Fannie Mae-No Politics (FNMA)

[kthomp19]

It looks like fhfa defines core capital the way UST tells it. There is no law.

Wrong! The definition of core capital IS the law!

FHFA defines core capital the way the law does, because HERA is the law.

In addition fhfa can altogether ignore capital requirements as in 10 years of conservatorship.

They have done so, yes. I still don't think this is legal (though nobody has challenged it in court, and it's moot now).

Still, the capital requirements will be in force outside of conservatorship. If FnF are released before they are fully capitalized, Calabria will be forced, by law, to declare them undercapitalized and start applying parts of HERA that none of us (including Calabria himself) really want to see.

All the talk about "rule of law" must respect the entirety of HERA. HERA is law. There is no arguing this.