edbk46
15 hours ago
first of the three
ew HUD Chief Sets Sights on Fannie, Freddie, Cost-Cutting and New Name
Scott Turner says he plans to quickly launch a review to root out inefficiencies at the agency
By
Gina Heeb
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AnnaMaria Andriotis
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Corrie Driebusch
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Feb. 5, 2025 7:11 pm ET
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(5 min)
Scott Turner would like to change the name of HUD.
Scott Turner would like to change the name of HUD. Photo: Kevin Dietsch/Getty Images
Scott Turner, who was confirmed Wednesday to lead the Department of Housing and Urban Development, said a cross-government effort to privatize Fannie Mae FNMA 9.12%increase; green up pointing triangle and Freddie Mac FMCC 6.10%increase; green up pointing triangle will be a priority as he takes the helm of the agency.
In an interview with The Wall Street Journal, Turner said HUD would work with the Treasury Department and Congress on privatization of the mortgage-finance firms and that he would act as a “quarterback” of sorts in the process. The efforts to free the firms from government control would also involve the Federal Housing Finance Agency, which oversees Fannie and Freddie.
“There are partners that will be at the table and obviously we’ll be one of them,” said Turner, a former NFL player and Texas lawmaker. “When you’re a quarterback, you’ve got to work with the entire huddle.”
Separately, advisers, lawmakers and bankers have passed around proposals detailing how privatization could support the Department of Government Efficiency, the cost-cutting effort led by Elon Musk, according to people familiar with the discussions. Other proposals have discussed using proceeds from any transaction to fund the tax reforms Trump has promised.
There is no guarantee a plan will come together quickly or be carried out, not least because it remains to be seen how much of a priority privatization is for Trump.
A different HUD
Turner says he will move quickly to launch a broad review to root out inefficiencies and streamline HUD, which aims to improve home affordability and access and oversees the Federal Housing Administration. All programs and policies “will be looked at with a fine-toothed comb,” he said, including those related to diversity, equity and inclusion.
Also under discussion are return-to-office policies that would likely drive some workers to leave.
The changes will come at a fragile moment in the U.S. housing market, with many Americans priced out by elevated mortgage rates and prices.
Trump has called for departments and agencies to pursue policies that would lower housing costs. He has also sought cuts to the federal government, a crackdown on DEI initiatives, tariffs and mass deportations, moves that have drawn criticism from some housing advocates who say they will worsen affordability and accessibility.
Turner will seek to ease federal regulations to help lower housing costs and encourage state and local governments to do the same. He said he would continue to work on so-called opportunity zones, which were touted in the first Trump administration as a way to encourage investment in low-income areas.
The administration plans to allow more building on federal lands, which Turner said could include rural, urban and tribal areas. He plans to travel around the country, in part to see what land is available.
Turner would like to change the name of HUD to better reflect its reach, which he said should include rural and tribal communities. A new name would “take a lot of time and conversation and thought,” he said, and require congressional support.
Privatization efforts
Fannie and Freddie bundle and sell mortgages, with a government-backed guarantee to protect investors from losses when homeowners default. That allows banks and others to originate more 30-year, fixed-rate mortgages.
Skeptics have cautioned that privatizing Fannie and Freddie could, if not done carefully, drive away buyers of mortgage-backed securities and lead to higher mortgage rates.
As part of the 2008 financial crisis rescue, the Treasury Department got warrants to purchase about 80% of Fannie and Freddie’s common shares, as well as senior preferred shares. Other investors own junior preferred shares and common shares.
At least one proposal circulating among members of Trump’s team in recent months that was seen by the Journal estimates the privatized entities would be valued above $330 billion, with over $250 billion of that coming from the warrants’ conversion to common shares.
Fannie and Freddie would raise another $20 billion to $30 billion from new investors as part of the plan, akin to an initial public offering. A raise of that size would put it on par with the largest IPOs of all time.
Privatizing Fannie and Freddie was touted as a way to “deliver a win for President Trump,” according to one memo circulated late last year among members of the transition team and Congress and viewed by The Wall Street Journal.
Politicians, policy analysts and bankers have grappled for years with whether there is a practical way to release Fannie and Freddie from government control. Attempts to do so before, including in Trump’s first term, were short-lived because of how complex such a transaction would be. The Obama administration had also punted on the question of what to do with the firms.
Write to Gina Heeb at gina.heeb@wsj.com, AnnaMaria Andriotis at annamaria.andriotis@wsj.com and Corrie Driebusch at corrie.driebusch@wsj.com
Copyright ©2025 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
toss up between lehman and wmi as the next to fall
libor SJ decision next
edbk46
Jersey
just a simple three hits in a row
a yo then aces then a twelve
being greedy
come out is an eight hard way hit next throw
toogoodfella
4 days ago
RE: If 333,000 stays unsold:
Interest @ 6% = 19,900/year
----//-----///-----
If 1,000,000 is making 6% Percent interest:
60,000 per year and my descendants will continue to receive it if i die.
If 1,000,000 is sold,
Total proceeds: 667,000 lump sum
toogoodfella
4 days ago
LONG TERM CAPITAL GAIN TAX IN CALIFORNIA 20 Percent Federal, 13.3 Percent state.
TOTAL ?? 33.3 percent.
If your gain is 1,000,000:
Total tax = 333,000
If 333,000 stays unsold:
Interest @ 6% = 19,900/year
cottonisking
4 days ago
AI Overview
+1
BlackRock owns a percentage of Barclays, but Barclays previously owned a stake in BlackRock.
BlackRock's ownership of Barclays
As of January 25, 2024, BlackRock owned 8.6% of Barclays PLC
In February 2023, BlackRock owned 8.7% of Barclays Bank Plc (BCS)
Barclays' previous ownership of BlackRock
In 2009, Barclays sold its asset management firm Barclays Global Investors (BGI) to BlackRock
In 2012, Barclays sold its nearly 20% stake in BlackRock for $6.1 billion
BlackRock and Barclays' other transactions
BlackRock purchased BGI from Barclays for £4 billion in cash and a 19.9% stake in the new business
BlackRock also holds stock options for Barclays
AI Overview
+1
No, BlackRock owns Barclays Global Investors (BGI), not the other way around. BlackRock acquired BGI in 2009 for $13.5 billion. The deal made BlackRock the world's largest asset manager.
Explanation
In 2009, BlackRock purchased BGI, which included the iShares ETF platform.
The deal was a landmark in the industry.
The acquisition more than doubled BlackRock's assets under management.
The deal also helped BlackRock become the world's largest ETF provider.
AI Overview
According to current information, the "Lehman Brothers" trademark is currently owned by Barclays Capital Inc., as they acquired the mark from Lehman Brothers during its bankruptcy proceedings and continue to use it, even in a limited capacity, to manage the remaining assets of the defunct company;.
Key points about the Lehman Brothers trademark:
Current owner: Barclays Capital Inc
Acquisition method: Purchased during Lehman Brothers bankruptcy
Usage: Barclays still uses the mark for managing legacy assets and winding up Lehman Brothers business
cottonisking
4 days ago
Continue with BlackRock,
In June 2023, BlackRock filed an application with the United States Securities and Exchange Commission (SEC) to launch a Spot Bitcoin Exchange-Traded Fund (ETF), and in November 2023 it filed another application for a Spot Ethereum ETF. The spot bitcoin ETF filing and 10 others were approved on January 10, 2024.[58][59] On January 19, 2024, the iShares Bitcoin Trust ETF (IBIT) was the first spot bitcoin ETF to reach $1 billion in volume.[60]
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.
.
In July 2023, the company appointed Amin H. Nasser to its board.[61] Nasser, the Chief Executive Officer of Saudi Aramco, the world's largest oil company, will fill Blackrock's board vacancy left by Bader Alsaad in 2024.[6
https://en.m.wikipedia.org/wiki/BlackRock
cottonisking
4 days ago
] In May 2009, BlackRock Solutions was retained by the U.S. Treasury Department[30] to analyze, unwind, and price the toxic assets that were owned by Bear Stearns, American International Group, Freddie Mac, Morgan Stanley, and other financial firms that were affected in the 2007–2008 financial crisis.[31][32] The Federal Reserve allowed BlackRock to superintend the $130 billion-debt settlement of Bear Stearns and American International Group.[33]
.
.
.
In February 2010, to raise capital needed during the financial crisis, Barclays sold its Barclays Global Investors (BGI) unit, which included its exchange traded fund business, iShares, to BlackRock for US$13.5 billion and Barclays acquired a near-20% stake in BlackRock.[34][35
https://en.m.wikipedia.org/wiki/BlackRock
s404n1tn0cc
7 days ago
BING
And what is the premium?
In the context of swaps agreements, the term "premium" isn't typically used. Instead, we talk about notional principal, fixed rates, floating rates, or spread.
The notional principal is the amount upon which the exchanged interest payments are based, but it's not actually exchanged between the parties.
Would you like more details on any specific type of swap or another aspect of swaps agreements?
OK 3 percent loan 100 million due in 5 years. With a reurn of Ten times
Let's break this down to see what you're looking at:
Loan Amount: $100 million
Interest Rate: 3% per annum
Duration: 5 years
Return of Ten Times: Assuming you mean you want to calculate a return that's ten times the investment.
First, let's calculate the interest on the loan:
Interest per year: $100 million * 3% = $3 million
Total Interest over 5 years: $3 million * 5 = $15 million
At the end of 5 years, you would owe the principal plus the interest:
Total Repayment Amount: $100 million + $15 million = $115 million
For a tenfold return on your initial $100 million investment:
Desired Return: $100 million * 10 = $1 billion
If you need to achieve a tenfold return, you would be looking to generate $1 billion from your investment over 5 years. Achieving this would likely involve high-return investments, business ventures, or other financial instruments well beyond the simple interest on a loan.
Would you like to explore different investment options or any other financial scenarios? 😊
remember this a swap agreement at 100 million A paper.
Got it! We're dealing with a swap agreement involving a $100 million A-rated (investment grade) paper. Let's assume this is an Interest Rate Swap with the following details:
Notional Principal: $100 million
Fixed Rate: 3%
Term: 5 years
If we're looking at a swap with a fixed-rate loan and the goal of achieving a tenfold return over 5 years, here’s a hypothetical scenario:
Fixed Payments: You're paying a fixed 3% interest rate on the $100 million notional principal.
Annual Payment: $100 million * 3% = $3 million
Total Payment over 5 years: $3 million * 5 = $15 million
Floating Rate Side: If you’re receiving returns from the swap, those returns would come from the variable interest rate or performance of an underlying asset.
To achieve a tenfold return, the floating side must generate returns significant enough to surpass the fixed payments. Here's an illustration:
Total Desired Return: $100 million * 10 = $1 billion
Total Fixed Payments: $15 million
Net Return Needed: $1 billion - $15 million = $985 million
This implies that the floating rate leg or the underlying asset in the swap needs to perform extraordinarily well to achieve this kind of return.
Would you like more details on how such high returns might be achieved, or do you have other specific aspects of swaps you'd like to explore? 😊
and what is my premium
In the context of a swap agreement, we don't typically use the term "premium" as we might with insurance or certain types of options. Instead, the key terms are usually the fixed rate, floating rate, and notional principal.
For your swap agreement:
Fixed Rate: 3%
Notional Principal: $100 million
Term: 5 years
The "premium" in swaps can be thought of as the difference between what you pay and what you receive. In an interest rate swap:
You Pay: 3% annually on the notional principal ($3 million per year)
You Receive: Returns based on the floating rate or the performance of an underlying asset
In your case, if your goal is a tenfold return, the floating leg of your swap needs to generate significantly higher returns over the fixed payments.
If you have more specifics or need details on a different type of swap, feel free to let me know! 😊
Thats what I'm asking .. The bank charges a premium for a potential return of 10 times my investment. what is the premium chraged for this protection
Got it! When you're discussing a swap agreement with a bank and the potential for a significant return (like ten times your investment), the premium you're referring to can be considered the cost of the protection or the additional cost over the standard terms.
In such high-stakes scenarios, the premium might be calculated based on several factors:
Risk Assessment: The higher the perceived risk of achieving those returns, the higher the premium.
Market Conditions: Current interest rates, economic stability, and market volatility can influence the premium.
Credit Rating: Your creditworthiness or the quality of the underlying asset can impact the premium.
In a typical setup, the bank might charge an upfront fee or an additional percentage on top of the fixed rate to account for the extra risk they're taking on.
Let's assume the bank charges an additional 2% as a premium for this protection:
Premium Amount: $100 million * 2% = $2 million
So, along with the fixed rate payments, you might pay this premium as part of the agreement to secure the potential high return.
These specifics can vary significantly based on the terms of the swap and the bank’s policies. It's always a good idea to have detailed discussions with the financial institution to understand all costs and terms involved.
If you have any other questions or need further details, feel free to ask! 😊
FWIW So 5 percent interest to cover 10X for protection.
s404n1tn0cc
7 days ago
Of couse its fraudulent ..
He's approx what the Lawyers said
"Prior to the 2008 financial crisis, the over-the-counter (OTC) derivatives market, including swaps, was largely unregulated. This lack of regulation contributed significantly to the crisis. Here's what happened regarding failures to pay and the consequences (or lack thereof) before 2008:
1. Lack of Transparency:
The OTC derivatives market was opaque. There was no central reporting or clearing of transactions. This made it difficult to assess the overall size and risk exposure of the market. Regulators had limited visibility into who was exposed to what.
2. Bilateral Agreements and Counterparty Risk:
Swaps were primarily traded through bilateral agreements between two parties. This meant that each party was exposed to the credit risk of the other party (counterparty risk). If one party failed to meet its obligations, the other party could suffer significant losses.
3. Limited Regulation:
There was limited regulatory oversight of the OTC derivatives market. This meant that there were few rules regarding capital requirements, risk management, or reporting.
4. Consequences of Failure to Pay:
If a party failed to pay on a swap contract, the counterparty would typically try to recover its losses through legal means, such as lawsuits.
However, due to the lack of transparency and standardization in the market, it could be difficult and time-consuming to resolve disputes.
In some cases, failures to pay could lead to cascading defaults, where the failure of one party triggers failures by other parties who were exposed to them. This is precisely what happened with AIG and its credit default swaps, which played a key role in the 2008 crisis.
5. Contributing Factors to the 2008 Crisis:
The lack of regulation and transparency in the OTC derivatives market amplified the risks associated with complex financial instruments like credit default swaps (CDS).
Many financial institutions were highly leveraged and had significant exposure to counterparty risk.
When the housing bubble burst and defaults on mortgages increased, it triggered a cascade of losses in the derivatives market, leading to the financial crisis.
In summary:
Before 2008, the OTC derivatives market was a "Wild West" with limited regulation and oversight. Failures to pay were a significant risk, and the lack of transparency and standardization made it difficult to manage these risks.
This ultimately contributed to the severity of the 2008 financial crisis. The Dodd-Frank Act, passed in the wake of the crisis, aimed to address these issues by increasing regulation and transparency in the derivatives market.
So Could lehman sue for Trillions?...Yes But it decides not to. Seem their retarded by their Lawyers(Paid OFF) LIike Madoff.. On purpose. IMO
I Just Keep Laughing. See you in Vages... NOT HAHAHAH
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