Release is as simple as putting those Obama documents in the sunlight! No more privelege for those documents!!! Let the truth be known and all will see this was a huge setup to bail out banks, and fund things like Obamacae, period. Shareholders are owed much for 16 years of grief and vilanizing by a government who lied and robbed it’s citizens. Put both Bush and Obama in front of a jury and let’s see what happens.
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There may be no need to raise new capital but could be wrong on this as its complicated. For simplification I think they are required by law to have at least 2.5% of their mortgage backed securities. Would this be close to $9T?
They currently have about $160 Billion and are stashing away $25B a year or more. You can convert each series of Ps with the permission of 2/3s of the shareholders of each series (but no right to convert without permission). That could total 19B and 14B for Fannie and Freddie. So if you need $225B as a backstop you already have a potential $193B and would be less than 2 years away from ending the conservatorship without new external capital. But FHFA needs to conform to the law and lower their unlawful capital requirements.
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Also, a lot of the discussion around the GSEs centers around returning them to private ownership. This is wrong as they never ever ceased to be privately held, publically traded companies That’s what a conservatorship is all about - not a takeover.
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The capital rule is set by the FHFA and is currently about 4%.
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Thanks for replying - Right - The current 4% requirement is clearly and unambiguously excessive as demonstrated by the stress tests. The only reason to set the capital requirement so high was to keep them in conservatorship. It has nothing to do with safety/soundness. As I said, they need to lower it.
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If being in excessive and uncontrolled debt is cause for conservatorship, WHY hasn’t the government voluntarily committed itself to it’s own ongoing conservatorship??? Many well run, fiscally responsible companies out there could right the government sinking in debt ship! Hopefully Elon Musk does this when he audits our big spenders in government. Expose the GSE takeover and fraud while he is at it!!!
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Fully agree with you.
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FNF could be released now. FNF passed the stress tests for several years.
The capital rule is excessively high so, the USG maintains full control.
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For the last 12+ years it has NOT been about “can’t release”. It’s because those in government do not want to free the goose who lays the golden eggs. The money=power that’s all you need to know.
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Typical Glen. “Let them out of conservator-ship, yes. But please remember to zero out the common shareholders and pay me par.”
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Fellow Americans laugh in your face whenever you talk about Fannie / Freddie
The Companies are so important to America and have fully repaid the stupid loan and then some!
It is way beyond time to release.
Conservatorship is not meant to be permanent - almost 7000 days now.
It’s quite the joke.
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Fire fighter’s job is to put out fire from homes. After put out the fire .Save the public .You tell the home owners to pay for the damage .( FNMA and FMCC ）did pay back the damage plus interest. Now Firefighter claims they own houses. Using their power to take away that home’s right. The government is stealing our business to give away FNMA and FMCC ’ s money that belongs to all our shares owners. Hands off our business. Government owned warrant only. Warrant doesn’t have vote right. Share holders do.
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The Net Worth Sweep and subsequent dollar-for-dollar increases in the liquidation preference of all profits of Fannie Mae and Freddie Mac that were/are executed by the Federal Government is the same type of criminal theft as organized crime, but worse because it was done by our own government. It’s like getting a loan that can never be repaid, just pay back all your earnings forever and never reduce your debt. It’s the most un-American thing I have ever experienced. And the legal precedence is even worse - is the next president going to take all the profits from Apple, Nvidia, etc?
The US Government has stolen - STOLEN - this money from individual retirement savings plans, college saving plans, pension funds (including those of first responders), virtually every “safe” investment vehicle used by US citizens trying to responsibly manage their finances to achieve the American dream and financial independence.
The US Government needs to fix this, reverse this crime and the damage this has done to both existing investors and to the faith US citizens used to have in our government and our financial systems.
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16 years of “temporary” conservatorship must end and the GSEs must be returned to their rightful owners. USA cannot afford to a de-facto nationalization of two private companies. US Treasury and taxpayers got their money back and then some in what could be in one of the best, if not the best, investment the government has ever made. Now is time to allow GSEs shareholders to move on and recover their savings.
Everyone, including taxpayers, will be in a better position when the GSEs return to private hands. As long as the GSEs remain under the government, they will be used to advance political agenda instead of fulfilling their mission (one of the main reasons why the GSEs ended up here, by the way). Is putting the wolf guarding the hen house.
You have to do what is right!
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FNF never needed a bail-out. Government should refund appr. 124 billion.
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It is more than past time for the Conservership to end. Fannie Mae and Freddie Mac are two of the most profitable companies in America. The Government has been more than paid back. There is NO REASON for them to still be in Conservership. Not only did the Government take many Billions more through the Net Worth Sweep than the Government MADE Fannie Mae and Freddie Mac take, the Government also sued many banks and received Billions in settlement which the Government also kept. Cancel the governments Senior Preferred Stock Agreement and cancel the Warrants. The shareholders have been taken advantage of for more than 16 years and it is time to let them have some benefit from the government using them to help to save the economy during the financial crisis in 2008.
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FHFA & the US Treasury have used the term “temporary conservatorship” to hide the 16 year nationalization of Fannie Mae and Freddie Mac. In the meantime, they used $301 billion of Fannie and Freddie equity for pet projects not funded through Congress. How does this make us any better than a banana republic?
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Should be 2 x 2.5 max
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Yes plus interest and damage
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Amen
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