FMIC will provide insurance on 10% of MBSs for GSEs or private banks and then only Gov will guaranty rest 90%. FMIC is good thing for GSEs in buying, packaging & selling MBSs. FMIC & GSEs both can coexist. FMIC will just insure which private insurers used to do lousy job in doing that.
Dividend to TBTF banks on $500B bailout was 10% which was reduced to 5%. Lets assume bank paidoff in 2 years. Based on 10% they should have paid $100B but they paid $50B. They were waived $50B based on 5% dividend. Now government asking for grazing tax of $1M which drives me crazy. I am naturalized citizen for 20 years and I think it is complete injustice with rancher. I feel like moving to NV to support rancher. Same thing happening at FNMA, robbing shareholders. After Reagan, this country is going down the hill.
It already has happened. Ask any real estate agents in west coast or east coast. Chinese are the one buying all the foreclosed properties at half to 1/3rd price. In FL, they come to even small town in all the auctions and they scoop all the properties.
That's great news. Wall street and main street both have same info. That's called transparency. I salute this judge. That will put huge PR pressure on Obama to release it. Now- "No Drama Obama" will look "all Drama Obama". LOL. The release of discovery on April 23rd will prevent any effect from passing of bill from finance committee on April 29th. This will force buyers, who were waiting for April 29th, to buy now. Tomorrow, we will be green.
All the frauds of the world live in the Wall Steet. They cannot live anywhere else but US. Those crooks bankers will keep GSEs alive and well, so that politicians/WS can claim victory. The WS crooks need more GSEs than anybody else to dump their bad asset to GSEs. lol
GSEs will be release sometimes in May 2014. Democrats will run the election that they fixed GSE/real estate which lead to huge profit for taxpayer from GSEs bailout. Banks also want GSEs to survive so that in future real estate crash, banks can dump their toxic asset to GSEs. lol
I talked to GOD he said, "America will go bankrupt within year". You should move to other country of your choice. LOL
Fannie, Freddie to Buy $40 Billion a Month of Troubled Assets
By Dawn Kopecki - October 11, 2008 00:00 EDT
Oct. 11 (Bloomberg) -- Federal regulators directed Fannie Mae and Freddie Mac to start purchasing $40 billion a month of underperforming mortgage bonds as the Bush administration expands its options to buy troubled financial assets and resuscitate the U.S. economy, according to three people briefed about the plan.
Fannie and Freddie began notifying bond traders last week that each company needs to buy $20 billion a month in mostly subprime, Alt-A and non-performing prime mortgage securities, according to the people, who asked not to be identified because the plans are confidential. The purchases would be separate from the U.S. Treasury's $700 billion Troubled Asset Relief Program.
The Federal Housing Finance Agency, which placed the two companies in conservatorship on Sept. 7, directed them last month to start increasing their purchases of loans and mortgage-backed securities as the Treasury seeks to absorb underperforming and illiquid assets from financial companies.
``For now, they're under conservatorship and they have to be used to keep the flow of capital going to the housing market,'' former Treasury Secretary Lawrence Summers said in an interview on Bloomberg Television's ``Conversations with Judy Woodruff.'' ``They're important to maintaining the flow of government finance'' and need to be used actively, he said.
Adding underperforming assets to Fannie and Freddie's combined $1.52 trillion mortgage portfolios would come at a time when the two mortgage-finance companies already hold as much as $210 billion of bad debt that may be eligible itself for the Treasury's relief program, their regulator said Oct. 5.
A spokesman for Washington-based Fannie, Brian Faith, and Doug Duvall at McLean, Virginia-based Freddie wouldn't comment.
Neither Fannie nor Freddie has turned a profit in the past year, accumulating $14.9 billi
If 401K/IRA sold, they cannot claim anything. Many 401K/IRAs are still holding it. Mater-of-fact, government does not want complete discovery which will open can of worm for future lawsuits by 401K/IRAs. They will settle in 1-2 months. Government will apply sweep towards bailout payment and free GSEs and let congress work on guaranty of GSE's MBS. Government will have 10% dividend + $187B by May first week. Government need last payment from 1st quarter to meet 10%+$187B goal.
BAC/AIG/JPM/GS/MS have survived because GSEs took their $400B junk MBSs which was based on subprime. If there was no GSEs in 2008, we would have been depression worst than 1932 or even civil war.
Found it by google - "amended tarp warrant" fannie.
GSEs will issue MBS based on 30 years mortgage and banks will issue MBS based on 15 years mortgage. Both MBSs 30 yrs & 15 yrs will be insured by FMIC and both mortgages will be costly due to FMIC fee. In 5 years, the percentage of 30yrs mortgage to 15yrs mortgage will increase if you compare with today's percentage of 30 yrs to 15 yrs. FMIC will be good for GSEs because it will easy to sell insured MBSs and taxpayer liability will be lower.
Lokhart has done provable crime by increasing loan limit of GSEs after c-ship so that he can tarnsfer $400B bad asset rom fraud banks to GSEs. He was supposed to conserve GSEs NOT destroy. The government has to give free guaranty to GSEs because it has transferred $400B subprime bad asset after c-ship to GSEs. SirusXM was not given bad asset for guaranty- tell this to #$%$ congressman from Maryland.
UBS is getting Billions of dollars from Uncle Sam through 90 days window for free and buying shares of GSEs for Ackman. If there is profit Ackman takes it and if loss he pays for the loss. In this new portfolio, there may be many politicians/investors who have to put very little money which will go towards loss if there is one. It's like option. It does not cost him penny. He is genius and I know what he is doing. If someone give such free money, I can do that too. lol
When you see schedule of discovery, you will find that pre-Obama discovery in April - to blame Bush. After 1st quarter dividend in May first week, Obama will release GSEs without release of his tenure discovery.
Release will be after 1st quarter report in May 1st week. Obama has option to fix his mistake by changing sweep towards debt payment. The republicans donot, they took healthy company to C-ship to save WS banks. The republican knows about Obama's next move that's the reason republicans openly said that sweep by Obama is wrong.
We should not be angry at politicians because they are just puppet for GS & JPM. GS & JPM have inflated the market by subprime mortgage, change the accounting rule to crash MBSs, and forced synthetic recession which took livelihood of Millions of American just for greed. GS & JPM funded Tea Party to divert attention from them to politicians & GSEs. Even tea Party members now reallizing that real problem is GS & JPM. We should start movement for not doing business with GS or JPM. Sell their stocks. There are hundreds of other companies to buy.