Fannie Mae-No Politics (FNMA)

[YanksGhost]

<<UST has no regulatory authority over FnF. UST is using SPSPA to indirectly control FnF>>

Spot on. You understand history and the law applicable to the GSEs imprisonment.

The SPSPA is almost identical to the bailout structure extended to AIG by the Federal Reserve in September, 2008. The agreements became a non-statutory contract cudgel under tort law provisions that continues to stymie denationalization of FnF. AIG was finally released from their ward of state handcuffs in 2017 when FSOC delisted them under SIFI designation under Dodd-Frank.

It was widely believed that the Fed deal with AIG was a targeted action to wind down AIG and sell off its shares via structured Maiden Lane equity offers. It is less widely but passioinately believed by some Fannie followers that this same wind down goal was the impetus behind the SPSPA. So, how did AIG get out of jail while FnF remain on investor death row?

The answer to that question continues to keep me up at night. But my strongest inclination is to focus on the barrier put in place by Tim Geithner with the Net Worth Sweep. This is why I continue to maintain hope that the courts will call "bullshit" on the government's tiresome defense of this non-SPSPA element, reverse its impact and award damages to the enterprises, if not directly to shareholders.