Fannie Mae-No Politics (FNMA)

[kthomp19]

receivership is only a phenomenon when company does not generate any revenue

No. This is completely wrong, and I cannot for the life of me understand why people think it. It has been proven wrong over and over again.

Go read HERA section 1367, titled "‘SEC. 1367. AUTHORITY OVER CRITICALLY UNDERCAPITALIZED REGULATED ENTITIES."

Especially read section "(3) GROUNDS FOR DISCRETIONARY APPOINTMENT OF CONSERVATOR OR RECEIVER- The grounds for appointing conservator or receiver for any regulated entity under paragraph (2) are as follows:", which tells you the conditions in which FHFA can appoint itself receiver, and section "(4) MANDATORY RECEIVERSHIP-", which tells you the conditions in which FHFA must appoint itself receiver.

Profitability does not show up anywhere in those sections. Read through them yourself, it's the law that governs FHFA and thus FnF!

Let me repeat in loud and clear terms: PROFITABILITY HAS NOTHING TO DO WITH RECEIVERSHIP.