Tuesday, January 21, 2014

Franks Letter to Mel Watt.

foscofrank2  1 minute 31 seconds ago Flag

COMMON SHARE HOLDER LETTER - FINAL - 

Director Mel Watt’s Office
Federal Housing Finance Agency
400 7th Street NW
Washington, D.C. 20024

January 13, 2014

Dear Director Watt,
Congratulations on your Senate confirmation and recent swearing in as the director of the Federal Housing Finance Agency (FHFA). Your confirmation comes at a critical time for both our economy and the future of the housing reform. Although I understand that the White House, Congress and the Senate are looking at the future of the government-sponsored enterprises (GSE) your leadership, background and legal expertise will help clarify the confusions we common share holders have regarding the current conservatorship and its direction prior to your confirmation.

As you know, the economic crisis was directly related to the mortgage crisis and caused congress to enact The Housing and Economic Recover Act (HERA) on Jul 30, 2008. H.R. 3221, (110th). It is to provide needed housing reform and for related purposes and temporary authorities. This bill includes THE specific language that defined procedures for managing the (GSE's) conservatorship.
It is also of public record that through the economic crisis no GSE was ever found to be insolvent at that time of conservatorship and or during anytime during the last 5 years. 

Because of the substantial support provided by the GSE's to the housing industry and it's unique link to the treasury they were forced into conservatorship and used as tools enabling the government to stabilize and support the housing market collapse. Support related liquidity of the MBS market and helped fuel the economy through massive monthly bond purchases. This is now a matter of public record showing bank fraud to be the primary cause.

We tax payers also understand through public record that the FHFA settlements owed to Fannie Mae and Freddie Mac were originated from fraudulent bank loans sold to (GSE's) which were unknowingly purchased and converted into MBS bonds. Theses were from, fraudulently submitted loan papers and combined with relaxed regulations allowing subprime loan regulations passed by congress to be a required purchase. All these securities requiring the (GSE's) to purchase toxic securities of unknown risk. If congress appointed a third party conservator those purchases would have not been allowed by virtue of HERA's temporary authority to operate the (GSE's) back to a safe solvent position.

We tax payers understand extreme measures were taken and from those we are grateful our country is healing from that era. If the goal was to heal and NOT steal but restore, make better and safer, then the entities and charters is HERA conserved. The securities are own by everyday tax paying people who have been harmed from the past but who are now invested in our future of the (GSE's). Both groups of tax payers are one in the same and we the people own the (GSE's) and have and continue to be harmed by legislation that threat tax PAYER owned common stock securities in the (GSE's).
These combined issues are now clearly linked to over project losses creating a false perception of insolvency that still persists TODAY.

Of public record the (GSE's) were used to absorb toxic loans from some banks as well the (FHFA) demanded repurchasing of toxic loans creating artificial representations of the (GSE's) financial conditions during this time. These actions by FHFA were all to be effort to decreased toxic loan exposure, receive settlements from fraudulent loans stabilizing the housing financial industry. This followed the authority of HERA HOWEVER these transaction were to be transacted in a manner to increasing financial condition and restore solvency. The net effect was overstated treasury draws verses actual draws needed.

Also of public record, was the massive down-turn of home values across many markets, creating massive (mark to mark) accounting losses. The devaluation of the housing sector combined with massive job losses created historically high foreclosures many from unsustainable sub-prime loans.

These scenarios created massive asset losses (more paper losses than actual operating losses), which in turn caused overly inflated and unwarranted draws from the treasury to the (GSE's). This was to keep (mark to mark) asset write downs categorized as assets in a positive net-worth for GAAP.


Also of public record the HAMP foreclosure prevention programs combined with foreclosure sales and refinancing operations of the (GSE's) proved to have been needed tools we must keep. These operation proved successful in dramatically reducing actual losses. However extreme circumstances required extreme measures & FHFA had the authority to take draws from the treasury, (and did so) that were unwarranted to the operational needs of the (GSE's) and were taken in the event of a catastrophic losses which could not be foreseen.

As tax payers first and a shareholders second, we tax payers relied on the FHFA and Treasury authorities to operate under HERA. This is clear to account for an orderly pay back closing out treasury obligations through the use of prioritized dividends per HERA.
Mr. Director, at the point conservatorship was initiated the common shares of each (GSE) were publicly offered as instruments of ownership, i.e. Fannie Mae and Freddie Mac common shares with suspended rights while under support of the conservator. I, as a taxpayer, was able to purchase via NYSE & OTC in the open market. As a taxpayer I read the known risks via HERA and the conservatorship documents.

The purpose of these documents was to clearly fix, restore as well strengthen the GSE's with a capital plan to pay the government back first from restricted dividend payments prioritized to the treasury and in combination, implement a capital plan for restoration and capital market access. As this is clearly stated and I am not a constitutional lawyer verses a US tax PAYOR.


As you know Mr. Director, over the years Fannie Mae and Freddie Mac common stock has and continues to trade under the rules of conservatorship. These securities were, at that time, said to be worthless. But we tax payers believed that no better partner can a corporation have than the United State Government.

Because at that time the greatest risk was that the companies could have been placed into receivership the securities traded at a huge discount.

Mr. Director this did and still allows many lower class and middle class taxpayers to acquire shares otherwise financially out of their reach with the hope and risk the US government work make into a sound and solvent condition, per terms of the aforementioned agreements.

Mr. Director, as you know, clauses for receivership were never met nor was the required public announcement provided to the Tax PAYOR buying these common stock shares in the open markets would have any chance of being taken hurting US tax payers.

HERA states clearly that the conservator can convert from being a conservator into a receivership and or liquidation but notices and defaults triggers were clearly defined for all us tax PAYORS to read who purchase the common stock shares. These requirements of notice or defaults to trigger receivership or liquidation has nor were never met per the HERA requirements


The housing market has stabilized and begun to recover, and Fannie Mae and Freddie Mac have rebounded and returned to profitability. The agreement to suspend shareholder rights in exchange for extraordinary use of the GSE was to process:
to process fraudulent loan buy-backs;
to create MBS fraud settlements;
to stem foreclosures and process management; and
to absorb over estimated (mark to mark) accounting losses. These creating large paper losses, and creating draws from treasury but were on non-operating losses. These paper losses are the DTA’s being used to send the money back paper losses only due to the then GAAP accounting rules.

Since the end of 2011, neither Fannie Mae nor Freddie Mac has had one single quarter in the red. Both GSE’s have virtually returned all the bailout funds in 3rd quarter 2013, and will have fully repaid the treasury based on HERA’s temporary authority.

My Concerns:
I would like to have response and clarification regarding the repurchase obligations as priority to taxpayer payback via the treasury limited authority to purchase or obligate securities under section (1117) of HERA, if, implemented per those terms?

Was the third amendment of 2012, “Income Sweep” implemented or used as a means to reduce the obligations to the US Treasury? I am confused because public officials are saying there is no payback mechanism, which is clearly stated in HERA as priority for any dividends paid out?
Note: HERA states priority to protect taxpayers (HERA subsections below) states the authority on priority on funds is to be used to payback the treasury first for any securities or obligations be purchased or close out first for financial support


Mr. Director this clause is clear that the GSE’s could have been subjected to discretionary takings of treasury support that were not needed, but only by discretion, were infused, overestimating the actual bail out loan needed to operate under HERA.
Note:
HERS also states the director can increase or rescind any capital requirements of the (GSE's) including the powers to release upon determination of safe and solvent. This gray area allowed over estimated draws to be confused with real solvency as well the (GSE's) can be released without any fixed capital requirements for solvency.

Is there or will there be a capital plan developed in 2014 for a return to the private markets and ending conservatorship?

Do you agree that the warrant agreements attached to the GSE’s conservatorship (although still within the 20 year period) cannot be executed because HERA’s temporary authority to purchase securities defined as equities (HERA see section 1117) specifically states authority to purchase securities other than for bailout purposes ended December 31, 2009?
What is your position on priorities to ongoing quarterly income sweep draws ONCE repayment to the treasury has been completed?

I am just one of thousands of US taxpayers who invested in the Fix and Restore agreement the US Treasury and Congress made with both GSE’s. We are tax paying citizens that span across our great land representing many 1000's of taxpayers from various backgrounds ranging from minority to middle class Americans. We know proudly own original entity/chartered bailed out common stock. Over 21% of the common stock is now owned by mutual and or hedge funds and still owned by many retirement and elderly funds. We tax PAYERS invested in the trust of the US government to fix these two organizations. We tax PAYERS trusted that being told the Priority of any funds paid out of profits was to us (the taxpayers/treasury obligations) and then the organizations would be fixed to a safe and sound condition and put back into the public markets originally taken from AND back to the original securities regardless of time of purchase. All of us tax PAYORS (common folks) common share holders believed in this partnership,


Mr. Director is it your position in the event of a liquidation that per HERA the entity and charter would transfer?
NOTE: This was to safeguard tax PAYORS who owned or purchased into the original entities securities regardless of when purchased or time of conservatorship release.

Mr. Director, taxpayers continued to buy shares expecting to see this pay back happen as planned by HERA. THE BILL states the companies will stay shareholder owned and that the entities and charters are to be kept. That then would include all securities of the original (GSE's) had prior to conservatorship. The final payback to the US tax payer for the bail out is the UNITED STATES GOVERNMENT to allow restoration of these TAX payer owned companies stocks to recover through reform, release, regulate and monitor.

I can not stress enough that many tax payers lost dollars from conservatorship as well the threat of receivership. This created a very low shareholder value and for all that was lost spawned new tax PAYERS invested their savings, college funds, retirement funds and other funds for inheritances into those publicly offered legal instruments of ownership (common stock shares).

Mr. Director of public record in the conservatorship tax payers (GSE's) securities were only subjected to suspended rights, given such rights up under the trusting in our government. That agreement of trust was to restore to a safe & solvent state and returned to the rightful original owner's shares, (which as explained now combines old & new tax payer share holders being restored as well reward for the risk taken in partnership with the US Government.

It is a little discouraging to hear statements by public officials regarding an intention to cut us taxpayers out our common stock rights. New bills pushing liquidation, wind down of entities verses the future restoration, release through reform, regulate and monitor previously agreed to.


Mr. Director can you tell me why tax payers are facing the threat of being cut out of our common share purchases?

It is clear from reading HERA temporary authorities and conservatorship documents that the suspension of all rights of common share holders was only during conservatorship. A clear priority of HERA regarding all future income was to reduce the debt and close out any securities/obligations toward that debt (thus closing out obligations to the US treasury). This would, in turn, increase the book value (by 187 billion dollars) and allow (according to HERA’s temporary authority, see: Treasury…Temporary Authority to Purchase Securities) the purchase of securities leading the path to self recapitalization of the (GSE's).

Mr. Director under HERA is it true FHFA reviews and sets the capital requirements of the (GSE's) and that you have sole authority over required and or regulated capital levels?

Mr. Director with over 1.5 billion shares traded last year, this very liquid security is helping grow and transform many minorities to middle class families who have now invested hard earned dollars buying the common share stocks of both (GSE's) or kept the shares they owned through a very extreme crisis.

Tax PAYORS Investing THIER own money back into their own (GSE's) or kept THIER money to be restored. US taxpayers are NOW already in partnership with the US government through these common shares and are benefiting by their increase in value over the last 4 years. Thus by maintaining the GSE's public stock, HERA enabled a sustainable public/government partnership that supports us the taxpayer, protects the Government, secures the 30 year MBS market and maintains growing MBS liquidity with continued access to the public capital markets. The greatest value to taxpayers was the promise to restore and release by HERA. The tax PAYORS were informed and allowed to invest in the bailout entities took the needed risks, and should now be able to grow in value with the safe & sound enhanced regulated model via the original common stock still still trading according to HERA.


Please refer to Sec 1117 & subsections:
(C) Considerations to (i) prioritize repayment to the government, (ii) limits on maturity or disposition of obligations or securities to be purchased, (iii) the corporation’s plan for the resumption of private market funding or capital market access, (iv) the probability of the corporation fulfilling the terms of any such obligation or other security, INCLUDING REPAYMENT, (v) The need to maintain the corporations status as a private shareholder company.

Please refer to HERA Restriction on Capital Distributions:
Page 79 of 260 subsection (E)
2 Exception subsections (A) and (B) states is made in connection with the issuance of additional shares or obligations i.e. (treasury draws) of the regulated entity in at least equivalent amount; and will reduce the financial obligations of the regulated entity of or otherwise improve the financial condition.

NOTE:
This means closing out the treasury senior preferred shares was clearly intended to pay monies out only to increase the book value of the (GSE's). Reducing or eliminating the need for recapitalization by further dilution or sales of new.

3. Would you or your office please update me regarding your plans to resolve the 17 lawsuits involving FHFA and the treasury on complaints ranging from overstepping bounded contractual rights to the validity of the conservatorship itself?
Note: As a concerned taxpayer I purchased common stock under those agreements since 2008/9 published government agreements with Fannie Mae and Freddie Mac conservatorship.

Additional questions due to legal matters above
HERA specifies an intent to keep the companies securities publicly trading.

A. Would you or your office please confirm whether this is still correct?

B. Will the Sweep Agreements be terminated after final payments total the value drawn under the senior preferred shares being paid to them? As well will this then close out all obligations to the treasury via HERA's priority of distribution as payback government first combined with reductions of any obligations to those securities?

Will future dividend draws settle any remaining 10% coupon costs associated with the senior preferred shares or is that no longer being warranted?

Will the GSE’s be maintained as a shareholder publicly owned company with all securities of original entities and charters per required by HERA?

E. Will the GSE's be maintained as publicly traded companies as required by HERA?

Under your leadership, will draws that were taken under HERA discretionary authority of the conservator opinion be reviewed now that public record shows this happen do to massive DTA's?


Please refer to HERA reviewing page 17of 260
Note: This section allowed the then acting current director to invest treasury draws in senior preferred shares at the directors discretion, but were not required to meet the then current working needs of the agency.


Mr. Director can you confirm to me in writing that HERA and the conservatorship documents are working according to the terms of agreement and that these companies will be restored?

Mr. Director will you have a plan to restore the (GSE') per the terms of conservatorship public documents that were released in 2008 and 2009? Will this plan follow the bill HERA which governs the temporary authorities of the US Treasury and FHFA's temporary authorities of conservatorship?

Many thanks in advance for your review and response

Sincerely,

Frank M. Fosco Jr.
Common shareholder
Fannie Mae & Freddie Mac

====================

version 2:

Version 2 common shareholder letter - please common on which better


Director Mel Watt’s Office
Federal Housing Finance Agency
400 7th Street NW
Washington, D.C. 20024

January 13, 2014

Dear Director Watt,
​Congratulations on your Senate confirmation and recent swearing in as the director of the Federal Housing Finance Agency (FHFA). Your confirmation comes at a critical time for both our economy and the future of the housing reform. Although I understand that the White House, Congress and the Senate are looking at the future of the government-sponsored enterprises (GSE) your leadership, background and legal expertise will help clarify the confusions we common share holders have regarding the current conservatorship and its direction prior to your confirmation.

As you know, the economic crisis was directly related to the mortgage crisis and caused congress to enact The Housing and Economic Recover Act (HERA) on Jul 30, 2008. H.R. 3221, (110th). It is to provide needed housing reform and for related purposes and temporary authorities. This bill includes THE specific language that defined procedures for managing the (GSE's) conservatorship.

It is also of public record that through the economic crisis no GSE was ever found to be insolvent at that time of conservatorship and or during anytime during the last 5 years.


Because of the substantial support provided by the GSE's to the housing industry and it's unique link to the treasury they were forced into conservatorship and used as tools enabling the government to stabilize and support the housing market collapse. Their unique support related the liquidity of the MBS market helped fuel the economy through massive monthly bond purchases

Of public record the (GSE's) were used to absorb toxic loans from some banks as well the (FHFA) demanded repurchasing of toxic loans creating artificial representations of the (GSE's) financial conditions during this time.
We tax payers also understand through public record that the FHFA settlements owed to Fannie Mae and Freddie Mac were originated from fraudulent bank loans sold to (GSE's) which were unknowingly purchased and converted into MBS bonds. These loans were from, fraudulently submitted loan papers (as well should be noted) many were combined with relaxed regulations that allowed subprime loans (from regulations passed by congress) to be required purchases. All these securities required the (GSE's) to purchase many toxic securities of unknown risk.

The goal was to heal and (NOT HURT) but restore, make better and safer, then the entities and charters is what HERA conserved. We tax payer understood these actions by FHFA were all to be effort to decreased toxic loan exposure, receive settlements from fraudulent loans stabilizing the housing financial industry but not always followed what was best for the (GSE’s).

These extraordinary efforts to stabilize did not (always) follow the authority of (HERA) even though all transactions were to be transacted only in a manner to increase the financial condition and to restore solvency to the (GSE’s).

Also of public record, was the massive down-turn of home values across many markets, creating massive (mark to mark) accounting losses. The devaluation of the housing sector combined with massive job losses created historically high foreclosures linked to many of the congressionally required purchases from unsustainable sub-prime loans.

These scenarios created massive asset losses (more paper losses than actual operating losses), which in turn (AGAIN) caused overly inflated and unwarranted draws from the treasury to the (GSE's). This was to keep (mark to mark) asset write downs categorized as assets in a positive net-worth for GAAP.

Also of public record the HAMP foreclosure prevention programs combined with foreclosure sales and refinancing operations of the (GSE's) proved to have been needed tools we must keep.

The (GSE’s) operations proved successful in dramatically reducing actual losses. However extreme circumstances required extreme measures & FHFA had the authority to take draws from the treasury, (and did so) that were unwarranted to the operational needs of the (GSE's) and were taken in the event of a catastrophic losses which could not be foreseen. 

As tax payers first and a shareholders second, we tax payers relied on the FHFA and Treasury authorities to operate under HERA. This is clearly defined in public record that any taxpayer could read HERA prioritized for an orderly pay back closing out treasury obligations through the use of prioritized dividends per HERA. 

Mr. Director, at the point conservatorship was initiated the common shares of each (GSE) were publicly offered as instruments of ownership, i.e. Fannie Mae and Freddie Mac common shares with suspended rights while under support of the conservator per HERA. I, as a taxpayer, was able to purchase via NYSE & OTC in the open market. As a taxpayer I read the known risks via HERA and the conservatorship documents. 

The purpose of these documents was to clearly fix, restore as well strengthen the GSE's with a capital plan to pay the government back first from restricted dividend payments prioritized to the treasury as a closing of all obligations and in combination, implement a capital plan for restoration and capital market access.
This is clearly stated and I am not a constitutional lawyer verses a US taxpayer.

AS A TAX PAYER & SHAREHOLDER
As you know Mr. Director, over the years Fannie Mae and Freddie Mac common stock has and continues to trade under the rules of conservatorship. These securities were, at that time, said to be worthless. But we tax payers believed that no better partner can a corporation have than the United State Government. 

• Because at that time the greatest risk was that the companies could have been placed into receivership the securities traded at a huge discount for all to purchase under clear terms

Mr. Director, this did and still allows many lower class and middle class taxpayers to acquire shares otherwise financially out of their reach with the hope and (RISK) the US government work make into a sound and solvent condition, per terms of the aforementioned agreements.

Clauses for receivership were never met, nor were the required public announcement provided to the Taxpayers buying these common stock shares in the open markets would have any chance of being taken away unjustly from US taxpayers.

HERA states clearly that the conservator (only) can convert from being a conservator into a receivership and or liquidation. That notices to the (GSE’s), and defaults triggers clearly defined for all us taxpayer to read purchasing the common stock shares would be protected from rogue bills being enacted without proper notice to taxpayers purchasing these securities. 

This was to safeguard taxpayers who owned or purchased into the original entities securities regardless of when purchased or time of conservatorship release.

HERA clearly states the companies will stay shareholder owned and that the entities and charters are to be kept. That then would include all securities of the original (GSE's) had prior to conservatorship.

The final payback to the US tax payer for the bail out is the UNITED STATES GOVERNMENT to allow restoration of these TAX payer owned companies (AND) stocks to recover through reform, release, regulate and monitor.

I cannot stress enough that many taxpayers lost dollars from the (IMPOSED) conservatorship created a very low shareholder value. But through great loss came opportunity and for all that was lost to spawn new tax PAYERS who now could invest their savings, college funds, retirement funds and other funds for inheritances into those publicly offered legal instruments of ownership (common stock shares).

That agreement to suspend rights was in trust was to restore to a safe & solvent state and returned to the rightful original owner's shares, (which as explained now combines old & new taxpayer’s shareholders being restored as well reward for the risk taken in partnership with the US Government

Mr. Director can you tell me why taxpayers are facing the threat of being cut out of our common share purchases from rouge bills being introduced?
Public officials intentions are to cut us taxpayers out our common stock rights. New bills pushing liquidation, wind down of entities verses the future restoration, release through reform, regulate and monitor previously agreed to.

It is clear from reading HERA temporary authorities and conservatorship documents that the suspension of all rights of common stock shares was only during conservatorship. A clear priority of HERA regarding all future income was to reduce the debt and close out any securities/obligations toward that debt (thus closing out obligations to the US treasury). This would, in turn, increase the book value (by 187 billion dollars) and allow (according to HERA’s temporary authority, see: Treasury…Temporary Authority to Purchase Securities) the purchase of securities leading the path to self recapitalization of the (GSE's).



INVESTED IN OUR GOVERNMENT:
Mr. Director with over 1.5 billion shares traded last year, this very liquid security is helping grow and transform many minorities to middle class families who have now invested hard earned dollars buying the common share stocks of both (GSE's) or kept the shares they owned through a very extreme crisis.

Taxpayers Invested THIER own money back into their own (GSE's) or kept THIER money to be restored. US taxpayers are NOW already in partnership with the US government through these common shares and are benefiting by their increase in value over the last 4 years. 

Thus by maintaining the GSE's public stock, HERA enabled a sustainable public/government partnership that supports us the taxpayer, protects the Government, secures the 30 year MBS market and maintains growing MBS liquidity with continued access to the public capital markets. The greatest value to taxpayers was the promise to restore and release by HERA. The tax PAYORS were informed and allowed to invest in the bailout entities took the needed risks, and should now be able to grow in value with the safe & sound enhanced regulated model via the original common stock still trading according to HERA.

Please refer to Sec 1117 & subsections: 
(C) Considerations to (i) prioritize repayment to the government, (ii) limits on maturity or disposition of obligations or securities to be purchased, (iii) the corporation’s plan for the resumption of private market funding or capital market access, (iv) the probability of the corporation fulfilling the terms of any such obligation or other security, INCLUDING REPAYMENT, (v) The need to maintain the corporations status as a private shareholder company.
Please refer to HERA Restriction on Capital Distributions:
Page 79 of 260, subsection (E)
2 Exception subsections (A) and (B) states is made in connection with the issuance of additional shares or obligations i.e. (treasury draws) of the regulated entity in at least equivalent amount; and will reduce the financial obligations of the regulated entity of or otherwise improve the financial condition. 

Sincerely,

Frank M. Fosco Jr.
US Taxpayor
Common Share Owner
Fannie Mae and Freddie Mac

Additional questions due to legal matters above
HERA specifies the intent is to keep the companies securities publicly trading. 
• Would you or your office please confirm whether this is still correct? 
• Will the Sweep Agreements be terminated after final payments total the value drawn under the senior preferred shares being paid to them? As well will this then close out all obligations to the treasury via HERA's priority of distribution as payback government first combined with reductions of any obligations to those securities?
• Will future dividend draws settle any remaining 10% coupon costs associated with the senior preferred shares or is that no longer being warranted?
• Will the GSE’s be maintained as a shareholder publicly owned company with all securities of original entities and charters per required by HERA?
• Will the GSE's be maintained as publicly traded companies as required by HERA?
• Under your leadership, will draws that were taken under HERA discretionary authority of the conservator opinion be reviewed now that public record shows this happen do to massive DTA's?
• Is there or will there be a capital plan developed in 2014 for a return to the private markets and ending conservatorship?
• Do you agree that the warrant agreements attached to the GSE’s conservatorship (although still within the 20 year period) cannot be executed because HERA’s temporary authority to purchase securities defined as equities (HERA see section 1117) specifically states authority to purchase securities other than for bailout purposes ended December 31, 2009?
• What is your position on priorities to ongoing quarterly income sweep draws ONCE repayment to the treasury has been completed

In Summary:
The housing market has stabilized and begun to recover, and Fannie Mae and Freddie Mac have rebounded and returned to profitability. The agreement to suspend shareholder rights in exchange for extraordinary use of the GSE was to process:
• to process fraudulent loan buy-backs;
• to create MBS fraud settlements;
• to stem foreclosures and process management; and
• to absorb over estimated (mark to mark) accounting losses. These creating large paper losses, and creating draws from treasury but were on non-operating losses. These paper losses are the DTA’s being used to send the money back paper losses only due to the then GAAP accounting rules.

Since the end of 2011, neither Fannie Mae nor Freddie Mac has had one single quarter in the red. Both GSE’s have virtually returned all the bailout funds in 3rd quarter 2013, and will have fully repaid the treasury based on HERA’s temporary authority.
I am just one of thousands of US taxpayers who invested in the Fix and Restore agreement the US Treasury and Congress made with both GSE’s. We are tax paying citizens that span across our great land representing many 1000's of taxpayers from various backgrounds ranging from minority to middle class Americans.

• We now proudly own original entity/chartered bailed out common stock. Over 21% of the common stock is now owned by mutual and or hedge funds and still owned by many retirement and elderly funds.
• We taxpayers invested in the trust of the US government to fix these two organizations.
• We taxpayers trusted that being told the Priority of any funds paid out of profits was to us (the taxpayers/treasury obligations) and then the organizations would be fixed to a safe and sound condition and put back into the public markets originally taken from AND back to the original securities regardless of time of purchase. All of us tax PAYORS (common folks) common share holders believed in this partnership

3 comments:

  1. some of it may be mixed up, but you can get all the info sent in the letter above.

    ReplyDelete
  2. Its rather a long letter. I didn't see content on revokation of the Aug 2012 usurious amendment by the US T when GSE were getting back to profitability. GSE's should be allowed to get back to capital adequacy and treasury should stop the loot "net sweep agreement" and its get its 10% dividend.

    ReplyDelete
  3. You may want to consider creating a Shareholder Petition in Change.org and getting 1000 shareholders to sign it. Such a letter has value and can be shared with shareholder supporter like Ralph Nader and will most definitely help our case.

    ReplyDelete

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