Wise Man
4 hours ago
FnF calculate the capital metrics 'upside down', that is, they take a different concept (Net Worth or Equity) and subtract different items unrelated to the capital metric that you are calculating (SPS).
I already called the plaintiff Mr.Pro Se out, when he did the same 3 days ago, posting:
Net Worth
-SPS
-some portion of the DTA
= unaware that he was calculating Tier 1 Capital in his reply, and not the Core Capital that I was talking about with its statutory definition. He simply copy-pasted the script he had received beforehand.
This is Freddie Mac. Fannie Mae does the same:
Their objective was to conceal the components of each capital metric, so people don't see that FnF have $-84B Accumulated Deficit Retained Earnings account combined, shown on the Balance Sheets , but it's important to see it here as a component of the capital amount that later is required a minimum through regulation and statute ($-216B RE with the offset -Reduction of Retained Earnings- attached to the $132B SPS LP increased for free), an account tasked with absorbing future (unexpected) losses and a gauge of the rehabilitation in a financial company (RE is Core Capital for the capital ratios). Justice Alito's prerequisite to allow the Separate Account plan through restricted capital distributions: "Rehabilitate FnF in a way...".
This isn't a coincide. FnF calculated it correctly in early Conservatorship, and, for instance, this is how I learned that the Treasury Stock (stock buybacks) reduces the common stock par value when calculating the Core Capital.
FnF and this unsophisticated plaintiff, received instructions to change how to report the formulaic of the capital metrics.
Remember that Sandra Thompson arrived to FHFA in 2013 as Deputy Director, in charge of "overseeing regulatory policy, capital policy and financial analysis". Everything that is being put into question since long time ago (The Capital Reserve is what has to meet the capital requirements; SPS LP increased for free and its offset, are missing in the Balance Sheets; formulaic of the capital metrics, etc)
They all receive instructions from the same big players.
And who doesn't.
Wise Man
6 hours ago
First, it wasn't Mnuchin. Secondly, the SCOTUS wasn't informed that the NWS had ended.
Mnuchin sent SCOTUS a letter stating that he and Calabria had ended the NWS. One of the justices even referenced that letter.
It was the Solicitor General, Perdogar, who sent a letter informing that "the most recent amendments" (September 2019 and January 14, 2021) of the Purchase (not even one security purchased) Agreement (both with Calabria-Mnuchin), and that the compensation to the Treasury had changed:
the enterprise will compensate Treasury through increases in the (SPS) liquidation preference rather than through variable cash dividends.
Obviously she repeated the slogan that FnF will build capital, because she is an "unsophisticated lawyer" (atty D.Thompson) and she doesn't know that the gifted SPS carry an offset that wipes out the regulatory capital just built.
That is, the same Common Equity Sweep as before with the dividend payments. Called NWS 2.0 because there is no NWS, but a substitution of Common Equity for SPS (concealed with fraud, as these gifted SPS are absent from the Balance Sheets).
She also ignores that a compensation with shares in the absence of dividends, is also a capital distribution, like the dividend payments (10% and NWS dividends), and thus, restricted.
Perdogar never mentioned that it occurred in a 4th amendment of the PA (she only talk about "the most recent amendments"), which was what Justice Alito pointed out (it'll be the 5th and 6th PA amendments), following instructions, because later the plotters continue with this idea of 4th amendment, in order to make people mistake it for the 4th amendment of the SPS certificate, dated April 2021 (it simply reflects what was approved in the prior PA amendments) with secretary Yellen in office, and thus, an attempt to get Yellen involved in these Machiavellian PA amendments, specially the one of January 14, 2021 with all the flawed concepts: "Capital Reserve End Date: when the Capital Reserve meets the capital requirements", etc.
Someone told Justice Alto to call it "fourth amendment".
stockanalyze
12 hours ago
thought so. fhfa has amassed close to thousand useless overheads with job security and billions to dole out in various programs , they can't even do stress test properly. tsy getting free money 100%, lawyers getting fee and may get 300 million from class action, so why bother responding? right? shareholders lost everything, 16 years $1500 down to $0.40, lost retirement and 529. i have my doubts that this will resolve anytime soon as there isn't any urgency. only hope is libor and maybe cfpb case soon decided by scotus. we may get another calabria like who would move the goal post to 5% and hide stress test.
DaJester
16 hours ago
DoNotUnderstand,
Yes, it states this in the SPSA:
6. No Conversion or Exchange Rights
The holders of shares of the Senior Preferred Stock shall not have any right to convert such shares into or exchange such shares for any other class or series of stock or obligations of the Company.
However, this doesn't mean it's not possible to happen. FHFA and Treasury simply have to agree to another amendment to change these terms. Treasury doesn't have the *right* to convert, but FHFA can *offer* them to convert, if that makes sense.
Whether FHFA does or doesn't offer conversion, or what they may offer may depend on directions given to the FHFA Director by our Executive leader. IMO, Sandra Thompson isn't going to offer anything to Treasury, as she is awaiting instructions that may or may not be coming.