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Fannie Mae wastes little time rebuffing Berkowitz

  • "I am confident that the Board is doing its job," says Fannie Mae (FNMA +3.3%) Chairman Phillip Laskawy, responding to Bruce Berkowitz's letter from yesterday demanding the GSEs begin retaining earnings to rebuild capital, and stop borrowing to pay voluntary dividends to Treasury.
  • "FHFA has retained certain authorities for its exclusive determination and control, as provided by federal statute, including all decisions relating to the declaration and payment of dividends to the United States Treasury.  Our Board and management will continue to perform their duties, as provided by federal statute and delegated by FHFA, diligently and to the best of their abilities," continues Laskawy in a long version of saying Fannie will continue to take orders from the government (Freddie Mac (FMCC +1.6%) too, no doubt).
  • Press release
Comments (13)
  • dgfurr
    , contributor
    Comments (66) | Send Message
     
    Perfect comment from a thieving puppet. The original stockholders were robbed and this clown is sure that the board, the one the thieves put in place, to replace the one the shareholders approved, is doing its job. He wouldn't be there he were not someone that agreed with the criminals that sole them to begin with. The courts will fix it and then wee can fire him.
    4 Mar, 02:52 PM Reply Like
  • dnguyen41509
    , contributor
    Comments (3) | Send Message
     
    perfect!
    sound like a plan... let get rid of those board of directors who works for Mr. Putin, not the shareholders.
    4 Mar, 03:25 PM Reply Like
  • philipmax
    , contributor
    Comments (263) | Send Message
     
    Shear arrogance. Bluster your way! We are the GOVERNMENT and we can do as we please!!!!
    4 Mar, 03:02 PM Reply Like
  • 9945121
    , contributor
    Comments (6) | Send Message
     
    Probably the response that Berkowitz expected. At first his letter seemed a bit juvenile & ridiculous to me, but then it occurred that it was probably his way of generating yet another supporting court document. Good luck Bruce, I really do wish you well - but I'll believe it when I see it.
    4 Mar, 03:17 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8609) | Send Message
     
    Dear GSE Boardmembers:

     

    We'll see you in court.

     

    Signed,

     

    Berkowitz & Co.
    4 Mar, 04:26 PM Reply Like
  • oilman545
    , contributor
    Comments (63) | Send Message
     
    For some reason, the government feels it can do anything it wants to. Ok, I agree the GSEs should pay back the TARP money, which they have done. Now they need to have allegiance to the shareholders. That was the promise when they sold the shares. They can't just make laws to negate that. This is a Capitalist Democracy, is it not?
    4 Mar, 04:33 PM Reply Like
  • jeepman58
    , contributor
    Comments (207) | Send Message
     
    When TARP money was paid back, USG was out of AIG, all the major & mid-sized banks, GM stock was sold, Chrysler stock was sold, big banks paid billions in penalties to the USG and paid more to FnF for mortgages...the bailout was repaid and the government exited. But with Fannie & Freddie, the government seems to think they can extract all the support money and then keep on extracting. They've got 2 chickens by the necks laying golden eggs and they don't want them going back to stockholders.
    10 Mar, 04:23 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8609) | Send Message
     
    jeepman58,

     

    Yup!
    12 Mar, 06:28 PM Reply Like
  • jimmywumsn
    , contributor
    Comments (13) | Send Message
     
    You borrowed money from Uncle Sam and using your house as collateral. After you pay back all the money you borrowed. Uncle Sam still occupy your house and claim the money you paid were only interest, you did not pay back the principle. Therefore Uncle Sam will not return your house.

     

    Don't you think this is like a Loan Shark?
    4 Mar, 10:33 PM Reply Like
  • Caludio
    , contributor
    Comments (221) | Send Message
     
    ...being a board of FnF may cost you a headache ....(at least!)
    Is there any lawyer around here? someone knows what is the personal liability of the board members? If yes, please explain
    5 Mar, 11:45 AM Reply Like
  • longmile1943
    , contributor
    Comments (3) | Send Message
     
    yet a another form for the gvt to extract money from working class investors, change the rules when you see a cash cow and milk it for all its worth and the small investors be damed .
    11 Mar, 04:10 PM Reply Like
  • longmile1943
    , contributor
    Comments (3) | Send Message
     
    just a middle class investor
    11 Mar, 04:10 PM Reply Like
  • Da'Don'
    , contributor
    Comment (1) | Send Message
     
    Amen brother! I have always felt the same way.
    The USG allows all of the corporations who needed bailouts to pay back their balances and the USG sells off their shares.
    So confused why OUR government feels Freddie & Fannie shareholders should not be shown the same consideration as corporations.
    Hopefully some day the court system will rule that the USG inside deal to change the agreement was illegally done and the media makes it a big story.
    8 Jun, 10:13 PM Reply Like
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