jacklanvo99
21 minutes ago
Investors are thinking about the outcome and trying to position their portfolios for either a quick gain after the results or creating a longer-term strategy based on which candidate will win and which party will control Congress. Billionaire investor Bill Ackman and his fund Pershing Square Holdings are among these investors and hold positions that could swing one way or the other based on whether Harris or Trump wins. Here's Bill Ackman's $277 million bet on the election.
A bet on the government-sponsored entities
In 2013, Pershing Square purchased a roughly 10% stake in two government-sponsored entities (GSEs): the Federal National Mortgage Association (OTC: FNMA), known as Fannie Mae, and the Federal Home Loan Mortgage Corporation (OTC: FMCC), known as Freddie Mac. Both Fannie and Freddie securitize mortgages and sell them to investors, providing the mortgage market with a vital source of liquidity. They enable banks and other lenders to get mortgages off their balance sheets and make more mortgages so they can always meet demand.
Rodney5
5 hours ago
This is a no brainer. THE COMMITMENT FEE.
This is one of the reasons the contract is illegal.
In addition to the issuance of the senior preferred stock and warrant, beginning on March 31, 2010, we are required to pay a quarterly commitment fee to Treasury. This quarterly commitment fee will accrue from January 1, 2010. The fee, in an amount to be mutually agreed upon by us and Treasury and to be determined with reference to the market value of Treasury’s funding commitment as then in effect, will be determined on or before December 31, 2009, and will be reset every five years.
The Treasury and FHFA illegal exaction due to violating Federal statutes all monies with interest should be returned to the companies.
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
Links:
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
Rodney5
13 hours ago
The company gave away the Senior Preferred Stock for free along with the 79.9 % warrants to be purchased at a nominal price. The Treasury did not pay to the company a billon dollars.
Quote: “We did not receive any cash proceeds from Treasury at the time the senior preferred stock or the warrant was issued.” End of Quote
page 25 Form 10K December 31, 2008
link: https://www.sec.gov/Archives/edgar/data/310522/000095013309000487/w72716e10vk.htm#304;;
Senior preferred 1,000
Page 143
Link: https://www.sec.gov/Archives/edgar/data/310522/000095013309000487/w72716e10vk.htm#127;;
On September 7, 2008, we, through FHFA, in its capacity as conservator, and Treasury entered into a senior preferred stock purchase agreement, which was subsequently amended and restated on September 26, 2008. We refer to this agreement as the “senior preferred stock purchase agreement.” Pursuant to the agreement, we agreed to issue to Treasury (1) one million shares of Variable Liquidation Preference Senior Preferred Stock, Series 2008-2, which we refer to as the “senior preferred stock,” with an initial liquidation preference equal to $1,000 per share (for an aggregate liquidation preference of $1.0 billion), and (2) a warrant to purchase, for a nominal price, shares of common stock equal to 79.9% of the total number of shares of our common stock outstanding on a fully diluted basis at the time the warrant is exercised, which we refer to as the “warrant.” The terms of the senior preferred stock and warrant are summarized in separate sections below. We did not receive any cash proceeds from Treasury at the time the senior preferred stock or the warrant was issued.