Rodney5
1 hora hace
Vancmike, I wrote this back in 2023, The GSE’s had a limited explicit obligation from Treasury in the amount of $2.25 billion. The FHFA / Treasury could have updated this small amount to an updated amount of $200 billion to purchase obligations, MBS obligations. Rather the Treasury chose to create a new product called the Senior Preferred Stock with an illegal commitment fee attached.
Example: The FDIC insured deposits at $100,000, the FDIC updated that amount by reason of inflation to an amount $250.000 per deposit.
The HERA legislation granted temporary authority to the Treasury to purchase obligations of the Enterprise, above the limits written in the Charter,
Rodney5
Re: None
Saturday, 12/09/2023 7:22:34 PM
Explicit and Implicit
Explicit: The Treasury was authorized by Congress a limit of $2.25 billion to purchase obligations. The $2.25 billion was the explicit obligation. NOTE: to purchase obligations NOT A $200 billion line of credit. Page 14
The amount was increased by Congress in the Charter Act that was amended by HERA to purchase obligations but only under emergency conditions, no emergency existed. The amount today $200 billion as of December 24, 2009, expired on December 31, 2009: and no more. The $200 billion commitment was forced on the GSEs by the FHFA / Treasury by the illegal contract the SPSPA. The GSEs never needed a capital infusion, both Fannie and Freddie were adequately capitalized.
FEDERAL NATIONAL MORTGAGE ASSOCIATION CHARTER ACT
PURCHASE OF OBLIGATIONS BY TREASURY; CONDITIONS AND RESTRICTIONS
The Secretary of the Treasury shall not at any time purchase any obligations under this subsection if such purchase would increase the aggregate principal amount of the Secretary’s, then outstanding holdings of such obligations under this subsection to an amount greater than $2,250,000,000. Page 14
Link: https://www.fanniemae.com/sites/g/files/koqyhd191/files/migrated-files/resources/file/aboutus/pdf/fm-amended-charter.pdf
"The U.S. Government does not guarantee, directly or indirectly, our securities or other obligations." ... (Implicit is not worth the paper it WAS NOT WRITTEN ON).
The United States was not obligated after 1968 to back any debt of Fannie Mae. The United States Taxpayers became obligated when the government took over the two companies.
Originally, Fannie Mae had an explicit guarantee from the United States government; if the entity got into financial trouble the government promised to bail it out. This changed in 1968. Fannie Mae became a private stockholder owned company. Fannie Mae securities received no actual explicit or implicit government guarantee. This is clearly stated in the securities themselves, and in many public communications issued by Fannie Mae. (Other than a limit of $2.25 billion by the Charter Act).
Quote: “Although we are a corporation chartered by the U.S. Congress, the U.S. Government does not guarantee, directly or indirectly, our securities or other obligations. We are a stockholder-owned corporation, and our business is self-sustaining and funded exclusively with private capital. Our common stock is listed on the New York Stock Exchange and traded under the symbol “FNM.” Our debt securities are actively traded in the over-the-counter market.” End of Quote.
Information from: Fannie Mae form 10K Dec 31, 2007
part I, page 1, item 1.
https://www.fanniemae.com/sites/g/files/koqyhd191/files/migrated-files/resources/file/ir/pdf/quarterly-annual-results/2007/form10k_022708.pdf
With the passage of HERA Legislation: (purchase obligations increased with an expiration date of December 31, 2009).
SEC. 1117. TEMPORARY AUTHORITY FOR PURCHASE OF OBLIGATIONS OF REGULATED ENTITIES BY SECRETARY OF TREASURY.
The HERA legislation granted temporary authority to the Treasury to purchase obligations of the Enterprise, above the limits written in the Charter, (Charter limitation of 2.25 billion) up to the point in time of ‘‘(4) TERMINATION OF AUTHORITY.—The authority under this subsection (g), with the exception of paragraphs (2) and (3) of this subsection, shall expire December 31, 2009. Page 18 charter act
Link: https://www.congress.gov/110/plaws/publ289/PLAW-110publ289.pdf
RickNagra
3 horas hace
Rule of Law Guy.
45/47 selected Scott Bessent for Treasury Secretary. He will have no problem getting confirmed. Bessent is a master of the universe-level investor with experience operating in various global markets. As a communicator, he is thoughtful, polite, savvy, and (I know, you are waiting for this) he promises to be a facilitator of the GSEs’ recapitalization and conservatorship release. Part of the solution, not part of the problem.
I discuss this at greater length below.
But first, an installment of a new periodic feature of my newsletter: “Fevered Dreams”...
trunkmonk
8 horas hace
other then warrant that most here (but not me) HATE --- how would Treasury get a dime? thats where the KTCarneyCorkerClowns are all wrong and very confused, we dont hate them, they cant be exercised legally, actually we will get good money with or without exercising, if they do, we win all dat money plus pain and time value of money in court. its the time we hate, not the concept. And who says Treasury get a dime after taking more then they were owed, fact is when truth comes out, they took millions for unrelated Government functions. SPSA was illegal according to HERE, there is not one step or second of conserve in that order by SM, it was death spiral financing after extortion and loan sharking, none of them are legal under HERA, at least any normal thinking non hate filled human would interpret it.
Rodney5
11 horas hace
Vancmike, I appreciate you and everyone that is helping our cause.
Where is "maximize profits for taxpayers" written in the Charter Act? Specifically, in this provision entitled Fee Limitation of the United States:
Neither the Charter Act nor did HERA authorize the Treasury to charge a commitment fee on a line of credit to be paid by the Enterprise. The United States prohibition on assessment or collection of fee or charge to Fannie Mae, (section 304 Fee Limitation). Only Federal Reserve Banks are authorized to be reimbursed of fees, (section 309).
SEC. 304. SECONDARY MARKET OPERATION
Fee Limitation
Quote: “(f) PROHIBITION ON ASSESSMENT OR COLLECTION OF FEE OR CHARGE BY UNITED STATES.—Except for fees paid pursuant to section 309(g) of this Act and assessments pursuant to section 1316 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, no fee or charge may be assessed or collected by the United States (including any executive department, agency, or independent establishment of the United States) on or with regard to the purchase, acquisition, sale, pledge, issuance, guarantee, or redemption of any mortgage, asset, obligation, trust certificate of beneficial interest, or other security by the corporation. No provision of this subsection shall affect the purchase of any obligation by the Secretary of the Treasury pursuant to subsection (c) of this section.” End of Quote. Page 16
Only Federal Reserve Banks are authorized to be reimbursed of fees, (section 309).
SEC. 309. GENERAL POWERS OF GOVERNMENT NATIONAL MORTGAGE ASSOCIATION AND FEDERAL NATIONAL MORTGAGE ASSOCIATION
Federal Reserve Banks to Act as Fiscal Agents (Fannie Mae and GNMA)
Quote: “(g) DEPOSITARIES, CUSTODIANS, AND FISCAL AGENTS.—The Federal Reserve banks are authorized and directed to act as depositaries, custodians, and fiscal agents for each of the bodies corporate named in section 302(a)(2), for its own account or as fiduciary, and such banks shall be reimbursed for such services in such manner as may be agreed upon; and each of such bodies corporate may itself act in such capacities, for its own account or as fiduciary, and for the account of others.” End of Quote. Page 29
Link:
FEDERAL NATIONAL MORTGAGE ASSOCIATION CHARTER ACT
As amended through July 25, 2019
link: https://www.fanniemae.com/sites/g/files/koqyhd191/files/migrated-files/resources/file/aboutus/pdf/fm-amended-charter.pdf
Vancmike
12 horas hace
Rodney,
I always enjoy your well thought out posts. I have saved many for future reference. As you, I have written letters to Senators and Congressman. I am currently working on another letter. A couple of questions please, if I may;
1. In your post "For the purpose of a new lawsuit, that any district court has jurisdiction over, by reason of Federal Statute" Would you provide a link or reference to this statute?
2. May I send your letter regarding history as an attachment.
Thank you for all you do.
Rodney5
16 horas hace
mrfence, The companies were forced to write down the Deferred tax assets to make them appear bankrupt. Yes, I understand.
The day of the take down Fannie Mae’s core capital of $47.0 billion and Freddie Mac’s core capital of $37.1 billion Totals $84.1 billion. This amount of core capital remained with the companies until the illegal commitment fee started sucking shareholders money into the dark hole of the Treasury. This continues until massive profits were foreseen by the Treasury coming in to the companies as net profit. At this time Treasury implemented the Net Worth Sweep. From the point in time of the start of the collection of the illegal commitment fee until the companies were allowed to retain earnings a total of $301.1 billion was sent to the Treasury.
$181.4 billion Fannie returned to Treasury. Form 10K Dec 31, 2023. Page 9
$119.7 billion Freddie returned to Treasury. Form 10K Dec 31, 2023 Page 5
Total $301.1 billion
For the purpose of a new lawsuit, that any district court has jurisdiction over, by reason of Federal Statute, the Treasury owes the companies the overage payment on total draws in the amount of draws $191.4 billion, the overage payment $109.7 billion, plus compounded interest; (recommended interest payment at a compounded rate of return 10%, in conjunction with the amount the FHFA recommended to the Treasury).
Under the funding agreement the Treasury paid to Fannie $119.8 billion Form 10k December 31, 2023 page 8
Under the funding agreement the Treasury paid to Freddie $71.6 billion Form 10k December 31, 2023 page 5
$191.4 billion total draws from Treasury
Link below to previous writing of explanation of reason for: With a 8-0 jury verdict and former FHFA Director saying the Treasury has been paid in full.
The calculation includes both companies and the calculation starts at the point in time when the Net Worth Sweep was implemented. Calculation of interest payments the Treasury owes Fannie and Freddie Shareholders.
Note: the interest calculation does not include the space in time from the start of the illegal commitment fee period up to the NWS. This amount should be calculated and added to the total amount of interest calculated below.
$301.1 billion sent to the Treasury.
Treasury draws totaling $191.4 billion
Difference of $109.7 billion the Treasury owes to the Shareholders in over payments.
August 17, 2012, Treasury and FHFA agreed to amend the PSPAs, changing the 10% dividend into a “Net Worth Sweep.” The Net Worth Sweep required Fannie Mae and Freddie Mac to pay the full amount of their net worth to Treasury every quarter. FHFA Director DeMarco, this non-elected bureaucrat, has been allowed to steal the companies for the Treasury.
From 2012 to 2024
At a compound annual growth rate of 10% on amount Treasury owes Shareholders $109.7 billion. The interest at the rate of 10% on $109.7 billion calculates within a 12 year period of time in the amount of $344.29 billion in interest.
Principal of $109.7 billion plus $344.29 billion in interest = $453.99 billion
The Treasury owes the Shareholders $453.99 billion
Compound Interest Calculator
Initial investment $109.7 billion, length of time in years 12, interest rate 10% annually.
Link to calculator: https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator
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