Bank Proposes End to Obama-Era Looting of Private Investor Cash

Another scheme used during the Obama era to steal funds from private citizens might be coming to an end very soon:

WASHINGTON, D.C. – The “Blueprint for Restoring Safety and Soundness to the [Government Sponsored Enterprises] GSEs” plan developed by New York investment bank Moelis & Co. to privatize Fannie Mae and Freddie Mac promises to increase the value of common shares, as Infowars.com has previously reported to an estimated $9.62 – $13.15 per share by 2020, as the two mortgage giants recapitalize.

To achieve this goal, the Moelis plan assumes the GSEs will implement a capital regime that would include the imposition of both overall leverage limits and risk-based capital calculations that take inspiration from the type of capital regulations placed by federal regulators, including the FDIC, on commercial banks since the 2008 crisis.

Thus, the Moelis plan offers to increase shareholder value not only by increasing the market capitalization of the two GSEs from some $15 billion today to somewhere between $207 – $238 billion at the end of 2020, but also by applying to the GSEs significantly enhanced capital standards broadly consistent with the capital requirements demanded by federal regulators for other financial institutions since the 2008 economic downturn.

As illustrated in Figure 3 of the “Blueprint,” under the Moelis plan, the GSEs would reduce their investment portfolios from over $1.5 trillion pre-crisis to $0.4 trillion by year-end 2018, eliminating from the consolidated retained mortgage portfolio the subprime mortgage securities and other high-risk mortgage assets that were largely responsible for the losses Fannie and Freddie incurred during the crisis.

Currently, the GSEs guarantees back the approximately $5 trillion market for GSE mortgage-backed securities and agency debt.

The need to begin recapitalizing the GSEs now was appreciated by Mel Watt, the FHFA director, who explained to the Senate Banking Committee in his testimony given May 11, 2017, that he intends to exercise his legislative authority under the Housing and Economic Recovery Act (HERA) to discontinue at the end of the second quarter of this year.

With the end of Obamacare potentially within reach, this may be the first of many ways Americans may find themselves more in control of their money and their lives under Donald Trump.

Source: Info Wars