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Thursday, May 14, 2020 1:46:30 AM
It's about ethics and relationship of trust with the shareholders and the enterprises.
Then, the dividend was IMPECCABLY SUSPENDED under the conservator's fiduciary duty, in order to build up capital in FnF.
Solvency is about capital levels and not only the ability to pay their financial obligations. Your take reminds me a judge that claimed that the solvency is achieved with the Treasury's funding commitment.
When I said that judge Sweeney said something, it's an actual quote that you can read here.
the way it was configured by Treasury is that it’s an impossible task for the conservatorships ever to become solvent because all their profits are being taken away.
I have to repeat what I said. She understands that solvency is about Capital levels because retaining earnings is building up Capital.
Also, Calabria said that Capital is the key for the soundness of the enterprises.
I add that soundness is also achieved by reducing their obligations SPS.
There you are, the conservator's Power set forth in HERA: "Put FnF in a sound and solvent condition". Solvency and soundness achieved retaining earnings and reducing the obligations SPS. What FnF have been doing under The Secret Plan.
ALL ROADS LEAD TO ROME.
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