restore faith in private labels securities, PLS).
I hope someone in this Treasury Department responded to the FSR by channeling their best John F. Kennedy, saying, “Governor Pawlenty, Mr. Dalton, ask not what your country can……”
Most important to me, the increase in quarterly bank profits which IMF reported comes with Fannie and Freddie underpinning the national market supporting whatever mortgage activity the banks conduct, meaning working cooperatively with those banks that made so much cash.
Inside the Beltway rhetoric is one thing, but I believe there are many large banks, including at least one of the TBTF banks, which see F&F as a desirable market component and key to their mortgage. lending business activity.
It’s only logical, since securitizing through F&F takes the risk from the bank balance sheets and transfers it to the guarantors and obviously, the financial institutions still make money. And it is an easy and smooth operation, with which all banks and mortgage companies are familiar.
Yet, everyone assumes that the banks hate and want to destroy Fannie and Freddie. Maybe their trade groups do because some in Congress look to them for that very response. Someone should ask the banks top execs and then parse their answers carefully.
Here’s Bancroft’s IMF story.
http://www.insidemortgagefinance.com/imfnews/...610-1.html
Ferguson, Missouri and the GSEs???
In my wildest dreams, I never would conflate the chilling events in Ferguson with Fannie and Freddie, but that didn’t stop Rafferty Capital Market’s analyst Richard Bove from doing so earlier this week in a novel approach putting down the CorkerWarnerJohnsonCrapo Senate bill, which the Obama Administration supported.
Bove’s thesis is that Ferguson like many, many other hardcore urban communities could benefit from what F&F do best which is to finance homeownership and that some of the community angst, which exploded after the killing of an unarmed 18 year old man by a police officer, reflects a certain level of hopelessness and disinvestment that owning a home, having a greater stake in the community and the schools and representation could ameliorate.
Bove is worth reading, if for no other reason, than while temporarily quiet, the community could erupt again, once grand jury testimony and police reports start emerging.
I am not sure if anything Fannie or Freddie could do, going forward, can help Ferguson but they might help in other communities before they become the next Ferguson.
http://www.thestreet.mobi/story/12851727/1/fe...-bove.html
Carney Sees No F&F Help from Ackman
I wouldn’t cast the WSJ’s John Carney as a “Fannie-fan,” far from it.
Writing pessimistically in the Journal last week, Carney threw out several reason why he thought the new lawsuits by Pershing Square’s Bill Ackman, largest holder of Fannie and Freddie common stock, would not lead to anything, citing some of the bizarre Catch-22 provisions in the whole “conservatorship” gestalt and even why a plaintiff’s victory might not get them much. He also didn’t think the GSEs would be positive earners.
Here’s Carney’s story.
http://finance.yahoo.com/news/snatching-defea...00834.html
He could be spot on, but I doubt it.
In a message to Carney, I told him why his overreliance on the "conservatorship" deal parameters might be wrong, primarily because Obama Administration or a new one in 2017—if so motivated--simply could change the applicable conservatorship rules if it chose.
And, depending on when Judge Sweeney renders a decision, a Democrat President could want to use a plaintiff’s decision to recapitalize the two, while a conservative Republican chief exec might just agree with the investors and want to see them benefit financially.
ISIL/ISIS/IS (Whatever)
Yes, destructive US air assaults may anger the IS, but could they really be anymore pissed at us? They already threatened to see us “in New York.” It would seem if we offered the Syrian government and their Russian sponsors some heavy (and repeated) carpet bombing in eastern Syria--where the bad guys reportedly have 50,000 fighters—we could kill a lot of the troglodytes and make others think twice about joining. That could soften them up for the Syrian and other anti-Syrian forces battling them, not to mention the Iraqi Army and the Kurds waiting for them in northern Iraq.
IS likely will kill the other American they hold and be grisly about it, and then what will the President do, really get angry with IS?
Just a thought.
http://malonigse.blogspot.com/
I totally agree. But doing some simple observation tells me that a several $ hundred SP is extremely realistic.
Look at stocks like AAPL, MA, GOOG, AMZN, etc... all dealing in RETAIL, all several hundred w/post split adjustments. Technically so do the GSE's, except their products are homes... the most expensive item you can buy for the most part.
Maloni's New Blog: Still talking About F&F; Bank Profits; Carpet Bombing IS??
malonigse.blogspot.com/
When is the next event for FNMA?
Yea, but they'd have to change the show to 60 years to explain the corruption of this story
I am trying to get away from wishful thinking and trying to arrive at a fair value for FNMA & FMCC. I think one has to be realistic especially when making statements on a public site.
LEVEL II ... $3.87 ... light vol Friday
That was my understanding as well. I should have made that more clear in my post.
Quote:
@955-my understanding is/was - the deal was the Plaintiff (us) could not leak documents provided to them by the gmnt, if they did they could not use the information and would be subject to disbarment.
Their was no test to prove leak. Her assumption was the gmnt would not leak stuff that would hurt themselves.
exactly. and since they seem to be completely incapable of getting their fiscal house in order, they are not going to stop this until the courts step in. which they will. the us government is not a distressed asset hedge fund...
Next up was motion to compel filing by plaintiffs:
From 8/13/2014 Court Transcripts, p. 41:
Quote:
And, Your Honor, if I may suggest, we’re going to
5 bring forward a motion to compel within a week’s time -- we
6 do think that this is something that is critical, it’s
7 threshold in nature. Four months from now, you know, we hope
8 we’ll be done with this, but we hope we’ll be done with it on
9 the same page in terms of what their responsibilities are, to
10 look for documents and to provide responsive non-privileged
11 documents to us and a log for the ones that they say are
12 privileged. So, Your Honor, we’re going to do that within a
13 week.
https://timhoward717.files.wordpress.com/2014...17fair.pdf
Anyone hear the status of this? Was this filing made?
Buying some more at these levels. We remain flat this week and start moving back up over $4 next week IMO. I will start flipping the shares I buy today and keep my core 20K shares until release from government thievery.
@955-my understanding is/was - the deal was the Plaintiff (us) could not leak documents provided to them by the gmnt, if they did they could not use the information and would be subject to disbarment.
Their was no test to prove leak. Her assumption was the gmnt would not leak stuff that would hurt themselves.
Agreed, no admission of guilt, just buyouts by the criminals. In the lead-up to and following the crisis, Gov has overreached and now views itself as a for-profit entity placing it in direct competition with WS.
Quote:
at a certain point the gov is going to have to stop supplementing its income through these suits. they have made a tidy profit on the "bailouts". i am all for accountability, but at a point the actions by the gov are detrimental to the country's economic stability. Mainstreet doesn't care about these settlements by banks primarily for the actions of other institutions that they absorbed. they want to see individuals prosecuted for their actions and thrown in jail. Show a few c-levels being walked out of their mansions in cuffs and we are getting somewhere...
Please email 60 Minutes!
Please follow this to NavyCommander's Instructions.
Great idea and research by the Commander!
If 60 Minuntes gets a few dozen show requests it will put the GSE Saga on their Radar!
I believe the reason is, PLS.
Private-label mortgage backed securities are securitized mortgages that do not conform to the criteria set by the Government Sponsored Enterprises Freddie Mac, Fannie Mae and Ginnie Mae. The mortgages that make up these securities do not have the backing of the government and as a result carry a significantly greater risk. Below is a diagram that represents the types of mortgages that would not classify as GSE conforming loans.
http://securitization.weebly.com/private-label-mbs.html
$$ FNMA $$
HERE ya GO ... We can submit 60 minutes SHOW suggestions !
How can I suggest a story to 60 MINUTES?
A. If you wish to bring a matter to the attention of 60 MINUTES, you may do so in writing via postal mail.
Please write to:
Story Editor
60 MINUTES
CBS News
524 West 57th Street
New York, NY 10019
60 MINUTES requests that all story suggestions be submitted in concise, written form.
Please do not send any original documents or additional materials that would need to be returned.
We receive a large number of story suggestions each week and cannot guarantee response or return of materials.
Alternately, you may send your request via email to 60m@cbsnews.com. If a 60 MINUTES producer does not
contact you directly within 4 to 5 weeks, you may assume that CBS News is not going to report your story.
The tide is changing rapidly.... we will reach the shore safely and we will eventually prevail. Justice is key to America's success. .. The law is above any politician and judge Sweeney is not about to let anyone mess with America.
LEVEL II ... BID support
experienced TRADERS "buy" when stock is "on sale " !!!
What Others Are Saying
Byron Tau reporting in Politico says that the Financial Services Roundtable (FSR) has a problem with the Consumer Finance Protection Board’s (CFPB) plan to permit consumers to post financial services complaints on a government provided website.
FSR PUSHES BACK AGAINST ANONYMOUS CONSUMER REPORTING: The Financial Services Roundtable is launching a new multimedia campaign on Monday blasting a proposal from the Consumer Financial Protection Bureau that would allow consumers to post complaints about financial services companies on a government-run website. The association representing the financial services industry raises concerns that those complaints will be "unverified, anonymous and potentially inaccurate." 'The CFPB's plan will feature only one side of the story, and such one-sided accounts will not advance the CFPB's mission of better informing and helping consumers," said FSR President & CEO Tim Pawlenty in a statement. The new FSR campaign includes advertising in Washington metro stations, as well as a social media ad buy.
Hubris, Squared? Or Just Idiocy
Dick Kovacevich, former Wells Fargo chairman & CEO, explains why he thinks the massive $17 billion Bank of America settlement with the Justice Department is extortion. Companies don't commit crimes, people do, contends Kovacevich.
http://video.cnbc.com/gallery/?video=3000304055&play=1
Really Dick, nobody at Wells committed any crimes???
(Thanks DF for sending me this clip.)
http://malonigse.blogspot.com/
FNMA Stock Message Board http://investorshangout.com/Fannie-Mae-FNMA-61730/
Bill Maloni's GSE Blog
My initial entry, into the world of "blogging," is meant to be a personal periodic commentary—for friends and others--on business and political issues surrounding Fannie Mae and Freddie Mac, the two secondary mortgage market government sponsored enterprises (GSE).
Friday, August 22, 2014
It's Still Summer
Third Week Cats and Dogs
I am going out of town this weekend to see family and meet old friends in Pittsburgh for an unofficial reunion, so I wanted to get this week’s blog out before traveling.
Summer is the dead time in DC with the Congress gone and most of those who cover or relate also on their summer vacations, but stuff still goes on.
Earlier this week, John Bancroft from Inside Mortgage Finance reported following his gleanings of bank call reports that bank income from mortgage activity rose significantly in the second quarter of 2014 to almost $4.91 Billion, up 45% over the first three months of the year.
Those figures are down from 2012 and 2013 numbers, but still are healthy give the many ways banks can generate revenue.
I want to juxtapose those earnings with three items. The first is that overall bank earnings through the second quarter were up to almost all-time highs, meaning those levels were achieved with smaller mortgage profits.
The broader positive numbers haven’t stopped the bank Washington lobbyists from demanding additional support from the federal government to enhance their members’ bottom lines. (See last week’s discussion about the Financial Services Roundtable call on Treasury to help its members restore faith in private labels securities, PLS).
I hope someone in this Treasury Department responded to the FSR by channeling their best John F. Kennedy, saying, “Governor Pawlenty, Mr. Dalton, ask not what your country can……”
Most important to me, the increase in quarterly bank profits which IMF reported comes with Fannie and Freddie underpinning the national market supporting whatever mortgage activity the banks conduct, meaning working cooperatively with those banks that made so much cash.
Inside the Beltway rhetoric is one thing, but I believe there are many large banks, including at least one of the TBTF banks, which see F&F as a desirable market component and key to their mortgage. lending business activity.
It’s only logical, since securitizing through F&F takes the risk from the bank balance sheets and transfers it to the guarantors and obviously, the financial institutions still make money. And it is an easy and smooth operation, with which all banks and mortgage companies are familiar.
Yet, everyone assumes that the banks hate and want to destroy Fannie and Freddie. Maybe their trade groups do because some in Congress look to them for that very response. Someone should ask the banks top execs and then parse their answers carefully.
Here’s Bancroft’s IMF story.
http://www.insidemortgagefinance.com/imfnews/...610-1.html
Ferguson, Missouri and the GSEs???
In my wildest dreams, I never would conflate the chilling events in Ferguson with Fannie and Freddie, but that didn’t stop Rafferty Capital Market’s analyst Richard Bove from doing so earlier this week in a novel approach putting down the CorkerWarnerJohnsonCrapo Senate bill, which the Obama Administration supported.
Bove’s thesis is that Ferguson like many, many other hardcore urban communities could benefit from what F&F do best which is to finance homeownership and that some of the community angst, which exploded after the killing of an unarmed 18 year old man by a police officer, reflects a certain level of hopelessness and disinvestment that owning a home, having a greater stake in the community and the schools and representation could ameliorate.
Bove is worth reading, if for no other reason, than while temporarily quiet, the community could erupt again, once grand jury testimony and police reports start emerging.
I am not sure if anything Fannie or Freddie could do, going forward, can help Ferguson but they might help in other communities before they become the next Ferguson.
http://www.thestreet.mobi/story/12851727/1/fe...-bove.html
Carney Sees No F&F Help from Ackman
I wouldn’t cast the WSJ’s John Carney as a “Fannie-fan,” far from it.
Writing pessimistically in the Journal last week, Carney threw out several reason why he thought the new lawsuits by Pershing Square’s Bill Ackman, largest holder of Fannie and Freddie common stock, would not lead to anything, citing some of the bizarre Catch-22 provisions in the whole “conservatorship” gestalt and even why a plaintiff’s victory might not get them much. He also didn’t think the GSEs would be positive earners.
Here’s Carney’s story.
http://finance.yahoo.com/news/snatching-defea...00834.html
He could be spot on, but I doubt it.
In a message to Carney, I told him why his overreliance on the "conservatorship" deal parameters might be wrong, primarily because Obama Administration or a new one in 2017—if so motivated--simply could change the applicable conservatorship rules if it chose.
And, depending on when Judge Sweeney renders a decision, a Democrat President could want to use a plaintiff’s decision to recapitalize the two, while a conservative Republican chief exec might just agree with the investors and want to see them benefit financially.
ISIL/ISIS/IS (Whatever)
Yes, destructive US air assaults may anger the IS, but could they really be anymore pissed at us? They already threatened to see us “in New York.” It would seem if we offered the Syrian government and their Russian sponsors some heavy (and repeated) carpet bombing in eastern Syria--where the bad guys reportedly have 50,000 fighters—we could kill a lot of the troglodytes and make others think twice about joining. That could soften them up for the Syrian and other anti-Syrian forces battling them, not to mention the Iraqi Army and the Kurds waiting for them in northern Iraq.
IS likely will kill the other American they hold and be grisly about it, and then what will the President do, really get angry with IS?
Just a thought.
Bill Maloni's GSE Blog
My initial entry, into the world of "blogging," is meant to be a personal periodic commentary—for friends and others--on business and political issues surrounding Fannie Mae and Freddie Mac, the two secondary mortgage market government sponsored enterprises (GSE).
Friday, August 22, 2014
It's Still Summer
Third Week Cats and Dogs
I am going out of town this weekend to see family and meet old friends in Pittsburgh for an unofficial reunion, so I wanted to get this week’s blog out before traveling.
Summer is the dead time in DC with the Congress gone and most of those who cover or relate also on their summer vacations, but stuff still goes on.
Earlier this week, John Bancroft from Inside Mortgage Finance reported following his gleanings of bank call reports that bank income from mortgage activity rose significantly in the second quarter of 2014 to almost $4.91 Billion, up 45% over the first three months of the year.
Those figures are down from 2012 and 2013 numbers, but still are healthy give the many ways banks can generate revenue.
I want to juxtapose those earnings with three items. The first is that overall bank earnings through the second quarter were up to almost all-time highs, meaning those levels were achieved with smaller mortgage profits.
The broader positive numbers haven’t stopped the bank Washington lobbyists from demanding additional support from the federal government to enhance their members’ bottom lines. (See last week’s discussion about the Financial Services Roundtable call on Treasury to help its members restore faith in private labels securities, PLS).
I hope someone in this Treasury Department responded to the FSR by channeling their best John F. Kennedy, saying, “Governor Pawlenty, Mr. Dalton, ask not what your country can……”
Most important to me, the increase in quarterly bank profits which IMF reported comes with Fannie and Freddie underpinning the national market supporting whatever mortgage activity the banks conduct, meaning working cooperatively with those banks that made so much cash.
Inside the Beltway rhetoric is one thing, but I believe there are many large banks, including at least one of the TBTF banks, which see F&F as a desirable market component and key to their mortgage. lending business activity.
It’s only logical, since securitizing through F&F takes the risk from the bank balance sheets and transfers it to the guarantors and obviously, the financial institutions still make money. And it is an easy and smooth operation, with which all banks and mortgage companies are familiar.
Yet, everyone assumes that the banks hate and want to destroy Fannie and Freddie. Maybe their trade groups do because some in Congress look to them for that very response. Someone should ask the banks top execs and then parse their answers carefully.
Here’s Bancroft’s IMF story.
http://www.insidemortgagefinance.com/imfnews/...610-1.html
Ferguson, Missouri and the GSEs???
In my wildest dreams, I never would conflate the chilling events in Ferguson with Fannie and Freddie, but that didn’t stop Rafferty Capital Market’s analyst Richard Bove from doing so earlier this week in a novel approach putting down the CorkerWarnerJohnsonCrapo Senate bill, which the Obama Administration supported.
Bove’s thesis is that Ferguson like many, many other hardcore urban communities could benefit from what F&F do best which is to finance homeownership and that some of the community angst, which exploded after the killing of an unarmed 18 year old man by a police officer, reflects a certain level of hopelessness and disinvestment that owning a home, having a greater stake in the community and the schools and representation could ameliorate.
Bove is worth reading, if for no other reason, than while temporarily quiet, the community could erupt again, once grand jury testimony and police reports start emerging.
I am not sure if anything Fannie or Freddie could do, going forward, can help Ferguson but they might help in other communities before they become the next Ferguson.
http://www.thestreet.mobi/story/12851727/1/fe...-bove.html
Carney Sees No F&F Help from Ackman
I wouldn’t cast the WSJ’s John Carney as a “Fannie-fan,” far from it.
Writing pessimistically in the Journal last week, Carney threw out several reason why he thought the new lawsuits by Pershing Square’s Bill Ackman, largest holder of Fannie and Freddie common stock, would not lead to anything, citing some of the bizarre Catch-22 provisions in the whole “conservatorship” gestalt and even why a plaintiff’s victory might not get them much. He also didn’t think the GSEs would be positive earners.
Here’s Carney’s story.
http://finance.yahoo.com/news/snatching-defea...00834.html
He could be spot on, but I doubt it.
In a message to Carney, I told him why his overreliance on the "conservatorship" deal parameters might be wrong, primarily because Obama Administration or a new one in 2017—if so motivated--simply could change the applicable conservatorship rules if it chose.
And, depending on when Judge Sweeney renders a decision, a Democrat President could want to use a plaintiff’s decision to recapitalize the two, while a conservative Republican chief exec might just agree with the investors and want to see them benefit financially.
ISIL/ISIS/IS (Whatever)
Yes, destructive US air assaults may anger the IS, but could they really be anymore pissed at us? They already threatened to see us “in New York.” It would seem if we offered the Syrian government and their Russian sponsors some heavy (and repeated) carpet bombing in eastern Syria--where the bad guys reportedly have 50,000 fighters—we could kill a lot of the troglodytes and make others think twice about joining. That could soften them up for the Syrian and other anti-Syrian forces battling them, not to mention the Iraqi Army and the Kurds waiting for them in northern Iraq.
IS likely will kill the other American they hold and be grisly about it, and then what will the President do, really get angry with IS?
Just a thought.
http://malonigse.blogspot.com/
I totally agree. But doing some simple observation tells me that a several $ hundred SP is extremely realistic.
Look at stocks like AAPL, MA, GOOG, AMZN, etc... all dealing in RETAIL, all several hundred w/post split adjustments. Technically so do the GSE's, except their products are homes... the most expensive item you can buy for the most part.
Maloni's New Blog: Still talking About F&F; Bank Profits; Carpet Bombing IS??
malonigse.blogspot.com/
When is the next event for FNMA?
Yea, but they'd have to change the show to 60 years to explain the corruption of this story
I am trying to get away from wishful thinking and trying to arrive at a fair value for FNMA & FMCC. I think one has to be realistic especially when making statements on a public site.
LEVEL II ... $3.87 ... light vol Friday
That was my understanding as well. I should have made that more clear in my post.
Quote:
@955-my understanding is/was - the deal was the Plaintiff (us) could not leak documents provided to them by the gmnt, if they did they could not use the information and would be subject to disbarment.
Their was no test to prove leak. Her assumption was the gmnt would not leak stuff that would hurt themselves.
exactly. and since they seem to be completely incapable of getting their fiscal house in order, they are not going to stop this until the courts step in. which they will. the us government is not a distressed asset hedge fund...
Next up was motion to compel filing by plaintiffs:
From 8/13/2014 Court Transcripts, p. 41:
Quote:
And, Your Honor, if I may suggest, we’re going to
5 bring forward a motion to compel within a week’s time -- we
6 do think that this is something that is critical, it’s
7 threshold in nature. Four months from now, you know, we hope
8 we’ll be done with this, but we hope we’ll be done with it on
9 the same page in terms of what their responsibilities are, to
10 look for documents and to provide responsive non-privileged
11 documents to us and a log for the ones that they say are
12 privileged. So, Your Honor, we’re going to do that within a
13 week.
https://timhoward717.files.wordpress.com/2014...17fair.pdf
Anyone hear the status of this? Was this filing made?
Buying some more at these levels. We remain flat this week and start moving back up over $4 next week IMO. I will start flipping the shares I buy today and keep my core 20K shares until release from government thievery.
@955-my understanding is/was - the deal was the Plaintiff (us) could not leak documents provided to them by the gmnt, if they did they could not use the information and would be subject to disbarment.
Their was no test to prove leak. Her assumption was the gmnt would not leak stuff that would hurt themselves.
Agreed, no admission of guilt, just buyouts by the criminals. In the lead-up to and following the crisis, Gov has overreached and now views itself as a for-profit entity placing it in direct competition with WS.
Quote:
at a certain point the gov is going to have to stop supplementing its income through these suits. they have made a tidy profit on the "bailouts". i am all for accountability, but at a point the actions by the gov are detrimental to the country's economic stability. Mainstreet doesn't care about these settlements by banks primarily for the actions of other institutions that they absorbed. they want to see individuals prosecuted for their actions and thrown in jail. Show a few c-levels being walked out of their mansions in cuffs and we are getting somewhere...
Please email 60 Minutes!
Please follow this to NavyCommander's Instructions.
Great idea and research by the Commander!
If 60 Minuntes gets a few dozen show requests it will put the GSE Saga on their Radar!
I believe the reason is, PLS.
Private-label mortgage backed securities are securitized mortgages that do not conform to the criteria set by the Government Sponsored Enterprises Freddie Mac, Fannie Mae and Ginnie Mae. The mortgages that make up these securities do not have the backing of the government and as a result carry a significantly greater risk. Below is a diagram that represents the types of mortgages that would not classify as GSE conforming loans.
http://securitization.weebly.com/private-label-mbs.html
$$ FNMA $$
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The tide is changing rapidly.... we will reach the shore safely and we will eventually prevail. Justice is key to America's success. .. The law is above any politician and judge Sweeney is not about to let anyone mess with America.
