RUMOR HAS IT THAT THE DEC9th ORAL ARGUMENTS AT SCOTUS WILL BE SUSPENDED.
Fact: FnF are not building up a Capital Reserve as contemplated first in the 4th amendment to the PA in Dec 2017, and later, in the 5th amendment in Sept 2019.
Their Capital Reserve is $0 since the end of 2017. This is because every time that FnF post a Comprehensive Income (Retained Earnings), the SPS are increased in the same amount, and that reduces the Retained Earnings account as an offset.
The 5th Circuit Court ruled that the FHFA exceeded its powers transferring all the Net Worth to the Treasury and we now know that this transfer of Net Worth continued in the form of payment-in-kind (SPS)
Thus, the Solicitor General can't claim the official version contending that FnF are building a Capital Reserve of $35 billion, when the Capital Reserve is $0 and the $35 billion of Net Worth is solely SPS.
The Solicitor General can't lie before the 9 Supreme Court Justices and, more importantly, there's a breach of the ruling in the case that is being reviewed by the Justices.
The Appellants' attorney, D.Thompson, can't lie either. He has omitted numerous statutory provisions. For instance, the Charter's "special borrowing rights from UST" (a low cost UST backstop) that the other participant in the Oral Arguments, the Scotus-appointed FHFA-amicus, Professor Nielson, outlines in his Amicus-brief.
Now, it's the turn of Professor Nielson. He also can't lie before the Scotus Justices when he omitted in his brief, that the FHFA, as regulator, has a "coercive power" that gives it Limitless Power outlined in its duty "(v) make sure that the activities of FnF are consistent with the Public Interest", that is, the coercive power to use FnF for Public Policy, not contemplated in the Charter, and it's the reason that he claims in his brief that would make FHFA unconstitutional, due to the Separation of Powers and non-delegation doctrine.
3 outright liars before the 9 Scotus Justices is unacceptable.
I expect a final resolution before the Oral Arguments, both about Fanniegate and the dissolution of the FHFA.
