FNMA Alerts 08/28/2014 14:26:32 $FNMA
THE 187 BILLION DOLLAR LIE. 1:03 AM (edited) Complete Version Still Posted
28 Monday Jul 2014
Posted by timhoward717 in Uncategorized
Of all the lies regarding Fannie and Freddie, (GSE’s) the most pervasive of all is the 187 billion dollar amount. This figure is incorrectly used over and again when calculating how much Fannie and Freddie required from the tax payers until they became profitable in 2012.. It is breathtaking how this figure remains fixed in the public consciousness. It is even on the seemingly official http://projects.propublica.org/bailout/ site. It is repeated by virtually every media source and cited as gospel in every GSE discussion in DC. Let me clarify this for everyone, when the GSE’s were put into conservatorship the terms were that they would have to pay a quarterly dividend to the treasury every quarter based on an annual rate of 10% per year on the aggregate liquidation preference of the senior preferred stock. The treasury forced Fannie and Freddie to borrow additional money from the government every quarter to pay the dividend. For documentation, I am attaching “Fannie Mae Reports Fourth-Quarter and Full-Year 2011 Results” from Feb. 29th 2012. On page two, it clearly shows Draw Request from Treasury in tan and the Dividend Payment to Treasury in purple. You will see that a total of 4.6 billion was requested from the treasury, and 2.6 billion of that was to pay the 10% dividend. This is further explained on Page 9 of the report where it states: "The Acting Director of FHFA will request $ 4.571 billion of funds from Treasury on the company’s behalf under the terms of the senior preferred stock purchase agreement between Fannie Mae and Treasury to eliminate the company’s net worth deficit as of December 31, 2011. Fannie Mae’s fourth-quarter dividend of $2.6 billion on its senior preferred stock held by Treasury was declared by FHFA and paid by the company on December 31, 2011.”
February of 2012 was the last quarter that Fannie had to borrow money from the government to pay the dividend. So when the 187 billion dollar figure is thrown around it is critical that people understand that 55 billion of that was immediately paid back to the taxpayers. The reality is that, thus far, the taxpayers have not only recouped their 132 billion dollar investment but have netted a 26 billion dollar profit so far
In comparison, the taxpayers invested 424 billion for all the other bailouts combined their profit, thus far, a paltry 15.7 billion!.Let’s not stop here though let’s dig a little deeper. As we examined this lie closer we discovered that prior to the third-amendment profit sweep in August 2012 we find numerous sources that cited the correct amounts that Fannie and Freddie owed, they did not falsely include the interest payments in their figure. Many in the government regularly used the true amount prior to the sweep. So why the decision to perpetuate this outright lie? When it became clear in 2012 that the GSEs were going to begin to generate massive profits, the government made the fateful decision to do the unthinkable. They hastily crafted a ploy to divert all of Fannie and Freddies profits right into the treasury.They amended the terms to change the dividend from 10 percent to become all of Fannie and Freddies profits. And so began an unparalleled attempt to twist the truth.This marked a critical point in the completely false narrative that has been perpetuated by our government to defraud the shareholders of Fannie and Freddie of any profits and in a larger sense to rob America of the ability to have an honest and open debate based on facts. Up until this point it was already very difficult to discern fact from fiction when investigating the role of the U.S. government in the conservatorships of Fannie and Freddie, after the sweep it became virtually impossible.
The more we closely examine every aspect of the governments role in the Fannie and Freddie conservatorships it becomes very clear that little of what they say can be trusted as being factual. I would highly suggest that there can be no meaningful discussions on housing finance reform in this country until the court cases have been resolved, and we can begin to decipher the web of lies that the government has created. Keep the Faith!
Fannie reports 4th quarter and full year 2011
I am attaching “Fannie Mae Reports Fourth-Quarter and Full-Year 2011 Results” from Feb. 29th 2012. On page two, it clearly shows Draw Request from Treasury in tan and the Dividend Payment to Treasury in purple. You will see that a total of 4.6 billion was requested from the treasury, and 2.6 billion of that was to pay the 10% dividend. This is further explained on Page 9 of the report where it states:
“The Acting Director of FHFA will request $ 4.571 billion of funds from Treasury on the company’s behalf under the terms of the senior preferred stock purchase agreement between Fannie Mae and
Treasury to eliminate the company’s net worth deficit as of December 31, 2011. Fannie Mae’s fourth-quarter dividend of $2.6 billion on its senior preferred stock held by Treasury was declared by FHFA and paid by the company on December 31, 2011.”
February of 2012 was the last quarter that Fannie had to borrow money from the government to pay the dividend. So when the 187 billion dollar figure is thrown around it is critical that people understand that 55 billion of that was immediately paid back to the taxpayers. The reality is that, thus far, the taxpayers have not only recouped their 132 billion dollar investment but have netted an 26 billion dollar profit so far. In comparison, the taxpayers invested 424 billion for all the other bailouts combined their profit, thus far, a paltry 15.7 billion!.
Let’s not stop here though let’s dig a little deeper. As we examined this lie closer we discovered that prior to the third-amendment profit sweep in August 2012 we find numerous sources that cited the correct amounts that Fannie and Freddie owed, they did not falsely include the interest payments in their figure. Many in the government regularly used the true amount prior to the sweep. So why the decision to perpetuate this outright lie? When it became clear in 2012 that the GSEs were going to begin to generate massive profits, the government made the fateful decision to do the unthinkable. They hastily crafted a ploy to divert all of Fannie and Freddies profits right into the treasury.They amended the terms to change the dividend from 10 percent to become all of Fannie and Freddies profits. And so began an unparalleled attempt to twist the truth.This marked a critical point in the completely false narrative that has been perpetuated by our government to defraud the shareholders of Fannie and Freddie of any profits and in a larger sense to rob America of the ability to have an honest and open debate based on facts. Up until this point it was already very difficult to discern fact from fiction when investigating the role of the U.S. government in the conservatorships of Fannie and Freddie, after the sweep it became virtually impossible.
The more we closely examine every aspect of the governments role in the Fannie and Freddie conservatorships it becomes very clear that little of what they say can be trusted as being factual. I would highly suggest that there can be no meaningful discussions on housing finance reform in this country until the court cases have been resolved, and we can begin to decipher the web of lies that the government has created. Keep the Faith!
This Isn't 1st time they're reportedly selling office building. Didn't similar reports accompany all the talk of winding down the GSEs even before 2013? I'm not doubting they want to sell, nor that they will try. However, if wind down is at all still in the hopes of some politicians and power players, this story of selling the fannie building does nothing to disprove or diminish the wind down talk.
FNMA Stock Message Board http://investorshangout.com/Fannie-Mae-FNMA-61730/
Can we profile the common denominator here. All the presidents men have something in common. They are constitutional destroyers. Their thinking is non American.
Low volume walk down. Yesterdays run up gave the MM's leverage.
so 50-80 mil. we will have to add that to the govs. disgorgement tab...
ALONGFORZRIDE..AREN'T THE LAW PENDING SUIT DISPOSITIONS STILL RELAVENT HERE ALONG WITH POSSIBILITY OF RELEASE FROM CSHIP? IF IT IS WHAT PPS INCREASE CAN WE EXPECT? MANY OF YOU HAVE SAID ATLEAST $20!
And add more value: sacred land? Or where Jimmy Hoffa is buried in the landscaping there?
No, I agree, who cares about who takes credit. I'm just surprised that no one has yet. Seems like an excellent opportunity right now with the obvious amount of money the GSE's have made and paid back!
Fannie Mae Will Sell Headquarters in Washington. But What’s The Land Worth ?
Fannie Mae told its employees this week that it plans to sell its iconic headquarters in Northwest Washington, DC, and consolidate its five area office locations into one over the next two to three years.
The GSE’s preference is to stay in Washington, but it’s possible the company may not. Its chief competitor, Freddie Mac, is headquartered in McLean, VA, about eight miles from the nation’s capital.
The relocation rumor has been making the rounds at Fannie for a few years now. In the greater Washington metro area Fannie employs 4,700 workers.
Fannie, a ward of the government for almost six years, owns its headquarters at 3900 Wisconsin Avenue, but leases other locations in the area. It also occupies 4000 Wisconsin Ave. The company has offices in Virginia, Texas and California. Employees outside of the Washington area will not be affected, a spokeswoman clarified.
Back in the 1980s, when Fannie Mae was losing $1 million a day, it contemplated selling the property and came up with a value of $10 million to $15 million, said one former executive who worked at the GSE. Since then the property has increased in value probably by five-fold, at least.
Gee...give ole' Mr. Watt a call. It's ALL in his hands to say the least.
Who the hell cares just as long as FNMA is released... geesh. I don't give a crap who takes credit.
oh lord, don't give the treasury any ideas. a fnma/fmcc inversions could allow them to fire the accounting staff in the states and move the companies offshore so the treasury could save on the red tape involved in paying itself through income taxes and just sweep all the profits to the caymans were it can pay itself there
Maybe moving ohbummer overseas to some fancy golf course would be better.
Does anyone on this board REALLY CARE who takes credit for the release, as long as it IS released? Heck, I'm totally unpolitical, but if the worst politician in D.C. (are there any other kind?) were to take credit for the release, I'd would applaud him/her.
No arguments here!
mikoli007... That control is only 2 months and 1 week away. I'm glad he is playing golf. I wonder how much "Touch of Grey" he has to put in his hair to look like that job is having a toll on him? I'm more concerned how much of a toll he is having on this country. I think he will outshine Carter as the biggest loser this country has had as president. We will have to give him the "Do nothing award" or maybe the "search and destroy America award".
I would have thought he would have done it by now. If I were him, I would take all the credit in the world for saving FnF therefore insuring the survival of home ownership! There is just to many ways you could spin this and come out smelling like roses by tellin watt to release and uplist.
Obama will try to take credit for FnF by releasing them and saying he was the one that jump started the mortgage market.
Could you imagine, Obama loses out on a chance to spin this in his favor only to allow the republicans to do the right thing, release and uplist. Putting all the blame on the dems and taking all the credit for doing what right and lawful.
THE 187 BILLION DOLLAR LIE. 1:03 AM (edited) Complete Version Still Posted
28 Monday Jul 2014
Posted by timhoward717 in Uncategorized
Of all the lies regarding Fannie and Freddie, (GSE’s) the most pervasive of all is the 187 billion dollar amount. This figure is incorrectly used over and again when calculating how much Fannie and Freddie required from the tax payers until they became profitable in 2012.. It is breathtaking how this figure remains fixed in the public consciousness. It is even on the seemingly official http://projects.propublica.org/bailout/ site. It is repeated by virtually every media source and cited as gospel in every GSE discussion in DC. Let me clarify this for everyone, when the GSE’s were put into conservatorship the terms were that they would have to pay a quarterly dividend to the treasury every quarter based on an annual rate of 10% per year on the aggregate liquidation preference of the senior preferred stock. The treasury forced Fannie and Freddie to borrow additional money from the government every quarter to pay the dividend. For documentation, I am attaching “Fannie Mae Reports Fourth-Quarter and Full-Year 2011 Results” from Feb. 29th 2012. On page two, it clearly shows Draw Request from Treasury in tan and the Dividend Payment to Treasury in purple. You will see that a total of 4.6 billion was requested from the treasury, and 2.6 billion of that was to pay the 10% dividend. This is further explained on Page 9 of the report where it states: "The Acting Director of FHFA will request $ 4.571 billion of funds from Treasury on the company’s behalf under the terms of the senior preferred stock purchase agreement between Fannie Mae and Treasury to eliminate the company’s net worth deficit as of December 31, 2011. Fannie Mae’s fourth-quarter dividend of $2.6 billion on its senior preferred stock held by Treasury was declared by FHFA and paid by the company on December 31, 2011.”
February of 2012 was the last quarter that Fannie had to borrow money from the government to pay the dividend. So when the 187 billion dollar figure is thrown around it is critical that people understand that 55 billion of that was immediately paid back to the taxpayers. The reality is that, thus far, the taxpayers have not only recouped their 132 billion dollar investment but have netted a 26 billion dollar profit so far
In comparison, the taxpayers invested 424 billion for all the other bailouts combined their profit, thus far, a paltry 15.7 billion!.Let’s not stop here though let’s dig a little deeper. As we examined this lie closer we discovered that prior to the third-amendment profit sweep in August 2012 we find numerous sources that cited the correct amounts that Fannie and Freddie owed, they did not falsely include the interest payments in their figure. Many in the government regularly used the true amount prior to the sweep. So why the decision to perpetuate this outright lie? When it became clear in 2012 that the GSEs were going to begin to generate massive profits, the government made the fateful decision to do the unthinkable. They hastily crafted a ploy to divert all of Fannie and Freddies profits right into the treasury.They amended the terms to change the dividend from 10 percent to become all of Fannie and Freddies profits. And so began an unparalleled attempt to twist the truth.This marked a critical point in the completely false narrative that has been perpetuated by our government to defraud the shareholders of Fannie and Freddie of any profits and in a larger sense to rob America of the ability to have an honest and open debate based on facts. Up until this point it was already very difficult to discern fact from fiction when investigating the role of the U.S. government in the conservatorships of Fannie and Freddie, after the sweep it became virtually impossible.
The more we closely examine every aspect of the governments role in the Fannie and Freddie conservatorships it becomes very clear that little of what they say can be trusted as being factual. I would highly suggest that there can be no meaningful discussions on housing finance reform in this country until the court cases have been resolved, and we can begin to decipher the web of lies that the government has created. Keep the Faith!
Fannie reports 4th quarter and full year 2011
I am attaching “Fannie Mae Reports Fourth-Quarter and Full-Year 2011 Results” from Feb. 29th 2012. On page two, it clearly shows Draw Request from Treasury in tan and the Dividend Payment to Treasury in purple. You will see that a total of 4.6 billion was requested from the treasury, and 2.6 billion of that was to pay the 10% dividend. This is further explained on Page 9 of the report where it states:
“The Acting Director of FHFA will request $ 4.571 billion of funds from Treasury on the company’s behalf under the terms of the senior preferred stock purchase agreement between Fannie Mae and
Treasury to eliminate the company’s net worth deficit as of December 31, 2011. Fannie Mae’s fourth-quarter dividend of $2.6 billion on its senior preferred stock held by Treasury was declared by FHFA and paid by the company on December 31, 2011.”
February of 2012 was the last quarter that Fannie had to borrow money from the government to pay the dividend. So when the 187 billion dollar figure is thrown around it is critical that people understand that 55 billion of that was immediately paid back to the taxpayers. The reality is that, thus far, the taxpayers have not only recouped their 132 billion dollar investment but have netted an 26 billion dollar profit so far. In comparison, the taxpayers invested 424 billion for all the other bailouts combined their profit, thus far, a paltry 15.7 billion!.
Let’s not stop here though let’s dig a little deeper. As we examined this lie closer we discovered that prior to the third-amendment profit sweep in August 2012 we find numerous sources that cited the correct amounts that Fannie and Freddie owed, they did not falsely include the interest payments in their figure. Many in the government regularly used the true amount prior to the sweep. So why the decision to perpetuate this outright lie? When it became clear in 2012 that the GSEs were going to begin to generate massive profits, the government made the fateful decision to do the unthinkable. They hastily crafted a ploy to divert all of Fannie and Freddies profits right into the treasury.They amended the terms to change the dividend from 10 percent to become all of Fannie and Freddies profits. And so began an unparalleled attempt to twist the truth.This marked a critical point in the completely false narrative that has been perpetuated by our government to defraud the shareholders of Fannie and Freddie of any profits and in a larger sense to rob America of the ability to have an honest and open debate based on facts. Up until this point it was already very difficult to discern fact from fiction when investigating the role of the U.S. government in the conservatorships of Fannie and Freddie, after the sweep it became virtually impossible.
The more we closely examine every aspect of the governments role in the Fannie and Freddie conservatorships it becomes very clear that little of what they say can be trusted as being factual. I would highly suggest that there can be no meaningful discussions on housing finance reform in this country until the court cases have been resolved, and we can begin to decipher the web of lies that the government has created. Keep the Faith!
This Isn't 1st time they're reportedly selling office building. Didn't similar reports accompany all the talk of winding down the GSEs even before 2013? I'm not doubting they want to sell, nor that they will try. However, if wind down is at all still in the hopes of some politicians and power players, this story of selling the fannie building does nothing to disprove or diminish the wind down talk.
FNMA Stock Message Board http://investorshangout.com/Fannie-Mae-FNMA-61730/
Can we profile the common denominator here. All the presidents men have something in common. They are constitutional destroyers. Their thinking is non American.
Low volume walk down. Yesterdays run up gave the MM's leverage.
so 50-80 mil. we will have to add that to the govs. disgorgement tab...
ALONGFORZRIDE..AREN'T THE LAW PENDING SUIT DISPOSITIONS STILL RELAVENT HERE ALONG WITH POSSIBILITY OF RELEASE FROM CSHIP? IF IT IS WHAT PPS INCREASE CAN WE EXPECT? MANY OF YOU HAVE SAID ATLEAST $20!
And add more value: sacred land? Or where Jimmy Hoffa is buried in the landscaping there?
No, I agree, who cares about who takes credit. I'm just surprised that no one has yet. Seems like an excellent opportunity right now with the obvious amount of money the GSE's have made and paid back!
Fannie Mae Will Sell Headquarters in Washington. But What’s The Land Worth ?
Fannie Mae told its employees this week that it plans to sell its iconic headquarters in Northwest Washington, DC, and consolidate its five area office locations into one over the next two to three years.
The GSE’s preference is to stay in Washington, but it’s possible the company may not. Its chief competitor, Freddie Mac, is headquartered in McLean, VA, about eight miles from the nation’s capital.
The relocation rumor has been making the rounds at Fannie for a few years now. In the greater Washington metro area Fannie employs 4,700 workers.
Fannie, a ward of the government for almost six years, owns its headquarters at 3900 Wisconsin Avenue, but leases other locations in the area. It also occupies 4000 Wisconsin Ave. The company has offices in Virginia, Texas and California. Employees outside of the Washington area will not be affected, a spokeswoman clarified.
Back in the 1980s, when Fannie Mae was losing $1 million a day, it contemplated selling the property and came up with a value of $10 million to $15 million, said one former executive who worked at the GSE. Since then the property has increased in value probably by five-fold, at least.
Gee...give ole' Mr. Watt a call. It's ALL in his hands to say the least.
Who the hell cares just as long as FNMA is released... geesh. I don't give a crap who takes credit.
oh lord, don't give the treasury any ideas. a fnma/fmcc inversions could allow them to fire the accounting staff in the states and move the companies offshore so the treasury could save on the red tape involved in paying itself through income taxes and just sweep all the profits to the caymans were it can pay itself there
Maybe moving ohbummer overseas to some fancy golf course would be better.
Does anyone on this board REALLY CARE who takes credit for the release, as long as it IS released? Heck, I'm totally unpolitical, but if the worst politician in D.C. (are there any other kind?) were to take credit for the release, I'd would applaud him/her.
No arguments here!
mikoli007... That control is only 2 months and 1 week away. I'm glad he is playing golf. I wonder how much "Touch of Grey" he has to put in his hair to look like that job is having a toll on him? I'm more concerned how much of a toll he is having on this country. I think he will outshine Carter as the biggest loser this country has had as president. We will have to give him the "Do nothing award" or maybe the "search and destroy America award".
I would have thought he would have done it by now. If I were him, I would take all the credit in the world for saving FnF therefore insuring the survival of home ownership! There is just to many ways you could spin this and come out smelling like roses by tellin watt to release and uplist.
Obama will try to take credit for FnF by releasing them and saying he was the one that jump started the mortgage market.
Could you imagine, Obama loses out on a chance to spin this in his favor only to allow the republicans to do the right thing, release and uplist. Putting all the blame on the dems and taking all the credit for doing what right and lawful.
