Fannie Mae-No Politics (FNMA)

[kthomp19]

The company has the flexibility, in line with the financial advisors hired, to determine how best to raise capital.

No. It is exactly this point that I have proven false with both Calabria's words ("I'm going to have to approve how they do it.") and a section of HERA ("Require the regulated entity to acquire new capital in a form and amount determined by the Director.").

FnF, the companies, will conduct the actual capital raises. Calabria, as FHFA director, will determine the form and the amount of said capital raises. He has the power to deny approval to any plan FnF produce.

Calabria, understanding the more important, broader business administrative picture will allow FnF to raise capital.

Raise capital, yes. This doesn't mean he will allow FnF to decide the form of the capital raise. Calabria, by law, has veto power (the power to deny approval) here.

It is important to see the larger administrative forest beyond the narrow shareholder litigation tree.

What I have shown has nothing to do with shareholder litigation, so you bringing it up is not apropos.