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Sunday, 02/05/2017 9:51:24 AM

Sunday, February 05, 2017 9:51:24 AM

Post# of 45223
Jaren writes about GSEs and how Sec of Treasury can end the illegal taking of shareholders money. Spread the word to Republicans in office, they are the ones who follow the constitution and represent the people when the job requires it, not just stay home and get paid to sulk.

If all this political change is upsetting to you, I advise you not to worry about politicians. There's nothing you can do about it, so better to not let it get to you. My engagement in this has a different purpose than dealing with politicians. There are a lot of people trying to influence the future composition of FnF and they are all trying to shape the future based on what FnF can do for them. I'm no different. Some may want to slice up FnF and sell off different parts to provide recapitalization money, I'm against that move because it weakens FnF and it strips away value that belongs to the shareholders. I think FnF are better for me and better for America if they remain in their current form. To this end, I'm trying to shine the light on options which would allow that to happen.

I was reading the SPSPA and found 2 paragraphs (6.7 and 6.11) which provide a quick way to completely unwind the conservatorship. The paragraphs say that if any part of the SPSPA is illegal, then the Treasury Secretary can write a notice to the FHFA Director ending the conservatorship and unwinding the entire conservatorship back to the point before the SPSPA was signed. All money sent to Treasury will be returned to FnF. Treasury returns the Senior Preferred Stock, and FnF returns the money Treasury fronted to them. FnF gets to keep all money over and above that money. All settlements by the TBTF banks that Treasury took gets sent to FnF because they were the bodies damaged by the toxic mortgages. Between the excess money sent to Treasury and the settlements, FnF are nearly completely recapitalized. Further recapitalization can occur over a 5 to 10 year period. At that point, their Government Charters can be swapped into private charters and they are free to proceed with business.

I am trying to make this option known to people who need to know it, and I have found applicable breaches of HERA which can be used to nullify the SPSPA and reverse the conservatorship

It my mind, this is the best possible long term solution for FnF as well as the shareholders. It doesn't appeal to those who want to carve up FnF.

Hang in there, we're close.



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