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Watt comfortable with profit sweep from GSEs

  • “I don’t lay awake at night worrying about what’s fair to the shareholders,” says FHFA boss Mel Watt in an interview to be aired on Sunday. "There would be no Fannie (FNMA -1.8%) or Freddie (FMCC -1.2%) but for the taxpayers."
  • Watt also notes the he had no role in altering the bailout agreements to allow for the continuous taking of all GSEs profits by Treasury. “I don’t know whether I would have thought differently had I been there, but I don’t have that luxury ... It’s an arrangement that I’m comfortable operating under.”
Comments (18)
  • David Sims
    , contributor
    Comments (490) | Send Message
     
    He's comfortable overseeing a system with no capital, where taxpayers are on the hook for all losses?
    16 May 2014, 03:57 PM Reply Like
  • cdaley
    , contributor
    Comments (2) | Send Message
     
    Interesting that he is not worried about shareholders, since the FHFA stepped into the shoes of the Board and has a fiduciary duty to them.
    16 May 2014, 04:13 PM Reply Like
  • DrP79
    , contributor
    Comments (1762) | Send Message
     
    Yes if he was subject to SOX, he would be singing a different tune in prison
    17 May 2014, 11:43 AM Reply Like
  • abovegod
    , contributor
    Comments (48) | Send Message
     
    The FHFA not only wrote the rules but had 100% of all profits "swept" to the Treasury. Should this not be double dealing, I don't know what is.
    16 May 2014, 05:33 PM Reply Like
  • Ohiojonny
    , contributor
    Comments (2) | Send Message
     
    says to be aired on Sunday ? why no channel or time information ? another lie !
    16 May 2014, 07:04 PM Reply Like
  • brando212
    , contributor
    Comments (2) | Send Message
     
    He's right but we are past that now.... . Congress should Reform the companies and move on! On the worrying about what's fair...the courts will decide that...none of Watts business. The congress is doing the disservice to the taxpayer....not allowing companies to recapitalize and relist.....sends the wrong signal to market...shareprice can't recover and gov can't exit with additional profits to taxpayer. so for propping up the entire CRE system and rebuilding res values....for that we say FU to fnm and fre? No, they should get the get of jail free card once like every other bailed out institution got....and those bailed out banks and ins companies didn't even lend with their bailed out bAlance sheets....they used it for an arbitrage play. We need people at the regulator shops that understand Finance! This isn't a joke Mr. Watt...Ms Warren....this is serious business.
    16 May 2014, 07:09 PM Reply Like
  • abovegod
    , contributor
    Comments (48) | Send Message
     
    Right on Brando222! The Congressmen carrying water for the hedge funds, banksters and Wall Street gamblers want to kill the Golden Goose of Fannie & Freddie and take over the mortgage market. Over $200 billion has been "swept" to the Treasury that the financial markets are salivating to steal.
    16 May 2014, 09:14 PM Reply Like
  • abovegod
    , contributor
    Comments (48) | Send Message
     
    Watt's bull was not gored when the shareholders were abandoned in the conservatorship of Fannie & Freddie.
    16 May 2014, 09:17 PM Reply Like
  • Bradgrp61172
    , contributor
    Comments (34) | Send Message
     
    Congress can't get anything right, so what makes them think that they know how to reform the housing market. Its all just a ploy for Congress to steal what rightfully belongs to the shareholders. Mr. Watt may not be personally concerned about the "sweep"amendment or the shareholders, but its his fiduciary responsibilities to protect the well being of the GSEs, and by default, the shareholder interests.

     

    Congress, the Obama Administration and all of the shareholders, preferred and common, know what's going on...a violation of the law of the land and shareholder rights. Its as simple as that.

     

    If Congress and the Administration was so fired up about winding down FRE and FNMA, why didn't they put them in receivership and stop all the shares from trading on the markets. That's a mistake that they made. But now they want shareholders to pay the price for their mistake and illegal taking.
    17 May 2014, 12:08 AM Reply Like
  • abovegod
    , contributor
    Comments (48) | Send Message
     
    The government is self dealing by writing & then changing the rules to take ALL of the $200+ billion in profits "swept" to the Treasury w/o paying off any of the $188 billion loaned from the treasury.
    17 May 2014, 09:00 AM Reply Like
  • workway2much
    , contributor
    Comments (3) | Send Message
     
    It would do the country good to take sovereign equity stakes that can perform better than its debt costs as long as we are printing money anyway. But ultimately it should get out of the monopolization business.
    17 May 2014, 10:02 AM Reply Like
  • buy1home
    , contributor
    Comments (90) | Send Message
     
    Senator Watt,can't sleep at night thinking how to screw Fannie and Freddie shareholders, who are getting very rich unlike him. Watt and many Senators
    wished they had bought Fannie Mae shares at .26 cents per share and to have
    a 800% return per year, amounting to 1,600 % return in only two years.

     

    Watt can't sleep thinking we are getting rich. They can't swallow it.

     

    Its envy to the highest.

     

    Atwater
    FNMA and FMCC investor
    17 May 2014, 01:24 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (9372) | Send Message
     
    I can't tell if Watt and the rest of the Obama administration reminds me more of La Cosa Nostra or the Soviet Politburo.
    17 May 2014, 07:10 PM Reply Like
  • buy1home
    , contributor
    Comments (90) | Send Message
     
    don't insult my cosa nostra friends.
    18 May 2014, 11:54 PM Reply Like
  • philipmax
    , contributor
    Comments (298) | Send Message
     
    Funny man that Watt. He loses no sleep, while shareholders can't sleep.
    This ripoff is a disgrace to all that America stands for. Are we a capitalist based economy or socialist/fascist one? I don't remember voting for the latter.
    In any case, there are very few serious obstacles before congress can implement nationalizing F&F.
    The first of course is - what institution wants to insure mortgages going 30 years forward with an uncontrolled Treasury printing fiat money by the trillions?
    More importantly, while F&F have some $11 Trillion in mtge assets, they also carry a similar liability on their respective balance sheets. Does congress want to add this liability to our national debt? Can a hedge fund handle this load of debt? Who are they kidding? F&F are doing an outstanding job greasing the financial wheels that operate our capitalistic society. Tamper with this model and risk sinking our economy into the abyss of the Greatest Depression of all time.
    17 May 2014, 09:24 PM Reply Like
  • kingb1980
    , contributor
    Comments (21) | Send Message
     
    A classic violation of the constitution. Not only will we have our day in court they will pay damages for this theft of property. The longer they wait to release these entities the worse it will get. Obama does not want it on his watch so we must wait for the courts. May justice prevail!
    20 May 2014, 10:36 PM Reply Like
  • abovegod
    , contributor
    Comments (48) | Send Message
     
    Good luck. Resolution will not be for 5 years.
    21 May 2014, 09:32 AM Reply Like
  • kingb1980
    , contributor
    Comments (21) | Send Message
     
    Thanks I have waited since 08' whats another 5-6 years LOL
    21 May 2014, 12:17 PM Reply Like
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