Luke 532

Video of Phillips:

Phillips: administration advocates end of conservatorship and a return of Fannie and Freddie to private ownership. #MBAAnnual18

Chairman of MBA this morning... Chris George on #GSE reform: "We have got to get our agencies out of conservatorship." #MBAAnnual18

Judge Brown (Perry dissent) Retired DC Circuit Judge Janice Rogers Brown apparently in the mix to be attorney general.....

+1

Yes, settle all jr prefs. The easiest way is to cancel all at par value. If John Doe wants to litigate further for back dividends, then so be it. But settling at par will satisfy the vast majority of pref holders, and certainly 2/3 of them (which I believe is the amount of votes needed). That would be a huge hole for Treasury. Unthinkable. Not if it corresponds with an event maximizing the value of the warrants. Treasury would profit handsomely and eliminate litigation risk. And they could probably get a 2/3 vote for something as low as 75% or 80% of par.

Yes, settle all jr prefs. The easiest way is to cancel all at par value. If John Doe wants to litigate further for back dividends, then so be it. But settling at par will satisfy the vast majority of pref holders, and certainly 2/3 of them (which I believe is the amount of votes needed).

I highly doubt it would ever get to that point... they'd settle long before.

http://malonigse.blogspot.com/ My one true, additional offering, based on what some smart people have told me this past weekend, is that there are major investors who are ecstatic about this latest Lamberth action. (They trust juries more than judges.)

Landon Parsons of Moelis & Co. Taking the First Steps to GSE Reform September 27, 2018 https://morningconsult.com/opinions/taking-the-first-steps-to-gse-reform/

From Peter A. Chapman... Judge Lamberth released a memorandum opinion this afternoon dismissing shareholders' claims for: -- breach of contract; -- breach of fiduciary duty; -- violation of Delaware and Virginia law; and ruling that shareholders' claims for: -- breach of the implied covenant of good faith and fair dealing survive and will go to trial. A copy of the decision is attached to this e-mail message. 13-mc-01288-0084.pdf

It is interesting that Mnuchin mentions infrastructure and housing reform in the same breath. If only there were some way to find $100B or so to fund infrastructure initiatives through housing reform...

Can somebody confirm this? I'm on the road and not listening to hearing. Thanks. Senior Management of the GSE's lobbying to RECAP & RELEASE- per hearing

Treasury Sec. Mnuchin says infrastructure & housing will be big priorities in 2019: "The president very much wants to do infrastructure. That will be a priority next year. I'm very much focused on housing reform...that is gong to need to be done on a bipartisan basis." Mnuchin went on to stress he wants to get the GSEs (aka Fannie and Freddie) out of government control.

Hank Paulson today with Maria B.: http://video.foxbusiness.com/v/5840335027001/?#sp=show-clips

Brian Brooks leaves Fannie... http://fortune.com/2018/09/19/coinbase-brian-brooks/

Not that anybody expects Congress to get something done, but I still find this interesting regarding Hensarling... Odd to hear any Chairman call his new bill bad policy, but that’s just what @RepHensarling called his bipartisan housing bill w/@RepJohnDelaney. Jeb Hensarling quips "that he shared his plan with the administration- however they don't always like what I have to say"

"One GSE watcher..." Hah! Might as well be me, but it wasn't. Still funny how the narrative at IMF (i.e. David Stevens) has dramatically changed in recent months. Brooks as CEO? Yes, please. Even if it doesn't happen the fact that IMF (Stevens) is testing the waters with this kind of stuff seems like a positive. https://www.insidemortgagefinance.com/imfnews/1_1422/daily/-1000047236-1.html One GSE watcher told us that Brian Brooks, who currently serves as Fannie Mae’s EVP, general counsel and corporate secretary, would make a good successor to departing company CEO Timothy Mayopoulos. However, this observer added: “He’s not going to take a pay cut.” Congress capped GSE CEO pay at roughly $600,000 per year. Before joining Fannie in November 2014, Brooks was vice chairman of OneWest Bank, a bank Treasury Secretary Steve Mnuchin once owned a stake in. Brian Brooks for White House Counsel? https://www.axios.com/donald-trump-white-house-counsel-hire-mcgahn-79e7fe74-7891-4c6e-bb86-b4cc619b1986.html -But Axios has learned that Trump is now seriously considering Brooks, a low-profile member of Washington's high-powered legal community. -Brooks has been recommended by Treasury Secretary Steven Mnuchin, a friend from working together at OneWest, a California bank. Brooks was considered for deputy at Treasury, but withdrew from consideration for reasons that are still unclear. -No decision is likely for a few weeks, one of those sources said.

Mildly interesting from court today. Don't know if this reporting is accurate. http://www.twitlonger.com/show/n_1sqlab7

I don't think that's what it boils down to in this situation. My thesis completely discounts any possible legal win or positive action by Congress. The thesis is based on what Mnuchin and the White House have said they want to do (and what can realistically happen: r'ship = $5T national debt increase, doesn't seem like an election winning platform) and how that corresponds pretty darn closely with a favorable plan for preferred shareholders (the Moelis plan). If Mnuchin fails to act then the Supreme Court comes in to play. There's a lot more to it than this, but that is my one paragraph answer.

Top housing groups push Trump administration, Congress to enact permanent GSE reform https://www.housingwire.com/articles/46746-top-housing-groups-push-trump-administration-congress-to-enact-permanent-gse-reform?utm_source=dlvr.it&utm_medium=twitter&utm_campaign=housingwire#.W5CErgSX-dA.twitter

Anybody watching the Kavanaugh hearing? Did he and Senator Mike Lee just agree that it is the definition of tyranny for Congress to create an independent body that subverts Constitutional Law with unchecked powers?

Treasury, FHFA Chiefs Preparing for Freddie CEO’s Exit https://www.bloomberg.com/news/articles/2018-09-05/treasury-fhfa-chiefs-are-said-preparing-for-freddie-ceo-s-exit

I doubt recommending to her to read will help. I got this response after suggesting she read The Intelligent Investor and The Little Book of Behavioral Investing. Only so much one can do to help somebody else. Note: It looks like she deleted the posts where she mentioned the brainwashing stuff. But I quoted her in a still-existing post of mine, so here it is.

Gasparino is really smart. Probably the smartest guy ever.