Fannie Mae-No Politics (FNMA)

[YanksGhost]

The argument over warrants being collateral or not is unnecessary if you apply the precedent established in the AIG case Starr v. United States. This case clearly established the constitutional fact the the Federal Reserve Act which chartered the Fed contained no authority to acquire equity ownership of any TARP recipient. This precedent applied to the SPSPA would net the same result as Starr... that any such maneuver would be an EXACTION, as in Starr, because no such authority is granted FHFA under HERA as co-signator of the Agreement.

https://harvardlawreview.org/2016/01/starr-international-co-v-united-states/

Interesting to note that the failure to assess exaction damages would not necessarily apply under the Starr precedent because AIG was a financial red blanket in 2008 while the GSEs were not in any imminent insolvency. The only part of the GSEs chartered responsibilities that could have been in jeopardy was the possibility they might not be able to acquire highly risky bank mortgages so as to preserve payment to MBS bondholders (which never happened nor was ever remotely likely).