Fannie Mae-No Politics (FNMA)

[kthomp19]

FNMA and FMCC dont need HERA in place to be governed properly since everything regarding safety and soundness could be built into Consent Decrees and the FHFA could rely on the BOD's to enforce the safety and soundness mandates until Congress acts to remedy HERA. The OFHEO framework will do for all the other FHFA duties until Congress remedies HERA.

The OHFEO part, sure. The consent decree part, no. Consent decrees are not meant to be permanent, and there is no guarantee that Congress would ever pass a successor bill to HERA at all.

OHFEO also would not rely on the boards for safety and soundness because that is OHFEO's job, as regulator, instead.

The fact pattern here represents an egregious overreach and demands a punitive action against the UST. Seila did not demand a strong punitive remedy. Dont know enough about Free Enterprise but perhaps this is where I am wrong.

What does Treasury have to do with HERA? If it is truly Treasury that is at fault here, there is no need to change any part of HERA at all, not even the removal clause.

The main reason I bring up Free Enterprise Fund so often is that a conservative majority took a principled approach to change as little as possible. I can't understand why anyone would expect an even bigger conservative majority to do more. 3 of the 5 in the Free Enterprise majority are still in the Court (Roberts, Thomas, Alito), and they would only need two of Gorsuch, Kavanuagh, and Barrett to

Nothing Blanket about you being wrong about the application of Corporate law. We have been disagreeing on these points for months.

I looked back at your posts for the last few months and didn't see anything about corporate law, except one post where I said that HERA (a federal law) supercedes Delaware state law. What specifically do you think I am wrong about, and why?

Calabria has given every indication he wants the BODs to take responsibility for the GSE s ASAP and the Consent Decrees is the perfect opportunity.

He wants the companies to come up with capital restoration plans because that will be required by law, and then he will have the power to approve or deny those plans, also by law. He has also said that the companies themselves will be doing the capital raises, which makes perfect sense because FHFA doesn't have any shares to sell.

What Calabria has not said is that the boards will be able to do whatever they want to raise capital. Calabria has set the amounts, will set the timeline (phase-in of the capital rule requirements), and included CET1 and Tier 1 capital standards that have strict definitions as to what can count. The boards actually have very little wiggle room when it comes to the capital raise.