FNMA and FMCC preferreds. In search of the elusive 10 bagger.

[merkhet]

reversal seems basically out as an option in perry. chuck cooper's letter to the court explicitly asks for remand.

 

I don't think outright reversal was much of a possibility to begin with due to the fact the court would want such a significant ruling against the US Gov't to be made in the most prudent manner possible. But with the writ ruling and impending document release, isn't remand almost 100%? Hard to say there was a complete administrative record when there is buried evidence that just got uncovered floating around the system.

 

+ 1

A remand with full admin record put's P's in a terrific position regarding settlement discussions as a reversal has the possibility of simply being appealed IMHO.

 

Also, he did not specifically ask for remand. He said "If this case is remanded..."

[orthopa]

Dems boycotting vote.

[Luke 532]

Senate Finance Committee Chair...

paraphrased "We're clearly going to have these two go through and be recommended.  I'm disappointed that the Democrats are boycotting this vote."

[orthopa]

looks like another delay on Mnunchin.

[Luke 532]

Senate Finance Committee Chair...

paraphrased "We're clearly going to have these two go through and be recommended.  I'm disappointed that the Democrats are boycotting this vote."

 

I think this move pretty much cements Mnuchin as Secretary of Treasury.  Go ahead and act like a child and take your ball and go home by boycotting... that's not going to win any Republican votes against Mnuchin which they needed to have a chance for him to not get the confirmation. 

[Flynnstone5]

I'm more concerned about Sessions being delayed and someone else at DOJ being able to make a decision to pursue en banc regarding mandamus.

[Guest cherzeca]

reversal seems basically out as an option in perry. chuck cooper's letter to the court explicitly asks for remand.

 

I don't think outright reversal was much of a possibility to begin with due to the fact the court would want such a significant ruling against the US Gov't to be made in the most prudent manner possible. But with the writ ruling and impending document release, isn't remand almost 100%? Hard to say there was a complete administrative record when there is buried evidence that just got uncovered floating around the system.

 

+ 1

A remand with full admin record put's P's in a terrific position regarding settlement discussions as a reversal has the possibility of simply being appealed IMHO.

 

Also, he did not specifically ask for remand. He said "If this case is remanded..."

 

what cooper letter?

[hardincap]

I write to alert the Court to the decision in In re United States, No. 17-104 (Fed. Cir. Jan. 30, 2017), which in large part upheld an earlier ruling by the Court of Federal Claims that was the subject of a letter Fairholme sent this Court under seal on September 22, 2016. The Federal Circuit’s decision requires the Government to produce 48 of 56 contested documents relating to the Net Worth Sweep, including the specific documents discussed in Fairholme’s September 22 letter. The Federal Circuit’s ruling, which followed in camera review of the 56 documents in question, also strongly suggests that on remand the Government will be required to produce a substantial portion of the approximately 12,000 remaining documents that it has withheld for privilege in the Court of Federal Claims litigation.1

 

Treasury has acknowledged withholding documents from its administrative record in this case based on the deliberative process privilege, and the Federal Circuit’s ruling further confirms that it used an unjustified and overbroad standard when doing so. If this case is remanded to the district court, it is apparent that significant additional documents will have to be added to the administrative record. See Institutional Plaintiffs’ Reply Br. at 5–6 (Mar. 8, 2016).

 

Fairholme has not yet received the 48 documents that the Federal Circuit’s decision requires the Government to produce, but Fairholme anticipates than many of those documents will provide significant insight into the central factual disputes in this case.

[hardincap]

how long can the dems delay mnuchin confirmation for?

[Flynnstone5]

how long can the dems delay mnuchin confirmation for?

 

I have been trying to find that out unsuccessfully. Hatch did say he was going to try to schedule another vote later today.

[Luke 532]

how long can the dems delay mnuchin confirmation for?

 

I have been trying to find that out unsuccessfully. Hatch did say he was going to try to schedule another vote later today.

 

I may have misheard him but I think Hatch said something like if 1 Democrat was present they would be able to vote.  Don't quote me on that.

[rros]

how long can the dems delay mnuchin confirmation for?

 

I have been trying to find that out unsuccessfully. Hatch did say he was going to try to schedule another vote later today.

 

I may have misheard him but I think Hatch said something like if 1 Democrat was present they would be able to vote.  Don't quote me on that.

That is correct. But there has to be another recourse. Or this can go on indefinitely and government cannot function.

[Guest cherzeca]

how long can the dems delay mnuchin confirmation for?

 

I have been trying to find that out unsuccessfully. Hatch did say he was going to try to schedule another vote later today.

 

there is apparently a rule that says a committee vote cant be held w/o a member of minority.  makes sense to avoid majority action secretly in middle of night. but doesnt make sense to give minority right to postpone vote indefinitely. but dems are now holding sessions committee vote hearing, so i guess they will show up for mnuchin vote at some point. 

[PLynchJr]

According to this article at NPR the Senate majority leader can bring a nominee to the floor for a full Senate vote even if they do NOT get the approval of the relevant committee. It's rare, but it's happened in the past.

 

http://www.npr.org/2017/01/24/511291979/the-status-of-trump-s-cabinet-where-everyone-is-in-the-process-and-how-it-works

[rros]

how long can the dems delay mnuchin confirmation for?

 

I have been trying to find that out unsuccessfully. Hatch did say he was going to try to schedule another vote later today.

 

there is apparently a rule that says a committee vote cant be held w/o a member of minority.  makes sense to avoid majority action secretly in middle of night. but doesnt make sense to give minority right to postpone vote indefinitely. but dems are now holding sessions committee vote hearing, so i guess they will show up for mnuchin vote at some point.

 

I found out there is Senate Rule #14 that allows the majority to discharge legislation out of a committee and bring it directly to the floor. Perhaps it also applies when mark up votes fail?

[onyx1]

how long can the dems delay mnuchin confirmation for?

 

I have been trying to find that out unsuccessfully. Hatch did say he was going to try to schedule another vote later today.

 

there is apparently a rule that says a committee vote cant be held w/o a member of minority.  makes sense to avoid majority action secretly in middle of night. but doesnt make sense to give minority right to postpone vote indefinitely. but dems are now holding sessions committee vote hearing, so i guess they will show up for mnuchin vote at some point.

 

I agree.  Further delay will undermine the one fight they most care about, the SCOTUS appointee.

[Flynnstone5]

From SA:

http://seekingalpha.com/news/3239162-mortgage-bankers-group-unveils-gse-reform-ideas?app=1&uprof=51#email_link

[Guest cherzeca]

From SA:

http://seekingalpha.com/news/3239162-mortgage-bankers-group-unveils-gse-reform-ideas?app=1&uprof=51#email_link

 

proposes explicit federal govt guarantee of mbs.  would need congressional approval and i just dont see the appetite in congress for this

[rros]

From SA:

http://seekingalpha.com/news/3239162-mortgage-bankers-group-unveils-gse-reform-ideas?app=1&uprof=51#email_link

Probably based on their prior paper "GSE Reform, What You Need to Know". Attached.

GAR_GSE_Reform_WTK.pdf

[investorG]

while the mnuchin hearing will receive most of the attention today, the MBA proposal has a lot to like imo, especially coming from a non-ally.  they support the GSEs remaining as utilities with some competition.  some parts about the common platform and how to handle the pspa's need some tweaking but relative to the current securities' prices, i read this as a solid starting point for discussion.

[Flynnstone5]

From SA:

http://seekingalpha.com/news/3239162-mortgage-bankers-group-unveils-gse-reform-ideas?app=1&uprof=51#email_link

 

proposes explicit federal govt guarantee of mbs.  would need congressional approval and i just dont see the appetite in congress for this

 

Do you see this saga ultimately being resolved in a way that will not require some sort congressional approval? Or do believe that a 4th amendment, etc. can completely side step any necessity to go through congress?

 

Apologize for being redundant if you've elaborated before.

[BeerBBQ]

Doesn't SIFI designation imply onerous bank like capital standards?

[Guest cherzeca]

From SA:

http://seekingalpha.com/news/3239162-mortgage-bankers-group-unveils-gse-reform-ideas?app=1&uprof=51#email_link

 

proposes explicit federal govt guarantee of mbs.  would need congressional approval and i just dont see the appetite in congress for this

 

Do you see this saga ultimately being resolved in a way that will not require some sort congressional approval? Or do believe that a 4th amendment, etc. can completely side step any necessity to go through congress?

 

Apologize for being redundant if you've elaborated before.

 

mnuchin has stated the status quo is unacceptable, and that he is prepared to move quickly.  he has also said he wants bipartisan participation and sees the need for GSEs to be well capitalized and reformed in a manner that makes taxpayers safe.

 

i dont know mnuchin (though i did negotiate a deal with GS  on the other side with mnuchin as the senior deal guy that didnt go through), but i think i know how a finance guy like him might approach the situation.

 

and that would be to split the reform program into two parts, the first involving what he can do administratively to repair the status quo, while preserving for congress, and even inviting congress, the opportunity to pass legislation that builds on the first part of the program.

 

so the first part of the program would involve a financial restructuring primarily, but also instituting such rules via fhfa that can be done to set forth capital constraints etc.  i guess he would have to get GSEs out of conservatorship to accomplish this, since i dont see how GSEs can raise new capital while subject to conservatorship. he will consult with congress as he goes about this, but he doesnt need congressional approval to do this (this assumes that watt continues to be a guy who takes direction well, just now from a new master).

 

while this first program plays out, mnuchin would consult with congress as to those aspects of reform that he thinks make sense but which require congressional approval (any amount of explicit guarantee).  that will either get done or not. 

[Guest cherzeca]

Doesn't SIFI designation imply onerous bank like capital standards?

 

GSEs are currently operating under no capital standards.  an important part of any administrative solution would be to figure out what standard should be and more importantly how applied.  for this you should read howard on mortgage finance to see lay of land.

[waynepolsonAtoZ]

"He said "If this case is remanded...""

 

If the case is remanded, the District Court would look at the adm record Tsy filed, the substitute for an admin record that FHFA filed, and would look at adding documents from discovery to the records submitted by Tsy/FHFA.

 

The process will be a lot quicker if the appeals court reverses the 4th Amendment, but that's considered a less likely outcome. I could see Judge Brown doing it though, but not sure about the second vote.