ALITO GOT IT WRONG CALLING THE 6TH AMNT "4TH"
SPS issued for free:
SPS increased for free:
Dec2017,4th amnt: $3b in 1Q2018.NW=$3b,the rest swept to UST.
Sept2019,5th amnt:max NW=$20b/$25b,resp.
Jan2021,6th amnd:NW increases until Capital requirement is met.#Fanniegate
We see in the screenshots that the maximum amount of Net Worth they are allowed to hold, it's called Applicable Capital Reserve, like in the 3rd amndt.
But now, it isn't Capital Reserve as SPS for free reduce the Core Capital.
So,NW increase=SPS, not Capital.
NWS with other name.
Also,we see that the Jan 2021, 6th amndt to PA, isn't exceptional. The maximum Net Worth is increased, like in the 4th and 5th amendments.
Alito passed it off as a game changer that "eliminated the (Equity holders') injuries."
🚨JPS holders aren't FnF shareholders.@TheJusticeDept
INC POWER: IN THE BEST INTERESTS OF FHFA-C,NOT @FHFA
"Authorized by this section". It should've been Act,like FDI Act.Drafted by Calabria?
Power: S&S condition. FHFA chose solvent 1st(reduce SPS)instead of soundness(1st,Recap until Undercap for release,then reduce SPS)#Fanniegate
Other examples of this Inc Power:
-The best interests of FnF is recapitalization(earnings),but FHFA chose a prudent stance forcing them to over-reserve for future losses(more than 2x the actual credit loss through 2011),increasing the losses(SPS)
-Selling off loans to reduce risk
Multiple examples of what a conservator can do,instead of focusing on earnings.What also is behind the word "may".But once FnF post earnings (C. Capital),it's kept for Recap.
Scotus interpreted it w/ "in the best interests of the Agency and,by extension,the public it serves".Sick
THE SCOTUS OPINION CALLS THE NWS "PATH OF REHABILITATION"
It bought @TheJusticeDept's argument contending that the NWS was necessary to preserve the UST funding commitment,as the 10% div made(losses)FnF request draws from UST to pay it,depleting the funding commitment.#Fanniegate
The Justice mixed up the Authority of UST to Purchase Obligations (SPS) that HERA required the emergency determination(ii)to prevent disruptions in the availability of mortgage finance, with the rehabilitation of FnF, which is exclusively the FHFA-C's power: "Put FnF in a sound
and solvent condition".I.e.,Recap and reduce the SPS,resp,what the Restriction on Capital Distributions and exception B,are about.
He mentioned the deadline to purchase obligations under this provision(g):Dec 2009,related to the purchase,not future purchase w/ funding commitment.
FDI Act: 12USC1821(d); 12USC1831o(d)
1-In the link posted,it's explained that HERA amended the FHEFSSA to remove the Restr on Capital Distribution from each Capital classification(Conservatorship included)and put a single provision replica of the FDI Act,at the end of the section
Capital Classification,w/ the goal to conceal it,as in the FDI Act is a stand alone provision APPLICABLE TO ALL FIN INSTITUTIONS (IN GNRL)
2-@Scotus based its opinion on the Inc Power:any action...but skipped
"authorized by this Chapter":FDI Act
"authorized by this Act":FDIC rule
I EXPECT THE @WhiteHouse TO OVERRULE THE FLAWED @SCOTUS' OPINION
A "strike the shareholders,side w/ the Govt"-type of opinion.
Based on the @FHFA-C's Inc Power "in the best interests of the Agency". The Justice adds "by extension, the public it serves".#Fanniegate@TheJusticeDept
It seems that he copy/pasted the flawed ruling from J.Sweeney:
1-The Justice omits that the provision begins referring to "Agency,as conservator".It can't conclude "authorization to serve the public"
2-The Justice omits the phrase "authorized by this section" in the same sentence
clearly,serve the public isn't authorized by the section of the Conservatorship, e.g., the FHFA-C's power.
The Justice now claims that the rehabilitation mandate is related to serve public interests,like a NWS.Of course!
Rehab is its power "put FnF in a sound & solvent condition"
WHAT'D I DO?
Financially,it's better a Govt taking over the common stocks(the JPS are redeemed by FnF or stay;No Voting Right)than a $182b refund.
A fair value could be the sector's PER 13,but I'd try to subtract the cost of Moral/Punitive damages from the price tag.#Fanniegate
Then, the price of the Taking would be:
Calculated with an average of the adjusted EPS in the 4Q2020 and 1Q2021.
The resulting PER is 11.3 times.
Moral & Punitive damages(13%/12%)=$52b, defrayed by @TheJusticeDept.
In the end,in a Taking we can't complain if the fair value is justified,but it's a subjective value. We don't get to sell the stocks to @USTreasury.Our stocks are taken away.
Reminder:@FHFA-C has to use its Inc Power prior day 1,to enable the redemption or refinancing of the JPS.
.@FHFA's PREMEDITATION WHEN IT CARRIED OUT THE SECRET PLAN: STOCK PRICE MANIPULATION
2011:It enabled the continuation of the plan of distributing Capital to UST,but earmarked for other purposes(reduce SPS)by saying "it's intended to supplement" the law.#Fanniegate@TheJusticeDept
Corroborated also in the preface of the Final Rule,making clear that there is a law that contemplates the Capital distribution while in Conservatorship(besides talking about its Rehab power)
🚨A Federal Agency can't supplement a law,only Congress can do it,unless required by law.
Had it not approved the 12CFR1237.12 (1)for Recap, the div to the UST would have had to come to a halt in 2013 and 2014, for FMCC and FNMA, resp., because it's when I estimate that is when the SPS were fully reduced under the exception B to the FHEFSSA's Restr on Capital Distrib.
THE @US1stCircuitCt SLAMS THE CONSPIRATORS' SLOGANS REGARDING
-The SPSPA is a contract
-The SPSPA is the backstop
-FHFA went out there to find financing in 08
Actions PURSUANT TO AN AUTHORITY IN THE CHARTER.Guess what! There are more provisions!#Fanniegate@TheJusticeDept@Scotus
The judge cites an authority of UST(added by HERA)to purchase UNLIMITED YIELD obligations SPS +Warrant(iii)to protect the taxpayer.
But a provision W/ THE SAME NAME,already existed in the Charter w/ low cost funding,consistent w/ the provision FEE LIMITATION that bars the Warrant
The UST backstop is the Charter,not the PA.
HERA allowed the 10%/NWS div,but the FHEFSSA restricts the Capital distributions unless it's applied towards SPS repayment(exception B).FHFA added(2011)a fraudulent exception(1)for Recap.
Low cost funding prevails: 0% due to collateral.
THE SECRET PLAN AIMED AT AVOIDING A JPS HOLDER REVOLUTION,LIKE OCCURRED IN🇪🇸IN 2011
"We want our money back""Against the Prfd Stock fraud"
With a true Conservatorship & the Charter's Fee Limitation:
-Commons trade at $60,$140,...$200 now
-JPS below par-value all along.#Fanniegate
FnF are building up Capital($205b C requirement)w/ the div suspended.Blame FHFA.The crooks Pagliara,Bradford,C.Phillips,Rosner,etc,run the story of Govt theft instead,maintaining the expectation of a Court resolution,when the lawsuits are the problem(Capital deficit not targeted)
Clarification: in🇪🇸,it was sold the idea that there's fraud w/ the JPS,when the loss isn't fraud(see the chart when a JPS suspends the div payments)
The true scandal is that the JPS were sold to seniors as simple fixed-income securities w/o informing of the risks.
#YELLEN WANTS THE #G7 TO FOLLOW #CHINA'S STEPS
Levying the Corp Tax on foreign Cos operating at home (🇨🇳has a 20% rate)or abroad, is illegal.
It deprives those foreign companies of the export revenues of their multinationals that would be taxed by the countries they are based on.
Yellen's proposal could be a 15% rate on foreign Cos subsidiaries of 🇺🇸Cos w/ a 15% min Corp Tax & a credit of 100% of the foreign rate.
🇨🇮example: 2.5% effective rate on the 🇨🇮subsidiaries of🇺🇸Cos vs 0.5% today.
The tax rate is an issue within a region(🇪🇺,🇺🇸,etc),not among them.
NO CORP TAX ON FOREIGN COMPANIES
Either operating at home or on the foreign subsidiaries of local Cos operating abroad(services Cos)
If they are manufacturers,they must ship their products from home,be taxed at home.🚨The country accumulates forex reserves.@USTreasury@WhiteHouse
SPS increased for free can't appear on the Income Statement because it isn't an expense of the operations(no cost to us)
The line item now called:"Future increase in the SPS Liq Pref". Future? It's increased at the end of the quarter.#Fanniegate@TheJusticeDept@Scotus
But we see in the balance sheet that it's NEVER recorded. Since the 4th amdnt to PA(Dec 2017),the SPS in the balance sheet don't match the real data(Fin Statement Fraud)in order to don't post the offset(Reduction of Retained Earnings,once Additional Paid-In Capital was exhausted)
Nothing is "for free". The money has to come from somewhere. If FnF increase the SPS for free(w/o getting the cash),there's an offset in other accts(shareholders' pocket)
SPS= $89.1b as of 3/31/2021. $91.4b in June, due to $2.4b NW in 1Q.
(Also, SPS must be issued, not increased)
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
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.
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)
.@Yale's trash aims at covering up the FHEFSSA's restrictions for undercap and that FnF are congressionally chartered private corps w/ privileges like a CHEAP credit facility(@USTreasury backstop),a Public Mission,prohibition on fees by UST,etc.#Fanniegate@Scotus@TheJusticeDept
A report paid by the sponsors of the Moelis plan(J.Paulson/BX)to make the case for the corrupt plaintiffs:the coverup of the statutory provisions in the FHEFSSA and the Charter Act.
E.g.Module E: HERA,when it isn't a law in itself,but a law that amends the FHEFSSA and Charter Act
If you read HERA,you don't understand anything because everything is "strike_for_";"Section_is amended by inserting_"
Module B: the SPSPA.
Exactly the plaintiffs' litigation strategy: coverup of the full FHEFSSA and Charter,focusing only on HERA's Conservatorship section & SPSPA.
🇺🇸-🇪🇺POLITICIANS' PLAN TO DEINDUSTRIALIZE THE🇺🇸UNCOVERED
The March 31,2021 E.U.'s ruling was a reaction to $HOG's June 25,2018 SEC filing announcing a plan to shift production outside the U.S. to avoid the E.U.'s 25%-50% increased tariffs.
Trump,a cray hired by Pelosi.@WhiteHouse
It took 2 yrs and 8 mths for the E.U. to take up the Article 33 of Delegated Regulation(EU)2015/2446 and claim that the shift in production of HOG isn't deemed to be "economically justified" on the basis of the facts(HOG's SEC filing was their exit strategy) to avoid the tariffs.
1991.THE BANKS' FDI ACT ADDED AN EXACT REPLICA OF FnF's CURRENT RESTRICTION ON CAPITAL DISTRIBUTION +EXCEPTION B:REPAY SPS
Included in the subsection(d)PROVISIONS APPLICABLE TO ALL INSTITUTIONS,of the Section PROMPT CORRECTIVE ACTION(12USC1831o)#Fanniegate@Scotus@TheJusticeDept
Just before the provisions w/ the corrective actions when Undercapitalized, Significantly Undercap or Critically Undercap, because it's for all of them.
In FnF's 1992 FHEFSSA,this restriction appeared individually as a supervisory action for each Capital Classification mentioned.
What 2008 HERA did, is to remove this corrective action from each Capital Classification and put it as a stand alone provision for all of them, a replica of the FDI Act 1991 amendment.
But,instead of placing it on a subsection Provision Applicable To All Institutions,it was added
.@Scotus CAN ONLY RULE ON BREACH OF THE STATUTORY PROVISIONS
A Nationalization is legal, including during a Conservatorship, but FnF have to be in compliance with the law at the time,subsequently, the stocks trade at fair value. This is the Secret Plan.#Fanniegate@TheJusticeDept
The Secret Plan was deliberately enabled by the @FHFA's 2011 CFR1237.12(1)for Recap,as SPS were about to be repaid under HERA's Restr On Capital Distrib exception B,the same FHFA did with the FHLBanks to repay the 1989 REFCORP fund.
GOAL: a depressed common stock for the assault.
There's no such thing as breaking a law & later require a court to declare Nationalization at a stock price that discounts the scenario w/ all the illegal actions in Conservatorship & under the Charter,regardless that the rogue people now call a Conservatorship "Nationalization".
THE EQUITY HOLDERS URGE @Scotus TO IMPOSE PUNITIVE DAMAGES
Besides Moral Damages.
The delay,the Secret Plan and multiple crimes aim at stock price manipulation,not just for the Govt cronies that buy cheap stocks,but also a way to create wealth for the people.COMMUNISM.#Fanniegate
No one files a report 13D Beneficial Ownership,despite being compulsory(SEC rules)regardless of rights.
We rely on different websites that inform about the Institutional ownership,but not all post the same.
-The largest ETF in the world, SPDR S&P500,owns a 1% stake in $FNMA.Also,
the ETF iShares Core S&P500,managed by BLK(source:Fidelity)
-The @USArmy owns 15% of FNMA directly,7% through Mutual Funds & ETF,because that's the position of Vanguard/BLK,the 2 institutions that I bet are used by @DeptofDefense/ Congress to buy stocks & boost the GDP:Pagliara👇
PROPOSED ORDER IN @SCOTUS
1-$160b @USTreasury refund.@TheJusticeDept pays $19b Moral Damages
2-Congress puts the UST backstop where it belongs
3-@FHFA,dissolved.HUD takes control,like since the 1968 $FNMA privatization(request reports,etc)
4-The Conservatorship is...#Fanniegate
handed out to a Justice.FnF released in 2 days after the final decision: the JPS are refinanced(3.5%)& regrouped.FnF resume indep operations.
Criminal:the SEC Chairman that ignored my complaints,the FHFA's Dtrs,CFOs,etc
Political:Pelosi, Shelby,Warner, Waters,etc
The SPS(repaid in 2013/2014 FMCC/FNMA,resp,under the Secret Plan)& the Warrant(collateral of the SPS-to protect the taxpayer-eliminated back then),cancelled in 4.
The cumulative SPS get a 0% rate due to the (illegal)collateral.
HOW FnF REFINANCE THE JPS ON THEIR OWN
FnF redeem them at their par-value($25/$50)and issue new JPS.The closest Redemption Date now is Dec 2025.
The div resumes at 7.75%.Better use the @FHFA-C's Inc Power today"in the best interests of FnF".#Fanniegate@TheJusticeDept@USTreasury
Other theme is that the @FHFA-C has to use its authority to regroup all series of JPS into just two series($25/$50)
We have Calabria writing regulation,even related to the case of Receivership, instead of doing his job as Conservator. Lack of empathy & a crime.
The idea that the JPS's div payments don't resume till FnF build a Capital Surplus(beyond the Adeq Capitalized threshold),contemplated in the recent rule of Capital requirement,is insane.
JPS holders are outsiders,not shareholders.Role of recap upon undercap.
ARE #BIDEN & #KAMALAHARRIS TWO BULLIES?
Fact:KH was chosen by Biden because she's a well-known stalker of FnF. In Dec2011 KH sued FnF and in Feb2012 she bullied the @FHFA's Dtr publicly and in letters.
Biden understands the VP role as a bully,he might've done the same.#Fanniegate
In 2011,Republicans introduced more than 16 bills in Congress with the goal to wind down FnF, others were bipartisan.
HR1859 in May, a day after🇨🇳VP Quishan's trip to the🇺🇸to meet w/ Geithner.
HR2413 in Aug.
Geithner,July 2011:"Don't listen to banks...". 2 days later:
“The president did not want the new rules to end up being written by those who brought us to the edge of catastrophic financial failure”.
In July, FHFA began preparing the secret Recap plan CFR1237.12(1),which kicked off when the SPS were redeemed in 2013 for FMCC.2014 for FNMA.
THE SPSPA IS INVALID AS OF DECEMBER 2009
Thread explains how the @FHFA committed Securities Fraud to evade the expiration date of a Temporary Authority of @USTreasury to PURCHASE (high yield)obligations.
Also,2nd amnt to fool us:
If it includes Securities Fraud (SPS Liq Prefr is increased,instead of issuing stocks),it's invalid since day one. The Dec2009 expiration date is the MOTIVE of this crime(evade it)
HERA's amnts of the Charter(like this Temporary Authority)are invalid too:
So,the SPSPA is invalid from day 1.
What I meant w/ the 1st tweet,is that the @FHFA/@USTreasury can't write either a new amendment to the PA(6th)or a new PA stating that the UST gets a high yield div.The authorization EXPIRED in 2009.
Only the original low cost backstop prevails.