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"That is now hardwired & a new #FHFA director will always be political."
Now why do we need FHFA that is even far worse then its predecessor
OFHEO.
I too bought both!
"The Supreme needs to start doing their jobs and then congress
would stop writing ridiculous laws. Putting bandaids on these
bad laws obviously doesn’t work.
Putting a bandaid on HERA won’t work either."
100% true. SCOTUS needs to clearly tell the Congress and Bureaucrats that mis-using legislative and bureaucratic authorities to violate the constitutional rights of the people is unacceptable.
If Congress passes vaguely written laws to make it easy for bureaucrats to abuse the laws then Courts should always interpret the laws so as to favor the common people. Bureaucrats should get authorities only through clearly written laws and not through vaguely written laws.
"So we are stuck with conservatorships that are going to conserve us to death. Now that I think of it, that was probably one of many contingencies to make the scandal work."
Yes, This is how it works for common people with means to fight the tyranny of Gov Bureaucracy.
Hope SCOTUS will make sure that Gov Bureaucracy will not commit such brazen robbery of private property.
"Yes, it was a crime, a white collar crime of enormous proportions, of great severity, causing investment damage to many mom and pop investors who need assistance to protect their interests."
Yes, If any private citizens were ever to commit the same frauds as FHFA conservator, then Gov would have prosecuted them.
All along FHFA conservator has been claiming that FHFA conservator is a private actor and not a Gov actor. Will any Gov in the world ever allow private conservators to rob and swindle the conservatees for the benefit of themselves?
Does any one know, why FnF shareholders have not filed criminal complaint against FHFA conservator (private actor) for robbing and swindling FnF for its own benefit?
" DeMarco said. “So I think it's a story of how Fannie, Freddie, and FHFA, and Treasury, and the Fed, basically together provided that kind of support to the market. … Effectively what we’ve got is a government-directed duopoly.”"
This punk dares to call FnF duopoly but one should ask this fellow what should FHFA Conservator should be called.
If FnF conservator were to be a private citizen, all Gov agencies would be falling over each other to not only prosecute the FnF conservator but all those who benefitted from conservatorship plunder.
Demarco wants to continue with his propaganda of lies even after, all know what happened behind closed doors.
"HERA says "may be in the best interests of the FHFA" in an incidental powers section just seems bizarre to me!"
The judges who supported FHFA on this, made mockery of rule of law. It is shame that such judges are still deciding cases for common people.
"Arguing that the law they wrote, which included their verbage about no judicial review, is laughable to them, I bet. Congress trying to insulate their laws and plans from the other two branches of our goverment is a treasonus subversion and bastardization of the basic constitution."
All these things are full of conflict of interests.
Is it not the judiciary/scotus that has allowed politicians to subvert constitution and rule of law?
If politicians were to know for sure that the judiciary will not allow such laws to stand then they wont be passing such laws.
Look at how most lower courts have ruled so far on HERA provisions that subvert constitution and rule of law. These lower courts/judges have spent all their time to guess the intentions of politicians rather than that of constitution. These judges themselves do not understand the laws passed by these politicians.
Should not these judges be interpreting the laws based on constitution and regular meaning of language rather than try to guess the intentions of politicians?
Why would scotus need more than 6 months to rule on the questions of law? Should common people be held responsible for not understanding most of these laws?
Let us hope that SCOTUS understands the sufferings of the FnF shareholders and resolves the petition in favor of the shareholders.
Golfbum22 ,
Thank you sir. If SCOTUS rules along these lines, FnF will be out of FHFA Deceivership/Conship in no time. All things will fall in rightful place automatically. We do not have to worry about all convoluted reliefs.
"All criminal laws should be applicable to FHFA conservator, if FHFA conservator claims that it is acting like a private actor."
Think of a private conservator who makes similar decisions as FHFA conservator and what Gov will do with such a private conservator.
"Injunctive relief is simple for PSPA and FHFA-Conservator. A stroke of a pen and an accounting entry. Gov made money and that is simple."
Simpler relief will be a SCOTUS ruling that FHFA conservator is a traditional conservator with no special privileges and no special authorities.
All the Gov laws including APA apply to FHFA regulator and FHFA conservator when it acts like a Gov actor.
All criminal laws should be applicable to FHFA conservator, if FHFA conservator claims that it is acting like a private actor.
May be SCOTUS should rule that FHFA can not act as a conservator because it conflicts with its role as Regulator.
May be SCOTUS should cancel out HERA completely as it is full of garbage and can not be fixed.
navycmdr,
excellent job.
"Taking the gses back to private hands in two months is the tallest of tall orders."
Ending conservatorship of well run and profitable companies is million times easier than imposing conservatorship. If Trump administration were to do it 4 years back, it would have been great achievement.
Once again crooks are coming up with lame propaganda excuses to perpetuate lawlessness. For these crooks doing lawless things is much easier and doing lawful things is very hard. That is why these are called crooks.
"In other words you are saying SCOTUS judges are useless. Then why have them at all since they will corrupt the system we live in and are hypocritical in nature. Defund the Supreme Court will be my call if they rule like bureaucrats and corrupt politicians."
Most of the unaccountable Judiciary seem to be less worried about rule of law and more worried about the well being and preservation of the vested Gov establishment and bureaucracy.
To begin with SCOTUS ignores most of the petitions and when things start falling apart, Justices worry about what happens if they rule against well entrenched vested Gov establishment and bureaucracy.
Look at what has been happening for more than 12 years with FnF privately funded private companies. Gov has been not only using the private companies for public policy purpose for free but Gov conservator is brazenly robbing them in daylight and claims it is all legal. The irony is MC wrote eloquently about how it is unlawful. But after becoming FHFA Director, MC has continued to perpetuate the same lawlessness and fight against plaintiffs.
"Because there is NO rule of law in the US"
Yes. Some SCOTUS justices were mostly worrying about the impact of their decisions rather than injustice, rule of law and constitutional rights of common people.
Some SCOTUS Justices were more interested in preserving the corrupt establishment rather than uphold rule of law and constitution.
Will congress ever review such thinking of SCOTUS justices and make them accountable?
"if they drag their feet and never come out with a solid ruling you know their are corrupt and looking to continue the steal anyway they can get away with it. If they truly are neutral and rule based on the constitution they will surprise most and vote on our side for a change. ?
Most of the judges and justices are just like politicians and bureaucrats that appoint them.
Politicians and bureaucrats plan, ignore and violate laws and try to make it difficult for all to reverse the unlawful decisions.
During hearing some of the SCOTUS justices (may be Dem appointees) are mostly worried about the impact of their ruling on many executive decisions taken over many years, But they conveniently ignore the fact that it takes almost a decade for law suits to reach SCOTUS.
Can these justices explain to common man why SCOTUS justices are worried about impact rather than legality of laws?
"Why should the guy holding the tools be advising the master safe cracker?"
It is time for Trump, SM and MC to show what they cares about - the country, rule of law and their supporters.
Dems are totally on the wrong side of everything when it comes FnF. It is disgraceful that Dems are advising administration to ignore and violate rule of law.
SCOTUS hearing clearly showed what Justices think - "Conservators do not nationalize the companies". Administration and FHFA should reverse all the decisions that de facto nationalized the companies. Reverse NWS and free the companies from unlawful conservatorship .
"Mnoochie would LOVE nothing better than to STICK IT to Mad Maxine as he exits the TREASURY ..."
Not sure about what Trump, SM and MC are waiting on.
Is it not about fulfilling their campaign promises to public and their supporters about rule of law?
If they release FnF and list on stock exchanges what worst can happen? The administration followed rule of law and corrected the injustices of previous administrations. What can be better than this?
BTW it is the right thing to do for any rule of law administration.
"Mnuchin Urged by Democrats to Stand Down on Fannie and Freddie
"
When did Minority Dems started advising GOP administration on how to run executive branch and also independent agencies.
Should the outgoing administration care about what these politicians want ignoring rule of law?
"I was referring - based on articles posted here to Alito saying in essence
wow - we can not go retro big time - as the SSA may be in same boat and then we have 25,000,000 or more decisions that can be open to cases and questions and reversal"
Once again this is the most stupid and insensitive opinion that too coming from a Justice of SCOTUS.
If SSA has been doing unlawful things for so long and so many times, then what the Gov and SCOTUS is doing for so long? If SSA has caused injustices in 25m cases then those cases need to reversed.
This is how politicians perpetuate injustice on people and now the Justices are using the political ploy.
"I’m beginning to think that the fourth amendment will declare that the net worth sweep is over but stop there. No mention of the senior preferred shares. Mnuchin will leave it up to the Supreme Court to decide. In 4-6 months when they rule the Supremes will say that indeed the seniors are deemed fully repaid. Then Yellen and Calabria have the political cover to finally retire the seniors. They issue the consent decree at this time. I think this is similar to what Fully Dilated from Germany said last night. Thoughts ?
"
The best guess is, SCOTUS and UST/FHFA will do what is the safest and best option. Cancel all amendments and stick to original SPSPA and buy back the warrants at reasonable price. Then release FnF and close the case.
Donotunderstand
You can read this on page 72:
https://www.supremecourt.gov/oral_arguments/argument_transcripts/2020/19-422_o7jp.pdf
"
so ALITO - the one concerned with bold pro equity decisions - is good ?
I am lost"
I am yet to review all the questions/answers. I will post my comments after listening to all question and answers.
"seems everyone else is saying Breyer was the one say bluntly this was an illegal taking
I am confused
"
May be Justice Breyer was right or good in his other questions or opinions.
But Justice Breyer is giving opportunities to others to play mischief with this kind of wrong comparison, especially when this comes from no other than a Justice of SCOTUS.
"Justice Alito emerges as a surprising voice of reason in a $124 billion housing case
The Court’s most loyal Republican appears to recognize that throwing the economy into chaos would be bad."
The whole world including the SCOTUS justices know how Hank and the Obama administration ignored and violated all the laws to rob the private shareholder companies and also tried to destroy private shareholders companies for the benefit of their crony friends.
Hank and Obama administration tried every thing unlawful possible to make the destruction of FnF irreversible. Knowing this Justices should not worry a bit about how big or impact-full the reversal would be. In fact Justice should make sure that crooks will not use this as reason to do unlawful things in future.
During SCOTUS hearing JUSTICE BREYER comes out as crazy uncle of his equally crazy cousin Joe with his outrageous hypothetical case question trying to compare apples with oranges.
As a Justice of SCOTUS, JUSTICE BREYER should have known that Gov or congress or UST or FHFA or FHFA conservator are not legal owners of FnF. How can non-owners assign any rights of owners to any one?
HERA/Gov temporarily assigned the rights over FnF to FHFA conservator to manage FnF as a guardian and not as a owner of FnF. But Justice Breyer tries this to compare with a case where a lawful owner assigns the rights to his cousin.
This type of questioning happens in Congressional hearings where politicians try to push their personal and political agenda.
JUSTICE BREYER should apologize to FnF shareholders for impinging on their ownership rights.
"It’s been 11 painful years for me, as an investment. If people call that greedy, I call them stupid."
People who call honest investors as greedy are crooks.
"I am not sure if this is true.
https://www.thegatewaypundit.com/2008/09/bush-called-for-reform-of-fannie-mae/
"
It does not matter who called for reforms and how many times. It is the same crooks that keep on asking FnF to keep on lending more and provide unlimited liquidity to market.
At no point in time FnF caused crisis. It is the mortgage frauds that caused financial crisis and FnF were never part of it.
"Speedy Reform of Fannie and Freddie Is Hardly Easy"
These crooks do not ever mention that FnF never needed conservatorship or any big reform to start with.
FnF were well capitalized and never in danger of defaulting on their obligations.
You are trying to make small time analyst a big time market mover.
"Calabria: I do think FHFA and US Treasury Broke the LAW.
I'd like to see Hank Paulson and Ed Demarco in front of a Judge."
Even after 1.5 years calabria has done nothing to rectify the lawless conduct of past FHFA and Tsy officials.
good analysis.
"Who is paying for 730 fhfa staff? And how much? What are the jobs? All I know is fnf have their own employees for their day to day. So they only need calibra for very difficult decisions like cap rule... just confused indvl here. Thanks"
LOL, It is not just you confused. All are confused about FHFA. Hank should have located FHFA in Beijing to promote US-China relationship.
"It is possible HERA is gutted and unwound, meaning the conservatorship is terminated. SCOTUS can rule sua sponte the whole conservatorship was inappropriately implemented. There is plenty of references within the briefs/amicus related to the questionable accounting enabling conservatorship.
Sua sponte allows for SCOTUS to issue opinions beyond anything the plaintiff is asking for, and we know Gorsuch and Thomas want a chance at gutting an agency like the FHFA.
Can not rule out this possibility."
You are 100% correct. SCOTUS can at most make one or two edits as a courtesy to Congress. But SCOTUS can not edit the whole HERA to make it constitutional. Besides abolishing HERA and FHFA, and reverting to OFHEO under HUD is much better option for all.
Nobody will ever notice absence of HERA and FHFA the moment they are gone. FHFA staff will become OFHEO staff.
"The Paulson Institute is a non-partisan, independent "think and do tank" dedicated to fostering a US-China relationship that serves to maintain global order in a rapidly evolving world."
mrfence,
You rightly guessed China Comrade Hank who modeled FHFA after Chinese Gov agencies. Fortunately pompous Hank wrote some account of his misdemeanors to absolve himself of the all wrong doing. This has helped all to understand how China comrades abused Gov authority to destroy rival competitors.
Just think of China Comrade JB and what can happen. BTW it is Barry and JB who perpetuated conservatorship with NWS and started administration policy of wind downing FnF. JB is heavily indebted to so many comrades for supporting him. JB will be simply a figurehead and these comrades will run the show.
"I doubt that is the power of Lamberth
And I have no idea why Congress - under GW - wrote and put in place this law"
District Courts do not need additional power to rule on constitutional matters when there are clear upper court rulings.
It was not GW. It was China comrades.
"such a high priority but nothing done impotence ?
or maybe they say one thing and mean another ?
question
for an Administration that has taken down 100+ Barrack Obama initiatives - how is it that F and F are not free ? (if indeed DJT really so wanted?)"
We are plain shareholders. We can only tell you the known facts.
May be you know more than us.
"They want a "FAIR" price..."
Yes. They should get "fair" price and not a mafia price.
Also FnF should be paid for using them and using private capital for public purpose. FnF should also be paid for all the bureaucratic harm and damages.
FnF detractors need to understand that SM and MC are public servants bound by the laws, not dictators or loan sharks. MC has said that he has to follow the laws even when he does not agree with them. We have yet to hear the same from SM.
FnF are one of the most successful GOV policy instruments and it makes no sense to harm them in order to harm the shareholders. BTW does anyone know the crimes of the FnF sharehodlers? FnF Sharholders invested in Gov managed Gov controlled and Gov regulated companies to earn steady returns. FnF shareholders never controlled or managed the companies.
On the other hand, FnF detractors used insider information to short sell the FnF share and made big money.
If SM and MC do not follow the laws, then they do not have to wait too long. SCOTUS will tell them to follow the laws.
"Collins asks, does the structure “Independent” violate the separation of powers because it is headed by a single director, the constitution does not allow such a novo structure, and in Seila confirmed this view
"
HERA challenges every aspect of constitution and the Governance based on principles of democracy. Probably China Comrades modeled HERA/FHFA based on Chinese Gov agencies.
Judge Lamberth should have voided HERA as unconstitutional or interpreted HERA so as to conform to Constitutional principles. By kicking the can down the road, Judge Lamberth only prolonged the pain for all law abiding people and made it easy for lawless crooks to continue with their lawless means and ends.
SCOTUS should expeditiously abolish HERA/FHFA and provide relief to all affected stakeholders.