Fannie Mae-No Politics (FNMA)

[955]

Warrants were issued the day AFTER placement into conservatorship. Treasury never obtained companies' consent for Stock Purchase Agreement. WARRANTS ARE ILLEGAL!

I believe the GSE boards agreed to the warrants BEFORE the were placed into conservatorship.

From the Ackman complaint:

41. The day after the Director of FHFA appointed FHFA as conservator of the companies, Treasury exercised it's emergency authority to purchase securities of the Companies.

https://timhoward717.files.wordpress.com/2014/08/81414-ackman-complaint-2.pdf p.13



From the Berman lawsuit:

155. The Treasury claimed that its authority to enter into the Stock Agreements derived from Section 304(g) of Fannie Mae’s charter and Section 306(l) of Freddie Mac’s charter, substantially identical provisions added when Congress enacted HERA. However, HERA did not provide the Treasury with unilateral authority to enter into the Stock Agreements. The amended charters allowed the Treasury to purchase any obligations and other securities issued by the Companies “on such terms and conditions as the Secretary may determine and in such amounts as the Secretary may determine” if the Treasury determined doing so was necessary (i) to provide stability to the financial markets; (ii) to prevent disruptions in the availability of mortgage finance; and (iii) to protect the taxpayers. And, in order to do so, the Treasury had to obtain the consent of the Companies. As set in paragraphs 81-90 and 137-40, supra, the Treasury never obtained the Companies’ consent; instead, the conservatorships and the Stock Agreements were improperly forced upon them.

http://www.restorefanniemae.us/berman

Were not the warrants part of the "original" agreement with the 10% div payment? I believe they were, but I could be mistaken. That would make them valid still...the judge may rule those are invalid, but currently they are still valid I believe. I believe the GSE boards agreed to the warrants BEFORE the were placed into conservatorship. I have attached a link...read pages 12 - 14....possibly the fed has overstepped their "LEGAL" authority and quite possibly invalidated their rights to the warrants...

https://timhoward717.files.wordpress.com/2014/08/81414-ackman-complaint-2.pdf