Saturday, September 27, 2014

The Senior agreement and Third Sweep

The Senior agreement and Third Sweep

http://www.fhfa.gov/Conservatorship/Documents/Senior-Preferred-Stock-Agree/2008-9-26_SPSPA_FannieMae_RestatedAgreement_N508.pdf

http://www.fhfa.gov/Conservatorship/Documents/Senior-Preferred-Stock-Agree/2012-8-17_SPSPA_FannieMae_Amendment3_508.pdf

It should be noted the Senior agreement along with the Third sweep were NOT signed by the board of fannie, but by the FHFA and the treasury.

Now if the sweep is Found to be at the Direction of treasury and not the FHFA what about the Senior Preferred agreement? It would stand to reason that they will be brought into the same answer as the Third will bring. The senior agreement was the give away of the warrants to the treasury. If the treasury was directing the show, making a contract with itself, the warrants will be GONE along with the entire agreement.

The court will turn the whole thing on its ear once discovery comes out and the warrants will be useless.

Self dealing.

Another thing is the action of congress and HERA and the treasury made life hard for fannie in the months ahead of takeover. They made the market question the companies, The companies did not need to have a positive stock value of more that .01 to be solvent? To be solvent the companies had to pay its bills, not have a high stock price. The govt used the falling stock price as a reason for takeover. Paulson told the hedge funds to short the stocks of fannie.
As soon as the govt took over in the last month of the 3rd quarter of 2008, they had 30 days to prove the insolvency of fannie, and they did by writing off 50 billion in fake losses in the 3rd quarter of 2008. How do we know this was a fake 50 billion loss? Simple the 60 billion paid in 2013 from DTA in the 1st quarter. The Dta was a reversal of the write down of the 3rd quarter of 2008 and most of the 4th quarter. Fannie was not insolvent and did not lose 70 plus billion in the first 2 quarters of conservatoreship. The narrative that the Govt writes has been so pushed down everyone’s throat that they are making people believe the LIE. That initial 70 billion that was mostly fake to begin with then started the cycle of paying 10% dividend on money they did not need and this grew the Senior stock to over 100 billion.
MOSTLY BASED ON LIES AND FRAUD. I wish I could write this better but the lie is easier to tell than the truth and the govt wants everyone to believe the lie!!


The Secret Recordings of Carmen Segarra SEP 26, 2014

The Secret Recordings of Carmen Segarra SEP 26, 2014



Bruce Berkowitz - Powerful Financials

Bruce Berkowitz - Powerful Financials

Fannie talks starts at 14:10


Thursday, September 25, 2014

Different Day, Same Confusion

Different Day, Same Confusion


By the way, Im the guy that posted the response to Carney. 

This was my comment to Wall Street Journal 

The other lawsuits are based on 5th amendment rights under the constitution, not based on shareholder derivative lawsuit where the plaintiff takes the roll of Fannie Mae because Fannie Mae cant [sic] defend itself. HERA says the conservator can do that only. Fairholme, Perry and Pershing have all said that both the FHFA and treasury have taken the PROPERTY of shareholders. The case your [sic] writing about has nothing to do with the taking of property for which HERA cannot defend. HERA is not the 5th amendment to the constitution, Nor is HERA the law that supersedes all other laws.

Charlie Munger

Charles Thomas Munger (born January 1, 1924) is an American business magnate, lawyer, investor, and philanthropist. He is Vice-Chairman of Berkshire Hathaway Corporation, the diversified investment corporation chaired byWarren Buffett; in this capacity, Buffett describes Munger as "my partner." Munger served as chairman of Wesco Financial Corporation from 1984 through 2011 (Wesco was approximately 80%-owned by Berkshire-Hathaway during that time). He is also the chairman of the Daily Journal Corporation, based in Los Angeles, California, US, and a director of Costco Wholesale Corporation.

Charlie Munger And The 2014 Daily Journal Annual Meeting - Part Two


Q. What do you think of Fannie Mae and Freddie Mac?

Munger: I have a peculiar attitude for a Republican. I think Fannie Mae and Freddie Mac, when they don’t go crazy making lousy loans in response to the demands of politicians, are serving the country pretty well, the way the system is now configured. The fact that we came into it by accident doesn’t mean that it isn’t a pretty good solution. Considering the crisis we had and the risks we faced, everybody behaved pretty well and the result is not awful.
Last time we loosened standards because everybody else was. The politicians hated them, and they couldn’t stand that everybody else was making money on the subprime loans. This was envy and it was stupid. There is nothing wrong with keeping your head when all about you are losing theirs — Kipling was right. Why couldn’t Fannie Mae say, we extend credit to people who deserve credit? Well, it’s not egalitarian enough – we want to shovel money at the people who were deprived. The trouble with that is the whole system blows up. What looks like hard-headedness is really soft-headedness. The whole world is better when you don’t reduce engineering standards in finance. We skipped a total disaster by a hair’s breadth. Partly because both Democrats and Republican administrations, both Congress and the President, made decisions that were pretty much exactly right and did it under terms of terrible pressure. I’m a big fan of the people who took us through the crisis. I’m not a big fan of the people who caused the crisis. Some of them deserve to be in the lowest circle of Hell – not that I have any power to put them there.
Q: But what about when the government stripped away the profits of these enterprises?
Munger: They were private corporations with a little bit of government image and they were insolvent at the time. I don’t think it was unjust. They had behaved terribly. If somebody asks you to do something that’s bad enough, you can give up your damn job rather than do it. Fannie Mae did not have to cave. It was run by people who were cavers by nature. They were just looking for a place to sell out for personal advantage. That’s what they did in life.
We want more people who say, “You’re my boss, and if that’s what you want to do, you’ll have to get a different errand boy. I’m not going to do it.” There ought to be way more of that. Elihu Root, probably the greatest cabinet officer we ever had, said one of my favorite comments: No man is fit to hold public office who isn’t perfectly willing to leave it at any time. Of course, he was the most famous lawyer in the world so he could immediately leave to success, whereas the other politicians, if they left, were nothing. The country would be better off if we had more people like Elihu Root making the decisions.

Wednesday, September 24, 2014

Fannie Mae, Freddie Mac: The WSJ Misinterprets Sweeney Decision

Fannie Mae, Freddie Mac: The WSJ Misinterprets Sweeney Decision



Late yesterday the WSJ ran the following piece and while much of it is just a rehash of how we got here, they draw what I think are erroneous conclusions from the Sweeney ruling. 

Bruce Berkowitz Talks Fannie, Freddie, AIG, BAC With Consuelo Mack

Bruce Berkowitz Talks Fannie, Freddie, AIG, BAC With Consuelo Mack 



Berkowitz’ big bets in four financial stocks largely shunned by investors since the financial crisis, which now make up nearly 80% of The Fairholme Fund’s portfolio: AIG accounts for 47%, Bank of America nearly 15% and mortgage giants Fannie Mae and Freddie Mac account for over 15%.

A quick look at those bets will show Bruce is doing very well.

More Erroneous Reporting on Fannie Mae, Freddie Mac Litigation by Todd Sullivan

More Erroneous Reporting on Fannie Mae, Freddie Mac Litigation by Todd Sullivan

ted-olsons-shot-across-the-bow

Fannie Mae, Freddie Mac: Ted Olson’s Shot Across the Bow by Todd Sullivan

http://www.valuewalk.com/2014/09/fannie-mae-freddie-mac-ted-olsons-shot-across-the-bow/


Here is the goods on John Carney and Michael Milken:

Here is the goods on John Carney and Michael Milken:
guest speaker at milken 2014
John Carney
Wall Street Columnist, “Heard on the Street,” Wall Street Journal
John Carney covers all things Wall Street for the “Heard on the Street” column in the Wall Street Journal. Previously he was an on-air reporter at CNBC .
and then:
http://www.professorbainbridge.com/professorbainbridgecom/2010/12/defending-carneys-crusade-against-insider-trading.html
1.That Carney has an opinion that the federal insider trading laws are bad public policy:
The John Carney assault on insider trading laws has stepped up just prior to and during the expert network investigations that may point to Steve Cohen, a favorite of Goldman Sachs, JP Morgan and other investment banks. I have appreciated Carney’s astute observation about Basel 3 in the past, and John even quoted me once, but I noticed recently that he is speaking at hedge funds. We saw how ineffective that sort of behavior made Larry Summers, who did nothing for mainstreet as Obama’s financial guru. And John considers Michael Milken a great American and Enron as being unfairly prosecuted. Sheesh!
2.Milken was indicted for racketeering and securities fraud in 1989 in an insider trading investigation. As the result of a plea bargain, he pled guilty to securities and reporting violations but not to racketeering or insider trading. Milken was sentenced to ten years in prison, fined $600 million, and permanently barred from the securities industry by the Securities and Exchange Commission. His sentence was later reduced to two years for cooperating with testimony against his former colleagues and for good behavior.Since his release from prison, Milken has funded medical research.[5] He is co-founder of the Milken Family Foundation, chairman of the Milken Institute
3. Who was hired by Milken institute?
Sep 03, 2014
WASHINGTON – The Milken Institute today announced that Edward DeMarco has joined its Washington-based Center for Financial Markets (CFM) as a Senior Fellow-in-Residence to drive the Center’s work on housing finance reform and housing policy issues.
4.What is the Milken institutes motivation for misleading investors in Fannie and Freddie? Demarco is still spewing the shuttering of fannie and freddie since he got the job at Milken. Carney, an arm of Milken, is misleading for price manipulation? Why?

Monday, September 22, 2014

Russia ordered to pay $50bn in damages to Yukos shareholders

Russia ordered to pay $50bn in damages to Yukos shareholders


http://www.theguardian.com/business/2014/jul/28/russia-order-pay-50bn-yukos-shareholders-khodorkovsky-court

Russia has been ordered to pay $50bn (£29.4bn) to shareholders of Yukos, the formerdefunct oil company that was broken up a decade ago after its boss fell foul of Vladimir Putin.

In a judgment against the Kremlin, a tribunal in the Hague ruled that the Russian state had sought to bankrupt Yukos, appropriate its assets and prevent its owner, Mikhail Khodorkovsky, from entering politics.
The permanent court of arbitration rejected Moscow's arguments that the assets seizure was driven by tax-collection motives, ruling that the state set out to bankrupt the oil firm in "a devious and calculated expropriation".

Perry capital wants to have all the discovery documents from Fairholm

Perry capital wants to have all the discovery documents from Fairholm

http://timhoward717.files.wordpress.com/2014/06/91814-plaintiff-perry-capital-llc_s-motion-for-supplementation-of-defendants_-administrative-records-2.pdf