Category Archives: News

CapWealth Advisors’ Chris Burger Accepted into 2017 Young Leaders Council/Williamson County Class

CapWealth Financial Advisor Chris Burger has been accepted by the Young Leaders Council into the 2017 Young Leaders Council/Williamson County Class.

Chris Burger

Burger is the newest member of the CapWealth Financial Advisor team, having joined the firm in February 2017. He provides strategic financial and wealth management advice to CapWealth’s clients with a focus on the firm’s growing millennial clientele. Prior to joining CapWealth Advisors, Burger served as vice president of Advocacy and Public Affairs for Nashville-based Crisp Communications and, before that, as director with the DCI Group in Washington, D.C.

“Throughout my life, volunteer and nonprofit involvement has been critical to serving my fellow neighbors and the larger community,” Burger said. “The Young Leaders Council will equip our entire class to better serve our community nonprofits and those they serve.”

Burger earned a B.A. in Economics and Government from the University of Virginia, and he holds his Financial Industry Regulatory Authority Series 65 securities license. He sits on the Business Advocacy Committee of the Williamson County Chamber of Commerce and on the committee of MLS2Nashville, a group of business, civic and sports leaders committed to bringing a Major League Soccer (MLS) team to Nashville. Additionally, he volunteers with UVA Club of Middle Tennessee and is a member of Midtown Fellowship (PCA) church.

 About Young Leaders Council

Young Leaders Council is a Nashville-based nonprofit organization created in 1985 by the Council of Community Services, the HCA Foundation and the United Way to address the need to broaden and strengthen Nashville’s volunteer leadership base. Young professionals, ages 25-40, accepted by the program attend 11 weekly classes and learn crucial skills needed for today’s nonprofit leadership roles. More information can be found at


Jennifer Pagliara Ranked in Forbes’ “America’s Top Millennial Advisors”

Forbes recognized Jennifer Pagliara (Senior Advisor, CapWealth Advisors) as one of the nation’s top millennial advisors for 2017 – joining a list of 500 of America’s top next generation wealth advisors in the country.  Jennifer will be honored during Forbes’ Under 30 Summit this October in Boston with more than 7,000 people in attendance.  Read more about America’s Top Millennial Advisors via Forbes.

Phoebe Venable Featured in Financial Times’ Financial Advisor IQ


Phoebe Venable, CapWealth Advisors’ President and COO, is featured in Financial Times’ Financial Advisor IQ discussing the sharing economy, its effect on the larger economy and investment trends.

No matter how small of a demographic change is taking place in spending behaviors, she adds, clients seem to appreciate her attention to both a changing economy and their shifting personal consumption behavior.

“In a lot of cases, they don’t even realize how big of an impact a shared economy might make in shaping their long-term savings outlook,” Venable says.

The rising fortunes of goods being shared rather than owned is also being addressed in her firm’s portfolio building process.

Analysts and portfolio managers at CapWealth have created a special filter to uncover stocks primed to take advantage of the shared economy, according Venable.

“This is a huge fundamental shift in consumer markets and investing strategies — we think it’s going to result in margin compression across the entire retail space,” she says. “So we’re making our clients aware of these changes and how their portfolios might be impacted in the future.”

Read more here:


Hey Millennials, for the Best of Life’s Experiences, Mix Strategy With Spontaneity

The following column from Jennifer Pagliara, CapWealth Senior Advisor, appeared in The Tennessean on June 23, 2017. Read it at The Tennessean here.

Getty Images/Hero Images

How many times would you go see your favorite musical performer or band? Five, ten, twenty times? One of my friends traveled to D.C. this weekend to see Dave Matthews for the 34th time.

While he was there, he also caught the U2 show, a group he’s now seen seven times. When he told me this last week, I was amazed.

Then listening to the radio on my way to work the very next day, the deejays asked their listeners to call in and talk about what band or singer they’d seen the most. A woman called in claiming she had seen Widespread Panic 150 times.

Widespread panic

My jaw literally dropped. That’s an enormous commitment of time and money, and the woman was only 30 years old. The media loves to talk about how much my generation, the millennials, values experiences over physical possessions. But this was revelatory for me. As I drove down the highway, I confess to experiencing some widespread panic myself.
I love concerts just as much as the next person — provided that person isn’t this woman. I have definitely seen some of my favorite bands and performers more than once. There’s just not enough music fanaticism and too much responsible financial adviser in me to see anyone 150 times!

The cost of a concert experience

It’s one thing to see a show in the city in which you live, but something else altogether if you have to travel. Let’s put some numbers around going on an overnight trip to see a concert in another city.

  • Concert ticket: According to a report by Pollstar, the average cost of a ticket in 2015 was $74.25. Obviously, this is going to vary depending on who you see and if you’re getting the ticket at face value or rebuying through a service like StubHub.
  •   Plane ticket: According to the Bureau of Transportation statistics, last year the average domestic U.S. ticket price was $346.72.
  •   Lodging: The average hotel price in 2016 was around $125.
  •   Food & alcohol: While you’re traveling, you’re going to have to eat out and alcohol at the concert venue isn’t going to be cheap. Let’s be on the conservative side and say you spend a total of $75.
  •  Transportation: Don’t forget the rides to and from the airport, going to eat and getting to and from the concert. Let’s add in another $50, which again is conservative.

The total spend on this two-day-and-one-night experience? $670.97. Multiply that by 150 and you’ve got $100,645.50. Let that sink in a moment.

Deferring today’s pleasure for more tomorrow

Now think in terms of retirement — which is how I instantly thought of it when I heard her on the radio. Let’s say a 30-year-old put that total in an investment account today. How much money would that be when that person is 65?

Assuming an annual 7 percent return on her investment, which is the average annual return of the S&P 500 adjusted for inflation and accounting for dividends since 1950, her account would be worth north of $1 million. Learn how that happens in another of my columns.

A million bucks, my dear fellow millennials, can buy a lot of experiences. The original 100 grand could provide a sizeable down payment on a house. It could launch a business. The possibilities are endless.

Mix strategy into your spontaneity

I don’t mean to moralize. For all I know, the woman on the radio is prudently saving and investing. And like her, I too believe in experiences. After all, what is life but a long (hopefully) and, in the main, satisfying (again, hopefully) sequence of experiences.

But I’m a firm believer that not only whims, but planning and discipline, too, achieve invaluable experiences: freedom from financial worry, the resources to maintain an enjoyable lifestyle and take memorable trips, the ability to send children to college, security in retirement and much, much more.

Americans Now Spend More at Restaurants Than Grocery Stores. Is It a Problem?

The following column from Phoebe Venable, CapWealth Advisors President & COO, appeared in The Tennessean on June 2, 2017.

Recently I heard our chief investment strategist say that Americans now spend more at restaurants than grocery stores. I was astonished. Could that really be true? A couple quick Google searches confirmed that indeed, last year, retail sales at restaurants and bars exceeded those of grocery stores for the first time.

It’s Norman Rockwell at my house

My next thought was, well, the rest of country might be eating out more, but not so at my house. We’re very committed to having dinner as a family each night. Plus, I have a passion for cooking. In fact, our sacred mealtime ritual, a tradition carried over from my childhood, is quaint to many of our friends. I look forward to the conversation. I look forward to the connection. I look forward to seeing my husband and my son enjoying the repast I’ve prepared with my own two hands.

Yet, being a finance and numbers freak, I was curious. What was our ratio of eating at home versus eating out?

So I separated out our grocery and restaurant purchases over the past year. You guessed it. I was stupefied to discover that we, too, spent more at restaurants! What happened to my Norman Rockwell dinnertime?

A buffet of dining options

There are several reasons behind this reversal of a longstanding pattern in which the bulk of American food spending occurs at the supermarket.

Demographics have had a large impact on this shift. While baby boomers are eating at home in an effort to save money (perhaps because they under-saved for retirement), they are outnumbered by the millennial generation. Millennials have many frugal habits but they do have a penchant for eating out. Technology is also impacting the trend with apps like GrubHub, DoorDash and Seamless providing convenient ways to order food from almost any restaurant for delivery. Takeout has become so popular that restaurants are being reconfigured to handle the growing number of customers that come in only to pick up their order.

Somewhere between a home-cooked meal and eating out is the meal kit, another new dining phenomenon. Meal kits offer pre-portioned ingredients and instructions for preparation delivered direct to your doorstep. They require cooking but there is no actual grocery shopping. Blue Apron, HelloFresh and Plated are all examples of an industry which is touting annual sales of $1.5 billion and growing.

Is this trend a problem? It depends

Is this trend a problem for the American consumer? Dining out is certainly more expensive than eating at home, but if you’re adjusting your budget to accommodate, then it shouldn’t be a big deal. But the Federal Reserve’s 2015 report on the economic wellbeing of U.S. households showed that 46 percent of adults say they either could not cover an emergency expense costing $400.

A couple of weeks ago, an Australian real estate mogul was roundly lambasted on social media for suggesting that $19 avocado toast might be why millennials couldn’t afford homes. But the truth is, eating out does add up. One wonders, too, if it’s adding up in other ways — contributing to our escalating obesity epidemic, for instance.

It’s certainly not a problem for investors.

It’s an opportunity. When consumers change their preferences, they shift spending habits, causing some companies to benefit and others to suffer. Winners and losers can be hard to identify, but if you think this trend is here to stay, investing in companies that adapt to the changes in their industry could bring bountiful returns.

Phoebe Venable, chartered financial analyst, is president and COO of CapWealth Advisors, LLC. Her column on women, families and building wealth appears every other Saturday in The Tennessean.

CFA Institute Pens Open Letter to Investment Community in WSJ Today–CapWealth Claims Compliance With CFA Asset Manager Code Too!

The CFA Institute took out a full page ad today in The Wall Street Journal to write an open letter to the investment management industry, urging them to make a bold statement about putting clients’ interests first by claiming compliance with the Asset Manager Code. The letter listed several pension funds and retirement systems that had signed on, and we’d like to say that CapWealth Advisors claims compliance with the Asset Manager Code as well!

CapWealth Advisors Welcomes Financial Advisor Chris Burger to the Firm

Independent registered investment advisory firm CapWealth Advisors, based south of Nashville in Franklin, TN, has added public affairs and advocacy veteran Chris Burger to its roster of financial advisors, Tim Pagliara, CapWealth Advisors’ chairman and chief executive officer, announced today. Burger is the first new advisor to join the top-ranked firm since 2014 and the first new hire since bringing on former Goldman Sachs vice president John Lueken as the firm’s chief investment strategist. Burger will develop new business and provide financial and wealth management advice to clients.

Chris Burger, CapWealth Advisors’ newest Financial Advisor

Having spent the last decade in public affairs, Burger excels at strategic thinking, planning and execution. “That’s a one-sentence summary of what we do for our clients here at CapWealth Advisors,” says Tim Pagliara, who has known Burger professionally for several years. “We develop strong, carefully crafted plans for each client’s unique financial situation and goals, diligently execute those plans and work very hard to make our clients successful. Chris has been doing that for years in another tumultuous, anxiety-ridden industry—politics. Chris is going to be a tremendous asset for our firm, both in respect to serving our existing clientele and further tapping into exciting new opportunities such as the Millennial market. Chris is sharp, has a great can-do attitude and builds rapport with people so well. Our firm is excited to make this announcement.” This year, Barron’s magazine named CapWealth Advisors one of the top two advisories in the state of Tennessee, following five consecutive years named the state’s number-one advisory.

Burger has been onboarding with CapWealth Advisors since February, and has been busy training, shadowing and studying the firm’s wealth-management strategies, operational policies and procedures, and customer service protocols. He’s well versed in CapWealth Advisors’ trademarked investment approach of Sophisticated Simplicity®, the art of thoroughly understanding a complicated global markets landscape and boiling it down to high-quality, straightforward investment ideas.

Prior to joining CapWealth Advisors, Burger served as vice president of Advocacy and Public Affairs for Nashville-based Crisp Communications and, before that, as director with the DCI Group in Washington, D.C. In these roles, Burger led grassroots-management, coalition-building and strategic-communication efforts for both corporations and non-profits that faced legislative, regulatory and competitive challenges. Burger also has extensive political campaign and Congressional office experience, having worked for two presidential campaigns and two Congressional representatives, overseeing field offices, staff, events and communications.

Burger is a graduate of the University of Virginia, where he earned a B.A. in Economics and Government, and holds his Financial Industry Regularly Authority Series 65 securities license. He sits on the Business Advocacy Committee of the Williamson County Chamber of Commerce and on the committee of MLS2Nashville, a group of business, civic and sports leaders committed to bringing a Major League Soccer (MLS) team to Nashville. Additionally, Burger volunteers with UVA Club of Middle Tennessee and is a member of Midtown Fellowship (PCA) church.

About CapWealth Advisors

CapWealth Advisors is a fee-based investment advisory firm based in Franklin, TN, that provides wealth management services, including investment advice, personal financial planning and portfolio management to individuals, families, foundations and endowments. Founded in June 2000, CapWealth Advisors specializes in preserving, growing and distributing assets over our clients’ lifetimes. With over $1 billion in assets under management and advisement, we are one of the nation’s leading independent wealth managers. For more information, visit


CapWealth Senior Advisor Jennifer Pagliara to Attend ABA Trust School

A trust can be a powerful tool in managing how your wealth is passed on to your loved ones.

CapWealth Advisors Senior Advisor Jennifer Pagliara will attend the 2017 American Bankers Association‘s Trust School in Atlanta this coming September 24-29. This intensive five-day program is designed to provide a solid grounding in the fiduciary, tax, investment, financial planning and ethical issues associated with the creation of trusts.

CapWealth Advisors Senior Advisor Jennifer Pagliara

The ABA Foundational Trust School offers a state-of-the-art, performance-based curriculum, designed and delivered by a prestigious group of trust professionals, including prominent bankers, attorneys, and industry experts. In addition, students have the opportunity to build a nationwide network of peers and industry leaders, a vital resource for years to come.

A trust is a legal document that can be powerful estate-planning tool for managing how your wealth is passed on to your loved ones and other chosen beneficiaries. Among the advantages of a trust, it can:

  • Put conditions on how and when your assets are distributed after you die
  • Reduce estate and gift taxes
  • Distribute assets to heirs efficiently without the cost, delay and publicity of probate court, which can cost between 5% to 7% of your estate.
  • Better protect your assets from creditors and lawsuits
  • Name a successor trustee, who not only manages your trust after you die, but is empowered to manage the trust assets if you become unable to do so


Over the five days of the Trust School, students will receive a solid foundation in the technical skills and knowledge required in the fiduciary and trust, investment, financial planning, tax, and ethics industries, including the latest strategies in:

  • Account Administration
  • Fiduciary Law
  • Tax & Estate Planning
  • Investment Management

Upon completion of the ABA Trust School, Jennifer will earn the ABA Certificate in Trust: Foundational. We’re excited about this continuing education opportunity for Jennifer, just another example of CapWealth’s commitment to our clients’ financial futures!

Tim Pagliara to Attend CFA Institute’s Investment Management Workshop at Harvard Business School

CapWealth Advisors CEO and Chairman Tim Pagliara will attend the Investment Management Workshop, a joint program by CFA Institute and Harvard Business School, on June 25-29, 2017. The executives who participate will focus on three fundamental business concerns: management issues, business strategy and development, and investment strategy.

CapWealth Advisors Chairman and CEO Tim Pagliara

For almost 50 years, the Investment Management Workshop (IMW) has played an essential role in shaping the principles and practices of investment management across the globe. This renowned program, developed by Harvard Business School (HBS) Executive Education and CFA Institute, brings together highly accomplished faculty and leading executives from around the world to confront the ever-changing challenges that define the investment management industry. Since its inception in 1968, the program has provided a forum for more than 3,500 participants to share broad-ranging insights and investigate cutting-edge strategies for balancing risk and return.

Among other issues, Tim and the other workshop participants will explore:

  • Disruptive innovations in both products and services in investment management
  • The challenges of size for both asset allocators and asset managers
  • Investing in a world of low expected returns
  • The future of hedge funds and private equity
  • The rise of smart beta and its implications for the competitive landscape of the active investment management industry
  • Fintech as a disruptive force in the investment management industry and strategic responses from incumbents
  • The drivers of success for activism as an investment strategy
  • Innovative fee structures for institutional investors
  • Investment decisions in a world of low expected returns
  • Implications of the growth in index investing for markets and for the investment management industry
  • Co-investments in private markets
  • Trade execution in a world of high frequency trade and multiple execution venues
  • Liquidity management in uncertain times
  • Innovative investment strategies and the search for alpha in today’s environment


CapWealth Invites Client Kids and Grandkids to Money Camp 2017!

The seeds we plant today will grow into future financial, intellectual, personal and philanthropic capital!

CapWealth Advisors would like to invite your children, nieces, nephews and grandchildren ages 6 to 10 to this year’s Money Camp, where children begin learning critical life lessons about spending, saving, investing and donating.

It’s never too early to open the dialogue with your young ones on what money is, what can be accomplished with it and how to successfully manage it. We send our children to lessons and camps for everything from swimming and music to horseback riding and scouting, yet managing money is an activity they’ll be responsible for all their lives—with potentially enormous positive and negative ramifications. And if your family is one of substantial wealth, it’s even more critical that the children begin preparing to become responsible, knowledgeable stewards of wealth.

Money Camp will be led by CapWealth Advisors President & COO Phoebe Venable, a veteran teacher of young people on matters of money, and CapWealth Advisors Senior Advisor Jennifer Pagliara. Phoebe and Jennifer try to make learning about money fun but meaningful. The basic lessons your young ones learn could be the foundation for a lifetime.


Children 6 to 10 years old


A FREE, fun, engaging, youth-oriented seminar that covers the basics of spending, saving, giving and investing. The seminar, offered on your choice of two days, will be two hours long and snacks will be provided.


Tuesday, July 18, 9:00 a.m. to 11 a.m.

Thursday, July 20, 2 p.m. to 4 p.m.


The Office of CapWealth Advisors, 3000 Meridian Blvd., Suite 250, Franklin, TN 37067


To register your children, nieces, nephews or grandchildren for CapWealth Money Camp, please contact Raechel Mabry at or call 615-778-0740. Thank you!

We look forward to seeing your children here!

Watch Treasury Secretary Mnuchin Discuss Fannie Mae and Freddie Mac

Treasury Secretary Steven Mnuchin spoke to Fox Business Network’s Maria Bartiromo today (May 1, 2017) about President Trump’s tax reform plan, efforts to drive economic growth, the tax plan’s potential impact on US business and state taxes—and the future of Fannie Mae and Freddie Mac.

His comments on the GSEs begins at the 3:55 mark and runs to 5:20. Be sure to watch!

Infowars: Senator Corker Caught Shorting Stocks He Demonized

Tennessee Republican Sen. Bob Corker, in his dogged determination to see Fannie Mae and Freddie Mac shut down, has frequently criticized hedge funds in their attempt to make money from the two Government Sponsored Entities (GSEs). Read the online article here.

World Economic Forum/Flickr

Corker’s critics have criticized him for his hypocrisy, producing evidence Corker himself profited from a strategy to short Fannie and Freddie in 2007 and 2008, while maintaining an investment portfolio that has invested as much as $50 million in the same hedge funds Corker attacks as “vultures” corrupting Washington.”

As has previously reported, in 2006, Henry Luken, a long-time Corker business associate and political backer, acquired from the then-Chattanooga mayor Bob Corker tens of millions of dollars in risky real estate holdings that were headed underwater, providing Corker the capital he needed to complete his successful run for the Senate.

After lending his campaign $4.2 million from the Luken transaction into his Senate campaign, giving Corker virtually all the money he spent in the final weeks of the campaign, Corker narrowly defeated his Democratic challenger Harold E. Ford, Jr., 51 percent to 48 percent, outspending Ford by $18.6 million to $15.6 million.

According to his Senate financial disclosures, upon his arrival in the Senate, Corker began using the proceeds from the Luken transaction to shift tens of millions of dollars to a series of hedge funds, including Chattanooga-based Pointer Management Company, whose founder, Thorpe McKenzie, was a political supporter of Corker and an investor in Luken’s companies. has obtained a copy of a compliance “Adherence Letter” authored by Pointer Management, LLC, dated September 30, 2008, making it clear Pointer was taking a short position on Fannie Mae and Freddie Mac by buying derivatives, specifically credit default swaps, that would generate for Pointer a handsome profit, provided the share prices of the two GSEs went down.

This was the same period when investor Bill Ackman, the CEO of the now multi-billion-dollar Pershing Square Capital Management hedge fund, was also shorting Fannie and Freddie by purchasing credit default swaps, as evidenced by a letter dated Oct. 2, 2008. has possession of two emails obtained by FOIA requests that document Sen. Corker had meetings with Jim Lockhart, then the director of the Office of Federal Housing Enterprise Oversight (OFHEO), the precursor to the Federal Housing Finance Agency FHFA, in April 2008 and again in July 2008, prior to the Pointer purchase of Fannie/Freddie credit default swaps.

In the first email, dated April 8, 2008, Courtney Geduldig in Corker’s Senate office, emailed to Joanne Hanley, Congressional Affairs, OFHEA, with a copy to Peter Brereton, External Affairs, OFHEA, asking how best to “follow-up on a meeting with the Senator (Corker) and the Director (Lockhart).

The second email, dated July 10, 2008, was again from Courtney Geduldig to Joanne Hanley, with a copy to Peter Brereton, stating: “Obviously, there’s a lot going on in your world.  The senator (Corker) wanted to see if someone could come in and talk to us about the new accounting proposals as well as the gse’s current situation.  Let me know what might work.”

It seems highly likely that material, non-public information was exchanged during these two meetings that took place 5 months and 2 months respectively before the GSEs were put into conservatorship.

Corker’s Senate financial disclosures indicate that after his successful 2006 Senate campaign, Corker invested between $8.5 million into hedge funds, including between $5 million and $25 million that he invested in Pointer.  Corker’s Pointer investment profited him a total of between 3.9 million and $15.5 million over the next nine years.

Corker’s own investments in hedge funds betting on Fannie and Freddie’s failure provide a damning context for his crusade against the GSEs and their investors.  Corker appears to have even enlisted members of the press in his campaign against the GSEs.

On Aug. 10, 2015, the Business Insider published an article noting that in a conference call with investors, Bill Ackman, an investor in Fannie and Freddie, attacked John Carney, a reporter at that time writing for the Wall Street Journal, for writing the “most factually inaccurate” and “frankly embarrassing articles about Freddie and Fannie, calling Carney’s coverage of Fannie and Freddie in the newspaper’s “Heard on the Street” column a “disaster.”

Ackman’s frustration was that Carney had argued the shares of Fannie and Freddie were not “living up to hopes,” without understanding the reason for that underperformance was the Net Wort Sweep, in which Treasury since August 2012 had begun stripping from Fannie and Freddie all earnings, without allowing either GSE to recapitalize or to pay dividends.

In the various jobs he has held in his writing career, Carney has consistently supported Corker by attacking investors that invested in Fannie and Freddie while supporting legislation Corker introduced with Virginia Democratic Sen. Mark Warner in 2013 aimed at shutting Fannie and Freddie down. Corker’s legislation favored a “bank-centric” mortgage finance model, where banks that have financed Corker, including Wells Fargo, could be expected to be dominant players in the future housing finance industry.

Before starting his latest assignment with, Corker media stooge John Carney even took pains to disguise his years of publishing articles bashing Donald Trump, going so far as to erase from his Twitter archive dozens of tweets he had published critical of Trump’s 2016 presidential campaign.

In an article he wrote for DealBreaker, dated April 10, 2006, Carney ridiculed Trump’s performance at a press conference held at Trump Tower in New York City at which Trump announced the creation of Trump Mortgage.

Commenting that Trump seemed “confused by the crowds and media” as he assumed the podium, Carney asked Trump, “Will the homes bought with Trump mortgages have to be adorned with giant gold letters reading Trump?” – a question that got no response, as Trump turned away, with Carney reporting Trump’s hair scowled back at him.

In his most recent article, written for on April 7, 2017, Carney continued his attack on “hedge funds and other big investors, including Perry Capital LLC and Fairholme Funds” for not understanding Fannie and Freddie were, in Carney’s opinion, “the primary cause of the financial crisis” in 2008 – an argument Carney asserted without considering the role played by major bank players in the crisis caused securitizing sub-prime mortgages.

The truth is that the crisis began when mortgage loan originators like Countrywide Financial and financial institutions like Washington Mutual began marketing sub-prime mortgage loans aggressively well before Fannie and Freddie got in trouble.

By the time Fannie and Freddie were seized in the fall of 2008, more than 311 major lenders more than 311 major lenders in the sub-prime mortgage market had failed, including financial institutions that provided warehouse lines of credit to independent lenders with the goal of originating increasing lower quality mortgage loans in the sub-prime market.

The widely read financial blog on Feb. 2, 2010, took Corker to task for his “bank-centric” view that no commercial bank had failed while performing proprietary trading, arguing that Corker “must have received his information from the banking lobby, and did not do his own homework.”

An article published in Time Magazine on Feb. 5, 2010, made clear that Lehman Brothers had lost more than $32 billion from proprietary trading and principal transactions in the mortgage market in the year and a half up to the crash that occurred in the fall of 2008 – a sum nearly double the $18 billion in common equity Lehman Brothers had in late 2006, just before mortgage bonds began going south – a sum Time called “more than enough to wipe the firm out.”

The Time article further pointed out Merrill Lynch lost nearly $20 billion on investments in collateralized debt obligations in the mortgage market, while Morgan Stanly experienced nearly a $4 billion loss in proprietary mortgage-securities related trading in the fourth quarter of 2007 alone.

Time went on to note Goldman Sachs spent $3 billion to bail out one of its hedge funds, and Citicorp poured out more than $3 billion into fixing its problems with structured investment vehicles that it had set up with its own capital.

“Like Merrill, Citibank lost big — as much as $15 billion, on the CDOs [Collateralized Debt Obligations] it decided to hold rather than sell off,” Time concluded. “In fact, nearly every large financial firm that stumbled during the financial crisis had billions of dollars in proprietary-trading or hedge-fund losses.” referenced an article published by the Wall Street Journal on Sept. 26, 2008, noting Washington Mutual was seized by the FDIC and sold off to J.P. Morgan Chase in the largest failure in U.S. banking history, resulting from the bank’s extensive involvement aggressively originating mortgages in the sub-prime mortgage market, as well as buying sub-prime loans from outside mortgage lenders, and participating as a major player in the secondary securitized CMO, or collateralized mortgage obligation, market.

Joshua Rosner, a managing director of the New York-based independent research firm Graham Fisher & Co., an expert in mortgage financing, in an exclusive email exchange with, commented on Corker’s apparent hypocrisy investing heavily in hedge funds, including one known to have shorted Fannie and Freddie in 2008, while demonizing hedge funds for wanting to make a profit on their GSE stock.

“The hedge fund attacks are a sideshow to avoid scrutiny of Corker’s own proposals, which would turn over the U.S. housing market to Wells Fargo,” Rosner said.

“Corker has this amazing way of creating false villains to avoid the substance of real mortgage market reform,” Rosner continued.

“Making the argument all about ‘evil hedge funds’ captures the public attention and may sound right to those less knowledgeable about the importance of capital investment to the growth and development of the mortgage market in the United States,” he insisted.

“But the truth is that demonizing hedge funds is nothing more than a disingenuous and cynical claim by Corker – a legislator with a long history of too-close ties to too-big-to-fail (TBTF) institutions,” Rosner said in conclusion.

Tim Pagliara Ranked #2 Financial Advisor in Tennessee by Barron’s Magazine for 2017

CapWealth Advisors Founder, Chairman and CEO has been selected as one of the top two wealth managers in the state following five consecutive years as #1 in Tennessee. Pagliara has also been ranked a national Top 1,200 Advisor for the eighth time in nine years.

CapWealth Advisors Chairman and CEO Tim Pagliara

Middle Tennessee-based wealth manager Tim Pagliara, chairman and CEO of independent registered investment advisory firm CapWealth Advisors, has been named the second-highest-ranked financial advisor in the state of Tennessee by Barron’s magazine. Pagliara previously occupied the #1 spot in the state for five consecutive years (2012, 2013, 2014, 2015, 2016). Pagliara was also named this year among the nation’s “Top 1,200 Advisors,” the eighth time in nine years (2009, 2010, 2012, 2013, 2014, 2015, 2016). The rankings are published annually by the financial industry magazine and are based on data provided by over 4,000 of the nation’s most productive advisors. Factors include assets under management, revenue generated by the firm’s advisors, regulatory history, quality of practice and philanthropic work.

“Being named amongst the top advisors in the state is an honor for me and my entire team,” Pagliara said. “It affirms our simple but powerful business model: complete client focus. What flows from that focus is investment strategies about which we have great conviction but also which our clients can easily understand, state-of-the-art technology in accurately reporting our clients’ performance and, finally, in a word, trust. Our clients trust us to grow and preserve their families’ financial legacies. It’s an incredible privilege to serve our clients, and we are grateful to have an organization like Barron’s that recognizes firms for what they achieve for their clients.”

Pagliara started his firm in 2000 after nearly 20 years in the financial industry with the goal of serving clients better in two distinct ways: the exclusive use of market-traded securities and an emphasis on accountability and transparency. CapWealth Advisors practices Sophisticated Simplicity®, the art of thoroughly understanding a complicated global markets landscape and boiling it down to high-quality, straightforward investment ideas. To provide clients with a clear understanding of their returns and costs, the firm relies upon Provable Integrity™, a proprietary tracking and reporting system utilizing state-of-the-art data-aggregation technology and compliance with the rigorous standards of the Global Investment Performance Standards (GIPS). As a result, CapWealth Advisors specializes in preserving, growing and distributing assets over its clients’ lifetimes, backed by performance that can be proven to an auditable certainty.

Did Obama Rob Fannie, Freddie to Fund Obamacare?

The fact that the Obama Administration unilaterally changed the terms of the GSE conservatorship to sweep all their profits is irrefutable. It’s also clear that the administration did so just as the GSEs were becoming fantastically profitable again. This, too, is a matter of public record, thanks to ongoing litigation in more than one courtroom. What’s not always plain is what the administration did with those coffers swelling with ill-begotten riches.

The article below (click here to read the original publication) compellingly alleges that one of the ways the GSE profits–our profits, by rights–were used was by illegally funding Obama’s signature work as President, the Affordable Care Act. I encourage Fannie and Freddie shareholders, as well as anyone interested in citizens’ rights and the rule of law, to read it.

Obama Illegally Robbed Fannie, Freddie to Fund Obamacare

Obama diverted money from low-income housing to keep Obamacare alive

Jerome R. Corsi | – February 27, 2017

WASHINGTON, D.C. – Will this be the final nail in the coffin for the Affordable Care Act, commonly known as “Obamacare?”

Federal court litigation provides evidence the Obama administration illegally diverted taxpayer funds that had not been appropriated by Congress in an unconstitutional scheme to keep Obamacare from imploding.

In 2016, a U.S. District judge caught the Obama administration’s Health and Human Services Department acting unconstitutionally and therefore put an end to the illegal diversion of taxpayer funds, but the Obama administration didn’t stop there.

The Obama administration instead turned to the nation’s two government-sponsored mortgage giants – the Federal National Mortgage Association, commonly known as “Fannie Mae,” and the Federal Home Loan Mortgage Corporation, commonly known as “Freddie Mac” – to invent a new diversion of funds in a desperate attempt to keep Obamacare from collapsing.

A key date is May 12, 2016. That was the day when U.S. District Judge Rosemary Collyer, in the case U.S. House of Representatives v. Burwell, (130 F. Supp. 3d 53, U.S. District Court for the District of Columbia), ruled against Health and Human Services Secretary Sylvia Matthews Burwell.

Judge Collyer decided HHS Secretary Burwell had no constitutional authority to divert funds Congress appropriated to one section of the ACA to fund Obamacare subsidy payments to insurers under another section of the ACA, Section 1402 – the clause defining the insurer subsidies – when Congress specifically declined to appropriate any funds to Section 1402 for paying the insurance subsidy.

“Paying out Section 1402 reimbursements without an appropriation thus violates the Constitution,” Judge Collyer concluded. “Congress authorized reduced cost sharing but did not appropriate monies for it, in the Fiscal Year 2014 budget or since.”

“Congress is the only source for such an appropriation, and no public money can be spent without one.”

The U.S. District court in this ruling entered judgment in favor of the House of Representatives, barring HHS from using unappropriated money to pay insurers under Section 1402.

What was at issue in Section 1402 was the Obamacare provision that capped the amount of federal subsidies under Section 1402 that lower-income families could use to pay for insurance purchased on state insurance exchanges, particularly the difference between the capped maximum based on a person or family’s income in relation to the federal poverty level.

Congress had refused to pass an appropriation to fund Section 1402 – the section of the ACA that called for making the insurance subsidy payments.

In a report issued in March 2016, the Congressional Budget Office estimated the cost for providing Section 1402 subsidies over the next ten years (2016-2026) was estimated to be $130 billion.

Forbidden by Judge Collyer’s decision from diverting money Congress appropriated for other ACA provisions to pay Section 1402 subsidies, the Obama administration faced the prospect that the government could not pay subsidies to permit lower-income persons and families to buy the amount of health insurance Obamacare was written to provide them.

Either this, or insurers would be forced to charge middle and high income-persons and families such outrageous amounts for their insurance coverage (to subsidize the poor under ACA) that only the wealthiest could afford to buy health insurance.

In other words, Obamacare was dead in the water if the Obama administration could not find a way to circumvent the District Court’s decision U.S. House of Representatives v. Burwell to fund Section 1402 despite the fact Congress had refused to do so.

Determined to keep Obamacare alive, the Obama administration decided to find a way around Judge Collyer’s ruling.

The fix involved the Obama administration redefining the terms of the 2008 conservatorship agreements which advanced funds to Fannie Mae and Freddie Mac from a 10% dividend on moneys borrowed to the federal government’s confiscation of 100% of the future and imminent profits of these Government Sponsored Entities, or GSEs.

Miraculously, the Freddie and Fannie “pot of gold” turned out to be almost exactly the amount the Obama administration needed to meet the anticipated insurance company subsidies required to keep Section 1402 in business.

So, how did Fannie and Freddie get this pot of gold, given that only a few years earlier both GSEs were bankrupt?

In 2008, in the midst of the financial crisis caused in part by the collapse of the subprime mortgage market, the federal government decided to seize Fannie Mae and Freddie Mac, which at the time were two shareholder-owned companies.

In passing the Housing and Economic Recovery Act of 2008 (HERA), the U.S. Congress had fixed the regulatory issues at Fannie Mae and Freddie Mac, creating a mechanism for them to be placed into conservatorship at federal government’s discretion AND providing up to $187.5 billion in funds that could be advanced to the GSEs through a purchase of senior preferred stock paying a ten percent dividend.

In deciding to bail them out, the federal government took control of the two giant mortgage GSEs, with Fannie and Freddie effectively put into government “conservatorship.”

As part of the conservatorship, the federal government effectively acquired warrants, convertible at a nominal price, which allowed the federal government to acquire 79% of the GSE’s common stock.

This resulted in causing dilution in the percentage of Fannie and Freddie common stock ownership that was left in the hands of private and institutional investors.

Congress’ intent was that Fannie Mae and Freddie Mac would pay back the Treasury as the mortgage giants returned to profitability.

But after the Treasury was paid back, the terms of HERA anticipated Fannie Mae and Freddie Mac would pay appropriate dividends to stockholders, including the federal government, leaving enough funds within Freddie and Fannie to “conserve and preserve” the assets of the two GSEs, anticipating their eventual return to a “safe and solvent” operating condition.

In 2012, the Obama administration unilaterally decided to change the terms of HERA by sweeping all the profits of Fannie and Freddie into the Treasury’s general fund.

The Obama administration took this action, the so-called “Net Worth Sweep,” without any Congressional authority to do so.

The result was that the U.S. Treasury “found” a way to sweep 100% of Fannie and Freddie profits into the Treasury’s “general fund,” leaving the giant mortgage GSEs vulnerable to the need for another government bailout should another disruption occur in the nation’s economy.

Because of this decision, the Obama administration on its own authority simply decided to discontinue paying dividends to private and institutional owners of Fannie and Freddie common and preferred stock.

Congress, in passing HERA, never anticipated the Obama administration would take over Fannie and Freddie and strip the agencies of all profits – a move that left private and institutional shareholders in the cold.

Leading up to the decision to sweep Fannie and Freddie’s profits, the GSEs return to imminent profitability was known only by a few government officials and their consultants.

Their own internal forecasts, uncovered in unsealed court documents, showed that Fannie and Freddie’s profitability would soon dramatically outperform the amount of the allowable 10% dividend that the Treasury would receive under the existing Senior Preferred Stock Purchase Agreements.

On August 17, 2012, these same officials and consultants succeeded in engineering with the Federal Housing Financial Agency, FHFA, and the Department of Treasury an amendment to the Senior Preferred Stock Purchase Agreements that allowed the U.S. Treasury to grab ALL Fannie and Freddie profits – regardless how large Fannie and Freddie’s earnings might be.

Between 2012, when the Obama administration began its policy of confiscating all Fannie and Freddie profits and now, Fannie and Freddie have paid the U.S. Treasury general fund more than $240 billion in dividends.

The point is that after May 12, 2016, when U.S. District Judge Rosemary Collyer ruled that HHS had to stop diverting ACA funds to pay Obamacare subsidies, the Obama administration realized that HHS somehow had to fund the estimated $130 billion the HHS would need in un‐appropriated monies to pay health insurers the ACA subsidies required to keep Obamacare alive in Fiscal Year 2013.

Plaintiffs litigating against the Obama administration’s confiscation of Freddie and Fannie earnings have challenged in court whether the Obama administration’s decision to amend the Preferred Stock Purchase Agreement in August 2012 and sweep GSE profits of $130 billion in 2013 ($82.4 billion from Fannie Mae, and $47.6 billion from Freddie Mac) was an attempt to circumvent Congress on the single most important policy priority of the White House.

The timing was particularly interesting given that September 2012 marked the beginning of the sequestration discussions.

Government documents leave little doubt profits from Fannie and Freddie confiscated by the U.S. Treasury have been used by the Obama administration to pay Obamacare subsidies and other items not appropriated by Congress, in complete and illegal circumvention of the District Court’s ruling and the Constitution’s determination that only the Congress shall have the power to tax and spend.

For instance, Chapter 3 of the Congressional Budget Office publication “The Budget and Economic Outlook: 2015 to 2025” notes on page 63 that the major contributors to mandatory U.S. government spending include “… outlays for Medicaid, subsidies for health insurance purchases through exchanges, and the government’s transactions with Fannie Mae and Freddie Mac.”

Why Fannie and Freddie are specified in this context, when Fannie and Freddie have had sufficient earnings to operate without government subsidies since 2008 is made clear a few pages later.

On page 65, in Table 3-2, the CBO report notes “mandatory outlays projected in CBO’s baseline” from Fannie Mae and Freddie Mac for 2014 is -$74 billion and for 2015 a total of -$26 billion.

The figures are “negative dollar amounts” because instead of paying out to Freddie and Fannie, the U.S. Treasury is collecting from Freddie and Fannie, with the proceeds going into the U.S. Treasury general fund to pay “mandatory outlays,” including evidently continued subsidies to insurers, as specified by ACA Section 1402.

In footnote 14 on page 8 of that CBO report lets the cat out of the bag, noting the Obama administration considers payments from Freddie and Fannie “to be outside of the federal government for budgetary purposes,” recording cash payments from Freddie and Fannie to the Treasury as “federal receipts.”

The Obama administration evidently considered this all-too-convenient redefinition of terms allowed the government to argue the use of Fannie and Freddie profits to pay Obamacare Section 1402 subsidies was not in violation of the District Court ruling.

Why? Evidently because Fannie and Freddie profits were not taxpayer-generated, but were profit payments generated by Government Sponsored Entities that still had some common and preferred stock private and institutional shareholder ownership.

In the same footnote, the CBO takes exception with the Obama administration, commenting the CBO considers profit payments to the Treasury made by Fannie and Freddie to be “intragovernmental” receipts going into the same Treasury general fund pot, to be mixed indistinguishably with taxpayer revenue, not distinct public/private GSE “receipts” separately accounted for in the Treasury general fund as distinguishable from taxpayer revenue.

If the federal courts conclude Fannie and Freddie GSE “receipts” to Treasury still need Congressional appropriation to be spent legitimately by the executive branch of government, the Obama administration will have been exposed as having operated outside the Constitution in its desperate attempt to keep the ACA from imploding.

What should be outrageous to progressives understanding the Obama administration subterfuge to keep the ACA alive is that by confiscating Fannie/Freddie profits to keep Obamacare alive, Obama ignored core members of the Democratic Party’s core constituency – affordable housing advocates and minority groups – with little explanation.