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Slope of Hope Blog Posts
Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.
The Silver Lining In The Sacking Of America’s Cities
Fannie Mae Junior
Fannie Mae and Freddie Mac junior preferred shares could increase by at least 100% if one analyst is correct. Dick Bove of Odeon Capital said Josh Rosner of Graham Fisher & Co., who has testified multiple times in front of Congress about the government-sponsored enterprises, discussed them with the Odeon team.
Rosner said it is in the government’s best interest to settle with the plaintiffs before the Supreme Court in the Collins case. If the government loses, it could own Fannie Mae and Freddie Mac $130 billion. Additionally, the Federal Housing Finance Agency could be declared unconstitutional, and the next president could fire FHFA Director Mark Calabria. However, these last two points have already effectively happened due to the impact of the Seila case on the government-sponsored enterprises.
(more…)GSE Developments
Three major GSE developments over the last 10 days will greatly impact the future of Fannie Mae and Freddie Mac. Dick Bove of Odeon Capital outlined the three GSE developments in a recent note.
The biggest GSE development is the Seila Law case, although the ruling was directly aimed at the Consumer Finance Protection Bureau. The Supreme Court ruled that although the CFPB might be legal, the position of its director is not.
Bove explained that the Supreme Court justices believe the Constitution should be interpreted as it is written and amended and that the laws of Congress should be followed as written. He also said that they fear bureaucrats aren’t following the Constitution and the laws passed by Congress.
(more…)Asset Managers and the SBA
The Small Business Association’s (SBA)’s Payroll Protection Program (PPP) handed out loans to small businesses, but it isn’t just small businesses getting the loans. Criticism of the program continues as officials released details on hundreds of thousands of businesses that received PPP loans from the SBA, many of which will be forgivable.
The Payroll Protection Program was designed to bail out small businesses impacted by the pandemic, but many firms that took the bailout money weren’t impacted by the pandemic.
The SBA’s PPP loans were supposed to be for small businesses that had to shut down during the pandemic. However, many large businesses, including asset management firms that didn’t actually shut down, are taking the loans.
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