Conservatives against Trump Profile picture
Apr 21, 2021 7 tweets 4 min read Read on X
CALABRIA CLAIMS THAT THE PSPA ARE NOT LINES OF CREDIT
The name doesn't matter: line of credit, borrowing right,funding commitment
We know it can't be tapped to leverage FnF but to fund a negative Net Worth(Equity) issuing SPS(obligations/Equity)#Fanniegate @TheJusticeDept @Scotus Image
The key is that it emanates from the provision in the Charter Act called: Authority of UST to Purchase Obligations.Terms and Conditions.
There are 2:
-The original low cost
-The one added by HERA w/ UNLIMITED yield.
@USTreasury can't buy anything w/o an authorization by Congress. ImageImage
HERA's was used for the 10%/NWS div,but it wasn't needed if there is the original,limited to $2.25b because it was set more than 50yrs ago,w/ FNMA only 15b in debt vs $800b in 2008.
The original is called "special borrowing right from UST" by Prof.Nielson(Scotus-appointed amicus) Image
The fact that it was limited to $2.25b is a non-issue since we are talking about vested rights and the PSPA's funding commitment is deemed to have tacitly updated the "credit facility".
An obligation is a compromise of repayment. So,@USTreasury is Equity holder but also creditor.
I guess you know that Preferred Stocks are obligations(debenture)recorded as Equity or,as the UST signals in the PA,"obligations in respect of capital stock".The key for the exception(B) to the FHEFSSA's Restriction on Capital Distributions: reduce the obligations by redeeming... ImageImage
...stocks or ownership interest,i.e.,reduce the SPS,otherwise the capital distributions are restricted when FnF are undercap.
Anyway,Calabria's statement confronts Rosner:"FnF contracted lines of credit".
No one cares. Let's talk about rights and the provision that authorizes it. ImageImage

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More from @CarlosVignote

Nov 11, 2022
GIFTED SPS: CAPITAL DISTRIBUTION➡️COMMON EQUITY ESCROWED
Cash div on the Income Stmnt?👇Fraud. Neither a div nor cash.
GOAL:$0 EPS. It can't appear as OCI either.
A pure Equity transaction(Bce Sheet): SPS debited from RE in the absence of APIC. Both operations missing.#Fanniegate
The Income Stmnt would be correct if:
-A NWS div like before.
-FHFA-C activates the Cumulative feature of the SPS div, as Net Income attributable to Cs captures this div debited (payable) from Retained Earnings in the future.
It wasn't this case,but a payment TODAY of SPS,debited
TODAY (both operations missing on the bce sheet),regardless of the SPS redeemed for cash in the future, which is a different operation.
Bove provided the alibi of this, adding"a unique type of loan." It's SPS and it wasn't a div. Even if it were a stock dividend, same accounting. Net Worth activity (Balance Sheet) SPS and the charge on RetAnalyst Dick Bove. He mistakes the dividend payment for the PwC: Accounting for a stock dividend.UST: "Not a dividend."
Read 6 tweets
Nov 9, 2022
$400B CAPITAL SHORTFALL OVER 205B C.REQUIREMENT
C.covers unexpected losses.
Actual C.shortfall posted=$304B,but an offset for $95B gifted SPS reduces Retained Earnings(C.C.).FnF evade it with fraud(SPS missing).Someone has to pay for it,like the initial $1B SPS👇
Joke.#Fanniegate The APIC account is now exh...Freddie Mac. Core Capital a...Fannie Mae. $175B Capital s...
A joke is authorized in the FHFA-C's Incidental Power(FHFA's best interests) if the Common Equity is held in escrow, pursuant to the exceptions 1,2,3,4 in the CFR1237.12. I.e.,at some point, it'd be reversed(SPS cancelled)
Just like the 10%/NWS divs for SPS reduction(HERA)/Recap. ImageImageImage
Finally,Capital Reserve/Surplus (bce sheet: the portion of Equity/NW above the Capital Stock)=$0
FnF pass $94B NW off as Capital Reserve(Retained Earnings)
In truth,that NW is the $94.7B SPS missing on their bce sheets(NWS 2.0)to evade the offset and sell the "build Capital" lie. ImageImage
Read 4 tweets
Jun 9, 2022
SECRET PLAN (THE LAW)
A $301B div (Core Capital) was used to repay the SPS and Recap, under the exceptions to the Restr on Capital Distr. SPS for free, a joke.
Unwound:
-SPS canceled
-$178B UST net refund
Both tax-exempt profit (C.C.)
-Warrant canceled.#Fanniegate @TheJusticeDept
Once FnF meet the threshold to resume the div payment,the cumulative div on the SPS repaid in 2013/2014, for FMCC/FNMA, resp.,is assessed 0%. Each "purchase" carried its own IRR. 0% due to the illegal collateral W (barred in Fee Limitation),security to (iii) protect the taxpayer.
UST hasn't purchased 1 security of FnF. It got the initial $1B SPS and Warrant for free and then,everything is INCREASED(fraud)
The initial gifts were illegal in the Charter +barred in the FHFA-C's power (C.C. reduction)
The W additionally credited to Additional Paid-In C.(fraud)
Read 6 tweets
Jun 7, 2022
WRITE DOWN🆚WRITE OFF
The atty also requested "writing down the LP of the SPS to 0". Not only he didn't add that there must be a tax-exempt profit (Core Capital),but also he uses write down, used for an asset price reduction, but when it's reduced to...#Fanniegate @TheJusticeDept Image
zero, it's called "write-off",since there are no more incremental write-downs and it involves a credit to a profit acct.
Even a write down involves a profit, because SPS are obligations of FnF(debentures)
In this world,if you are pardoned debt,it's a profit for you.
The same they
are illegally increased (unique=ISSUED separately each time), he wants to simply reduce the price to zero and evade to record any profit (Core Capital)
The more Capital needs, the more stock offerings for the hedge funds and assault on the ownership.
@WhiteHouse @SEC_Enforcement
Read 4 tweets
Apr 22, 2022
THE ARTICLE ADVOCATES FOR KEEPING THE CHARTER
FnF arent't liquidity providers.That's the #Fed.FnF buy mortgages for a guaranty mortgage securitization biz.
Cross-subsidy:even the authors claim that it's a common feature among insurers."Now,considerably less".This is...#Fanniegate
because they realized that all the borrowers authorized in the Charter pose similar risk at origination, since the Charter's requirement is just LTV<80%.
They claim that the UST backup in the Charter,to "ensure their solvency", is a taxpayer subsidy, ignoring that the true backup
of FnF is their Capital Reserve ($252b as of Dec 2021 w/ the secret plan),as 4th layer of protection. The other 3 are:
-The Charter's Credit Enhancement clause: borrower bears losses(max 80%LTV: PMI or down payment),...
-Collateral
-Loan Loss Reserve
So,the
Read 8 tweets
Sep 7, 2021
THE CFOs' ILLEGAL ACCOUNTING MANEUVERS WITH THE SPS INCREASED FOR FREE (COUNT 3 & 4)
FnF report Comprehensive Income, not just Net Income.
What FnF do:
Not an expense result of operations
A change in Equity from nonowner sources
Distribution to a Preferred Stockholder.#Fanniegate
This is why FnF don't include it in Other Comprehensive Income for the Total Comprehensive Income,but outside the Comprehensive Income, as a distribution of income, like occurs with a cash dividend to the JPS/SPS holders.
This is misleading because the ending result is Net Income
attributable to shareholders, but it's also known as Net Income distributable to shareholders. By considering it like a cash div, there's no income left for distribution, when that's untrue. SPS increased for free means that there's no cash wire,so the Net Income is available for
Read 10 tweets

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