Wise Man
1 hour ago
Warning. Navy Hedge Fund is desperately attempting to post last year's testimony from ST at the House Financial Services Committee, with her exchange with representative Blaine.
An internet link that I posted first yesterday with the objective to denounce everything that was said in it, as part of a conspiracy to use the Net Worth renamed "capital reserve", to meet the capital requirements.
Rep. Blaine:
Threshold for exit from conservatorship is $300B.
$100B versus $300B.
They are making progress toward that end.
Sandra Thompson's reply:
Yep. FnF combined have about $100B (of capital available), gross.
When the core capital at the time was $-97B. Hello?
Let alone that $300B was the capital shortfall, not the Minimum Capital requirement of $207B combined, that one might think it could be a threshold for the release from Conservatorship, primarily because it was the MANDATORY release in the FHEFSSA before being struck by HERA.
He lifts my 14-month old link with the video, but skips the explanation as to why it's all wrong.
His post is labelled "duplicate" and it's deleted for, yet again, a TOS violation.
No wonder why Navy Hedge Fund posts the emoticon 💤 in all my posts.
The "cash Equity" guy is always sleeping.
Wise Man
7 hours ago
I always wondered why the Stress Test results were published in mid August, and it's because it coincides with one of the Fanniegate plotters, Bill Ackman's presentation and letter to shareholders with Pershing, talking about the importance of stress-testing for his portfolio of companies with "fortress Balance Sheets",
Which, in the case of FnF, is laughable, beginning with their fudged numbers with the absence of $140B SPS LP increased for free as of June 30, 2024, and its offset with reduction of Retained Earnings account, that renders an Accumulated Deficit $-216B Retained Earnings account, and $334B SPS LP outstanding that has to be paid back (redeemed for cash).
But he uses this Financial Statement fraud to double down in his conspiracy jointly with FHFA's Sandra Thompson, the FNMA CEO and his clerk, Glen Bradford, for the slogan that "they are making progress".
FnF continue to build capital through retained earnings.
And
Approaching a fortress-level of capital.
Because he is another one that calls the Net Worth "capital reserve" and they want FnF to meet the capital requirements with this invalid capital metric in the FHEFSSA.
None regulatory capital is built for the ERCF, and what FnF are building is SPS in their Net Worth.
Then, it comes the very FHFA and Calabria with the falsehood:
The Net Worth absorbs losses.
because it's the Retained Earnings account the one that absorbs the future losses that come out from the Income Statement, and the Net Worth just offsets the Accumulated Deficit in this RE account, like nowdays do the SPS and the reason why the SPS existed in the first place (watch my signature image to see how the SPS offset the negative Common Equity, so that the Net Worth remains at $0, also known as UST backup of FnF upon "capital deficiency" or negative Net Worth).
The Net Worth isn't a line item where losses are debited from, but an aggregated number comprised of the sum of different items.
The Dodd-Frank law requires an annual stress test that has already been reported to FHFA and the Fed (FRB) on May 20th, under FHFA regulation (12 CFR § 1238.5 (a)).
Then, the law also requires its publication online, but it doesn't establish a deadline. FHFA has a deadline of August 15th through regulation as well (12 CFR § 1238.7(a)), and what was announced last week is the publication being temporarily waived, after it's been denounced the prior days on social media, the same flawed take by Ackman/FHFA/Calabria that I've posted above.
The 2023 House Financial Services Committee with the testimony of Sandra Thompson, was more of the same conspiracy of using the Net Worth to meet the capital requirements, commented yesterday with a link to the video footage. This year's, it's been cancelled to avoid being exposed again.
The Federal Reserve published the Stress Test results of the U.S. banks on June 28th. Why does it take too long in the FHFA, if it already received it on May 20?
The FHFA has a guard of hedge fund managers working for it, who, in turn, have an army of actors that lie 24/7 on social media, all of them carrying out the conspiracy of assault attempt on the ownership and the sacking of FnF.
The semmianual Pershing letter and the publication of the stress test results of FnF in the middle of August, have to coincide in time to that end, and also once the annual testimony of the FHFA director in the House Financial Services Committee had passed, avoiding to ask questions about a horrible Balance Sheet that only Ackman calls "fortress", and a FHFA and UST carrying out a Separate Account plan, 1989 FHLB-style, that explains it all (It usually takes place in June or early July. So, a stress test published in mid August is still too late, and can only be explain with the publication of the Pershing letter at the same time).
DCBill
21 hours ago
True that!
But, the last thing you want is Congress writing massive GSE legislation, even if the D's controlled both chambers and the WH.
Nope, keep it simple, regulatory action to reduce the Calabria capital regs, possibly allowing management(s) to offer some more reductions to the junk fee costs of mortgage financing.
Naturally, those garbage costs all are tied to revenue generated by real estate agents, lenders, house inspectors, insurance providers, and others in the mortgage finance chain.
That's where the institutional opposition comes from, in addition to those in Congress who protect the middle people in the transactions.
Wise Man
1 day ago
The prohibition to publish the Stress Test could be the "enough with the lies" moment, that we all were waiting for.
What is stress tested is their Balance Sheet and only the plotters believe it.
The numbers posted by Fannie Mae and Freddie Mac, lie.
Beginning with $140B SPS LP increased for free in the Trump Administration's NWS 2.0, along with its offset with reduction of Retained Earnings, that happens always that someone issues/increases stocks for free (without getting the corresponding cash: stock compensation to employees, stock dividends, etc.), that are missing on the consolidated Balance Sheets. Financial Statement fraud.
Once adjusted for this fraud, the Balance Sheet shows a total amount of SPS LP outstanding of $334B, negative Book Value and $-216B Accumulated Deficit Retained Earnings account, the only account that absorbs the future losses that will show up in the Stress Test (accumulated losses in a 9-quarter projection of the Income Statement, under a 13-quarter Severely Adverse Scenario).
This is called "fortress Balance Sheet" and "approaching fortress-level of capital" by Bill Ackman and Co,
Pershing links stress-testing to the fortress balance sheet of FnF.
The reason is because they call the Net Worth "capital reserve", like the SPSPA, and claim that it's what has to meet the capital requirements (ERCF).
This is what we saw in last year's annual Testimony of Sandra Thompson in the Financial Services Committee:
Threshold for exit from conservatorship is $300B.
$100B versus $300B.
They are making progress toward that end. by representative Blaine, mistaking capital requirement for capital shortfall, because "FnF need $300B" was the capital shortfall at the time, not the capital requirement for exiting conservatorship, with $-90B capital available and a Minimum Leverage capital requirement of $207B that marks the Undercapitalized capital classification and what was MANDATORY release threshold in the FHEFSSA before being struck by HERA (nowadays "Privatized Housing Finance Sys", but sine die. Calabria/Mnuchin chose CET1 >3% of Total Assets, a threshold met with the 2Q2024 results exactly, in both FnF, under the Separate Account plan, ideal for redemption of JPS and then, 100% of Prescribed Capital Buffer, complying with the "membership cleansing" required by the FHFA, regardless that Congress might disagree: JPS redeemed is now a done deal as a corporate decision.)
And Sandra Thompson replied:
Yep. FnF combined have about $100B (of capital available), gross.
which refers to the Net Worth "capital reserve", an invalid capital metric in the FHEFSSA.
#WATCH: @RepBlaine presses @FHFA Director Thompson on the need for enhanced capitalization of GSEs at today's hearing to conduct oversight of the Federal Housing Finance Agency.
📺👇 pic.twitter.com/FlaAIho2V9— Financial Services GOP (@FinancialCmte) May 23, 2023
The Financial Services Committee has skipped this year's annual testimony of Sandra Thompson, that was expected for May-July.
With the Stress Test, the army of actors will say the same, using the Net Worth to meet the Stress Test results, already initiated by the FHFA and Calabria with:
The Net Worth absorbs losses.
Then comes the "FnF are overcapitalized", again, referring to the Net Worth "capital reserve" with all the SPS outstanding, and that they passed the Stress Test, "the capital requirements in the ERCF should be reduced with such Net Worth "capital reserve"", etc.
Attempting to conceal the ongoing Trump Administration's NWS 2.0 that causes the same harm on the Common Equity as the NWS dividend, with: "Mnuchin stopped stealing money from the shareholders" ("Steal money is Socialism": Trump letter)
Stress Tests today: Another day of @fanniemae and @freddiemac saying they are essentially overcapitalized and the @FHFA looking at them along with @ustreasury and refusing to end the conservatorship under which obama stole money to fund obamacare $FNMA #FANNIEGATE— Fanniegate Hero (@DoNotLose) August 9, 2024
When they switch to the correct approach, with the ERCF that shows the regulatory capital available (not the Net Worth "capital reserve") and capital requirements, it doesn't get better, because the ERCF takes the numbers from their Balance Sheets, where there is the Financial Statement fraud commented above.
This is why the Fannie Mae CEO wrote a post in her LinkedIn account on Friday, attempting to show that they are making progress, notwithstanding that the capital available is negative (Deficit. A level below the Critical Capital level that isn't reported), and attempting to conceal the ongoing Common Equity Sweep (the adjusted capital available drops $86B further).
In other words, the numbers in their Balance Sheets, lie, either for the Stress Test or for the ERCF.
The hedge funds thrive creating confusion: Net Worth "capital reserve", etc.
We are now in the phase of blackout period, meaning obscurantism, after being caught: no annual testimony of ST, no stress test.
Wise Man
2 days ago
"The numbers of Fannie Mae lie". Its CEO and President (they oversee one another) is called out in Linkedln on her stance about Fannie Mae building capital through retained earnings, based on the Financial Statement fraud in both FnF that are reluctant to post the SPS LP increased for free brought to you by the Trump Administration, and its offset with reduction of Retained Earnings account, which is the same that happened with the initial $1B SPS LP issued for free on day one of conservatorship.
Fannie Mae CEO:"Fannie Mae continues to reduce its capital shortfall as disclosed in our recent Enterprise Regulatory Capital Framework disclosures. These charts help explain why:"
https://www.linkedin.com/posts/priscilla-almodovar_fannie-mae-continues-to-reduce-its-capital-activity-7229216984591204353-apyK
The $86.4B Net Worth has been built with the $86.4B SPS LP that is missing on the Consolidated Balance Sheets, and thus, Fannie Mae is not reducing the capital shortfall that should have begun on day one, in what is commonly known as Financial Rehabilitation.
SPS LP increased for free, a capital distribution number 1 in the statutory definition, restricted. That's the key. The existence of a Separate Account plan through the exceptions in order to legalize it, like occurred with the dividend payments, and carried out thanks to the FHFA-C's Incidental Power:"......in the best interests of FHFA", already seen in the 1989 bailout of the FHLB, section entitled: SEPARATE ACCOUNT TO ENSURE THE REPAYMENT OF PRINCIPAL, and where the Treasury Department was involved in calculating the discount rate and receiving the funds (invested in zero coupon Treasuries).
We don't want to violate the law, do we?
Read the comments section in her post of LinkedIn.
By the way, the "transition from portfolio-driven to guaranty-driven business", refers to their Investments Porfolios filled with unlawful PLMBS that had to be wound down 10% per year, then 15%, as per the SPSPA and as part of the plan of winding down all their privileges, like this portfolio funded with low cost bonds thanks to the UST backup of FnF, advantages in capital standards, in guarantee fees (called "subsidy cost" by the CBO), in taxes, etc., as explained by the UST in its 2011 Report to Congress, that ends up with the Charter Act repealed (Privatization) to remove the most valuable privilege of all: the UST backup of FnF at rates similar to Treasuries.
PLMBS was a security illegal in the Charter Act Credit Enhancement clause because it lacked one of the enumerated Credit Enhancement operations authorized. Just a small portion had bond insurance (utilized nowadays by Freddie Mae with the ACIS).
This is the reason why we are requesting a refund of the CRT expenses, $20B, net between expenses and recoveries.
THE ART OF DECEPTION.
TightCoil
2 days ago
Ten Day Review Fannie Commons
Date - Low - Close - Volume
Aug 16 - 1.20 - 1.23 - 2,040,700
Aug 15 - 1.09 - 1.20 - 2,326,900
Aug 14 - 1.08 - 1.10 - 1,571,100
Aug 13 - 1.09 - 1.10 - 1,534,600
Aug 12 - 1.12 - 1.12 - 1,027,800
Aug 9 - 1.07 - 1.15 - 1,444,100
Aug 8 - 1.09 - 1.11 - 2,994,700
Aug 7 - 1.12 - 1.12 - 2,836,900
Aug 6 - 1.06 - 1.17 - 5,731,400
Aug 5 - 1.02 - 1.04 - 6,708,100
TightCoil
3 days ago
FNMA/FMCC - From Inside Mortgage Finance - Aug. 14
FHFA’s IT security HAS NOT BEEN in compliance with the Federal Information Security Modernization Act
IG Finds Major Hoes in FHFA’s IT System
The security controls intended to protect the information technology infrastructure of the Federal Housing Finance Agency are shockingly vulnerable to unauthorized access and compromise from internal threats, according to an audit report released this week by the agency’s Office of Inspector General.
FHFA’s system hosts sensitive financial data from Fannie Mae, Freddie Mac, Common Securitizations Solutions, the Federal Home Loan Banks and the FHLBanks’ Office of Finance. It is also the home of the personally identifiable information of about 800 FHFA employees.
Auditors were able to use a basic FHFA-issued laptop and a standard employee user account to gain access to restricted personally identifiable information on the agency network. They were then able to use standard hacking methods to acquire the passwords of other users, including two employees in the Office of Technology and Information Management who were still using their initial default passwords.
In all, the OIG audit identified 178 agency employees using default passwords.
Via these accounts, the auditors were able to access and alter files on any user’s computer, “including those of FHFA executives at the highest level.” Access to a privileged account allowed the OIG team to gain full control over the FHFA network. In addition, auditors were able to transfer sensitive information to their own computers and attach an unauthorized device to the system without detection.
The OIG report includes 22 specific recommendations to bring the FHFA’s IT security into compliance with the Federal Information Security Modernization Act. The agency agreed with all those recommendations.
I have more recommendations:
Fire Thompson
Fire Yellen
End The Conservatorship
Provide Reparations to Fannie and Freddie Shareholder
jog49
3 days ago
"$1.21 $1.22 $1.21 $1.22 $1.21 $1.22 $1.21 $1.22 … yawn"
Does it remind you of a wall clock . . tick, tock, tick, tock? What it is, to the lay person, is the passage of time where Fannie and Freddie never get released from their dreaded conservatorships. Tick, tock, tick, tock . . . . . . . . . .
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RickNagra
6 minutes ago
Acme Investments
2 days ago
