$FMCC -the ultimate DD by BLUE
FMCC ~expected $40 billion profit DD with Links~
Freddie Mac was chartered by Congress in 1970 with a public mission to stabilize the nation's residential mortgage markets and expand opportunities for homeownership and affordable rental housing. Our statutory mission is to provide liquidity, stability and affordability to the U.S. housing market.
We participate in the secondary mortgage market by purchasing mortgage loans and mortgage-related securities for investment and by issuing guaranteed mortgage-related securities, principally those we call PCs. The secondary mortgage market consists of institutions engaged in buying and selling mortgages in the form of whole loans (i.e., mortgages that have not been securitized) and mortgage-related securities. We do not lend money directly to homeowners.
http://www.freddiemac.com/corporate/company_profile/
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1) First Quarter 2013 Financial Results
First quarter 2013 net income was $4.6 billion – the second largest in company history , compared to $4.5 billion in the fourth quarter of 2012 First quarter 2013 comprehensive income was $7.0 billion, compared to $5.7 billion in the fourth quarter of 2012 .
http://www.otcmarkets.com/edgar/GetFilingHtml...ID=9275689
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Through March 31, 2013, Freddie Mac has requested cumulative draws totaling $71.3 billion . While Freddie Mac has paid aggregate cash dividends to Treasury of $29.6 billion through March 31, 2013.
page 3
http://www.otcmarkets.com/edgar/GetFilingHtml...ID=9275689
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ACCORDING TO REUTERS THE COMPANY CAN POST $30.1 BILLION TAX GAINS AS PROFIT
2) It could record gains on $30.1 billion worth of assets it had written down as early as in the second quarter, leading to an even bigger payment.
http://www.reuters.com/article/2013/05/08/us-...I120130508
( Remember its sibling FNMA posted at Q1 deferred tax gains )
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3) FMCC is one of the most profitable financial firm in USA
FNMA 8.1 billion profit from operation.
JP MORGAN $6.5 billion profit
WELLS FARGO $5.1 billion profit
Berkshire Hathaway $4.8 billion profit.
FMCC 4.6 billion dollars net profit.
4) PENNY STOCKS, FMCC and FNMA, HELPS US BUDGET FOR SURPLUS
Treasury reports $113B surplus because of FMCC and FNMA's big contribution
The government will also benefit next month from a $59.4 billion payment from mortgage giant Fannie Mae and a $7 billion payment from Freddie Mac. The mortgage giants are profitable again and are paying dividends to the government in return for the loans the received during the financial crisis.
Treasury Secretary Jacob Lew said in an interview with CNBC Friday that in part because of Fannie's payment, the government's borrowing limit won't be reached until "at least after Labor Day" in early September. Many analysts had expected another budget battle this summer. In 2011, a dispute between the Obama Administration and Congress over whether to raise the limit lasted until the deadline.
http://finance.yahoo.com/news/us-treasury-rep...37732.html
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5) 18 banks sued by the U.S. to recoup $200.5 billion spent on mortgage-backed securities bought by Fannie Mae and Freddie Mac
1. Ally Financial Inc. f/k/a GMAC, LLC ( $6 billion )
2. Bank of America Corporation ( $6 billion )
3. Barclays Bank PLC ( $4.9 billion )
4. Citigroup, Inc. ( $3.5 billion )
5. Countrywide Financial Corporation ( $26.6 billion )
6. Credit Suisse Holdings (USA), Inc.( $14.1 billion )
7. Deutsche Bank AG ( $14.2 billion )
8. First Horizon National Corporatio ( $883 million )
9. General Electric Company ( $549 million )
10. Goldman Sachs & Co.( $11.1 billion )
11. HSBC North America Holdings, Inc. ( $6.2 billion )
12. JPMorgan Chase & Co.( $33 billion )
13. Merrill Lynch & Co. / First Franklin Financial Corp. ( $24.8 billion )
14. Morgan Stanley ( $10.6 billion )
15. Nomura Holding America Inc.( $2 billion )
16. The Royal Bank of Scotland Group PLC( $30.4 billion )
17. Société Général( $1.3 billion )
18. UBS, Swiss Bank, ($4.5 billion)
http://www.fhfa.gov/webfiles/22599/PLSLitigat...090211.pdf
http://www.bloomberg.com/news/2011-09-03/jpmo...ities.html
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6) Winding down theory collapsed because
The Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to extend the Home Affordable Refinance Program by two years to Dec. 31, 2015 . . ALSO THE COMPANY POSTS MONSTER PROFITS.
By Christina Mlynski
• April 11, 2013 • 10:07am
The Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to extend the Home Affordable Refinance Program by two years to Dec. 31, 2015.
The program was set to expire at the end of this year.
FHFA determined that extending the program will provide borrowers additional opportunities to refinance, give clear guidance to lenders and reduce losses for the government-sponsored enterprises and taxpayers.
"More than 2 million homeowners have refinanced through HARP, proving it a useful tool for reducing risk," said Ed DeMarco, acting director of the FHFA.
He added, "We are extending the program so more underwater borrowers can benefit from the lower interest rates."
Additionally, FHFA will soon launch a campaign to inform homeowners about HARP. The campaign will educate consumers about the program, its eligibility requirements and provide options on how to utilize the program before it ends.
http://www.housingwire.com/news/2013/04/11/fh...-harp-2015
Fannie and Freddie’s regulator recently announced a two-year extension for HARP. The program had had been slated to expire at the end of this year, and will now run through 2015.
http://blogs.marketwatch.com/thetell/2013/04/...financing/
7) ACCORDING TO FHFA, CONSERVATORSHIP WILL END SOON
Q: What are the goals of this conservatorship?
A: The purpose of appointing the Conservator is to preserve and conserve the Company’s assets and property and to put the Company in a sound and solvent condition. The goals of the conservatorship are to help restore confidence in the Company, enhance its capacity to fulfill its mission, and mitigate the systemic risk that has contributed directly to the instability in the current market. There is no reason for concern regarding the ongoing operations of the Company. The Company’s operation will not be impaired and business will continue without interruption.
Q: When will the conservatorship period end?
A: Upon the Director’s determination that the Conservator’s plan to restore the Company to a safe and solvent condition has been completed successfully, the Director will issue an order terminating the conservatorship. At present, there is no exact time frame that can be given as to when this conservatorship may end.
http://www.fhfa.gov/webfiles/35/FHFACONSERVQA.pdf
FHFA new annual Report: The Enterprises cannot remain in conservatorship permanently , and expanding private sector participation is essential for the long-term health of the mortgage market.
PAGE 6
http://www.fhfa.gov/webfiles/25320/FHFA2012_AnnualReport.pdf
9) INTERESTING!! White House budget document says FNMA/FMCC are privately owned company (!), it didn't say THE GOVERNMENT ENTERPRISES.
The Federal National Mortgage Association (Fannie Mae) is a
Government-sponsored enterprise (GSE) in the housing finance
market. As a housing GSE, Fannie Mae is a federally chartered, privately owned company with a public mission to provide stability in and to increase the liquidity of the residential mortgage market and to help increase the availability of mortgage credit to low- and moderate-income families and in underserved areas. Fannie Mae engages primarily in two forms of business: guaranteeing residential mortgage securities and investing in portfolios of residential mortgages
http://www.whitehouse.gov/sites/default/files...ts/gov.pdf
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9) FMCC/FNMA Shareholders Challenge U.S. Takeover in Suit
The shareholders’ complaint seeking $41 billion in damages was filed by the Seattle-based law firm Hagens Berman Sobol Shapiro LLP, a lead counsel in class-action lawsuits including those against Toyota Motor Corp. (7203) over the unexpected sudden acceleration of vehicles.
http://www.bloomberg.com/news/2013-06-10/fann...eover.html
10) HEDGE FUND Perry Capital Sues U.S. Treasury Over Fannie Mae and Freddie Mac Takeover
By Joe Schneider & Clea Benson - Jul 7, 2013 8:44 PM ET
Hedge fund firm Perry Capital LLC sued the U.S. Treasury Department claiming the government’s seizure of all profits from Fannie Mae and Freddie Mac is illegal and has destroyed shareholders’ holdings.
http://www.bloomberg.com/news/2013-07-07/perr...cmpid=yhoo
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11) FMCC CEO was Former E-Trade and JP Morgan CEO
http://www.freddiemac.com/bios/exec/layton.html
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12) Giant Hedge Funds lobbying for the Government Senior preferred shares.
According to Bloomberg and Baron news, Hedge funds offering 182 billion dollars for the government's senior preferred shares.
Based on combined 2012 pretax profits of $28 billion and a conservative 6.5 price/earnings ratio, the two could easily raise $182 billion in the stock market , according to the investors.
http://online.barrons.com/article/SB500014240...hoobarrons
Hedge Funds: Paulson & Co. is among funds that met with members of the Senate Banking Committee and with staff members in the House of Representatives, said two of the people briefed on the matter. Claren Road Asset Management LLC and Perry Capital LLC also have lobbied.
http://www.bloomberg.com/news/2013-04-30/paul...cmpid=yhoo
13) If the Hedge Funds plan accepted by the government Conservator-ship will end. FNMA will be owned by shareholders.
The government invested 117.1 billion dollars to FNMA and got senior preferred shares. So far got 95 billion dollars dividend. Plus with new IPO the government can sell its shares on the market at 182 billion dollars. It means U.S. government invested 117.1 billion dollars it will get 277 billion dollars within 4 years. Awesome return.
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14) Fortune 500 list: FMCC #31,
FORTUNE 500 COMPANIES.
Rank Company Name Revenues ($b) Profits ($mm)
1 Wal-Mart Stores 469.2 16,999
2 Exxon Mobil 449.9 44,880
3 Chevron 233.9 26,179
4 Phillips 66 169.6 4,124
5 Berkshire Hathaway 162.5 14,824
6 Apple 156.5 41,733
7 General Motors 152.3 6,188
8 General Electric 146.9 13,641
9 Valero Energy 138.3 2,083
10 Ford Motor 134.3 5,665
11 AT&T 127.4 7,264
12 Fannie Mae 127.2 17,220
13 CVS Caremark 123.1 3,876.9
14 McKesson 122.7 1,403
15 Hewlett-Packard 120.4 -12,650
16 Verizon Communications 115.8 875
17 UnitedHealth Group 110.6 5,526
18 J.P. Morgan Chase & Co. 108.2 21,284
19 Cardinal Health 107.6 1,069
20 International Business Machines 104.5 16,604
21 Bank of America Corp. 100.1 4,188
22 Costco Wholesale 99.1 1,709
23 Kroger 96.8 1,496.5
24 Express Scripts Holding 94.4 1,312.9
25 Wells Fargo 91.2 18,897
26 Citigroup 90.8 7,541
27 Archer Daniels Midland 89 1,223
28 Procter & Gamble 85.1 10,756
29 Prudential Financial 84.8 469
30 Boeing 81.7 3,900
31 Freddie Mac 80.6 10,982
32 AmerisourceBergen 79.7 719
33 Marathon Petroleum 76.8 3,389
34 Home Depot 74.8 4,535
35 Microsoft 73.7 16,978
36 Target 73.3 2,999
37 Walgreen 71.6 2,127
38 American International Group 70.1 3,438
39 INTL FCStone 69.3 15
40 MetLife 68.2 1,324
41 Johnson & Johnson 67.2 10,853
42 Caterpillar 65.9 5,681
43 PepsiCo 65.5 6,178
44 State Farm Insurance Cos. 65.3 3,159.2
45 ConocoPhillips 63.4 8,428
46 Comcast 62.6 6,203
47 WellPoint 61.7 2,655.5
48 Pfizer 61.2 14,570
49 Amazon.com 61.1 -39
50 United Technologies 59.8 5,130
http://money.cnn.com/magazines/fortune/fortun...full_list/
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EXPECTED BIG NEWS: Q2 PROFIT (PROBABLY FIRST WEEK OF AUGUST)
FNMA expected Q2 profit between 9-12 billion dollars.
FMCC expected Q2 profit between 35-40 billion dollars because Of deferred tax gains, 30.1 billion dollars. FNMA posted at Q1 deferred tax gains.
By the way FMCC has 650 million shares, FNMA has 1.15 billion shares.
THIS TIME I HOLD MORE FMCC SHARES. PLUS FMCC HAS 650 MILLION OUTSTANDING SHARES ALMOST HALF OF FNMA.
