Fannie Mae-No Politics (FNMA)

[bcde]

"***BOOM***EXPLANATION OF THE INCIDENTAL POWER OF THE CONSERVATOR."

The financially and technically illiterate judges do not even understand differences between FDIC, a deposit insurance corporation and FHFA a purely regulatory bureaucratic agency.

As a insurer FDIC pays depositor any losses in their deposits with the banks. So FDIC has legal rights to act in its own interest to minimize the losses.

FHFA is not a financial institution and is not involved in any such payouts. FnF MBS are not insured or guaranteed by any one. Investors take the losses in case of bankruptcy.

If people were to understand these simple facts they would not be making such meaningless laws (this include the man who helped to draft HERA) and the people will not be interpreting these clauses in such meaningless manner. No where in the world Conservators are allowed to make decisions in the best interest of themselves at the cost of conservatees. In the case of FDIC it is both insurer and conservator and one can understand the application of the clause.


Please do post comments with any other views.

It is amazing that most learned Justices made wrong interpretation of the clause without understand the purpose of it. In fact the SCOTUS should have struck down the clause as not applicable or moot in case of FHFA.