Is Cheyenne Hopkins and Bloomberg making it up as they go along?

In an article printed Friday on Bloomberg entitled:

“Obama Adviser Set to Dismiss Speculation of GSE Share Sale “
First we are told:
“The White House is preparing to push back on the flurry of hedge fund speculation that it may change course on policies that have kept Fannie Mae and Freddie Mac under government control since the financial crisis.”

Then she completely contradicts herself here:

“While White House officials might regard Stegman’s Monday remarks at a mortgage industry conference as restating the status quo, the comments could counter expectations that President Barack Obama will try to cut government ties with Fannie Mae and Freddie Mac before he leaves office in 2017.”

Wait I thought they were the ones preparing for this now they are 3rd party bystanders?

“A White House spokeswoman declined to comment on what Stegman plans to say next week at the Mortgage Bankers Association conference in San Diego.”

So let me get this straight, the White House is simultaneously preparing to push back on speculation while at the same time acting as disinterested 3rd party bystanders?

Cheyenne could you please explain these bizarrely contradictory statements in your recent article?

In her opening sentence Cheyenne boldly states as fact:

“The White House is preparing to push back on the flurry of hedge fund speculation that it may change course on policies that have kept Fannie Mae and Freddie Mac under government control since the financial crisis.”

“Flurry of hedge fund speculation” seriously Cheyenne? Besides Bill Ackman’s casual reference to the Alpha note when asked why he thought the shares went up one day last week, not one hedge fund commented at all on this subject. Cheyennes starts the article by falsely trying to promote the hedge funds VS taxpayers narrative. This is right out of the Senator Corker playbook.

Here they sum up the legal battle:
“Hedge funds that own Fannie Mae and Freddie Mac stock, including Ackman’s Pershing Square Capital Management, have sued the government over the decision to hoard earnings, rather than allowing the companies to build up capital reserves or pay dividends to outside shareholders. Obama administration officials have argued the sweep was done to compensate taxpayers who had to save the companies from collapse as the mortgage market tanked in 2008. While Fannie Mae and Freddie Mac were rescued with a $187.5 billion bailout at the height of the financial crisis, they’ve since sent almost $240 billion to the Treasury.”

This excerpt makes me wonder if Bloomberg has any idea what is going on in the court battles. The government has never used “compensate the taxpayers” as a defense. If they had waltzed into Judge Sweeney’s courtroom and said: Your Honor we decided to seize all of their profits because the taxpayers deserve all of their profits forever she would have laughed them out.
Their only defense has been to claim that they swept all of the GSEs profits to save them from having to borrow every quarter to pay the 10 percent dividend. Not coincidentally the year of the sweep 2012 Fannie Mae had its second most profitable year ever and the First quarter after the sweep the GSEs sent over billion in profits to our government.

Since our government made the decision to seize all profits, the GSEs are on track to deliver a 100 percent return to the taxpayers on the 132 billion they loaned to Fannie and Freddie. This while the government is still denying Jr. shareholders one penny. I guess in Michael Bloomberg’s America it is acceptable for our government to seize private companies, make close to a 100 percent return and still keep the companies under the government boot as state-controlled piggy banks. All of this at the expense of the Jr. shareholders, many of whom are everyday Americans who did nothing wrong except believe their governments lies. Yes lies, shortly after the companies were taken over numerous government spokespeople assured investors that if the housing market turned around, and the companies were able to pay back the loans the shares would rise accordingly. Never mind the hedge funds, how about Adam Spittler father a retired PA state trooper who invested in the companies before they were even placed in conservatorship?What do you say to him?

Corker Unhinged

Amateur hour has now officially descended on the GSE battlefront.The Political Alpha note continues to spiral out of control as our opponents lead by Senator Corker have seized on it to try and force the Administration to box themselves in. Why has Senator Corker been feverishly trying to pass his Jumpstart GSE Reform bill that would tie the administration’s hands if he was so confident that there is no possibility of a recap release?
Corker was working so hard to tie President Obamas hands because he knows it’s very unlikely that any president would hand off an issue this big to a future President.Both Corker and our enemies in the media hammered away on this story using it to both reignite the hedge funds VS America theme and more importantly try and force Obamas hand.He saw the Alpha note as a way to force President Obama into a corner, and I doubt the administration will fall for this ploy. All we know now is that Stegman will address the rumors at the MBA conference on Monday, I expect he will again stay vague and leave the door open for Obama to act on this however he decides.

Know When To Fold Them
Thankfully all of the damaging evidence is not sealed away neatly in discovery right now. This is a sample of what I have been able to gather from both current and former GSE employees:

“I have knowledge of the manipulations of the loan loss allowance and DTA issues and how there was a stark contrast in methods and strategies for one set of mortgage guarantors (the MI’s) to the mortgage guaranty business and financials of FNM.”

It is of utmost importance that all parties involved keep this in mind going forward. Keep the Faith!

No introduction needed for tonights song: