Thursday, January 22, 2015

Bove Urges Obama To End Fannie Mae, Freddie Mac Conservatorship In Open Letter

Bove Urges Obama To End Fannie Mae, Freddie Mac
Conservatorship In Open Letter

After spending $187.5 billion to save the GSEs, the Federal government has received $213.1
billion in dividends, and it still owns preferred securities that Bove’s values at $240 billion.
Additional warrants to purchase 7.2 billion in common stock in the GSEs is worth $34 billion in
today’s market, but Bove believes their value would rise to $153 billion if Fannie Mae / Federal
National Mortgage Assctn Fnni Me (OTCBB:FNMA) and Freddie Mac / Federal Home Loan
Mortgage Corp (OTCBB:FMCC) are re-privatized. Altogether, the US gets $416 billion in cash
and stock from a $187.5 billion investment in about six years, “a staggering success in the
financial arena.”

Wednesday, January 21, 2015

The Fannie And Freddie Recapitalization Plan

The Fannie And Freddie Recapitalization Plan

Tim Howard writes that the conservatorship was engineered by Treasury to drown Fannie and Freddie.
"No other regulator in the world, at any time or under any set of circumstances, ever had used non-repayable senior preferred stock, paid with after- tax dollars, as a vehicle for rescuing a financial institution in crisis (or for any other purpose)," Howard writes. "The goal of this instrument was not to aid the two companies, but to push them into insolvency and keep them there."

Tuesday, January 20, 2015

biggest losers in USA bailouts

General MotorsAuto CompanyMich.$50,744,648,329-$11,410,472,582
CIT GroupBankN.Y.$2,330,000,000-$2,286,312,500
Bank of America subsidiaries (incl. Countrywide)Mortgage ServicerCalif.$1,733,006,810-$1,733,006,810
JPMorgan Chase subsidiariesMortgage ServicerN.J.$1,729,464,351-$1,729,464,351
Wells Fargo Bank, NAMortgage ServicerIowa$1,450,603,187-$1,450,603,187
Ocwen Financial Corporation, Inc.Mortgage ServicerFla.$1,334,763,170-$1,334,763,170
ChryslerAuto CompanyMich.$10,748,284,222-$1,315,061,737
CalHFA Mortgage Assistance CorporationState Housing OrgsCalif.$1,217,490,000-$1,217,490,000
Florida Housing Finance CorporationState Housing OrgsFla.$536,250,000-$536,250,000
CitiMortgage, Inc.Mortgage ServicerMo.$466,951,968-$466,951,968

Fannie and Freddie

Freddie MacGovernment-Sponsored EnterpriseVa.$71,336,000,000$19,633,000,000
Fannie MaeGovernment-Sponsored EnterpriseD.C.$116,149,000,000$18,286,000,000
Received other federal aid. Click to see details.

Sunday, January 18, 2015

Peter Wallison : Voodoo Economics Scholar or Sociopathic liar ?

Of all the mortgages originated between 2006-2013 10% actually failed and produced 1 trillion dollars in losses. So based on a percentage of all the mortgages they underwrote in this period just how do the various players stack up?
Realized losses of all mortgages originated between 2006-2013
Fannie and Freddie- 3 Percent
Big Banks- 6 Percent

PLMBS/ Private mortgage co.s (Ameriquest etc.) 23 Percent
Now you tell me, who exactly was responsible for all the losses in mortgages?
Fannie and Freddie who had 3% of those losses, or Big Banks and PLS that had 29%?
These people really think Americans are stupid and sheep, don't they?