Fannie Mae (FNMA)

[kthomp19]

1. Where did all the money from winning lawsuits against banks go?

That money went directly to Fannie and Freddie. They declared it as income on their 10-Q and 10-K filings. The money was then swept to Treasury via the NWS.

2. What is the surplus dividend money being used for?

Mnuchin answered this in that interview with Maria Bartiromo. Some of it is being used to fund Obamacare. The rest is just used for general government purposes, commingled with all other funds. And no, it's not going into some secret escrow account.

3. Who’s making the decision to keep the NWS intact? Gov has been playing the shell game with responsibility for it, Watt, Tres, Congress, POTUS... all point to each other. Who’s in charge exactly?

It would take an agreement between Treasury and FHFA to unwind, undo, or replace the NWS. No Congressional action needed.

The lion's share of the responsibility lies with Mnuchin. If he wanted the NWS stopped he could have pushed for it, and accomplished it rather easily. FHFA has always danced to Treasury's tune.

4. Why have judges sided with an obviously illegal taking by gov.?

Mainly section 4617(f) of HERA, which bars judicial review of any act FHFA makes as a conservator. The courts have seen that as preventing them from issuing an injunction against the NWS.

5. How was gov allowed to purchase shares of a company in the first place? Gov is not allowed to enter the private market for obvious reasons. How was this even possible?

For the specific case of FnF, look at HERA. Specifically, section 1117(a)(g)(1)(A).

GENERAL AUTHORITY- In addition to the authority under subsection (c) of this section, the Secretary of the Treasury is authorized to purchase any obligations and other securities issued by the corporation under any section of this Act, on such terms and conditions as the Secretary may determine and in such amounts as the Secretary may determine.

Simply put, HERA made it legal for Treasury to buy its senior preferred shares and warrants for FnF. So if you're going to argue against this, you're arguing against the rule of law.