NeoSunTzu
12 minutes ago
Pulte has done more in less than a week to get a grip on costs, waste, governance, and leadership than Watt, Thompson, and Calabria COMBINED! In the government sector you can make the analogy for regulatory oversight agencies that oversee another government entity as the corporate equivalent of a parent company - if you want things done by the book, cost efficiently, and according to any well-thought-out plan.
This is effectively what Pulte and his new board members are doing and this IS EXACTLY what we want. READ the 8k clause about new directors regarding their being removed or resignation - these tell me they are NOT meant to be permanent. Pulte will right-size the FHFA staff and office building needs, rid FHFA of the financial fraud and wasteful payments, as Chairman of each company he will oversee the same clean up at each company while the DOGE board member will oversee the forensic checks needed to ensure they know "where all the bodies are buried."
You DO NOT RELEASE WITHOUT THIS DUE DILIGENCE! What an embarrassment it all would be to have the fraud and waste uncovered while relisting or after announcing release. This clean-up will also ensure that as much remuneration as possible can go to shareholders with as much mitigated backlash as possible from the opposition. I am more encouraged than EVER!
This is how successful CEOs operate (thus, the reason for Pulte's nomination and confirmation), DOGE (forget the Musk haters) is how proper accounting and technology oversight (fraud, waste, and abuse) is conducted, and Trump's overall approach is why this country has needed a business leader for a very long time to do as much clean up as possible. We have all been defrauded for decades, our wealth stolen and wasted on wars, unnecessary taxes, inflation, political favoritism and nepotism - just to name the obvious abuse. Time for it all to end or at least be made very public - then the idiots who support will have to admit to their idelogical beliefs and utter blind apathy toward the rest of us.
Spicoli
36 minutes ago
Pulte Revamps GSE Boards, Including a DOGE Addition
dhollier@imfpubs.com
In his first major move as the director of the Federal Housing Finance Agency, Bill Pulte made sweeping changes to the boards of directors of Fannie Mae and Freddie Mac late Monday. That includes the removal of most of the existing directors at the government-sponsored enterprises and the installation of several new ones.
The moves include appointing Pulte as chair of both boards, along with FHFA General Counsel Clinton Jones joining both boards. Other additions to Fannie’s board include Christopher Stanley, a security engineer at SpaceX, the first member of Elon Musk’s Department of Government Efficiency to join a GSE board.
The appointments were announced in filings with the Securities and Exchange Commission. FHFA hasn’t explained the moves but Jaret Seiberg, a managing director at TD Cowen Washington Research Group, said it looks like the start of an effort to reduce the size of Fannie and Freddie.
“The push appears to be more about shrinking the enterprises than preparing them for sale to investors,” he said.
DaJester
2 hours ago
If someone else can provide similarly rigorous and reasonable arguments for a LP writedown then I will give them serious thought. I have yet to see any, however.
Well I'm sorry the entire IHUB board is a disappointment to you, narcissist! 🤣
And we're not talking about "people" here. Only you. I'm not on a high-horse here. I'm simply pointing out that your words (only wanting to make money compared to your cost basis) do not jive with your actions (continuing to hold shares even though you could lock in a gain by selling everything). Hypocrisy, plain as day.
For someone who claims to not understand my methods, you sure do have a lot of advice of how I'm not following my own method. Well, let me go sell all my shares then, so that KThomp won't think I'm a hypocrite! 🙄 LOL! That's what you think my investment strategy should be? Do what KThomp says or I'm doing it wrong? BWAHAHAHAHAHAHAHAAAAA! You become a bigger joke with every post.
DaJester
2 hours ago
Again, breach of contract is not at all the same thing as breach of the implied covenant of good faith and fair dealing. Stop conflating them.
The jury decided that the NWS, which removed all economic rights from FnF's shares, did breach the implied covenant.
I've said before - it's just easier to type "breach" than "breach of the implied covenant of good faith and fair dealing". You may want me to type it out every time. But you are not the boss of me, narcissist. And you don't type it out fully every time either, as directly quoted above. Hypocrite!
After the NWS was signed, reasonable shareholder expectations got reset to "shareholders get nothing ever". How is that even possible to violate?
Geezus how does this even make sense? If a "reasonable shareholder" expected to get nothing ever simply because the NWS was signed, why on earth would they have brought a lawsuit? Ahem.. Because it's UNRESASONBLE you nitwit! And they were right, because they won. Your argument doesn't hold up to even light scrutiny.
Additionally, the conservatorship is not intended to last forever, as said by various official sources. Therefore, a reasonable shareholder would assume the NWS would end at some point after Treasury has been repaid. Because you can't NWS a public company. That means there is future economic value in the shares. Basic logic - try to use that big brain of yours.
Robert from yahoo bd
2 hours ago
"During this third installment of our seminar series, you will hear a moderated discussion with three ex–GSE CEOs who served during conservatorship. They will address four important conservatorship-exit topics. First, how has conservatorship changed these organizations—both positively and negatively? Second, what are the potential pitfalls of recapitalization and release that policymakers need to consider? Third, assuming the GSEs exit conservatorship without major operational changes, what is their potential to serve the market better through more innovation? And fourth, what is the impact on the mortgage markets if they do not get released from conservatorship?"
Opening Remarks
Janneke Ratcliffe, Vice President, Housing and Communities Division, Urban Institute
Panel Discussion
David Brickman, President of Residential Real Estate, D2 Asset Management; Nonresident Fellow, Housing and Communities Division, Urban Institute; Former Chief Executive Officer, Freddie Mac
Hugh Frater, Board Chairman, Vessel Technologies Inc.; Former Chief Executive Officer, Fannie Mae
Donald H. Layton, Senior Visiting Fellow, NYU Furman Center; Former Vice Chairman, JPMorgan Chase; Former Chief Executive Officer, Freddie Mac
Laurie Goodman, Institute Fellow, Housing and Communities Division, Urban Institute (moderator)
https://events.urban.org/CEOsExploreConservatorshipRelease?&utm_source=urban_events&utm_campaign=recapitalizing_GSEs&utm_id=housing&utm_content=general&utm_term=housing
Patswil
2 hours ago
FEDERAL STATUTES
from Rodney5
Re: stockprofitter post# 817825
Tuesday, February 18, 2025 6:54:22 AM
Post#
818158
of 822244
The Treasury and FHFA illegal exaction due to violating Federal statutes all monies with interest should be returned to the companies. Neither the Charter Act nor did HERA authorize the Treasury to charge a commitment fee on a line of credit to be paid by the Enterprise.
Fannie Mae Intrinsic Value $426.07 per common share. Junior preferred par.
Freddie Mac Intrinsic Value $403.54 per common share. Junior preferred par.
Explained
The below calculations are an update to reflect the newly released 2024 Form 10k's of Fannie Mae and Freddie Mac.
The Charter Act, and the Federal Housing Enterprises Financial Safety and Soundness act of 1992 (FHEFSSA); Both as amended by the HOUSING AND ECONOMIC RECOVERY ACT OF 2008, (HERA). The Charter Acts are Fannie Mae and Freddie Mac's enabling statutes. FHEFSSA and HERA are regulatory statutes, governing the companies' regulators. All are laws passed by Congress. HERA is a Federal Statute not a contract, the Senior Preferred Stock Purchase Agreement is a contract not the law.
When Former Treasury Secretary Paulson met with the directors of Fannie Mae and Freddie Mac to inform them of his intent to take over their companies, neither entity met any of the twelve conditions for conservatorship spelled out in the newly passed HERA legislation. Paulson since has admitted he took the companies over by threat.
HOUSING AND ECONOMIC RECOVERY ACT OF 2008 Page 2734 Twelve Conditions
APPOINTMENT OF THE AGENCY AS CONSERVATOR OR RECEIVER
Link: https://www.congress.gov/110/plaws/publ289/PLAW-110publ289.pdf
The FHFA freely admitted the companies were adequately capitalized.
The day of the take down Fannie Mae’s core capital of $47.0 billion and Freddie Mac’s core capital of $37.1 billion Totals $84.1 billion. This amount of core capital remained with the companies until the illegal commitment fee started sucking shareholders money into the dark hole of the Treasury. This continues until massive profits were foreseen by the Treasury coming in to the companies as net profit. At this time Treasury implemented the Net Worth Sweep. From the point in time of the start of the collection of the illegal commitment fee until the companies were allowed to retain earnings a total of $301.1 billion was sent to the Treasury.
$181.4 billion Fannie returned to Treasury. Form 10K Dec 31, 2024. Page 9
$119.7 billion Freddie returned to Treasury. Form 10K Dec 31, 2024. Page 5
Total $301.1 billion
By reason of Federal Statute, the Treasury owes the companies the overage payment on total draws in the amount of draws $191.4 billion, the overage payment $109.7 billion, plus compounded interest; (recommended interest payment at a compounded rate of return 10%, in conjunction with the amount the FHFA recommended to the Treasury).
Under the funding agreement the Treasury paid to Fannie $119.8 billion Form 10k December 31, 2024 page 8
Under the funding agreement the Treasury paid to Freddie $71.6 billion Form 10k December 31, 2024 page 5
$191.4 billion total draws from Treasury
The calculation includes both companies and the calculation starts at the point in time when the Net Worth Sweep was implemented. Calculation of interest payments the Treasury owes Fannie and Freddie Shareholders.
Note: the interest calculation does not include the space in time from the start of the illegal commitment fee period up to the NWS. This amount should be calculated and added to the total amount of interest calculated below.
$301.1 billion sent to the Treasury.
Treasury draws totaling $191.4 billion
Difference of $109.7 billion the Treasury owes to the Shareholders in over payments.
August 17, 2012, Treasury and FHFA agreed to amend the PSPAs, changing the 10% dividend into a “Net Worth Sweep.” The Net Worth Sweep required Fannie Mae and Freddie Mac to pay the full amount of their net worth to Treasury every quarter. FHFA Director DeMarco, this non-elected bureaucrat, has been allowed to steal the companies for the Treasury.
From 2012 to 2025
At a compound annual growth rate of 10% on amount Treasury owes Shareholders $109.7 billion. The interest at the rate of 10% on $109.7 billion calculates within a 13 year period of time in the amount of $378.71 billion in interest.
Principal of $109.7 billion plus $378.71 billion in interest = $488.41 billion
The Treasury owes the Shareholders $488.71 billion
Compound Interest Calculator
Initial investment $109.7 billion, length of time in years 13, interest rate 10% annually.
Form 10K 2024
Fannie Mae Net Worth $95.0 billion
Freddie Mac Net Worth $59.5 billion
Combined Net Worth $154.5
$154.5 billion plus $488.71 billion = $643.21 billion
Fannie Mae common stock outstanding 1,158,087,567
Freddie Mac common stock outstanding 650,059,553
Combined common stocks
1,808,147,120 … (Fannie Mae 64.05% Freddie Mac 35.95%).
$643.21 billion / 1,808,147,120 = $355.72
$355.72 per share combined
Fannie Mae 64.05% is $227.83 per share
Freddie Mac 35.95% is $127.88 per share
The above calculation does not include the combined Earnings Power of the companies' businesses.
EARNINGS POWER OF THE BUSINESSES
Fannie Mae’s common stock outstanding 1,158,087,567
Net earnings $4.1 billion per quarter, $16.4 billion net per year.
$16.4 billion net income per year / 1,158,087,567 = $14.16 per share of earnings,
PE Ratio of 14 x $14.16 = $198.24 per share intrinsic value.
Freddie Mac common stock outstanding 650,059,553
Net earnings $3.2 billion per quarter, $12.8 billion net per year.
$12.8 billion net / 650,059,553 = $19.69 per share of earnings
PE Ratio of 14 x $19.69 = $275.66 per share intrinsic value.
Fannie Mae Earnings Power $198.24 plus $227.83 = $426.07
Intrinsic Value $426.07 per share
Freddie Mac Earnings Power $275.66 plus $127.88 = $403.54
Intrinsic Value $403.54 per share
Again Note: the interest calculation does not include the space in time from the start of the illegal commitment fee period up to the NWS. This amount should be calculated and added to the total amount of interest calculated.
Treasury taking any amount of equity from shareholders will be considered stolen property under federal law. The Treasury and FHFA illegal exaction due to violating Federal statutes all monies with interest should be returned to the companies. Neither the Charter Act nor did HERA authorize the Treasury to charge a commitment fee on a line of credit to be paid by the Enterprise. illegal exaction explained.
Link: https://investorshub.advfn.com/boards/read_msg.aspx?message_id=175780276
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