Monday, January 20, 2014

New ruling puts Fannie, Freddie in line for windfall MBS recovery dec2013

New ruling puts Fannie, Freddie in line for windfall MBS recovery

For those who may have missed this very important article from December 17, by Alison Frankel, please Google the subject line and be amazed and delighted.

This was basically ignored, but now we know it's expected to translate into around $50 Billion! Far beyond Net Zero. This is ours! By the way, ignorant and deceitful individuals called us brave shareholders crazy since at least 2008. 

This is huge news I believe was overlooked. I would like to see all that money won in the settlements used towards allowing us to build a backstop going forward from here. Net zero is here. Since the taxpayers are all paid back, I would like to see them allow us to rebuild our capital and take a certain percentage of profits going forward( say 25%) and also add that to the backstop fund. 
To summarize, we take all future settlement funds and 25% of all net profit and set it aside and build the backstop up until that magic number is established ( 150b is my #) to make everyone sleep good at night. After that number is hit, all profits go to shareholders. 2 years from now we would all be rich!! I say they take the banks to the FUxxxn cleaners! Everybody wins, the taxpayers are repaid, shareholders win, congress wins for finding a solution, oslama looks good... Hell, even the banks win being let off at even 50c on the dollar compared to the measley 15-20c now. I'm excited to watch it all play out in 2014! Locked and loaded, long and strong!

This windfall could turn out to be enormous. Instead of settlements for 12 cents on the dollar, Fannie and Freddie could receive FULL maturation value PLUS 6% annual interest for the duration that the fraudulent securities were held by F&F. The implications of this are staggering. Worth watching! The big banks committed SO MUCH FRAUD, they may end up paying this down for decades! With us as the victims being compensated!

This is important, according to Frankel. It means that banks are liable, not just for the amount fannie lost on bad loans, but interest and costs as well. The author suggested there will be many more settlements, and much more money due to fannie. While she did not opine on whether this will ultimately benefit shareholders or not, it will certainly put more pressure on the government. How can our government shut down a company that is wildly profitable and recovered being a VICTIM of fraud, not a perpertrator, as they once said.

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