Fannie Mae (FNMA)

[guchu]

http://www.ca5.uscourts.gov/OralArgRecordings/17/17-20364_1-23-2019.mp3

minutes 01:07

the central question for this Court is, whether hera authorizes the conservator to ciphen all of the company's net worth to Treasury, and thereby permanently placed them in an inherently unsound condition. it does not. the text of Harra, section 446 17 B2 D instructs the conservator to seek to put the companies in a sound and solvent manner. and soundness means capital for purposes of financial regulation. the net worth sweep is antithetical to FHFA core conservatorship mission, because it guarantees that the companies will never be sound because they cannot build and retain capital.