Fannie Mae-No Politics (FNMA)

[obiterdictum]

No... Hera prohibits Treasury from buying new securities after a stated date. Except for the Warrants which a cashless exercise is allowed.

What new securities are to be purchased? That is not an issue.

Yes. New purchases cannot be made after December 31, 2009. See Section 1117(a)(g)(1) and (4).

However, the warrants obtained on September 7, 2008 can be exercised on a cash or on a cashless basis via Section 1117(a)(g)(2)(C).

Section 1117(a)(g)(2)(C) APPLICATION OF SUNSET TO PURCHASED OBLIGATIONS OR SECURITIES.—The authority of the Secretary of the Treasury to hold, exercise any rights received in connection with, or sell, any obligations or securities purchased is not subject to the provisions of paragraph (4).

Section 1117(a)(g)(4) TERMINATION OF AUTHORITY.—The authority under this subsection (g), with the exception of paragraphs (2) and (3) of this subsection, shall expire December 31, 2009

Source:
HERA 2008
http://www.gpo.gov/fdsys/pkg/BILLS-110hr3221enr/pdf/BILLS-110hr3221enr.pdf